STRATEGY #1: USE BOOTSTRAPPING TO MAKE THE MOST OF WHAT YOU HAVE 4 PROVEN STRATEGIES TO SUCCEED
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2 4 PROVEN STRATEGIES TO SUCCEED To be successful in business, you need to turn your resources into profits. Unfortunately, many entrepreneurs consider money the only resource that will make their business a success. As a result, too many would-be entrepreneurs tell themselves they can t make their dreams happen. They postpone or worse yet, abandon their dreams of starting their own business. Still others, who have already made the entrepreneurial leap, give up and close shop due to lack of funds. Having enough capital may be seen as an advantage, but when it comes to starting or growing your business, money is only a measuring stick, not a necessity. Successful entrepreneurs are those who choose to turn ideas into reality regardless of the perceived obstacles. When money is scarce, they know there is plenty they can do that doesn t require money. Their motivation, drive, commitment, and hard work become the go to resources. Starting and successfully running a company takes more than money. If you have the desire to be an entrepreneur, but finances are tight, know that you can be successful. By using the suggestions below, anyone can overcome the obstacle of having little to no money. STRATEGY #1: USE BOOTSTRAPPING TO MAKE THE MOST OF WHAT YOU HAVE Bootstrapping is one of the most common and effective ways to start a new venture when funds are tight. While it does require a leap of faith, you shouldn t fear starting a business with little to no capital. Simply put, bootstrapping is the discipline of covering your operating expenses using only the revenue generated by the business. In other words, you only spend what you can afford. In addition to the financially responsible benefits of this approach, bootstrapping provides motivation to put forth the extra effort to increase revenue. When your business needs a $100 more to keep the lights on, you ll be surprised at how creative and committed you can become in generating an additional $100 of revenue. Bootstrapping also forces you to find original ways to keep operating expenses at a bare minimum. Every business has a starting point and your starting point will never be ideal. You ll always wish you had more of something. But, a belief in your idea backed by personal determination and the willingness to do whatever it takes is all of the capital you need. 2
3 In addition, bootstrapping can be extremely rewarding. An entrepreneur who has put her all into building a business can say, I did this with more sincerity, than someone who, had to rely on outside funding. With bootstrapping, you are the business. You are the lifeblood. Is it time to draw a line in the sand? With one-step forward, you can become the leader of your new company. Survival depends on profitability. If from day one, every financial decision is focused on increasing revenue and decreasing expenses, than you can do it. Believe in yourself and your idea. Spend time working rather than trying to borrow a lot of money. 1. Think through your internal financial needs. Create goals, plans, and timelines for achieving your financial projections. Know what projects you need to accomplish first. 2. When bootstrapping your business, you are not alone. Regardless of how long you have been in business, one of the fastest ways to grow your business is to find mentors and learn from them. Pick up the phone and make appointments to meet with successful business people. Talk to men and women who are continuing to grow their business and find out how they spend their time. How many sales calls do they make each day? What would they have done differently? What were their greatest decisions? Become a student of profit and loss statements. Continually ask questions. What projects did they focus on in the first year of business? To remain dedicated to your dream, spend time with leaders you respect. Learn from their lessons. Then, do what they do. STRATEGY #2: THERE IS NO SUBSTITUTE FOR FOCUS, EFFORT, AND HARD WORK Focus, effort, and hard work will separate your business from the competition when money cannot. Athletes are great examples of men and women who are willing to sweat and push through pain to achieve their goals. In fact, their drive is what makes them great and not the winning of awards. Awards, medals, and championships are outward confirmations of their greatness, but what really made them great was the moment they decided to commit whatever it takes. 3
4 Starting and running a company requires more than a killer product or idea. Do you have the burning desire to win? Do you have the internal character to work harder than you have ever worked before? Are you willing to work on a project for weeks only to be met with a no? Initially, you are the only employee. You are the head of strategic planning, the lead project director, the sales person, the marketing manager, and the bookkeeper. As a result, your work will creep into every facet of your life. Wearing so many hats can quickly lead to distraction, interruption, and being overwhelmed. All of which dilutes your focus, effort, and hard work. Forgotten phone calls, lost pieces of paper, missed appointments, and broken promises are just a few examples. This mental and physical disorganization stops you from starting and completing even the simple tasks. From there you begin to allow project after project to sit on your desk leaving you feeling frozen and anxious. Distraction and interruption are thieves. If not dealt with they will steal your motivation and replace your dreams with anxiety and stress. The way to deal with them is through prioritized and focused work. This means investing the physical and mental capital you have in to completing the individual projects and tasks, you need to complete. 