More bootstrapping tips for the New Year

Filed in archive Bootstrapper Resources on January 3, 2008

As 2008 begins, here are some more tips for bootstrapping your new business in the New Year.

• Join a group. Be it our own Bootstrap Yahoo! Group or MyBlogLog Bootstrapper's Club or the growing Bootstrapping Network or other group, seeking out other bootstrappers and entrepreneurs can give great feedback.
• Test the waters. This should probably go without saying but you'll need to find some customers. Dane Carlson advises entrepreneurs not to quit their day job in favor of their new business unless they've convinced at least one person they didn't already know to buy their product. Greg Gianforte advocates bootstrapping because it initiates the selling process quickly telling you whether or not you have a business.
• Target a need. This may be part of the process above. By getting feedback from customers, either positive or negative, you'll gain valuable information about what customers really want and be able to adjust your assumptions accordingly.
• Focus on cash. Whether it's from your intended primary product or service or from something secondary like consulting or revenue from a website, cash flow is imperative because it will provide resources to further build your bootstrap business.
• Keep costs low. This is part of the reason startup guru Guy Kawasaki in the link above suggests service businesses as the ultimate bootstrap startup is that you can focus on getting cash up front. Another positive is that you have few costs up front.