The Broke Biz Owner’s Dilemma: 3 Ways To Bootstrap From Nothing
As a budding business owner, you’re no stranger to hard work. But you can only work hard for so long: sometimes you just need cold, hard cash to move the needle for your business.
Short of taking on an investor, how can you get much-needed cash while your business is small? Instead of navigating the murky waters that are equity deals, try these 3 approaches first.
Tip #1: Minimize expenses
Maybe this is an obvious one, but don’t spend money that your business doesn’t have. Now’s the time to minimize expenses as much as possible. While a $500 conference ticket sounds awesome, it’s not always feasible in your early days.
Sometimes you need to go without until you’re profitable. That means:
Wearing all the hats and working the hours (don’t worry—this is temporary).
DIYing where you can. Ie. using a Google Sheet to track your finances instead of paying for an accountant.
Making do with current assets. That might mean using your kitchen table as an office or meeting clients at the coffee shop for now.
Tip #2: Barter
Bartering is an age-old tradition for good reason: it’s an affordable way to get the things you need.
For example, if you’re a social media strategist and desperately need help with your books, you can barter services with an accountant. They get social media help and, in turn, clean up your books. It’s a win-win!
Bartering generally works for exchanging services, but it’s also great for goods, too. It costs you nothing except time, and with the right arrangement, everybody walks away as a winner.
Tip #3: Choose digital over physical
Physical things like a retail space, flyers, and even products sound great, but they can dry up your bank account quickly.
Right now, lean on digital-first strategies for your business. That means branding yourself online and highlighting your differentiators. Try selling a digital product before a physical one or creating a website before purchasing retail space.
Your business won’t be small forever. Over time, you’ll find more clients and have the funds to invest in your business. Get scrappy and bootstrap smart to grow a successful, thriving operation going forward.