1. Be patient. Great businesses are not built overnight. 2. You will need to work hard to grow your business, but a few common-sense steps will reduce anxiety and stress. Budget time to sleep, exercise, and commit to a balanced and nutritious diet. 3. Stop the obvious distractions. Get rid of the clutter. Organize your office. Turn off social media and messaging alerts where appropriate. Do not lose time running personal errands or having long lunches that interrupt your workflow. Time is your most valuable asset. Don t waste it. 4. No one is able to complete every project in a single day. Prioritize. STRATEGY #3: KEEP MARKETING COSTS DOWN WITH SOCIAL MEDIA You are the only person who can authentically tell the story of your company. However, when raving fans of your products and services shout from the rooftop, people from all over the world become your marketing staff. 4
5 Marketing today is about creating relationships. Individuals are hardwired to do business with people they know, like, and trust. While you must let the world know about your business and your products, in today s social media world, marketing is not about selling your product as much as it is sharing your story. Your online marketing strategy should focus on sharing valuable and useful information to your customers. In order to bring that value to your customers, you need a plan. While some companies social media efforts appear to be random and haphazard, effective companies campaigns are well planned out and deliberate in their intent. By having a defined purpose, you bring focus and meaning to your social media efforts. As your campaign rolls out, pay special attention to comments from your followers. A benefit of social media is that it allows you to interact with your customers. Through it, you can solicit feedback, gather recommendations, and reward loyalty. Not only does this solidify your customer base, but if done judiciously, it can help you tweak your offerings to appeal to more people. 1. Follow other companies who are active in the social media space. What are they doing? Try to determine their strategy. How are they interacting with their customers? 2. Authentic social media can build relationships, so tell your story. Share who you are and what you believe. Blog and tell consumers how your ideas and innovations will make their lives better. 3. Imagine your online presence as the front door of your business. When visitors follow you, what will they find? Do your social media accounts answer questions relevant to your visitors? 4. Do not be afraid of playing in the social media space. Trial and error will help you determine how to develop raving fans that will spread your message. STRATEGY #4: LEARN FROM YOUR MISTAKES AND MAKE ADJUSTMENTS In business, mistakes happen in a variety of ways: a miscalculation in your accounting, poor judgment when hiring vendors, incorrectly estimating your profit margins, or underestimating your expenses. Even small mistakes can be expensive; therefore, it is important to limit their financial impact on your growing company. 5
6 However, mistakes add great value to your company too. Mistakes are great teachers if you take time to learn from them. When you make a mistake, find out why it happened, and take the time to learn from it. Don t quickly dismiss it. When ego keeps you from taking the time to examine your mistakes, you set yourself up to repeat it. Growth occurs when you do something differently from what you did yesterday. Learning from your mistakes shines a light on what you need to adjust and do differently. These adjustments can lead to innovating your business. In addition, innovation itself, cannot take place without making mistakes along the way. 1. Take ownership of your mistakes. When you make a mistake, lay down your pride, and look forward. Do not blame an external circumstance, or someone else. As the leader of your business, you are the responsible person. 2. Stop pondering what you have done wrong. Worry is not a profitable use of your time. A better use of your time is finding out what what wrong and how you can keep it from happening again. 3. Rebound from your mistakes. Given two athletes with the same talent, the one who can shake off a mistake while learning from it will always be the better athlete. 4. A plane flying between point A and point B is off course a majority of the time. It only arrives at point B by consistently making course corrections. Consistently measure performance against goals. What do you need to fix or adjust so you can reach your goals? The Bottom Line As soon as you start thinking of money as a luxury instead of a necessity, you can begin to break down the mental barriers that stop would-be entrepreneurs. The tips listed here are just a sample of how you can be successful without having to spend a lot of money. Successful entrepreneurs don t give up when faced with an obstacle even when that obstacle is lack of money. You shouldn t let it stop you either. 6
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