In theory, there are so many options for startup fundraising. Aspiring entrepreneurs often become dizzy in the head thinking about terms like “unicorn”, “venture capital”, and “series A fundraising”.
However, the reality is that while there are many investment opportunities for new Pakistani startups, many new business owners do not have the connections, channels, and influence to attract big investors right away.
So what do these startups do to fund their business expenses? Majority of them do something known as “bootstrapping”. By definition, this means building a company from the ground up with nothing but personal savings, sales, or other internal sources. Simply put, it means funding a startup without external investment.
Here’s how you can bootstrap your new Pakistani business:
How to Bootstrap Your Startup
- Create a Business Plan
The first step to successfully bootstrapping your business is to create a solid business plan and financial plan. This will help you clearly define your business objectives and KPIs. It will help you stay on track and avoid any unnecessary expenses. This way, you will be able to stay within your limited capital means without compromising on your business offering.
- Follow a Budget
Along with a business plan, you also need a thoroughly-made budget. This budget will help you manage all your costs and expenses. It will help you understand how to divide up your limited capital, and how to spend effectively to survive without investment.
- Manage Your Books
If you are bootstrapping, it means that you need to keep track of every single penny that enters or leaves your business. All capital should be effectively utilized. Therefore, keep a close eye on your bookkeeping records, and be sure to sort out any discrepancies or unequal balances right away. Using the Metric app to manage your accounting is a great way to ensure you meet all your targets and stay on track! Metric app allows you to manage your books without any prior accounting knowledge or experience!
- Be Prepared to Wear Many Hats
As a solo business owner, and sole investor for your startup, you must mentally prepare yourself to wear many hats. This includes production, customer service, bookkeeping, managing finance and budgets, and so much more.
- Be Passionate About Your Startup
We aren’t going to sugar coat this – it can be very challenging to bootstrap your business. At some moments, you may feel completely overwhelmed. But having a deep passion for your business model and offering will surely help. It will also give you the motivation to see things through and drive your startup to success.