What if you did it all yourself?
In the present day, many businesses turn to the ease in which funding can be sourced from investors. Business incubators, peers and connections all provide potential means through which capital can be raised to get a venture going – but it comes at a cost. Autonomy is limited, direction is often determined by others and the full control that innovative entrepreneurs thrive on often isn’t there.
In 2021, bootstrapping your own business is as viable as ever. We’re at a unique period in our business world as we hope to emerge from the vice grip of COVID-19, and it’s a great time to consider striking out yourself.
While bootstrapping sometimes refers to self-funding in the first months and years of a business to build a precedent that attracts later investors, we’re talking in this article about planning to manage your own business and funding the whole way.
As we’ve alluded to already, one of the key benefits of this method is the autonomy you have. The kind of person who wants to start their own business entirely is creative, driven and liable to innovate a product or offering that relies on a unique vision that can’t afford to be stifled. For these people, steering at the helm of their new venture is beneficial in allowing them to stay true to that vision.
The flipside of this method is something every freelancer and entrepreneur can appreciate and resonate with: one hundred percent accountability. The buck stops with you, as the saying goes – and that degree of responsibility leaves little room for half-hearted efforts and half-baked ideas.
Emerging from COVID-19
While we must appreciate and remain mindful of the fact that many businesses haven’t survived the pandemic thus far, it’s also important to look earnestly at the business landscape as it stands towards the end of 2020. Namely, that it’s forced innovation and adjustment onto the companies that are left standing.
Consumer and client appetites have shifted, reflecting new priorities influenced by how our society as changed. In most cases, this has been shown in companies by a blossoming of online efforts and innovation, from digital therapy to restaurants switching focus into providers of instructional cooking kits and guides.
In short, it’s a tough time that is breeding innovation by necessity. If you’re the type of business dreamer that thrives in experimentation and the unknown, bootstrapping in 2021 in this unique business landscape is the perfect environment for you to succeed.
Automation and SaaS
One of the other hallmarks of our digital age as it stands is the rise in automation and software-as-a-service (SaaS) business models. Because technology is decentralising infrastructure and the need for IT assets, we’re seeing increased innovation in areas that help new businesses grow in their first few years.
Examples of these include automation of activities and workflows, reporting and machine learning and programmatic AI. SaaS offerings now extend to key areas of most businesses, such as Human Resources and administrative duties via virtual assistants and teams.
One of the key results of these decentralised offerings and services is that a new business can access the kind of root infrastructure it needs to scale and grow rapidly but on a much-reduced budget. Instead of needing to hire that HR expert and have an office, it’s as simple as a SaaS model to hire the expertise required. A business can now begin at a larger scale than before either entirely bootstrapped or by using services like bad credit lenders. It’s never been faster to get stuck in and get to work realising your dreams and concepts.
Food for thought
We hope this article has been illuminating and thought-provoking. Despite the very real challenges being faced across the world, 2021 is shaping up to be an exciting year for businesses that are looking to innovate and blaze a new trail in their sector of choice. We wish you the best of luck in your own efforts in the year ahead.