Track all expenses and incomes
It is crucial to track each and every one of your incomes and expenses when you are running on a bootstrapped budget, irrespective of how minor they are. You should determine whether each of your expenses is giving you value worth it or not. As the owner of a small business, you should have a clear business budget, indicating the incoming and outgoing cash flow at any given point of time.
Research thoroughly all the options available to you before you take a decision on any kind of business expense. Determine which option would be the most justifiable for your particular type of business, considering the expense you are making and the value that you would be getting. Take informed, thoughtful decisions relating to every aspect of your business after a detailed research.
There are several costs involved with hiring your own employees and maintaining them. In case of a bootstrapped budget, it is a good idea to outsource whatever functions of your business you can, instead of hiring employees to perform them. However, this might not be possible for all business organisations. 4
Ensure that your business priorities are well organised, and that you know what is most important for you and what is not. It is necessary that everything in your work space, from your inventory to your files, are well organised, so that you always have a clear direction of what you are doing. Getting organised will help you save unnecessary expenditure, effort and time.
Go low on marketing expenditure
In today’s business world, there are several low-budget options available for marketing of a small firm, such as social media and blogs. Do a thorough study of all of these options, and determine a marketing mix that will be most cost-effective for you. Realise that it is not necessary for you to spend a huge amount on marketing in order for it to be effective.
Focus on building lasting relationships with your customers, vendors and employees, instead of treating them as just parts of your business. Invested employees are motivated employees, with increased productivity, ultimately helping to lower your employee retention costs. Similarly, investing on building relationships with your customers and vendors leads to repeat business, which ultimately proves to be cost-effective.
Consider a mobile office
When running a business on a boostrapped budget, you should consider various possibilities regarding your office space. Consider if leasing out a property is more cost-effective for you, as against buying your own space. Alternatively, you could think of having a home-based office, with remote connectivity with your employees. Another possibility is that of using a shared office space, which can help you save on office buying and maintenance expenses.