Become Freelance

There are countless stories of Freelancers and business start-ups who had less than $5,000, $1,000, $0; or some who even began with a deficit.  Many of them went on to make millions.  To be a bootstrapper requires a strong determination and will to succeed despite the odds.  Often, bootstrappers don’t have a business plan, investors or anything to start their business.  It’s a gutsy approach for sure, but you can be successful just like hundreds of other highly motivated entrepreneurs who started a business in their garage or basement and went on to make millions.  Here are some valuable tips to make a go of the bootstrapping system:

• Be practical.  Spend money only on those immediate needs and rely on a pay-as-you go basis.  Order online direct from wholesalers whenever possible.
• Project sales backwards.  A common error of new Freelancers is to forecast sales from the top to the bottom.  For example, I might project sales of my eBook to be 2% of the 200,000 people I will target from a certain magazine ad.  Instead of focusing on sales from that angle, the bootstrapper will forecast from the bottom, like this:  “I will sell 10 eBooks my first day, 20 the second, and by the end of the week I will reach a goal of 300 books.  By the end of the year I should have ____ number of books.”  By using this strategy, you will have a more realistic sales goal than by guessing from the top down.
• Concentrate on cash flow rather than profits.  It may be great to land a big assignment as a Freelancer, but if you have to wait a long time to get paid then you’ll be hurting yourself financially.  Make sure you have some little jobs mixed in there if you accept a big one so that you’ll be guaranteed at least something monetarily every week.  Or work out payment agreements with buyers.
• Offer a service to finance your product.  If it’s lack of funding holding you back from a cool invention you want to get off the ground or a product you want to develop, then start off in the service aspect.  For example, you could offer marketing or consulting services within your industry in order to earn money that you need to fund your own product development.
• Hire fewer people who have more enthusiasm.  You were in college once.  Remember how difficult it was to get a ‘real’ job because you had no experience?  It’s the Catch 22 for college grads – they’ve just studied and prepared for a career in their field, only to be shunned at every interview because of lack of experience.  Reconsider!  Bootleggers know that college grads are eager, enthusiastic and highly trainable.  And cheap!  Sometimes those guys with 10 years experience are less open to changing their ways.  If you need a small staff to get started with your business, consider the value of the young go-getters.  Who knows, you may be inspiration for the next entrepreneur of tomorrow by giving someone a chance today.  Bet you’ll save a lot of money in payroll, too!
• Work the bugs out later.  There may be many inconveniences that you will face via the bootstrapping method.  Your computer may not be up-to-snuff or you may have to make sacrifices on new tools and equipment.  Use what you have now and do the best job with it as possible, rather than going over budget and spending cash you don’t have. Bootstrappers are talented at “rigging” things to make them work, rather than buying new; more apt to seek deals on Craigslist or the classifieds for big purchases; and can get by on what they already have.  Once the money starts rolling in, the bootstrapper will be the most appreciative because everything he has will be hard-earned.

9 Reasons Why Bootstrapping May Work For You:

1. By bootstrapping you can start your business right now – don’t wait!   With investors involved you’ll have to wait for the ‘Okay’ from the powers-that-be.  It could take months or over a year to wait for funding, not to mention all of the legal fees and associated hassles.  Bootstrapping means you can get out there right now and round up some clients.  Theoretically, you could have new business by tomorrow.

2. Bootstrappers don’t blow money, because they don’t have it.  Businesses with lots of up-front capital have a tendency to spend a lot of it right away, as if they were already up and running with the business.  They have fancy interior decorators design the office, frou-frou letterhead with elegant stationary, and take clients out for gourmet lunches.  Bootstrapping will force you to rely on making more money, rather than spending it.  Bologna sandwiches, anyone?

3. There is less risk involved in bootstrapping, because you can’t lose money you don’t already have.  Prefunded businesses often make big spending errors and costly mistakes.  And individuals who borrow against their homes or who use other collateral sometimes lose it all.  Bootstrappers can’t spend their whole life savings on a business because they don’t have a savings account in the first place.

4. Bootstrapping requires out-of-the box thinking.  People who start a business with no money are forced to come up with creative alternatives to marketing and brand building.

5. Bootstrappers have less debt.  Since they use a pay-as-you need it strategy for everything from office equipment to employees, bootstrappers are not entitled to repay a bank, investor or relative back when they achieve profits.  Bootstrappers pay at the time they have the cash, which means greater gains and faster progress of the business.

6. Bootstrappers become better salespeople. There is a sense of urgency when you need money to pay your bills.  The bootstrapper will make darn sure he gets enough money to feed the family, make the car payment and live.

7. Bootstrappers are deadline-driven.   The faster you get a job done, the faster you get paid, right?  Self-employed people know they have to go the extra mile in order to survive, so they will often outshine the bigger companies in customer service, price and timeliness production.

8. Bootstrappers are slaves to no one.   If you answer to a business partner or investor, you have to ask if it’s okay to sneeze.  Unexpected decisions pop up all the time when you have your own business, but if you have to ask the board of directors every time you need to react to a new challenge, then it will definitely affect your bottom line.  Be free!  Be spontaneous!  Bootstrapping means no bars on your windows.

9. Bootstrappers are brave.   Fear of the unknown is the number one reason why many people hold back from becoming a Freelancer.  Bootstrapping means being forced to face that fear head-on with an attitude of success and fortitude.  There may be times where it is a struggle, but the warrior Freelancer will not give up on their dreams of becoming the best.  If nothing else, the bootstrapper has an incredible rags-to-riches story to inspire other emerging Freelancers one day.

TIP:  READ INDUSTRY MAGAZINES FOR INSPIRATION AND START-UP IDEAS.  Some highly successful entrepreneurs have a great story to tell of how they began with nothing and created a very lucrative business.  Magazines like:  Entrepreneur; Success; Business Start-ups; Fortune, Inc.; and the hit TV show “The Big Idea” are all great sources to spark motivation and gain valuable funding solutions.