Join Rudolph Rosenberg for an in-depth discussion in this video Managing spending, part of Entrepreneurship: Bootstrapping Your Business.
- So let's tackle our first pillar, Managing Spending.…I guess this is the most obvious one…If you want to reduce your dependency on money…coming from financial institutions or investors.…The best way is by far not to spend money.…If you don't spend it, you don't need it.…Some expenditures are more significant than others…when you start a company, and the objective here…is to take those significant expenditures…and look for ways to reduce them big time.…
Typically, the most significant expenditures are…your own salary, the salaries of your employees,…office rent, services from professionals…such as CPAs or lawyers, and then you'll have…a large number of less significant expenditures,…which, bunched together, will represent a large amount.…Not every company can start on less than $1,000,…so the best way to reduce your dependency on money…is to plan for alternative ways to achieve your goals…and make sure you still get what you need…to make your business succeed.…
So we'll be taking those significant expenditures…
He shows why beginning with the end is important: framing the venture by anticipating your exit strategy. He explores key resource-planning factors as well as the competencies and considerations required to fund and grow a bootstrapped business. The course then details how to manage the startup and evaluate it realistically to determine whether to stay the course or pull the plug. Finally, viewers will learn how to validate the business-plan assumptions effectively to determine viability and growth trajectory.
- Summarize the five pillars of bootstrapping.
- Determine which type of office space would be most beneficial for a given business.
- Explain the concept of linearizing expenditures.
- Identify the reason why making sales quickly is important to bootstrapping.
- Recall strategies for attracting new customers.
- Recognize the advantages of working in short cycles.
- Explain the importance of having a work-life balance.