Six suggestions for bootstrap success

Filed in archive Bootstrapper Tips on August 29, 2007

Have you been turned down by banks and investors? Don't let your dream of starting a business die.

Consultant J. Stephen Pope suggests these simple steps when looking at bootstrapping almost any business with limited capital.

1. Work from home. You won't have rent or commuting expenses and many costs for home office etc. are tax deductible.

2. Embrace plastic. I've suggested before on this site that some businesses are not ready for this in the beginning because of some of the costs involved before you start making any real money, but Stephen has some interesting suggestions here worth checking out.

3. Use drop shipping. There are some interesting links here to learn more about how to sell an inventory you don't even have yet.

4. Get your money up front. Suggestions for this key bootstrapping strategy you may not yet have thought of include memberships, subscriptions, gift certificates, coupon books, advance deposits and retainers.

5. License you big idea. For more on how follow this link.

6. Do everything else you can think of. Here are the high points, some of which you may have heard before:

Aggressively control costs, barter, get extended terms from suppliers, establish strict credit and collection policies and procedures, rent (or lease) instead of buying equipment, buy used equipment instead of new, sell off excess inventory and equipment, obtain free publicity instead of paying for advertising...

Here are some more resources for financing your business startup.