Why should you bootstrap your business? How can you do it? What are the mistakes to avoid when bootstrapping your business?

1. Bootstrapping
Your Business
New York
Team Extension

2. The reality
Entrepreneur.com:
“Most first-time entrepreneurs seem to believe the myth that they need a minimum of a half a million dollars to
start a business. At least that is usually the lowest number I see requested from our local angel investment group.
In reality, over 80 percent of successful new businesses are self-funded for much less -- often as little as
$10,000.”

5. How to succeed?
1. Stick to a business domain you know and love
2. Find team members preferring equity over cash
3. Don't borrow money if you can avoid it
4. Ask for advance on royalties and vendor deferred payments
5. Negotiate inventory management with suppliers and distributors
6. Choose a business model to optimize your revenue flow and timing
7. Hit the phones and knock on doors
8. Negotiate everything and never take things at face value

6. 1. Stick to a business domain you know and love
Start a business in an area where you have some experience because the insider’s knowledge will be a great help.
Don’t dive into something unfamiliar just because it seems to have potential.

7. 2. Find team members preferring equity over
cash
People you work with must be reliable and capable of taking responsibility.
The failure of a team member is the failure of the entire business. Make sure that
your team realizes this.

8. 3. Don't borrow money if you can avoid it
Use your savings, cut expenses and choose more affordable alternatives.
Unless it’s a real crisis, stick to what you have and adjust the budget accordingly.

9. 4. Ask for advance on royalties and vendor
deferred payments
Offer the value of your business to solve other businesses’ issues.
Don’t be afraid to ask for royalties and barter offers.

10. 5. Negotiate inventory management with
suppliers and distributors
In business, everything is negotiable. But you won’t know that if you don’t bother
to ask.
Be honest about your situation and try to find a common ground.

11. 6. Choose a business model to optimize your
revenue flow and timing
Prefer quick solutions over fancier but more time-consuming ones.
Also, choose more affordable alternatives when possible.
Social media is a great place for free marketing solutions, for example.

12. 7. Hit the phones and knock on doors
Use your connections and the connections of your friends to tell about the service
you offer.
There are going to be no’s, but there are going to be a few yes’s.

13. 8. Negotiate everything and never take things at
face value
The difference in what you save with every deal adds up eventually.
When starting a business, every dollar counts, so be sure to save it when you can.