Tag Archives: Bootstrapping

Bootstrapping involves launching a business on a low budget. Where you fund the business on the sales made in the business.

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Why you should be an Entrepreneur in 2011

Everyone needs to be enterprising, everyone should have the ability to look at the problems around them and think of amazing ways of making the situation into a opportunity, taking advantage of the situation. You must and have to do this for your benefit, for those around you and those you care about.

When we all think about enterprising people we think about entrepreneurs, famous people like Alan Sugar, Donald Trump and Richard Branson. These people started from nothing and built billion dollar empires spanning the globe. They command respect in their ability to think outside the box, make things around them happen, have a brilliant vision which we can buy into and all admire.

Entrepreneurs are motivated by many things, for some its financial wealth, having authority, providing social good, commanding a business empire or just being able to do what they love. However, this motive drives them to get up every day and make the world around them a better place, a place where we can coexist.

They are just like you, and you need to find what is your entrepreneurial motivation, why are you going to get up every morning and make that difference? How will this motivation be so strong that you will have the courage to keep your businesses moving forward while others would have updated their CV, looked on the internet job sites and asked their friends if they know of any vacancies.

Finding the real motivation is the main reason the majority of people don’t start a business, it’s the single largest reason why you should start a business.

No one in the UK has ever been put to death for having a business failure.

So why do you think you will be the first, why do you think having the experience of starting a business, finding new contacts, building professional relationships with people across the world and learning diverse skills from budgeting, marketing and people management will result in you being worst off?

Starting a business and becoming an entrepreneur will make you a better person

96% of businesses in the UK are small business, with less than 10 people, (99% have less than 50) so if you fail you can become a valued employee in another small business, having developed those skills which every SME business in the UK is looking for.

Having ‘started a business’ on your CV will be attractive to employers.

The experience you develop as an entrepreneur will help you develop your other business ideas, which you will be able to take further. This means when you are ready to start thinking about a new idea, based on hard knowledge, based on real industrial experience, based on the best education the world has to offer, real world experience. Just remember you can’t read about experience you have to do it.

So just do It!


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Bootstrapping

It seems that most people expect others to finance their business. The fact being, that if you are not prepared to put your money in then why should others. Most people then give up on their ideas as they believe other don’t see the value in the business. This is not true.

The most important person who should believe in your business is a customer who is parting with their cash. This person is the top of the business value chain and is your champion, they are the customer and always always right. So find this person to help start your business.

You owe this person everything, because without them you have nothing. Even if you were able to get all the money in the world to start your business, yet had not a single paying customer then you still don’t have a business. I just have to say dot com.

Therefore, bootstrapping is the process of starting a business based on customers paying you for products and services. The profit from this sale (money) is put back into the business to fund the next round of customers. Each time you sell something you make a profit and the business builds it value. This is the way the majority of businesses start and grow. Therefore it should be a major part of your business plan, growth strategy and business launch.

When I tell people this they come back with:

So what if I need to buy some major equipment? Lease it and ensure the profit is still there based on the sales and cash flow.

So what if I need to have some offices? You can only afford offices once your cash flow provides the capacity to do so. So either hot desk or find a more cost effective solution.

So what if I need to hire 50 people and a large factory to make the product? You will have to outsource the production and pay for the completed products.

Bootstrapping allows you to own your business from the very start which means you will always be in the most powerful position when it comes to dealing with new shareholders, banks, suppliers, customers and staff.