July 25, 2006
What is bootstrapping?
According to the Miriam Webster Dictionary the term bootstrap means “to promote or develop by initiative and effort with little or no assistance.” The term is believed to have originated from a German legend about a Baron who pulled himself out of the sea by pulling on his own bootstraps. While this presents an interesting visual, it also provides an example of what entrepreneurs need to do if they want to be successful in business. You must be willing to do all you can. Like the cliché states, “when the going gets tough the tough get going.”
Why bootstrap?
Essentially, bootstrapping means you do all you can with your own resources and efforts before going to search for outside capital from investors. Having the dedication and ability to pick yourself up by the bootstraps to further your business goals gives you an added measure of credibility with investors. Investors will see the sacrifices and accomplishments you have made getting by on your own power.
Ways to bootstrap
- Keep expenses to a minimum: Use supplies you already have on hand. Rent equipment when necessary. Do not make unnecessary purchases. The necessities for any business include: a computer (with Internet access), a mobile phone
- Work from Home: Rent is often a high yet unnecessary expense. See if working from home makes sense for your company.
- Think outside of the box: Avoid traditional, more expensive means of marketing. Be creative. Come up with ways to reach your target markets without a large marketing budget. Along the lines of being creative, think of what product or services you could trade. For instance, if you are starting a bakery, you could arrange a deal with an advertising company to cater their lunch for free in exchange for advertising. Again, be creative.
In addition to the previous tips, Guy Kawasaki provides 11 insightful ways to grow your business. Click here to view his list.
Additional Information
A plethora of resources are available to give some ideas and suggestions on ways to bootstrap. We have included just a few to get you started:
When FundingUniverse.com started, our research showed investors generally funded companies close to where the investor was located. In an effort to increase your deal flow, we created state by state sites to view plans from your specific area. After talking to more investors, we realized that many investors wanted to see business plans from other regions. Some angel groups were even interested in viewing business plans in areas on the other side of the nation. In response to this need, the FundingUniverse.com team created “national view.”
What is National View?
Released in June 2006, FundingUniverse.com’s national view service allows you to search for business plans in your own state and in states throughout the country. You are no longer limited to deals in your region. You and your angel group can search the entire country for deals which are of interest to you. Some of the benefits of national view are:
- Access to greater deal flow
- Quality deal flow
- Ability to discuss business plans with other investors across the country
- Access to regional biz plans
- View top business plans in the nation
How do I use National View?
1. To use this service you will need to register as an investor in your respective state. If you have already registered and been approved, simply log in and you can view business plans from around the country.
2. After you have logged in, you will be directed to the main page. Just above the list of business plans you will notice the search bar. In the middle of this bar, there is a drop-down box where you can select a specific state from where you would like to view business plans.
3. Note: To the right of this option is a button that says “Last 100 Nationally.” This option let you view the most recent business plans that have been posted to our site.
Try out the new National View to gain access to greater deal flow from across the country. Visit FundingUniverse.com to login or register now. If you have additional questions about National View call us at 877.638.3616.
July 12, 2006
FundingUniverse.com is looking for a PHP web developer with strong UI and information architecture experience. The developer will be working directly with the marketing and sales department to design, build, and develop pages on FundingUniverse.com and other sites under our umbrella (FundingUtah.com, FundingArizona.com, etc.). The company is fast moving and the developer will have the opportunity to work on many different types of projects.
The developer needs to be able to pick up or find problems with websites and propose/implement a solution. Strong database skills and experience with XHTML and CSS is a must.
Skills Required:
1 year PHP experience
Strong knowledge of MySQL or other database system
Good design eye
Knowledgeable in XHTML, Javascript, CSS
UI experience
Helpful Skills:
Experience in Ajax
Linux administration
Hours: 20-40 hours a week, flexible
Wage: DOE
Benefits: Full-time/salary team members may be eligible.
Contact information: Please send a resume and examples of your work either as links or attachments to trentATfundinguniverse.com
July 5, 2006
The decision about whether a business plan has potential is an easy one for most investors. Whether a management team can successfully implement the plan is often the more difficult question for investor. Part of the due diligence process involves not only looking into validity of the business plan, but also assessing the management team.
Meeting one-on-one with potential partners is a terrific place to begin the process of assessing a management team. These meetings can provide you with a sense of the personality and drive of an entrepreneur. However, you need to be cautious. Everyone wants to appear in the best possible light. Entrepreneurs may fail to divulge negative information that would impact your decision whether to invest or not.
Requesting complete resumes from all members of a management team is a vital step to obtain the information you want. Interviews with other contacts close to management should be conducted. While there is not a formula for what makes a stellar management team, you should assess the following areas:
1. Leadership. Do members of the management team possess strong leadership qualities? Are they the type of people others will follow?
2. Coachability. Are members of the management team teachable? Can they take direction/guidance and implement it into their business plan when necessary?
3. Commitment. Is the management team committed to the business idea? Will they do everything ethically possibly to make the idea succeed?
4. Areas of weakness or gaps in the team. Do the strength and weakness of team members compliment one another? Is there an area where the management team is lacking in knowledge or expertise?
5. Trustworthiness. Are the principals trustworthy? Do you have confidence in the ability of management to act in an ethical and respectable manner?
6. Credit background checks. What does the credit report of the management team look like?
7. Criminal background checks. Does any member of the management team have a criminal record?
Remember, what one investor may find appealing about a management team may drive off another. Based on your experiences and preferences, you should determine, individually, what an extraordinary management team is comprised of.
Good Luck!
Individual angels and angel groups are becoming increasingly technology savvy. Investors are creating their own websites and online communities. Difficult to reach investors are using the internet with ease.
Because of the recent focus on user-generated content on the web, end-users are now an integral part of many businesses. They are managing, changing and adapting the web to fit individual needs.
You have the ability to make the web work for you and your business. If used correctly, the web can help you achieve business success. Some of the web features that can assist you in your pursuit for funding include:
Virtual Office
Technological advances over the last ten years have made brick and mortar office almost unnecessary. A computer with internet access is all you need to work from virtually any location. This convenience allows you the ability to stay in contact with investors, your consumers, and members of your management team.
Automated PBX
Private Branch Exchange (PBX) is a telephone system that is owned by a private business rather than by a large telephone company. VoIP is a phone system that routes calls over an Internet connection. With this system a single telephone number can be used for an entire company regardless of where the offices are located. Employees have the ability to work from home using the same telephone number as someone working in another office. In addition, no hardware maintenance for this type of system is required.
Blogging
A blog, or an online journal, provides you with the opportunity to write about your product or service. If you have a new and innovative way of solving a problem, write about it in your blog. Use blogs to learn from other entrepreneurs. Search for the blogs written by investors involved in your sector of business. Taking the time to read these blogs can provide insight into the mind of an investor.
Podcasts
Like blogs, podcasting provides another way to tell your market about your product/service. Listen to podcasts from investors and other entrepreneurs. You have the ability to learn about the topic of your choosing. To listen to FundingUniverse.com’s podcasts click here.
This list is a brief glimpse at ways you can make the web work for you. Be creative. Think of additional ways you can use the web to achieve business success.
Good Luck!
