Look around, assess startup disasters, and learn from them.
Most startups begin with bootstrapping because finding investors is not easy during the initial stages. While bootstrapping is a great idea and has been recommended by experts, it is quite easy to go wrong and lose all your personal savings. In fact, a number of startups have gone wrong in one-way or the other, ending up losing all their money. If you don’t want your boat to sink like theirs did, you are advised to learn the following lessons:
Test your Business
Don’t be in a hurry to startup and to invest all your money. Take some time out beforehand to actually test your business so that you know whether you have a marketable idea in the first place. You should be sure that there is a market for your offerings and that your customers will pay for them readily.
Research more and more about your target market and identify the needs. Determine whether your idea meets one or more of those needs. If the result is positive, you can go ahead and implement your idea.
Take Opinions and Speak to Customers
You may have identified a need and you may have understood that what you have to offer is what your customers want but that doesn’t mean they will come to you. You should go to the customers and talk to them about your offerings. While some may be interested, others may not even bother. This type of beta testing is necessary to understand if your idea is able to attract the interest of your potential customers. If it is, you can start investing. If it is not, you should think about improvisation before setting up your business and investing your money in it.
Every now and then you will definitely have the urge to invest. At such times you should remind yourself that you are actually spending your savings and that the risk is too high.
Introduce a Mockup
Before actually starting up, you can give your business a try by introducing a mockup. Offer samples or free-trials to see how you are being received. Offering free stuff will obviously attract customers and you will know where you stand from their feedback. While taking opinions is theoretical testing, mockups are practical. This will help you with marketing as well.
Following these three steps will give your business a great start because at the end you will know exactly what your potential customers are looking for.
Before making the huge move of investing all your money in your business, test your idea so that you know whether it will be well received. Bootstrapping can turn out to be a disaster for you if you go wrong in the initial stages.