18 Feb 2008 04:33:25 | Dr. Robert J. Lahm
Bootstrapping a business startup does not necessarily mean that
you are unable to find traditional sources of capital. It may
mean that you are clever, or that you know a bargain when you
see it, or that you are the type of person who derives a certain
satisfaction from crafting something using your own hands and
vision, from scratch. If this is the way you feel, a franchise
is probably not for you. A venture capitalist, if you could even
find a member of that rare species when you are just starting
out, is also likely to want some or too much control, and your
vision might be thrown out of the window in that scenario as
well.
It's kind of the same thing when you make your first homemade
cheesecake using a recipe from a gourmet magazine, and then you
realize how horrible those store bought cheesecakes in a box
(that you used to eat) would taste in a side-by-side comparison.
Just think, if you embrace the "entrepreneur as gourmet chef"
metaphor that I have suggested above, you can tell people that
you are an "Entrepreneurship Connoisseur" at social gatherings
and when you are seated next to other first class passengers on
your next flight to someplace exciting. Not going anyplace
exciting, you say? Funny you should exhibit such a lack of
enthusiasm, because that leads us to tip number one:
1) You may have thought that we'd start out with some
high-powered "secret" bargaining strategy for bartering or
negotiating with suppliers or landlords. Well, in a way you are
right. The all time top tip, numero uno, has to do with your
attitude. Do you think you are "having a bad day," routinely?
Maybe it's not the kind of day or days that you are having;
maybe it's your contagious nasty attitude that infects everyone
around you and holds you back.
Here's a technique that you can use to thwart "nasty attitude
syndrome"--a vicious, virulent disease: Use a mirror. If you
don't like the way that you look, imagine how other people feel.
Put the biggest, nastiest snarl on your face that you can
muster. Stare hard into that mirror and say, "I want the best
price--now." Does the person in the mirror look like he or she
would be inclined to melt before your eyes and say, "For you, my
friend, I'd give you the world on a silver patter, because you
are my favorite kind of person"?
Perhaps I should explain the almost magical curative powers of
the mirror that you should now be holding in your hand (yes, use
a pocket-sized model that you can carry along, wherever you
go--on all of those exciting trips). If you will stand on your
head while you are frowning, you can "turn that frown upside
down." Other people will smile at you, and perhaps even chuckle,
or roar out loud, rolling in laughter. Now you're getting the
hang of it. A positive attitude and a smile on your face will
help you start your business, get out of trouble with your
spouse, or get you a date if you are single. Practice being
excited, (just about) everywhere you go.
2) For anyone who has forgotten kindergarten, let me remind you
that you used to be creative--maybe you still are--and
creativity is the heart and soul of bootstrapping. If you have
lost touch with your creative side, or it has been pounded out
of you as a result of other people's efforts to turn you into a
compliant drone, one who fits perfectly in a cubicle, then it's
high time you start acting like a kid again.
Yes, we're talking crayons, paint, glue, cardboard, scissors,
wood, and trips to a junk yard. We're talking Animal House (the
movie), and good old-fashioned food fights. We're talking about
imaginary worlds depicted in amusement park rides. We're talking
about science fairs, contraptions in your garage, and blue-green
gooey stuff oozing out of boiling pots. We may even be talking
about an illustration of the product idea that you have, or a
three-dimensional model of a store layout--like the one that you
will implement in real life when you start your business.
If all of the above seems too silly, you are just flat-out in
desperate need of the intervention described under tip number 1.
You must get out of the rut that you are in. Working in a
cubicle for the rest of your life is the notion that's really
silly. When you leave your present workplace to go home, take a
different route. You may find that by getting lost while you are
on your journey, you rediscover your creative inner child,
inside.
Creativity is an act, something one does, not a trait. You have
to give your creative side the time and tools to act. Get
yourself unstuck through lots of stimulation. Take the time to
actually study innovation, invention, the future, the past, and
specific creative techniques. On that last point, here's an
example of one technique: think about opposites. What's the
opposite of a high priced anything? An economy priced version.
