DISQUS

Corey Thomas · 3 weeks ago

Great article. As someone who is currently trying to get a business started by bootstrapping, this just reaffirms that I made the right decision.

thewordpainter · 3 weeks ago

Great writeup, Clate. I've already sent it out to my team.

My favorite line was #6 "You’ll employ missionaries instead of mercenaries" -- not only does that apply to the team involved, but also to the passionate buyers/fans esp with a consumer facing product.

"Good is good enough" -- that's exactly what I've been preaching as we've been bootstrapping. Stop focusing on perfection. It also gives your users something to look forward to as it's always best to under-promise & over-deliver

in our case, we've bootstrapped our startup (www.gorankem.com) for over two years. Somehow/someway I've managed to spend <$1,500 to date with only three real business expenses (8 months of cloud hosting, initial graphics and....business cards!!). It sure doesn't hurt that nobody on the core team has taken any pay to date :)

We've grown stronger throughout the process, and I love our prospects moving forward.

-Adam Wexler

MarianaRevo · 3 weeks ago

People who go unpaid for a an extended period of time - no matter how passionate they may be - will likely burn out. It's important to provide some incentive or motivation - especially if the people are directly part of the product or service delivery and dealing with customers.

thewordpainter · 2 weeks ago

i completely agree, and i'd love to hear some ideas. to your point though, the ones that take off usually weren't passionate enough or big enough believers in the first place (i'm talking college-kids or recent graduates = very few bills to pay).

in my opinion, the best way to keep them on board & focused is to create a collaborative atmosphere that is lax (to a degree) but exciting. always keep the big picture in mind, but stay focused on one step at a time

Vidar · 2 weeks ago

It's an old cliche i business that smart companies underpromise and overdeliver. In the crowded marketplace of the Internet era, underpromising is actually the fastest route to oblivion. The radical new approach is to overpromise and overdeliver: Overpromise to stand out and differensiate yourself in the marketplace and lure customers in, and then overdeliver to keep them! If you can do that, you'll also create raving fans that will spread the word about you for free. Perfect for bootstrapping!

thewordpainter · 2 weeks ago

great stuff, Vidar. i think what you said epitomizes what 25yo Daniel Ek is doing with Spotify. he's big & brash with all of his statements (even going as far as claiming merch sales will be one of their revenue streams!)....and he's got plenty of doubters, but i LOVE his tenacity!

how do you think overpromise/overdeliver works with investors?

Vidar · 2 weeks ago

I think among the things investors look for, a clearly differentiated brand is pretty high on their list because they know customers are willing to pay a high premium for a differentiated product.

I think the story of Clate and Infusionsoft is a clear testimony to the power of overpromising ("Double Your Sales") and overdelivering as a means of attracting both customers and investors!

~Vidar

Joseph Manna · 3 weeks ago

Thanks Clate for sharing these insightful tips. It's very elightening to see how possible it is to start and grow a sustainable business with your advice. I find your advice is very comforting and encouraging for business owners of any size business.

~Joe

Tony Eyles · 3 weeks ago

great list Clate! Well done. Bootstrapping is a harder, slower road but can be very rewarding for the founders and ultimately create a more robust solution for customers. Customers may be the best source of capital.

Tim Read: Ripplenet web design · 3 weeks ago

I'm bootstrapping right now - it feels like you're on the edge of a cliff most of the time, but I'd rather that than risk someone else's money. And each client you get is one step closer to success - soooo good.

juth · 3 weeks ago

I really enjoyed this article - comes at a good time.

I've been bootstrapping since 2005 and have finally decided to pursue the raising VC route. One guy can only grow a business so far, even with automation. The big deciding factor for me is having too many ideas and opportunities left on the table and needing to bring more people in to help turn them into real products and profits.

If any investors are interested in learning more, please feel free to contact me via our website (www.adwordaccelerator.com).

Ravi Janardhan · 3 weeks ago

Thanks Clate, It's eye-opener!
I think one has to bootstrap, at least until he/she proves successful in business, and then will have developed a mindset as well as system to take it from there to the next level thru VC route.
The accopanying comments are equally enlightening, thanks to all!

Ryan · 3 weeks ago

Clate, in regards to the Minimum Viable Product concept, would you also extend that to things such as business incorporation, trademarks, and other non-product related activities? What would you do at a minimum prior to a Minimum Viable Product rollout on the business side for an internet company?

Type I entrepreneur · 3 weeks ago

There are 2 types of entrepreneurs -- a) who can raise money on a powerpoint b) who can't raise money unless they prove 'traction'.

Great post for the 2nd type of entrepreneurs.

Jarrod Morris · 3 weeks ago

These are all great points. When it comes to personal finances, going into debt often places an undue burden on your shoulders that is stressful, exhausting and at times, depressing. The same is true in business.

In addition to my current service business, I am getting ready to launch a product-based business so I especially appreciate number 8 - which talks about creating your Minimum Viable Product. Fancy term, and I'd love to find out if that is from a business book.

To dumb it down a bit, version one is better than version none. Entrepreneurs must simplify and get "perfection" out of their minds if they want to accelerate ROI and generate revenue today, not tomorrow.

Thanks for these fabulous insights Clate.

~ Jarrod Morris
http://imarketingmavens.com

LOLya · 3 weeks ago

Inspired with an idea of putting together "Bootstrap it" workshop - "How to run your business on oodles and noodles - ramen approach to bootstrapping your business". In the past, I have matched startups with angels/VCs. It makes sense to try natural remedy first before taking an "angel" pill!

Andee Sellman, One Sherpa · 3 weeks ago

Great tips Clate.
I came out of coproate into my own business and had all the wrong ideas about working in a small business. If I'd acted as though I was a small nobody right from the start I would have saved a whole bunch of money and built a business which had much more focus. My experience from being in a coporate strategy role was that I never really got to the customer level becasue there were so many levels of management between me and the customer
http://www.onesherpa.com

Josephine · 3 weeks ago

great points! I like #2, the "strategy trap"...coming fr the corporate world, realise there were lots of things to UNLEARN, that is one of them.

Founder · 3 weeks ago

Spot on. In business for almost 2.5 years and have bootstrapped our company. As a result we have awesome technology and great passionate users. Oh and all of our employees still with us have been here for almost all those years. The only people who left were asked to leave.

Herrick Lim · 2 weeks ago

Great article Clate, It gives me inspiration as well the hope that startups can be done with minimal capital. I've always perceived doing business as very capital intensive but you have convinced me otherwise. Go to where the money is and get your hands dirty were the main points i've learnt from your article. Cheers.

Lisa Mason Minter · 2 weeks ago

This is an awesome article and helps to make me feel more confident about my own decision to start my own design firm (www.virtuellehomestaging.com). We started out as an in-home staging business but the housing market sank and so did the work. I recently decided to go all virtuall all the time and now can better manage the business and know exactly what overhead I have. There is no real inventory, less paperwork and more time to really focus on delivering the best design consultations that I can and really offering this great home marketing tool. There have been times that I floated the business, but going this route has taught me to really appreciate my company because it really has been blood, sweat and tears. I love this article so much, I think I'm going to print it and hang it in my office. LOL!

Chris Lee · 1 week ago

Nice article, Clate!

While we are a services company many of the points hit home here too. Things to feel good about as we keep on keeping on.