Join Rudolph Rosenberg for an in-depth discussion in this video Working in short cycles, part of Entrepreneurship: Bootstrapping Your Business.
- One of the most significant costs of starting a business,…which we have not discussed so far,…is actually not a cost in itself,…but a work process that generates…significant extra costs for the company.…This work process is the fact that we tend to wait…too long before being able to know…if we're going in the right or wrong direction.…By waiting too long we spend money on the operations…of the company paying more rent, more salaries,…and more of everything before we even know…if what we're doing makes sense or not.…
If it does then that's fine, no money has been wasted,…but if it doesn't we're just…throwing away our investment money.…As we discussed earlier,…we know from the beginning…that we are going to make mistakes,…so instead of working inside a bubble for a very long time…before we speak with customers and get their feedback,…we need to do the exact opposite…and get their feedback as early as possible.…There is no logic in working blindly…for the longest time possible.…
Sometimes we can be afraid to burst our bubble,…
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.