14 Tips to Bootstrap your SaaS Startup

Do you dream of starting a successful SaaS business but don’t know where to get funding?

You’re not alone. Most software tech startups aren’t viable for funding right off the bat. Studies have shown that less than 30% of startups attract funding pre-revenue. Using the bootstrapping method, however, will give you a better chance of moving idea to business.

Bootstrapping a startup means self-funding in the early stages or using private funding sources. The main funding source for bootstrapped SaaS companies include:

-Personal savings
-Plowed back profits
-Contributions from friends and family

So, how do you go about ‘pulling yourself up by the bootstraps’? Keep in mind that your main goal while bootstrapping is to be as efficient as possible with the little capital you have.

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Tips:

✔️Make sure you have a Viable Business - do viability tests on your SaaS idea internally and externally before moving ahead. Multiple smoke tests at every stage, even before looking for partners or more funding is important as you’ll have full confidence in it if the project passes the tests

✔️Find the right Co-founders and Mentors - if you can find someone(s) who will be dedicated to the hustle as co-founders/mentors/advisory board member, you have a better chance of turning your business idea into a profitable entity without investors.

✔️Choose Condensed Methodologies - a combination of methods such as RAPID or AGILE to condense the process of getting your product to market asap for cashflow is ideal

✔️Look for Early Adopters - start attracting customers as soon as you have something usable in the market such as developing a MVP early on

✔️Use Cost-Saving Hiring Strategies - as a startup, you have more freedom in your hiring and work arrangement approach. Consider hiring remote developers for some parts of the development process to save costs

✔️Offer Equity Instead of Salaries - depending on the nature of and the long-term goals of your SaaS, you may find it easier to bootstrap by offering equity instead of salaries. If people can see the viability of your company, you may be surprised who is willing to take equity.

✔️Optimize Internal Processes to Achieve Peak Efficiency - Ideally, everything You do should be directed towards creating or improving your SaaS product and brining it to the market and that money is put to the right use. Consider hiring consultants to help from time to time.

✔️Make Use of Unconventional Marketing Methods - If executed well, viral social media campaigns, click funnels or guerrilla marketing can be insanely effective. But consider a bold advertising booth at an industry event or posting in groups/platforms which can offer suggestions or provide you with early adopters

✔️ Take Advantage of Free Tools and Resources to Save Money - Consider AWS or Google, IaaS, or PaaS tiers to build your project when starting to save money. You can also take advantage of offers and deals on sites like Appsumo

✔️Use Free Dev Resources - you don’t have to reinvent the wheel on so many things

✔️Power of Positive Feedback and Referrals - Allowing early customers to use your product and provide feedback will help you improve your product and create a buzz which may even lead to some early investors

✔️Attract and build key partnerships early on - Id doesn’t have to be with other businesses or big companies. You can form partnerships with family members, other developers, and mentors who can provide the things you need in your journey

✔️Focus on Cashflow and Revenue - Research shows that 90% of startups fail. The figure is closer to 95% for those who fail to attract funding in the early stages. BUT, many of the failures happen for reasons you can control as a bootstrapped business. because you can focus on revenues and cashflow

✔️Outsource to Survive - start hiring new people or expanding your team. If you want things done, the best approach is to outsource while keeping the core tasks internally. Freelancers and assistants can be onboarded and offloaded as required.

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Though bootstrapping has its disadvantages, the main advantage is that you get to keep all or a big percentage of equity, maintain full control of your business, and may worry less about failing because you are mostly self-funded, allowing you to focus on the business.

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