How A Bootstrapped Ecommerce Site Can Lead You To Success

Everyone seems to be wanting in on the action regarding fund-raising – it’s the new buzzword. The overnight star status has everyone wanting to turn to ecommerce and get funded. Many founders and entrepreneurs think that the only way they can create a successful business is by getting funded right from day one.

They forget that somewhere in the middle of all of that is the need to create a business – which is sustainable and long lasting and not dependent on funding. Studies show that the vast majority of these businesses are self-funded – which is usually known as bootstrapped.

Simply put – bootstrapping is where you start your company with your own finances. This could include help from friends and family but is basically your own money and where the risks are huge. If you do not have the right financial management skills and the knowledge, you could end up failing with serious debt issues. On the other hand, if you can pull it off, the rewards are huge.

To be successful, there are some things that an entrepreneur must do:

Fast Revenue Generating Business Model

fast-revenue-generating-business-model

A business model which will generate real cash and profits as much as possible is what you should aim at. The faster you generate cash, the higher probability of your business surviving and growing. For customer acquisition, focus on certain markets. It could be acquisition through social media, emails, affiliates, online ads, radio and so on.

TV advertising is not only going to be very expensive but you are probably not prepared enough to handle the traffic which would impact your brand and end up being more damaging. Develop the ability to choose a good revenue source over one which is not. Also, avoid trying to get into inventory as much as possible.

Focus On Cash Discipline

focus-on-cash-discipline

Personal and professional expenses should be kept separated. Also, incorporate the company right from day one – it’s a small expense but a crucial one. It helps you maintain a clean record from both a business management as well as a regulatory environment.

Your business account needs to be monitored daily – what is coming in and what is going out and slated to go out. Once you do this, you would realize you have an amazing power to control the growth of your company. You would know exactly how much you can spend on what sector to grow your business and allocate funds accordingly.

Be Frugal

be-frugal

Learn as much as you can to run your own business and hire only those that you really need. Have a comfortable working space that makes you productive and not an expensive place that bleeds you financially.

Bootstrapping is a mindset which teaches you discipline and forces you to constantly sharpen and hone your business model and product offering. This leads to the creation of very strong foundations in the long term would help you meet your financial metrics and actually give you more negotiating power while raising funds. You would have all the control and leverage to take your company in the direction that you want to.

That’s why a little patience in the beginning and financial discipline would allow you to focus on creating your successful business.

 

Pragyan Sharma
Content Writer at BuildaBazaar
A quiet person, likes to keep things to myself - well mostly. Have a passion for writing. Loves singing and playing Guitar. Reader. Dreamer. Wanderlust.

18 thoughts on “How A Bootstrapped Ecommerce Site Can Lead You To Success

  • Pingback: Bootstrapped Ecommerce Site in Online Selling |...

  • Pingback: Bootstrapped Ecommerce Site Can Lead Your Onlin...

  • Pingback: Bootstrapped Ecommerce Site in Online Selling |...

  • November 11, 2016 at 12:05 am
    Permalink

    Research before you start your own business as you would always be down in debt, if you cannot get back the money you have invested in your business in less than five years.

    Reply
  • November 11, 2016 at 2:48 pm
    Permalink

    This is the era of start up’s and all business does not become successful, hence we need to do a complete research on our business idea’s and put in our money. So that even if our business becomes a failure, we would not be indebted to a financial institution for a life time.

    Reply
  • November 11, 2016 at 4:42 pm
    Permalink

    “Debt is the slavery of the free”, when you have started your company on your money. It feels like the investment of another person and you wouldn’t care about it. Like it’s your own. It can be taken off by the financial institution anyday you don’t pay them properly. So it’s better to invest your own money.

    Reply
  • November 12, 2016 at 10:00 pm
    Permalink

    Kudos to the author!!! I feel that why should we take the burden of other’s money as it’s always a huge liability. It is always easier to put your money, when there is so much of help the government is providing.

    Reply
  • November 13, 2016 at 10:42 am
    Permalink

    Money is like gasoline during a road trip. You don’t want to run out of gas on your trip, but you’re not doing a tour of gas stations. Hence put in your own gas, but might be from a known friend or a relative. Like the price of increases day by day, the price of interest also increases.

    Reply
  • November 14, 2016 at 12:36 pm
    Permalink

    Chase the vision, not the money, the money will end up following you. Why take someone else’s money, when you have complete trust on your vision and idea.

    Reply
  • November 14, 2016 at 2:40 pm
    Permalink

    The best ways to handle a successful start up by a financial analyst would be to keep your stocks low, invest less on marketing and do not take loan’s. Always have a clean record on your account’s as it helps you to save on expenses which are unnecessary and allocate funds accordingly.

    Reply
  • November 15, 2016 at 3:51 pm
    Permalink

    Many people tend to always manipulate both their personal and professional expenses in a given budget. But always tend to spend more on the personal front than the professional one.

    Reply
  • November 16, 2016 at 12:06 pm
    Permalink

    My dad is at a very high post in his company and I am just trying to start my own business. During a recent interacting with my dad, I learnt about this smart word called “dignity of labour” and I started using this in my business and started getting more profits. It simply means that why pay someone more, when you can easily do the work without any error and easily by urself.

    Reply
  • November 17, 2016 at 12:10 am
    Permalink

    I wonder how could people work in an environment which is really boring, I always feel that you need the best environment to work in as it would inspire you and also when you love your job you would achieve being a perfectionist.

    Reply
  • November 17, 2016 at 2:48 pm
    Permalink

    It was Dell who came out with their build-on-demand process, where they are able to keep a zero balance inventory. That means they don’t purchase parts until an order is received. That is a way to greatly reduce overhead, since you don’t need to warehouse parts or overstock parts you may not end up using.

    Reply
  • November 18, 2016 at 10:42 am
    Permalink

    Apple doesn’t need to maximize book sales. It simply needs to keep publishers happy enough to maintain an impressive-sounding inventory of titles while waiting for entirely new forms of publishing to develop.

    Reply
  • November 18, 2016 at 3:02 pm
    Permalink

    I was always a kid trying to make a buck. I borrowed a dollar from my dad, went to the penny candy store, bought a dollar’s worth of candy, set up my booth, and sold candy for five cents apiece. Ate half my inventory, made $2.50, gave my dad back his dollar.

    Reply
  • November 18, 2016 at 4:13 pm
    Permalink

    There are two ways to extend a business. Take inventory of what you’re good at and extend out from your skills. Or determine what your customers need and work backward, even if it requires learning new skills. Kindle is an example of working backward.

    Reply
  • November 19, 2016 at 11:50 am
    Permalink

    CD stores have the disadvantage of an expensive inventory, but digital bookshops would need no such thing: they could write copies at the time of sale on to memory sticks, and sell you one if you forgot your own.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Anti-Spam Quiz: