5 Tips for the Bootstrapped Company
Written by: Inna Kraner, Managing Editor of The Expert Institute
Sometimes, the startup environment feels like a lot of people mimicking Cuba Gooding Jr. in Jerry Maguire. That is, itching for someone to show them the money.
With the rise of accelerators and incubators, the prestige of seed funding has many entrepreneurs focused on wooing investors, rather than developing their business plan and strategy. Making the mistake of allocating a great deal of time and energy towards chasing down venture capital and accommodating the needs and desires of investors may ultimately detract a business from focusing on what’s actually valuable: a sustainable and desired product.
Resources are just a small portion of what it takes to launch a successful business. Regardless of whether you’ve scored venture capital seed funding or are bootstrapping your business, other factors will make or break your entrepreneurial success.
1. Hire a Strong Team
You are only as good as the people who you are around. Hiring can be one of the most challenging aspects of starting any small business. A strong company culture, comprised of intelligent, hardworking, and cooperative individuals can lead to break-through ideas and top-notch service. It’s very difficult to source candidates who are extremely dedicated, committed to their work and enjoyable to be around for long, sometimes stressful, work days. In a startup, what matters is not so much educational background, but rather the talents, skills and personality that can be utilized to help scale a business. Applicants with experience in tech, digital marketing, sales, and growth strategies are very attractive to a start-up. An HR manager typically isn’t around early in the game and hiring can be a time consuming and costly undertaking. Sites such as Hire Vue, Spark Hire, and Take The Interview, have developed video interviewing platforms to expedite this process.
2. Delegate Appropriately
Managing a startup can be overwhelming, especially when there are a million and one tasks to do, and they all need to be done yesterday. Carefully plan out your goals on a short-term and long-term basis by delegating responsibility and operating on a task-by-task basis. Provide action plans for each employee and a timeline for completion. This method not only keeps employees focused and motivated, but it will make your company run efficiently and smoothly. Tools such as Pivotal Tracker, Trello, and PMRobot track the progress initiatives with lots of moving parts. These programs work well for software development, design and marketing projects.
3. Choose Great Software
Selecting cost-effective and appropriate software solutions is critical to smooth business operations. The right software will properly maintain and monitor your services and communications. Certain computing software, such as Oracle, may be prohibitively expensive and overwhelming for your bare-boned operation. Consider out-of-the-box solutions such as Salesforce, a cloud-based CRM (customer relationship management) tool that tracks leads and contacts throughout all the stages of the sales funnel. E-mail marketing tools such as Mailchimp, allow you to build professional looking email campaigns at an affordable price-point. Ultimately, it’s important to select efficient solutions that will help to support your company as it scales and develops.
4. Seek Guidance
Venture capital funding generally comes with access to the investor’s knowledge base, networks, and resources. Venture capital firms and start-up incubators have significant experience with optimizing a company’s operations and applying business models that have already proven to be successful in a similar space.
Luckily, there are a variety of cost-effective options available to level the playing field and gain access to industry leaders. Websites such as Elance, oDesk, Quora and Clarity.fm provide access to a large pool of highly experienced and talented professionals from all facets of business including Sales & Marketing, Development & Design, and Technology.
Prior to embarking on a new business initiative, scan these websites for the highest rated individuals and tap their brains for advice and new ideas. Such experts can provide valuable guidance at a reasonable price.
5. Not Everything Must be Outsourced
Just because you’re not an expert, doesn’t mean you can’t do a great job. Too often, people feel pressured into hiring a third-party to perform a service such as logo design, content creation, sales, or marketing. Yet, trusting an outsider with important element can be a waste of time and money. Don’t be scared to attempt a project by just seeking guidance and giving it the good ole beginners try. In fact, fresh eyes and a personal attachment to the product can be necessary in producing something of great value.
About the Author
Inna Kraner is the Managing Editor for The Expert Institute, an innovative technology-driven start-up seeking to change how organizations such as law firms, private equity funds, and hedge funds connect with experts. The Expert Institute custom recruits the world’s preeminent subject matter experts, specialists who are authorities in their field, such as tenured professors from Ivy League universities, medical directors at top tier hospitals, and senior level executives. Learn more about The Expert Institute by visiting our website and connecting on Google+.