When it comes to entrepreneurs, many people always thinks about lots of initial money, which seems like a necessity in order to start a business.For those entrepreneurs working
in high-tech fields, finding and persuading VCs to support them is also seen as an
indispensable step. Many of them spend much time on cultivating themselves how to
persuade capital providers, not on their core business.
However, as the experiences of many successful enterprises today tell us, those big companies are growing from very small businesses. At the beginning of their startup,
their founders only have ideas , insight and guts, but without a lot of money. They are
bootstrappers. The only reason why they develop a successful business finally is that
they follow some rules. In this book titled <the bootstrapper's bible>, Seth Godin
shows us many important and useful rules for bootstrappers. As an entrepreneur
succeeding in many fields, Seth tells us that bootstrappers are very possible to develop
their own businesses when they follow these rules.
In the minds of many people, today is a fully competing world. Small companies have no possibilities to survive when facing with big companies.
While Seth tell us that small companies have their basic advantages over big ones. They have nothing, so they have noting to lose. This means small companies are easy to
take new technologies to develop themselves, even at some risk. They are happy to be satified with niche markets, which can be easily neglected by big companies. They
have faster actions, so they can discover new markets and new needs of customers. They are more flexible with the markets and customers's needs. As regards to cost, small
companies always have lower overhead than big ones.
Big companies have their own advantages, but small companies can overcome them by following appropriate rules. Big companies often have good distribution. Small companies can
avoid the distribution channels of a large company, e.g. using mail order, internet channels to sell products and services. Big companies have great brands, so small ones can
find their appropriate positions in the market. For example, they can provide better services but with lower prices. Big companies have good customer relationships, so small
ones can start from small businesses with better services.
The market is fierce. It is not easy to build a business, even a small one. As bootstrappers, you should follow some verified rules in order to improve your situations. Seth
tells us these rules as following,
1) Bootstrappers can find those people that care about cash less than you do, and try to use the money from them to develop your business. For example, your suppliers or
your customers who have greatest interest in your success.
2) surviving is success.In the beginning of your business, don't be tempted to be choosy about your projects or your products.You had better allocate a percentage of your
week to making money, any way you can that doesn't distract from your core business.
3) redo your business plan every 3 months. You should have a formal business reinvention process in your calender.It will be easy for you
to find that the ideas three months ago are so naive.
4) associate with winners. your customers,peers, employees and your vendors, all are people you should take care. Devote several hours every week to helping others can be very helpful for you. It can help you to build good relationships with your peers. and know some new friends. You should surround yourself with people who have succeeded and are still enjoying the business and life.
5) be careful about the shared ownership. A 50/50 split is never fair. Inevitably someone feels cheated.And Someone goes for the ride.So plan for the success. and realize that big ideas aren't worth much. Always leave both sides an out. Ownership can only be compensated by performance. you can define a formula to connect the performance with the share
of ownership.and the final point, separate the control of the business with the profit
participation.
6) Do advertising from the first day. Advertising is investment, not expense. As for the strategies of advertising, Seth tell us 4 rules,
... spend regularly on advertising.
... persist on advertising
... Using clear advertising, making sure that your customers know what you do ,who you
are , and how to reach you when they see your advertising
... evaluate your advertising regularly, be ready to adjust. But , be careful about
change.
7) find a mentor to guide you. pick the right person, and make it easy for the mentor to say yes and say no.
8) develop those businesses serving for big companies , just like the little birds
cleaning the teeth of very big hippos. The business with mutually beneficial relationship
is easy to succeed.