5 sustainable best practices for bootstrap startups • TechCrunch

It doesn’t matter how If your startup is successful, you should always pay bills and ensure healthy future cash flows. Times of abundance may make you think that money will always flow into your bank account as that has been your reality until now, but the cruel reality is that capital resources can dry up overnight without warning.

To endure uncertainty and maintain emotional balance, it’s good to temper your exuberance and confidence with a dose of realism. One way to do this is through bootstrapping.

Bootstrapping is a double-edged sword: because you have little or no reliance on investors or stakeholders, you don’t give up much of your business in exchange for money, but the downside is that you have less money to invest in growth.

There is also a hybrid model that gets less attention and is worth mentioning.

An investment colleague of mine in the life science genomics space received $150,000 in angel money. She later sold her company for hundreds of millions of dollars. She was able to bring about this extremely successful exit because after the first angel round, the sale of her unique DNA sequencing and genomic services funded the company. With the success of her technology, she was able to quickly scale the company within the US

If you decide that bootstrapping is the best choice for your situation, you should first figure out whether you are going to finance yourself or are looking for small amounts from angels.

Don’t be tempted to jump on a plane in the blink of an eye to meet potential clients in glamorous venues or for meetings in distant locations.

These five key business strategies and principles will set you up for success:

  • Choose team members wisely
  • Determine your business model and go-to-market strategy to generate cash quickly
  • Adopt a frugal mindset: always pay attention to the costs and negotiate the costs
  • Be prepared to take on many roles, including those you think are subordinate.
  • Only outsource what is absolutely necessary, such as legal and accounting

Choose your team wisely

Your first employees are among the most important stakeholders of your company. Selecting people who are invested in your company’s mission and success is critical. They should want to work for a startup company because not everyone will want to. Look for people who want to be part of the company rather than someone for whom it’s just another job. The right employees will indicate that they want to be part of a sustainable business model.

You should offer stock vesting over time as a major financial incentive. Because your team will earn this incentive during their tenure with the company, each individual is likely to invest even more in the success of your company.

Select employees who can wear many hats and look for talent from different backgrounds to bring different perspectives. I built and ran a food safety diagnostics start-up that I sold to a multi-billion dollar S&P 500 company. We had people of different ages, genders, ethnic backgrounds, education and geography. This diversity was critical to our success, as we did business in 100 countries. It required us to have a deep understanding of the market and the cultural dynamics of each country.

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