| | Bootstrapping is for people in the research and planning phase of starting a business as much as for those actually in business. “Typically entrepreneurs get impatient researching and planning their businesses and move as fast as they can to being operational,” observes Kathy Lineham, General Manager of the Red Deer Centre for Business Development. During the research and planning phase they spend significant amounts of their own money to get things going. When bills come in faster than cash and revenues they discover their money could have been better used for operating expenses. “Bootstrapping is about having the cash to spend creatively and efficiently. It requires planning and patience at the beginning of the journey,” says Lineham.
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Early Going Stage
Entrepreneurs tend to spend a disproportionate amount of time on “what they do best”. While necessary for a short while, it may come at the cost of other important activities like marketing, selling, human resources, and finances. Terry Sangster from the Alberta Women Entrepreneur (AWE) has some bootstrapping advice for entrepreneurs considering or already operating a business. “Think like a CEO for your business. You will soon realize that “what you do best” is only one important component of many that all have to work in harmony for the business to grow and prosper.” Alberta communities have excellent resources for business owners and entrepreneurs. Take some time to identify them and start to build your CEO network immediately.
Proven Operator
By the time a business reaches its fifth anniversary the owner knows it is viable. He or she has learned many new skills, changed or added new products and markets, given up some personal goals, asked the family to make sacrifices, put in enough overtime for a lifetime and is now asking the question, “Where to from here?” If you recognize yourself in this situation and want to examine your future, here are some practical and economical ideas from Corey Keith, President of Keith & Associates.
- Organize a retreat involving all key people in your business. It is important to be physically removed from the business. All activities should be attempts to work “on” your business as opposed to “in” your business. It is a time to reflect how far you have come and then to envision where you want to go!
- Take a holiday. Not just any holiday but a working holiday. Find a conference that relates to your business and take your family. While you attend formal sessions your family can do tourist activities. Spend an extra couple of days with your family to say thank you for some of the sacrifices they have had to make. Plan a study tour if a conference doesn’t appeal. Identify businesses similar to your own but outside your market area and pay them a visit. It is a chance to gather intelligence on your industry, see new products and services and create a network while enjoying time with your family.
Business owners are always looking for ways to reduce expenses. Bootstrapping goes further than reducing; it looks at innovative alternatives. It is finding creative ways to accomplish your business goals. The next time you pull out your credit card or cheque, stop and ask yourself, “Is there another way?”
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