THE JEM DIGEST

You don’t need a fancy VC raise to start you business. Bootstrapping is all about making the most of what you have and leveraging your resources wisely. It’s a challenging but incredibly rewarding path. In my personal opinion, as someone who has done it both ways, there are a lot of positive to bootstrapping over raising capital. Your idea stays pure, untethered to financial incentives other than what you can accomplish through sales and also, it stays 100% yours. Some of the biggest companies in the world started with this approach. Air BnB started by leveraging listings on Craigslist before they had their own tech and there are a million stories just like this one. Here are some things to think about when bootstrapping:

1. Start with a Lean Approach - Focus on the essentials and avoid unnecessary expenses. Create a minimum viable product (MVP) that allows you to test your idea with minimal investment. The goal is to validate your concept and gather feedback without overspending. This lean approach helps you conserve resources while proving your idea’s viability. Also, think outside the box. What existing platforms can you leverage to create the product that you want?

2. Leverage Your Network - Tap into your network for support and resources. Reach out to friends, family, and professional connections who might offer advice, or mentorship. Building a strong network can provide you with valuable insights and connections that can help you navigate the early stages of your business.

3. Bootstrap Your Way with Sweat Equity - Put in the time and effort yourself to save on labor costs. Embrace the grind and handle tasks like marketing, design, and development on your own. While it might be challenging, it’s also a great way to learn the ins and outs of your business and keep costs down.

4. Generate Early Revenue - Focus on creating a revenue stream as soon as possible. This could be through pre-sales, service contracts, or early customer subscriptions. Generating revenue early helps you validate your business model and reinvest profits back into the business, reducing your reliance on external funding.

5. Be Resourceful with Your Budget - Make every dollar count by being strategic with your spending. Look for cost-effective tools, services, and solutions that fit within your budget. Utilize free or low-cost resources for marketing, design, and operations. Being resourceful will help you stretch your budget and keep your business lean.

Bootstrapping your business requires creativity, resourcefulness, and a willingness to hustle. By starting lean, leveraging your network, and focusing on early revenue, you can turn your business idea into a reality without needing significant external funding. Remember, every great company (like Air BnB) started somewhere—embrace the journey and build your success from the ground up.