Bootstrapping: How to keep your startup without outside investments


Among the biggest challenges to starting a business, and there are many, financing is one of the biggest.

Normally, each step of a project consumes different monetary values ​​and it is practically impossible to start a project without a reasonable amount of money.

From idea conception, validation, development and market entry, all these steps require financial efforts, and in this article we at Sky Marketing will help you

That’s when you ask me: if I don’t have an investor, can I get my project off the ground?

It achieves! And that is precisely what this text is about.

We’ll talk about bootstrapping!

What is Bootstrapping?

The term bootstrapping in Portuguese means “boot strap” and the meaning of this expression comes from a metaphor that said “pulling yourself up with your own boot straps” as something impossible.

However, the term developed from the beginning of the 20th century onwards as a metaphor for “self-sustaining processes that work without outside help.”

Today, in the business world, the term refers to:

The act of starting a company without external investment, that is, using your own resources and preferably little money.

The main advantage of starting a company in this model is that, obviously, you do not give up part of your company, thus preventing you from diluting your potential profit.

Not to mention that, in these cases, you do not answer to a partner or board – you are your own boss, and this allows you to make quick decisions and, often, escape from bureaucracies that arise with the inclusion of new people in your process.

Freedom is something very desired by entrepreneurs, and when opening their company for investments, the entrepreneur ends up committing himself to the investor.

You see, for some project formats, the presence of an investor is essential, so that the idea can be developed and come out of the paper.

However, there is a tendency among startups to look for investment before the company is ready for it. It is possible to see the implications of this trend in 2 main factors:

  1. With little basis and market validation, the company ends up not presenting great advantages in the eyes of the investor.
  2. A large investment right at the start ends up diluting the entrepreneur’s share value a lot and he ends up losing decision-making power within his company, in addition to losing in terms of profit.

So, dear entrepreneur, take it easy before making an investment decision. Better understand your product and market, and organize your corporate structure before trying to raise investments.

A company with a well-directed north will attract a lot more of an investor’s attention than just a bright idea that has been little worked out.

Remember, no one is doing you a favor by investing in you. Friends, friends, business apart!

Bootstrapping and outside investments your company

But after all, how to start a project with little capital?

Basically, there are two classic types of bootstrapping methods:

Double Journey – Keep your current job and work alongside your project. It’s a good way out for those who don’t think it’s prudent to abandon everything at once, but it consumes a lot of “human resources”. Personal life suffers.

Stocking – Creating a financial reserve, usually holding money from your salary. When your reservation reaches an amount that you consider safe to start your business, resign and definitely start the project.

I’m sure you may know people who have explored these two attempts, or even other examples where the entrepreneur got a loan and decided to take a risk.

Regardless of the way in which the start-up capital was raised, one thing is certain for any bootstrapper: Money is tight and you must manage that money very carefully.

The disadvantage of bootstrap is that the entrepreneur ends up being less susceptible to error. There is greater pressure on the decision and making mistakes ends up becoming very costly, to the point of putting the initiative at risk.

But there are measures that can be taken to help your company overcome the challenges implied by the bootstrap. Structuring and organizing an efficient business process is the first of them.

In addition to the commercial process, there are some other tips I’ve put together for you to start your project at a low cost.

If you intend to start your startup without external investments, in order not to dilute your future profit or for any other reason, give the items below a good read!

Bootstrapping Tips 

You are building your business with your own money, which means you are in control of the situation, not an investor.

However, we have to admit that bootstrapping is difficult, especially when the situation is one of total personal investment in paradise nowshera – ​​putting every penny into the project rather than putting it in your pocket.

But if you still don’t want to take out a big loan or borrow a large sum from that close relative, just take a look at what you can do.

In the beginning, use WordPress with an inexpensive theme for your website

outside investments

Website and page development can be quite costly, especially if you hire an agency or specialists.

Starting with simpler yet effective tools is a great way to save money. Especially when starting a new business. So, simplify things a bit!

WordPress is free, as well as being the best CMS, and it can be easily adapted to your needs.

Look for a Coworking space or share an office

outside investments

It is in small economies that it is possible to guarantee future investment. Any and all, when well analyzed of course, cost cutting is interesting for a bootstrapper.

We know that renting a room can be quite expensive, which ends up greatly increasing your company’s fixed operating costs. So look for alternatives to this solution!

Coworking spaces, sharing a larger room with another company in the same situation and even the home office can be good solutions in the short/medium term.

Do not hire services that are not ESSENTIAL for your existence

This advice may sound pretty obvious but believe me, the obvious needs to be said.

Think twice before hiring services that, although interesting, do not solve your latent pain at that time.

If the service is not able to get you back in the short/medium term, think about extending your contract.

At this initial moment it is very important to focus and plan each step to be taken. This implies being more efficient, avoiding transferring to other services what can be done at home.

Lean commercial process

We know that to gain traction in the short term, the outbound strategy ends up overlapping the inbound strategy.

One of the main features of active prospecting is short-term ROI. With an outbound team running in a very lean way, it is already possible to see some great results.

Buddy, ROI in the short term sounds like a beautiful melody for bootstrapping!

How can a well-designed process help companies in this scenario?

A segmented sales process in a team of hunters and closers can optimize the sales force of a lean company.

This passing of the baton throughout a negotiation ends up generating a constant flow of opportunities. The hunter connects with leads and qualifies them, moving to closer to forward the trade and close the account.

This design ends up making the two assignments work constantly on their fronts.

The constancy of the process comes precisely from the fact that the hunter will continue to connect and qualify leads and while the closer will be focused only on bringing new customers inside.

This simple division ends up making the process much more efficient. Before, the seller was responsible for both ends, qualification and closing.

However, while the salesperson was generating some opportunities, he was focusing his activities on closing, stopping contacting new leads.

That way, there is simply no constancy. The seller ends up doing all the steps, becoming the bottleneck in the process.

When I meet someone in this situation, I usually say:

So you’re taking corners and running to nod, aren’t you?

So, if you are starting your business with your own investment, managing the business process in a lean and efficient way is essential for you to gain traction and reach break-even as quickly as possible.

You must be asking me:

But how am I going to build a marketing and sales team with little investment?

It’s not impossible! I tell you that it is possible, yes! Just take a look at this article.


Hope you’ve learned a little about bootstrapping and how you can get your idea off the paper with little investment, this is a great technique that the sales people for park view use.

Working in a lean way, with spending limits, is usually the beginning of great companies!

We know that entrepreneurship is a challenge. Bootstrapping then makes things even more difficult. It usually takes at least twice as long to launch a startup this way.

So it turns out not to be a good option if you’re looking to ramp quickly, usually to ensure traction in a blue ocean.

For very dynamic markets, it is not worth waiting too long and you should seek venture capital to be a first-mover; in other cases, the entrepreneur may not have the financial means to self-leverage.

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