Are you bootstrapping
your business too much?
Bootstrapping a business adventure isn’t a new term. Yet with this century’s Entrepreneurial Explosion this concept is very much alive.
It isn’t uncommon for boot strappers to boast about their business’s launch approach. They speak proudly of their accomplishments. These conversations often come from mega-companies like Coca-Cola or Microsoft. Primarily from those who were highly successful at bootstrapping.
Unfortunately a vast majority of entrepreneurs or Small Business Owners aren’t as successful. Talk to enough boot strappers and they’ll share how it hampered their business’s performance. I’m one of them.
Bootstrapping defined by the Business Dictionary
The Business Dictionary defines bootstrapping as: Building a business out of very little or virtually nothing. Boot strappers rely usually on personal income and savings, sweat equity, lowest possible operating costs, fast inventory turnaround, and a cash-only approach to selling.
Boot strappers could be called the Minimalists or Just-In-Time Experts of Entrepreneurship or Small Business. They work with as few resources as possible.
My regular readers know one of my core values is simplicity. Applying simplicity to business is highly valuable. Under the right circumstances, strapping your boots is highly effective too.
Should you bootstrap your entire business?
No. This is how many Small Business Owners minimize their potential. This holds true for tenured businesses too.
I started my coaching business back in 2003. Crowd-funding and angel investors wasn’t really a thing back then. Bootstrapping was a common practice for start-ups. In many cases it makes good sense. As a boot strapper, you can control every aspect of your business without being accountable to the agenda of another.
Over the past 8-10 years, there’s been a shift in small business. Bootstrapping your entire business may not be the best approach. Is it best for you to build your owner website? Do you create and post YOUR Business’s social media? Do you take training to learn how to write great copy and content? Would outsourcing or delegating some activities (bookkeeping, securing a VA, or hiring) be advantageous?
Depending upon your industry and your skillset, bootstrapping some support activities may suit your business well. How do you determine which items to do yourself and which to delegate or outsource?
What solution do you provide YOUR Customers?
Are you a therapist?
Then you should be the counselor and not delegate this activity of business.
Are you a dentist?
Then being the one doing the complex work and overseeing the other routine activities may be best.
Are you a retailer?
Then delivering the best products and customer experience is key. Creating raving customers instead of all the bookkeeping efforts may be the better focus for your activities.
How this looks in a real Small Business
I’ve shared before, bookkeeping is my business’s Achilles Heel. Why? To me it’s boring and putzy work so I procrastinate. I don’t naturally think the way people should in order to be efficient at this particular process or business activity.
Can I do it? Yes. It takes me longer than I’d like. What if I didn’t bootstrap this activity?
Would it make more sense to outsource this? Yes! Why? The time that it takes for me to do this activity, I could have spent securing other clients. Their sales would have more than covered the outsourcing cost.
By bootstrapping I continue to be shortsighted about my profit margin. Long-term I will actually have lost income from all the sales I didn’t make. Why? I was busying myself with this one support activity instead of generating leads.
REMEMBER: One way or another you pay as a Small Business Owner.
Brilliant Bootstrapping Question:
When you look at each area of your business, which areas are you stunting your growth and profit because you continuing to do them yourself?
TIP: Be wise. Contemplate this question and take right actions to improve your rate of business success. Be strong and take these on one at a time. You will be glad you did.
Please feel free to share a question or insights in the comments section. What’s your or YOUR Business’s Achilles Heel?
THANKS FOR ALLOWING ME TO HELP YOU IMPROVE YOUR BUSINESS!
Brilliant Breakthroughs, Inc.
Making it possible to Simplify Small Business Success!
Call Maggie (262) 716.7750 for YOUR No-cost Consultation
Maggie Mongan, #1 Bestselling Author
Master Business Coach for Small Businesses
Brilliant Breakthroughs, Inc.
Direct Dial: 262-716-7750
p.s.: Determine which activities support your success to simplify YOUR Small Business Success.
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