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Three lessons on bootstrapping for one-person business owners
by
Carolyn
https://www.forbes.com/sites/elainepofeldt/2021/09/30/three-lessons-on-bootstrapping-for-one-person-business-owners/?sh=443c9603172e
Some good advice in there and I think there's a balance between doing business plans etc and just building stuff. Don't overthink it. Ship, talk to customers and repeat but have some kind of idea on the economics. Like how many users do you need to be ramen profitable etc.
Great point to know the market your entering. It makes things so much easier.
"Find the right product-market fit early" — We've heard this one before right :)
To me, striking a balance is all about having iteration cycles that are both fast and complete. The simplest version of a "complete" iteration cycle involves a) planning, b) doing, and c) learning/adjusting. And obvious "fast" is case-by-case, but imo during the planning phase you can create reasonable standards of how quickly to go through the loop.
Obviously, I agree, it's ideal to be in a position where you know you have a sustainable business plan even if you don't manage to raise funding - but also, surely it's near impossible to raise funding without a sustainable business plan? I would expect investors to be willing to invest only if they're confident the business can stand on its own.
Not necessarily, I think, so long as you can show them you have a solid execution plan and they can see the potential, they could invest. Potentially less likely if you're looking to VCs but investors could include family and/or friends - might be more likely to work with angel investors too.
I feel that when I was bootstrapping on building my e-commerce brand. My products are not bad but not good either, I dont find wether its fit or not early. In the end, I ended up adding more capital without proper calculation, so I lose money. Hope all founders can learn from this advice & seriously. Make mistake very quick & learn, adapt & move forward!
Such great advice, I believe you will help a lot of people who are currently on this journey as a solo business owner. Very informative and valuable.
The question is, how do you find product-market fit? Sometimes you nail it right off the bat. Sometimes, it takes some massaging. And sometimes it takes drastic pivots. I'd recommend reading The Mom Test to figure out how to interview people about your product. This can help you to understand your potential customers better. Also, try to build in an industry that you know like the back of your hand — otherwise you're going in blind. He touches on that part in the article.
Yes! I'm at the point in my IH journey where I already know the importance of product-market fit and "doing your homework", etc. but hooooow do I do these things?? Little by little I'm figuring it out...I think. (And thanks for mentioning the Mom Test! I've
I'm growing a newsletter right now and one of the best strategies I've used to find product-market fit has been to avoid a lot of traditional marketing advice! 😅 For example, a lot of traditional advice says to put your newsletter out to your existing network (which often means family and friends) first to gain subscribers. Or to capture email addresses with a pop-up on your landing page. Or to offer a "gift" (like a free download) for subscribing.
I have done none of that, and have around 400 subscribers who I've found mostly by posting my content in what seemed to be relevant communities. Those who like it, sign up. A few months in, I have almost no churn and over 50 percent open rate. If I'd started by getting family and friends on board, or capturing email addresses in other ways, of course it would have muddled the signal! Growth is slow, but steady. Crossing my fingers I'm onto something!
The big difference between VC and Bootstrapping is that as a bootstrapper you need to start making money ASAP whereas in the VC world they will give you a runway to try to conquer the market before actually making the "chin chin". I have been building the WBE Space the bootstrapping way and I am loving the process
Lucas Rotter's story is really cool! I think it's really smart to found a business in an industry in which you have experience or have otherwise managed to get to know inside-out. That being said, there are a lot of college and even high-school bootstrap founders who can't possibly apply this approach and still manage to succeed (I'm thinking Facebook).
Totally agree! Always inspiring to learn from people that have earned success and learned from failures along the way. His first point is definitely the most important in my eyes: "Make sure you can execute your business plan even without a cash infusion."
Creating a sustainable business plan that is proven is foundational. I feel like marketing it and acquiring customers is the hardest part.
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