What's the opposite of a big package? A small one. It's chunky
versus creamy. Light versus full-bodied.
There are books, Web sites, training programs, articles, and
devotees of the study of creativity. It's time for you to "start
your creative engine," buckle-up, and blast off to other worlds
that can be reached only in your imagination.
3) Research, research, research. Study, study, study. Read,
read, read. Do your homework. Remember that old adage about
"location, location, location"? Well, now you can forget that
one, at least for the moment. Your location, your customer base,
your supply channels, your price, all of these things will
become clear if you become a researcher. We are not talking
about the stereotypical, wimpy, "beat me up in the schoolyard
and take my lunch money" type of researcher. We're talking about
a new breed of formidable, respectable, "super researcher": A
guerilla fighter who takes names, observes weaknesses, and kicks
booty.
Quickly, the next time you visit your neighborhood video store,
count the tapes (DVD's, games, etc.) on one shelf. Then multiply
the number of videos on that one shelf by the number of shelves
in a display case. Next, how many cases are on one wall?
Assuming four walls, how many new releases does the store have
in inventory? Count the middle section, too. How many customers
are in line? Do they look happy? How many employees are working?
How many are loafing? What have you observed about the business?
Does it look like the store's making money? (No, we are NOT
"casing out the joint" for a robbery.) How long has it been in
business? How busy is the store, morning, noon, or night?
Collect competitors' advertisements. Collect advertisements that
you simply like (on the basis that they apparently gain
attention, sell benefits, and stimulate action). Collect crummy
ads, so that you won't repeat the mistakes made by others.
Bootstrappers pay close attention to what other people and
businesses do, so that they might emulate good business ideas,
or deviate from the norm with better ideas. It's amazing how
many businesses are founded on the basis of so little research
or planning. If you intend to start a restaurant, and you are
willing to spend $10,000 or more on a stove or a commercial
refrigerator, wouldn't it make sense to test your idea first?
Prepare a meal as though you were already in business. Invite
some guests to try your cooking. Ask them questions. How much
would someone pay? How often would they eat the type of food
that you have prepared? Conduct a survey yourself, or work with
marketing students or interns through a local college or
university. Ask, ask, ask, lots of questions.
Buy every entrepreneurial startup guide book pertaining to the
type of business (if it is a typical one) that you are planning
to develop. Go to trade shows. Read trade periodicals. Talk to
people. You are a "private eye," and your client is your
would-be business.
Create a "war room." What's a war room? It's a place where you
put a map on the wall, and use push-pins to depict an "enemy's"
location; also affix notes to catalog strengths and weaknesses
that you have noticed as a visitor. It's a place where you house
all of the competitive intelligence that we've been discussing.
It's a place where you plot the rise of your business, from
small, well conceived beginnings.
4) I know, the article title said "3 Tips." This is a bonus tip.
It's a FREE BONUS tip, for those persons who are still with me
in this discussion. If you can't handle the first three tips,
don't try bootstrapping. You won't make it. You need an
inheritance, or you should resign yourself to staying in that
cubicle. Try adding some color--a candy jar, or fresh
flowers--so that you'll be happier in your confinement. Hey,
that would be a small step toward changing your life, after all!
Here's the actual tip: Start small, and think differently (you
may have supposed that I was going to say "think big,"
instead--that wouldn't be a bad idea, either). Give yourself
time. Not days, weeks, or months, necessarily--we're talking
years, if that is what you require to develop a contagious,
positive attitude; create a winning idea; and become fully
prepared for your exciting journey, bootstrapping your way to
the top.
About Author :
Dr. Robert Lahm is the founder of several businesses, an
entrepreneurship professor, a public speaker, and a writer.
Article reproduction permission is hereby granted providing this
article is republished in its entirety, with author's
information and any links intact. Copyright 2005 by Dr. Robert
J. Lahm, WebPreneurship.com.