How bootstrapping can help a startup in a country like India.
Career growth opportunities in a startup, for a developing country like India, tends to infinity. If a startup is able to meet even 65% of customer’s requirements in terms of its services or products, it can attain wonders in its growth years. India is currently following an aggressive approach to bring up new business models and startups, by breaking old hierarchical rule prevailing in the system. Government of India is trying to boost this sector by implementing various schemes and providing funds in favour of these new emerging business. A whole new system of innovation is being pushed into the economy which are initiating the opening of new ladders to success!
Bootstrapping is unique in its own way, it helps you to find and hunt down the right set of talent to work with and it also allows you to find the correct set of partners. When a startup bootstraps, it is bounded to get as good as soon as possible. Humans tend to put minimum 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 improvise constantly. Bootstrapping forces a startup to follow the same.
- Attracting new and deserving talent
It is obvious that a company which is short on funds and is not able to hire employees with great experience and high profile, will now seek fresh candidates who are ready to learn and develop with time.
- Teaches to operate profitably even with small funds
When a company is into borrowings, it uses aggressive approaches to generate funds by doing well. Anyone would want to do extremely well to reach those certain set of predetermined goals and to perform well .
- Betting people on themselves
Boosting people to bet on themselves mean asking people who are working on a salary of 12lakhs to work on a salary of 5lakhs in some kind of small offices. But when done, it leads to generate great competitive advantage.
Certain strategies and 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 the ground and the sky. Try to sell from very first day, try to hunt down at least one customer. Earn before you spend, this is the best policy to stay upon if you are starting a business with support of bootstrapping.
- A blue print of complete startup.
Don’t be a startup without any kind of blue print. 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 expenses and earnings from your services/products.
- Try to save more.
- 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 as less as possible.
As a startup using support of bootstrapping is obviously short on funds and has lesser support from external sources, your idea should always be to spend as less as possible. 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 really important. Bootstrapping teaches you the very same thing; you will be forced to save funds while bootstrapping a startup to gain a good growth and attain higher level in near future.
- Finally, enjoy fruits “earned” wisely.
Finally now is your time to spend more, but wisely.
Bootstrapping allows you to generate good funds very quickly but it is on your performance and efforts that keeps your money growing constantly..
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 dedicated efforts, chances of your success is 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.
Prateek Kadyan | PGDM 2016-18