Bootstrapping: How Cutting Down May Be the Key to a Successful Small Business
Almost all of us know that starting a small business can be fun, exciting and thrilling, however it can also be downright scary. The owners of any beginning small business know the meaning of bootstrapping; keep every penny, hold on to each dollar, and in general, save until the revenue is consistently flowing in. In this way you don’t have to worry about debt as you try and get your business off the ground; you can focus on revenue increasing tasks. The following are some things you may want to consider when creating your business plan.
First of all, don't start big. It's ironic that the best businesses did not spend a fortune in franchise fees, hire a huge staff, or even start with venture capital funds. They began small; a small business owner understanding a need, filling that need, and slowly adding products, services and people. Web businesses are obviously an ideal small business, but there are plenty of others that you can also do from home.
Going hand in hand with keeping it small is starting out with your own money. Don’t even think about getting money from others before you manage sale number one. If you are confident in your product or service, you need to take a chance on yourself with your own money. In fact, this can naturally force you to pay attention to your spending, and help you make better informed decisions.
Another interesting tidbit is to not quit your day job. Start out part-time in your new business and ensure that you know the market and the opportunity. As your small business proves fruitful and shows promise then you can take the leap to a full-time job. This provides a money cushion for you, thereby lowering your stress level.
Start on your own, and outsource later. While outsourcing labor may prove a much easier time for you as a small business owner, it will also add additional costs that you may not yet have the money to pay for. Benefit Outsourcing through Professional Employer Organizations, however, is another matter. While you are only a one person business, being able to bask in the shade of the umbrella of benefits can really have an impact on the personal aspects of your life, such as insurance.
Talk to other small business owners. You don't have all the ideas, you don't know everything, but someone else has been through it before - speak with additional small business owners in your area, listen and learn. Ask about their experiences with different PEO services and companies.
Obviously these tips are not just for the new small business startup. We believe that these are recommendations to be used by all businesses, being efficient is always a good thing. Small businesses that are survivors don't stay small businesses for long.
About the Author
Anthony Kelly is a frequent contributor to PEOcompare.com and has experience working for small businesses and the Professional Employers Organization since 1997. He frequently writes about compliance, HR, technology and other issues affecting the small business owner. He can be reached at a.kelly@peocompare.com. You can compare PEO Services here.
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