“Boot strapping” a business without external funding
Written by Peter Dickenson
You can’t always choose your own starting point when you start a business. Sometimes it is good luck or misfortune that finds you making that life changing decision to start a business.
Even in more favourable times, finding somebody to back your venture was difficult and these days it is even harder.
Thus one route to starting a business with minimal investment is to find a niche in the local market place, which will allow you to generate a revenue stream. The market needs to be one that you want to grow into, based on your expertise or knowledge and growth possibilities if you had the investment. This is known as “boot strapping” a business. In effect pulling itself up by its boot straps. Your goal then is to build contacts, market and industry knowledge and a business system that generates cash.
This is where you learn first hand, how to get to know your market, how to communicate with it, how to bring new products and services to it and start to develop your brand whilst building a team and systems around you which can help you achieve your goals.
From experience most business owners are able to supply their products and services to the customer and with a bit of training, to produce a set of accounts using modern payroll and accounting software. What seems to be lacking and where the new entrepreneur needs help with, is marketing and subsequently sales and understanding their processes from their customers’ perspective. With so many routes to market today, it can be quite challenging for the new entrepreneur to know which route(s) to take.
Most start-ups use previous contacts to get going. Most people have sufficient contacts within their industry to get started. This can be a previous employer or if that business has failed their customer list…”
Peter Dickinson has worked with over 250 businesses and organisations in the UK as a director, business coach and facilitator to help them start and grow. He is co-author of five A6 practical business basics books called, “How to create your own successful business”, “How to successfully sell your products and services”, “How to manage your team and yourself for success”, “How to make big profits from small steps” and “How to improve your employability opportunities”.