In a developing country like India, there are no dimensions to growth when we talk about growth of startups. If a startup is able to meet customers satisfaction level to even 65-75% in terms of services/products provided by the particular startup it is believed that such startups are going to achieve something really big in near future. India is a country which is using aggressive approach to bring up new business models and new startups, by breaking old hierarchical rule set structure for startups. Government of India is helping new companies/startups in various ways; government is providing startups with great funds and various other facilities under schemes like of startup India action plan. They are ready to give light to ideas of upcoming startups. Even the states are supporting startups to grow. These initiatives are of government of India are trying to build an ecosystem for innovation.
In current scenario we have seen that there is a huge growth in number of startups some of them are unique while some are using ideas of big players of the market. Making money is not difficult for startups but the main challenge is to be consistent in making business and profits and above all happy customers. When a startup is not doing well in terms of generating funds or let’s says it is not able to keep up with the current funds, they are left with one and only option which is bootstrapping.
Bootstrapping is unique in its own way, it helps you to find and hunt down right set of talent to work with and also it allows you to find the correct set of partners. When a startup bootstraps it is bounded to get good as soon as possible. Humans tend to put in efforts only to the required level of efforts in any task, ignoring the fact that we do have some extra gears to work even better. Anywhere around the globe a startup is required to learn and improve constantly. Bootstrapping forces a startup to just the same.
- Attracting new and good talent
It is obvious that company is short on funds and is not able to hire employees with great experience and high-profile talent. Now, new talent comes into the picture to show their potential. New talent is always ready to learn and develop with time. New talent grows in two dimensions (himself and the company).
- Teaches to work with small funds
When a company is short on funds it is forced to work on small funds and borrowings, as a result they use aggressive approaches to generate funds by doing well. Anyone would want to do extremely well to reach a certain set of goals and for that he/she has to push their limits further to work well and work insanely well.
- Betting people on themselves
Boosting people to bet on themselves that mean asking people who are working on a salary of 12-lakhs to work on a salary of 5-lakhs in some kind of small offices. But when done it leads to generate great competitive advantage.
We live in a country where people are not able to wait for the results and when it comes to earn profits it is even more difficult for them to wait. Bootstrapping helps exactly the same. Bootstrapping helps startups with low funds or in some cases no funds. Bootstrapping is surely doing great to develop startups with amazing experiences. Bootstrapping makes a startup independent enough in its own way, because some startups are built by venture capitalists and are not able to learn new experiences from a lower level to higher level. On the other hand startups with bootstrap support companies are gaining every type of experience. Working with a small school engineer is way better than working with high-profile employees who are not ready to learn or gain new learning and experiences.
Steps are obviously important before starting a business, isn’t it?
- Try to start with selling.
The difference between a startup with zero customers and a startup with one customer is equal to the difference between ground and the sky. Try to sell from very first day, try to hunt down at least one customer on the very first day. Earn before you spend, this is the best policy to stay upon if you are starting a startup with support of bootstrapping. Best possible way to grow a startup is to grow with selling yourself on the very first day.
- A blue print of complete startup.
Don’t be a startup without any kind of blue print please. If you are only relying on bootstrapping, your startup will not go anywhere. This is a very basic rule of bootstrapping: Know what you are about to do, before you do.
Flying with eyes closed will take you to a completely wrong direction, leading to crashing of the whole idea of the startup. A blue print will be a great option before starting up with support of bootstrapping.
- List down your spending and earnings from your services/products.
- Try to save more situations.
- Earn more situations.
- Possible obstacles.
- Employee strengths and weaknesses.
- Positions to hire.
- Product detailing.
- Product sampling.
- Product positioning.
- Target customer mapping.
These are few points to be kept in mind before launching a startup finally to the market.
- Spending less, try to spend less.
As a startup using support of bootstrapping is obviously short on funds and is weak on fund support from external sources, your idea should always be to spend as little as possible in the beginning of the business. Let it earn slowly and steadily. Map out the market trends in respect of fund generated by your startup’s product/services.
Spend only on the very important and essential things. For example: Product materials, required level of raw materials, packaging materials if any. Try to spend less on manufacturing to earn more profits. Use talent of people around you for this.
- Save funds for future.
Saving funds for future is the one constant thing that we have seen when growing old in India. People in India have a tendency to save little funds for future. Bootstrapping teaches you the very same thing; you will be forced to save funds while bootstrapping a startup to gain a good growth and level in near future.
Who won’t save for future if someone is getting great returns on that in near future?
Saving for future will obviously help a startup in near future. Therefore, try to save more and earn more.
- Finally, enjoy fruits “earned” wisely.
Finally now is your time to spend more but wisely. In this situation bootstrapping obviously allows you to spend more but wisely.
Bootstrapping allows you to generate good funds very quickly but it is on your performance and efforts that keeps that fund generation constantly growing.
Keys to success when bootstrapping a startup in India
- Give valuable benefits to others.
- Managing cash flows of the business.
- Keep communicating.
- Strength is one important thing to focus on.
If you are able to do these two things with great and successful efforts, chances success of your startup are certainly very high. On the same time if you miss out to manage any of these keys, no one can save your startup with any further bootstrapping.
You get when you are ready to give something, if you out something on stake you will definitely get something from that in return. This is one of the best policies which can gain some serious loyalty, hence profits to a startup.
Managing cash flows in a startup is one of the major keys to success; this key plays a vital role in development of any startup. If a startup is able to achieve 100 percent transparency in managing cash flows, nobody in this world can stop that startup to grow constantly. It is all about funds, we all know that, do you agree with me? Because the whole logic behind using bootstrapping is cash flows and funds. Either high or low, but it is all about managing cash flows and new talent.
Communication plays a vital role in growth of any startup; it is the only way to reduce discrepancy in any organization. Most of the startups are not able to do well because of low or zero communication between the higher authorities and other employees.