The Danger of Bootstrapping Your Online Business

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Creating a new business from scratch online is not expensive. Almost anyone can start a blogging business, for example, with about 150 bucks – depending on whether you need a business license or not. But the blog site will cost you about 20 bucks for hosting plus the domain name to get started.

That’s really nothing in the scheme of things if you think about it. That’s why most people who start an online business bootstrap it.

Bootstrapping a business means that you don’t get a loan and just use some extra money out of pocket to get the business started. As soon as possible, you use only the money you’re bringing in from the business to run the business. It’s a great way to start an online business. But, it’s easy to get into a rut of not investing enough money in your business when you are bootstrapping it.

The best thing you can do though, especially when bootstrapping, is to put all the money back into your business as soon as possible. The best way to figure out what this amount is, is to make a list of the tasks you want to be outsourced, the tools you need, and how much you’d like to pay yourself and then work toward that.

Outsource

Remember, when you outsource, you are buying someone else’s skill set to add to yours. Even if you’re terrible at writing blogs, you can still be a blogger if you pay someone else to write for you. Conversely, you can get someone else to do your books, do your taxes, or even clean your house if it gives you more time to do whatever it is that you do to make money.

Recommended resource: Virtual Assistant Finder

Learn Something New

One way to spend the money you’re bringing in is to use it to learn something new. When you educate yourself on your niche, the tools, and the audience, it’s going to turn you into an expert. Keep learning something new assuming you will use what you learn.

Buy the Right Tools

When you need automation tools to compete, don’t put off getting them. Software like Hootsuite, Drip, Acuity Scheduling, and so forth are a few of the different types of tools you may want to buy to help your business work more smoothly. Remember, time is money. If something or someone else can do it for you, giving you more time for something else, then you should do that.

Pay Yourself

After you have purchased all the tools and paid for all the contractors you need to run your business smoothly, it’s imperative that you start paying yourself. Instead of just taking whatever is left over and spending, it’s best to work up a budget and a plan. Pay yourself on a schedule a set amount.

Bootstrapping is a great way to begin an online business. But if you want the business to be successful, you must invest in the right places as the money comes in. Eventually, if you play your cards right, you should be able to become the manager of your business by using the right tools, hiring the right contractors, and investing in the right places.

Keep reading >> 3 Common Limiting Beliefs About Money​