Bootstrapping makes you a better entrepreneur

Narendra Kumar Shyamsukha 

A decade ago, if you didn't have money, you couldn't think of starting a business. Today, it's different. If you have a good business idea and a viable plan there are investors willing to put their money on you. You also have to be lucky. Not all start-ups have the good fortune of financial support from outside in the initial stages. The only option then is to bootstrap -- fund your business out of your own pocket.

Though it is an honorable way to start a business, bootstrapping is not easy. It involves hard work. Investors generally shy away from first-timers. You have to prove yourself to inspire investors' confidence. But if you make the right moves as a start-up, you can move fast up the success ladder and soon there will be no dearth of investors. What are these moves? To survive a bootstrapping journey you have to build your enterprise on a few important basics:

Get asound business partner 

Going solo is has its thrills, but it might be safer to get a sound business partner who has a different perspective and also different skill sets so that the two co-founders can supplement and complement each other in terms of intellectual and material resources and put the company on the growth path quickly. 

Choose a business that promises early cash

It doesn't make business sense to exhaust all your capital before the venture can take off. For this it is important that you choose your business venture smartly.  It's not advisable to pick on something which has a long gestation period. A business model which promises early cash flow is always more viable. Having to hold on long to see investment show results is not for startups.

Hire people with talent and commitment

This is crucial. The success of your enterprise hinges on this, so be very careful while hiring.  Have a lean team that knows how to deliver fast.  Get the right mix of talent for the various jobs that need to be done. Look for commitment and offer reasonable salaries. Hire people with potential who are likely to stick around for a while.

Cut out the frills, confine yourself to basics

This is not the time for impulsive buys, whether for yourself or for the office. Consider every purchase and spend only on essentialstill you can break even. Confining yourself to basics, might makeyou feel deprived, but tell yourself it is for a better future. Unless you tightened your belt, expenditure might spiral out of control which will not be good for you and your outfit.   

Learn to multi-task and acquire new skills

You'll be surprised by your ability to learn new things. If your business involves doing something that you have not handled before, don't immediately hire somebody for the job. See if you can learn to do it yourself.  Most things (except highly technical stuff) are not too difficult to learn. You get a hang of it, if you give it a good shot.  This way you not only save resources,but also gain the confidence that you will be able to manage things in the future on your own strength. This is valuable.

Adopt a do-it-yourself policy

This is the time to conserve your resources, so don't outsource jobs that you can do yourself. No one can do a job as diligently and as inexpensively as you, since you have a personal stake in seeing your business flourish. Conserve your capital, time and energy by adopting the do it yourself policy. It will serve you well in the long run.  

Save on small things wherever you can

It helps. Opt for functional over fancy - whether it is office space, equipment or stationery. If you are really strapped for cash, consider buying second-hand stuff. You can replace them slowly with new ones once business starts looking up. That's being pragmatic and realistic - useful prerequisites of successful business.      

Avoid risky investments and opportunities 

Once your company has taken off and started giving returns, it might be okay to take risks, but at the nascent stage, steer clear of any risky investment even if it looks promising in the long run. Your goal should be to get the fledgling company off the ground, so avoid tricky opportunities that could derail you. Weigh the pros and cons cool-headedly before making any business commitment.

Be gritty and persistent

Don't let a "no' discourage you. There will be times when people will turn you down. There will be setbacks. Don't get disillusioned or disheartened. Dig in your heels and carry on. It pays to be persistent. Establish a good reproach with business associates. Build personal connections with people who matter. It might help your business in the long run. You have to persevere to succeed. 

Bootstrapping a business is difficult, but it has its rewards. It's an investment you make of your time, energy and resources and wait patiently to reap the benefits. 

— The writer is Chairman, ICA Edu Skills Pvt Ltd