Many people would love to start their own business. You may be one of those people. What prevents you from starting one?
For most people the answer would be that they don’t have enough capital and cannot borrow enough money to start. But do you need money to start? There is a principle called ‘bootstrapping’ where you will start a business using the resources that you already have and then to earn enough money put back into the business and grow it. Many people are now known as Five to Niners. In other words they have a job then go home and work on their own business, reducing when possible the employed hours and increasing their self employed..
If you already have a phone, computer and printer you already have office equipment. Depending on the type of business you want to start you may already have other suitable equipment. For example if you wanted to do simple home repairs you will most likely have tools suitable for jobs that customers would likely want you to do. If you start small you can do jobs that you have the equipment for or hire essential equipment for one off use. As you earn buy only things that are essential so that you can move your business to the next level.
If you want to start retailing set up an EBay store followed by your own Website when you can afford to. Bootstrapping is a great way to start as you will avoid debt and really appreciate the value of money and how to control it. This is a tried and tested method. You do not need to look for venture capital and huge bank loans. Find ways to borrow equipment, rent or buy secondhand if possible until you earn the money and you will succeed. Do not even contemplate hiring staff! Look to outsource things like sales and secretarial work when the need for these services arises. It is surprising how little it costs for the services of a virtual assistant to answer the telephone for you when you divert unanswered calls to them.
So many businesses that have had good cash investments or bank loans at the start fail because they simply spend more than they earn. With bootstrapping you will not do this.
Always remember that starting your own business is going to be hard work and success will not come overnight. Surround yourself with people that will support you and do not give up. Give value to your customers and find a way to be better not cheaper than others. Make sure that whatever business you want to start that you will love what you do and not to do it simply for money. Successful entrepreneurs are those that love what they do and work is not a chore but a pleasure.
Original article: How To Start Your Own Business Without Borrowing Money – written by Roland Millward on Factoidz
What do you think? Have you used bootstrapping to start you own business? Enter your comments below.