Doing everything yourself may be a rewarding experience for some and an entirely frustrating one for others. By learning from best practices and by leveraging the right ressources, you can find a way to balance bootstrapping with crowdsourcing - without losing control of your startup.
“5 Ways to Bootstrap Your Startup,” (http://www.readwriteweb.com/start/2012/05/5-ways-to-bootstrap-your-startup.php) gives a good overview of how to start up with minimal cash burn. These tips, coming from the serial entrepreneur Rachel Blankstein, demonstrate how you can "build something incredible with next to no cash, and to retain significant ownership of your company". Here is a summary of her suggestions:
1. Pay with Equity: Put the checkbook away and fine-tune your recruiting pitch. Work for Equity creates loyalty, motivation and interest in your startup. Make sure you choose the beneficiaries wisely, work with a probation period and tie it into a vesting schedule to reward them for staying the course. Get the right people to join the fun of startup and move forward without expending cash!
2. Leverage the skilled Unemployed: Call it out-of-work or just between employment, but think about tapping this potential talent pool. This sector, including aspiring entrepreneurs who are still students, need to keep their resume looking fresh and relevant and can be eager to contribute. Many will be grateful for the lessons learned and the glimpse into the starup world. Again, you’re not burning through cash to bring them onboard. Important: Check unemployment laws to do this the right way.
3. Good at Bartering? Put on your street-sense hat and think of all the ways you can network to get services you might need. If it is expert advice, exposure or someone to test your product, come up with ideas of how you can pay them back - without using cash but rather through returning favors. Don't forget about the IRS while doing this!
4. “Snowball” your Relationships: If you haven’t nurtured your relationships with “key influencers” in your industry, do so as you develop your business. This helps to enhance your Brand to all those very-important “right people.” Exposure is key and offers you insight into the industry you wish to conquer. By bringing together experts and startups, UFOstart sees the importance of connecting within the industry.
5. “Outsourcing:” Here’s where it’s really crucial to know creditable people in your industry, as their recommendations of consultants can go miles. For sure, most everyone has worked, or called themselves, an “independent consultant.” Take advantage of the expertise you need for your organization by working with your network - and without actually hiring them full time.
Complete Bootstrapping might not be the easiest or fastest way of starting up. It requires discipline, fortitude and ingenuity. UFOstart brings together experts, startups and investors to help you on that road by finding the necessary balance of working hands on, but with the support of the Crowd. Contact us to learn more about the benefits that come from crowdsourcing ideas as you plan your startup!
- bmt
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