| Do you want to start a business, but you have | | | | bootstrap a new business with zero funds? |
| absolutely no money to invest in it up front? | | | | Most business planners agree that knowledge |
| Don't despair! You're certainly not alone and | | | | about a particular business or industry is |
| you may find that your business will actually | | | | the best asset you can start with. If you are |
| turn out better. Chances are your business | | | | an expert in a specific subject (or you |
| will be healthier and better equipped to | | | | choose to become an expert in an area), then |
| respond to change. You'll learn creative new | | | | you should also have useful knowledge about |
| ways to handle different challenging | | | | that market--the sources, the competition, |
| situations. However, success will require a | | | | the major players, the likelihood of future |
| healthy dose of time and commitment to hard | | | | demand, etc. This specialized knowledge |
| work on your part. | | | | almost always helps you to find new |
| | | | opportunities and ways to creatively build a |
| When you don't have the money you think you | | | | business without the need for a fat bank |
| need to start a business, you may feel | | | | account or investment fund. |
| isolated and alone. The truth is that | | | | |
| starting a business with zero funds is so | | | | If you want to start a business from scratch |
| common that there is a word for | | | | without major funding, you'll have to make up |
| it--bootstrapping. The term comes from the | | | | the difference with hard work and a huge |
| idea that you can "pull yourself up using | | | | investment of your time. So it's best to |
| your own bootstraps." Although that might be | | | | stick with something you are passionate |
| physically doubtful, it is possible to | | | | about. You need to believe in what you're |
| creatively gather and apply scarce resources | | | | doing and believe in yourself. Successful |
| to start a business. It may not be the most | | | | bootstrapping will require personal |
| comfortable way to start a new business, | | | | sacrifice, so be sure you start something |
| there are advantages to avoiding entangling | | | | that's worth it to you. |
| relationships with investors, lenders or | | | | |
| venture capitalists. | | | | When it comes to starting a business with |
| | | | zero funds, providing services is usually the |
| Those who support the practice of | | | | best choice. Selling products usually |
| bootstrapping your new business into | | | | requires a cash investment at the beginning |
| existence point out that companies started in | | | | to create or purchase inventory. Plus, you'll |
| this way are usually healthier and more | | | | have to pay for storage space. But when you |
| stable in the long run. Why would this be so? | | | | are providing services, you really only need |
| Imagine you've just started a new business | | | | the tools of your trade, which you may |
| with a big wad of cash courtesy of some | | | | already own. Lower startup costs will |
| optimistic investors or venture capitalists. | | | | increase your chances for success. |
| In this situation, there is very little | | | | |
| pressure to make money immediately. There's | | | | Whenever you consider starting a business |
| no real penalty for wasteful spending or loss | | | | with zero funds, you should be open to help |
| of focus. | | | | from any and all sources. Friends and family |
| | | | can be excellent sources of "in-kind" |
| But when you're bootstrapping a new business | | | | contributions, like a place to provide |
| from a zero cash starting point, creativity | | | | services or a couch to sleep on when things |
| and problem solving are your highest | | | | are tight. Another option worth thinking |
| priority. There's no safety net of cash to | | | | about is working a part-time job to make your |
| catch you if you fall, so it's essential to | | | | living expenses and building your business |
| keep your eyes on the task of creating | | | | the rest of the time. Once your new business |
| profit. Not only does this make you more | | | | starts showing a profit, you can drop the |
| successful more quickly, it also provides | | | | part-time job and put 100 percent of your |
| excellent training for future periods of | | | | time into your new endeavor. |
| rapid growth. Many businesses often have | | | | |
| difficulty if the needs of growth are greater | | | | Starting a company without any startup money |
| than current cash flow. Business started by | | | | may seem like a crazy idea, but people do it |
| bootstrapping don't have this problem because | | | | successfully all the time. The businesses |
| this is where bootstrappers live--using | | | | that emerge from this process are flexible, |
| scarce resources creatively to meet the needs | | | | adaptable, and never have cash flow worries. |
| of business growth. | | | | When you start with nothing, it can only get |
| | | | better. |
| Do you have what it takes to successfully | | | | |