Here's how to Build Your Business If You’ve Bootstrapped It

In this article, I’ll share eight principles that helped me as a startup founder build a company with just my own savings, blood, sweat, and tears.

Starting a business often means funding it out of your own pocket or with help from friends and family, essentially bootstrapping your business. Bootstrapping is like pulling yourself up by your own bootstraps, using your own grit to fund your business dreams—think of it as the DIY of business financing.

Sometimes it begins with a little help from friends and family. While not traditional bootstrapping, it gets the ball rolling. Use that early support to win your first customers or jump into an accelerator. Or, keep that day job and hustle on nights and weekends. As they say, "Have your landing ready before you take off." Know your runway and ask yourself – how long can you keep flying solo?

Bootstrapping isn’t just about stretching dollars; it’s about smart, strategic growth. How far can you go before seeking external funding? What skills do you need? Remember, you're in control. No diluting your vision or giving up equity until you're ready.

At the end of the day, whether it’s bootstrapped or funded, the essentials don’t change: A killer product, a rockstar team, and customers who can’t get enough of what you’re selling. There will be blood, sweat, and tears equity, but we’re all paying it every day, so I’ll skip that part for now.

Here are eight principles I’ve used (and continue to use) as a startup founder, which I find very useful:

1. Cash flow is king: We've heard it before but tend to forget its importance. Don’t focus solely on profits; ensure your cash flow is healthy and scalable.
2. Paying customers are key: The ultimate approval of your business is paying customers. Not those who support you out of kindness or those who use free samples, but those who support you with their money.
3. Start small: Narrow down your proposal to its smallest possible extent. Make those initial customers fall in love with your business, then expand.
4. Keep moving forward: Don’t wait for perfection; it's almost impossible. Even if the first result is imperfect, start, receive feedback, and improve.
5. Spend wisely: Especially on marketing and sales. Learn your numbers, check all details constantly, and make decisions based on data. It's hard to predict which channel will generate the most leads, so try them all, do A/B tests, and focus on the funnel and metrics.
6. Function over beauty: Make your product functional and helpful, addressing real pains and needs. Otherwise, why should people pay you?
7. Hire smart: The cost of a bad hire is huge, especially for small businesses. Choose wisely. Avoid hiring based solely on salary expectations; focus on skills and results.
8. Do your projections: Forecast, analyze, and stay informed. Know your Total Addressable Market (TAM), Ideal Customer Profile (ICP), and keep searching for the best Lifetime Value (LTV) to Customer Acquisition Cost (CAC) proportion.

The last point involves many technical terms, but I’ll explain everything in the next article—pinkie promise. Stay tuned and let me know if you’re here!

Feel free to share your thoughts or reach out if you have any questions!