Bootstrapping Some Suggestions Author : Eva hukshorn, partner EFactor
Suggestion 1: Know Your Numbers!
1. Cost per sale 2. Profit per sale 3. Pipeline 4. Repeat orders 5. Conversion rates 6. Gross profit 7. Fixed costs per month 8. VAT return 9. Budgets & Forecasts 10. Results compared to last year
Suggestion 2: No Cash Outflows Unless Necessary!
1. Variable costs are key 2. Diminish overhead costs 3. Avoid capital expenses 4. No long term contracts 5. Watch your payroll 6. Outsource all except your Unique Selling Point 7. Barter
Suggestion 3: Funding Sources
1. Universities & Grants funding 2. Competitions 3. Vendor Funding 4. Invoice discounting & Factoring 5. Asset funding 6. Overdrafts 7. Barter 8. Credit cards 9. Revenue, savings 10. Friends, Family & Fools (FFF)
Suggestion 4: Crowdfunding
1. Pre-Sale crowdfunding 2. Reward based crowdfunding 3. Peer - 2 - Peer lending
Suggestion 5: The Trick With Patents & IP
1. Think before you spend 2. Visuals of prototype 3. No Kinder---Ăœberraschung effect 4. Talk to tech advisors 5. Research yourself 6. Get 1 hour free meeting with IP lawyer 7. Fixed Fee 8. Patent pending
Suggestion 6: Leverage Yourself and Others
1. Get a well known coach 2. Experienced board of advisory 3. Equity stake up to 5% incl. vesting time 4. Brand association 5. Discount for high profile customers 6. Testimonials 7. Use resources in your network: --Share housing, technology, contacts, databases, distribution & communication channels
Suggestion 7: Power Free Marketing
1. Measurable Marketing 2. Concrete & Clear Unique Selling Point 3. Joint Ventures 4. Sales, Sales, Sales = Numbers’ Game 5. Trial balloons 6. Find optimal market, message & price 7. Find angles for free publicity 8. Social Media / Blogs 9. Trigger with (basic) test products 10. Repeat customers
Suggestion 8: Use Everything That is for FREE, Cheap or @ Discount
Interns:
www.interns.com / www.stageplaza.nl / www.enternships.com
Employees:
www.elance.com / www.linkedin.com /
Barter & Trade:
www.fiverr.com / www.tradekey.com / www.alibaba.com
CRM for SME:
www.highrisehq.com / www.marke)nvoice.com
Intranet:
www.dropbox.com / www.wetransfer.com
Events:
Local Entrepreneurial Communities / www.meetup.com / www.opencoffee.ning.com
Marketing:
Local & regional traditional media (TV, Radio, papers, magazines) / FB, LI, Twitter, Pinterest, YouTube, Google+/ Blogs
Newsletters:
www.mailchimp.com
Research
Local Bank / Accountant / Lawyer / Chamber of Commerce / Government Trade Institutions / www.cia.gov / economist.com
Funding:
www.RocketHub.com/ www.efactor.symbid.com / www.crowdcube.com / www.fundingcircle.com / www.prosper.com / www.firskunding.org
Suggestion 9: Don’t Forget to Leverage EFACTOR •
Match with Partners, Investors, Coaches, Customers
•
Market yourself, your company, your brand, your blogs
•
Network events, business development
•
Find employees & interns
•
325 knowledge documents for entrepreneurs
•
Business Resources against discount
•
FREE Funding Requests & Business Plan support
One Rule: WE Provide the Platform, YOU Make it Happen!
From Bootstrapping to Investors: Timing
1. Intense & Increased Competition
6
Marketing & Sales Activities
2. Strategic Support
7
Proven Concept Making Money
3. Partnerships, Network
8
4. Credibility
9
55. Increase Product Development
10
Increase Personnel Governance Organizational Infrastructure
Conclusion: Your Role Models
BOOTSTRAPPING IS A MENTALITY!
Visit Now http://www.efactor.com/
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Thank You!
This document was prepared by Eva Hukshorn. Several people and organizations have inspired her to write this presentation, amongst which are, but not limited to the Founders of EFactor, ABN AMRO/RBS, University of Groningen, Institute for Management Accountants, Paul Grant Founder of the Funding Game