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How to Bootstrap Your Way Past Recession

ave MoneyIt’s time for entrepreneurs to do what they are supposedly good at – bootstrapping.

I don’t know how about you, but I view business owners can only call themselves entrepreneurs if, and only if, their main focus in business is cost-cutting – one major element of bootstrapping.

The successful entrepreneurs I know are guarding their money like a maximum-security prison guarding prisoners – Money coming in is encouraged, and money coming out is inspected many times with security measures.

Those entrepreneurs are bootstrappers – In my opinion, only a few entrepreneurs start their career in the business world NOT as bootstrappers.

Bootsrapping tips

I learn from my fellow entrepreneurs on how to bootstrap your way to thrive in today’s recession – From what I learn, there are several similarities in bootstrapping methods among them; To name a few:

  • They purchase everything on business credit cards – this way, they reap point rewards that can be redeemed with various rewards, such as traveling the world – this is effective as long as they pay their bills on due date to avoid late fees or other fees incurred.
  • They do balance transfer – they ‘reshuffle’ their business credit cards, and transfer the balance – or aggregate some, to the most attractive credit card issuers offers possible.
  • They always think, “Substitute, substitute, substitute” – i.e. if printing their own business card is cheaper, they’ll do it for sure.
  • Their motto, “Save the money, save the world” – free advertisements, free classifieds, consignment, dropshipping, viral marketing, etc. are their keywords.
  • They choose NOT to hire employees, if they feel hiring ones will not add to their business’ revenue significantly.
  • They outsource – avoiding the headache and costs of having their own employees, they outsource and sub-contract non-critical business operations to a third party.
  • They use the recession as their marketing tool. i.e. one of my colleagues use emotional or paranoia marketing to get customers in without costing a lot to attract them – one pitch example: “Don’t invest in today’s lackluster stock market that has bankrupted investors – invest in gold with us”

Focus on balance transfer

With today’s eminent threat on everything that incurs interest – credit cards, mortgages, business loans, etc. – doing a balance transfer for your business credit cards is, in my opinion, a must do.

I encourage you to consult your financial advisors or your trusted credit card issues about the possibility to do balance transfer.

Better yet, there are many websites on the Net offering advices and recommendations on balance transfer and which credit card issuers offer the best financing solutions.

One, single, best tip of all

Related to those I outlined above, I have one, single, best tip of all tips :)

Keep small, dream big

Keeping your business team smallish has its own perks: More responsive to changes, cost effective in running your business, and minimal bad-corporate-culture-thing.

Some of the most successful entrepreneurs I know and befriend with run a 2 or 3-person company that rakes in six figures in US dollars, annually.

One last tip – never run your business on your own, if you are really serious about getting your business going through the recession – you need every help available.

Ivan Widjaya
Bootstrapping
Image by colros.

About the Author: Ivan Widjaya is the Owner/Editor of Noobpreneur.com. He is a web property investor, blogger and web property builder.
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  • james- skype4.biz

    I definitely think that using Skype should be included as part of bootstrapping to lower and save costs on phone bills.

  • http://www.noobpreneur.com/ Noobpreneur

    Hiya :)

    Thanks for the thumbs up! Bootstrapping is one of life-saving skills we should master as entrepreneurs – Loans are not that appealing right now… We’d be better of counting every penny we have and do things more creatively. And surprisingly, the pressure of recession will end up bootstrappers produce the same results as those with large capital to start with.

  • http://understandingmarketing.com @sternalpr

    Hey Noob,

    Love the post. Very inspiring. It seems as though entrepreneurs aren’t going to get a lot of help from the banks and government, so bootstrapping is an awesome way to get a leg up on the competition. But you have to be smart about it, so thanks for offering the tips.

  • Pingback: Bootstrapping Tips from Noobpreneur.Com « Bootstrapper Handbook for Startups()

  • http://www.noobpreneur.com Noobpreneur

    Hi Lito,

    I’m currently not doing link exchange, but if you could write a guest post, you can include a link or two to your blog in the resource box.

    Please let me know what you think! :)

  • http://www.thefilipinoentrepreneur.com Lito | TheFilipinoEntrepreneur.Com

    This is a good post especially the last one. ” Keep Small, Dream Big!” Can we exchange links? Thanks. :)

  • http://www.noobpreneur.com Noobpreneur

    Rosen,

    I’ve visited OneHubb.com and it could be big :) I’ll keep my eye on you ;)

  • Cheapiness

    Rosen good luck with your future successes on OneHubb!

  • http://www.onehubb.com Rosen

    I’ve just started OneHubb.com and I can relate and appreciate the Bootstrapping method and notes! Nice article!

  • http://www.noobpreneur.com Noobpreneur

    Cheapiness,

    Thanks for linking to my article :)

  • Cheapiness

    These are great tips that all great entrepreneurs use! I linked your article on our blog Cheapiness explaining your tips and also listing a great video by Guy Kawaski.

  • Pingback: Cheapiness.com » Blog Archive » Bootstrap Your Business Through The Recession()

  • http://www.noobpreneur.com Noobpreneur

    Brillie,

    Thanks to you too! Good luck on the contest :)

  • http://sims2house.blogspot.com/ brillie

    Thanks for being sponsor @ That Blozzz One Year Anniversary Blog Contest

    Regards,
    Brillie
    http://sims2house.blogspot.com/2008/12/that-blozzz-anniversary-blog-contest.html