6 Bootstrapping Tips for Small Business

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Do you want to start your business but have little money? Before you look to banks and similar sources of financing, why not bootstrap your way to business success?

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6 Bootstrapping Tips for Small Business

  1. 1. 6 TIPS FOR STARTINGA SMALL BUSINESS BYBOOTSTRAPPING
  2. 2. Do you want to start your business but have little money?Before you look to banks and similar sources of financing,why not bootstrap your way to business success?A bootstrap is a small loop of leather or other material thatis found on the top rear or sides of a boot. The purpose ofthe bootstrap is to help you pull your boot on.In business, “bootstrapping” has come to mean helpingoneself without seeking outside help.It means using your own resources to finance, promote,and develop your business. Here, then, are some ways offinancing your own business by using your own initiativeand depending less on outside bank financing.
  3. 3. 1. Operate a Home-Based Business: starting a smallbusiness that operates from home could save you afortune. First of all, you eliminate the costs ofexpensive commercial rent, commuting, et cetera. Aswell, your business use of home expenses would bedeductible for income tax purposes. Since your homeis your base of operations, your travel andautomotive expenses from your home to clientswould be deductible. Check with your communityordinances first, however, to avoid troubles later.Click to find the licensing and permits you’ll need to startup your business operations from home.
  4. 4. 2. Accept Credit Cards: Rather than financingreceivables and assuming the risk for bad debts,why not accept credit card payments? I wasshocked when I overheard a small businessowner state that he refused to pay thepercentage of his sales to a merchant account;therefore he refused to accept credit cards. Hewas clearly focused on the wrong numbers! And,he didn’t understand why he couldn’t get hisbusiness to grow! Instead of seeing howaccepting credit cards would grow his businessby making it easier for his customers to dobusiness with him, he accepted only cash andchecks. And, he was in a “high ticket” servicesbusiness!Click here to read how to use credit cards tostart up your small business.
  5. 5. 3. Drop Ship Products: Rather than financing andstocking inventory yourself, consider dropshipping. With drop shipping, when you make asale you contact the manufacturer or authorizeddistributor who ships the product to the customerwith your invoice and shipping label. Advantagesinclude no warehousing, shipping, or inventorycosts.4. Use Your Customer`s Money: Sellingmemberships, subscriptions, giftcertificates, taking advance orders, andcoupon books are just a few ways ofgetting your clients to pay upfront.Obtaining advance deposits and retainersfrom your customers can help finance yourbusiness operations and reduce oreliminate the need for bank financing.
  6. 6. 5. Licensing: Instead of trying to finance the manufacturingand marketing of your invention, which could cost millions ofdollars before you have your first sale, why not license it toa company with the necessary expertise and capital? Youwill then receive royalties in return for your idea. Thousandsof people have gleaned millions of dollars following thelicensing blueprint.Click here to get the Beginners’ Guide to Licensing YourIdeas to Fortune 500 Companies and start up your business.
  7. 7. 6. Other Bootstrap Financing Methods: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do whatever else is necessary to generate cash flow and profits
  8. 8. In these ways and many others not listed here, you may be ableto start and grow your business successfully with very limitedcapital. Thus, you will avoid having to obtain expensive debt orequity financing. Keep in mind that many who were unable toobtain financing from any other source have successfullybootstrapped their way to business success and were able tosecure growth financing with an established business trackrecord.Click Here for 26 Places to Find Capital to Start-Up Your Business.
  9. 9. Team Scorpion (Veteran Owned Small Business DevelopmentTeam) and I are looking for 5 veterans ,or military spouses thatI can commit my time and energy to help them be successfuland get paid!I’m not looking to work with just anyone.Serious inquires ONLY from people who desire change andcan use an extra $2000-$3000 a month.Use this money to capitalize your start up or pay off any debtsthat you may have AND build your business’ Internet presence.
  10. 10. Hi, Im Deanna Wharwood and Im known as the VeteransCoach. I help active duty, veterans and their families transitionfrom military life to their dream life through a proven process oftransition assistance coaching and small business start up. Imnot a mental health professional. However, I believed that itwas important to get this information to our community.If you feel I can be of service to you, helping you and yourfamily transition from military life, find jobs you love, or startyour own business, contact me on DeannaWharwood.com.More importantly, please share this information with those whomay need it. And..."Welcome Home!"Best,Deanna
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