Business models

Comments Off on 7 Bootstrapping Principles Any Business Can Use

7 Bootstrapping Principles Any Business Can Use

Posted by | 12 October, 2011 | Business models, Business planning, Key lessons, Launching a startup, Startup reading lists, Startups

Original post by Annie Mueller via OPEN Forum

What do you get when you combine small business and an economy in recession? A crunchy little budget for small business owners to work with.

Do not view the tight budget or the lean economy as your enemy. Certainly we all enjoy times of prosperity more than times of recession, but it’s often during tight periods that we learn to harness creativity, drop the deadweight and get our businesses lean and ready for real growth. And real growth usually comes after tight times. So hang in there with your business and look for the positive side of a tighter budget

Also, do not pull back and hide in the business equivalent of the fetal position until “things get better.” Certainly, things will get better. But if your business is hiding out in the broom closet, things will not get better for you. Take the active approach. Drop excess costs. Tighten up. And work harder than you ever have, so when things do get better, you’ll be ready to let your business grow.

In these lean times, it’s smart to turn to tactics that bootstrapping entrepreneurs have always used to keep their business running without a lot of cash on hand.

1. Cut optional expenses

Maybe in years past recurring expenses were approved without much evaluation. Now is the time to evaluate and cut. Do not keep doing things that cost money just because you’ve always done things in that certain way. If it isn’t making you money, or essential for the operation of your business, it’s in the optional pile. Reducing your expenses is an important part of the bootstrapping philosophy.


Comments Off on 4 steps to ‘acquirability’ in an age of tech optimism

4 steps to ‘acquirability’ in an age of tech optimism

Posted by | 6 October, 2011 | Business models, Business planning, Exit strategy, Startups, Strategy

Original post by  via memeburn

In the midst of a financial crisis earlier this year, news circulated that Apple held more cash than the US government. Analysts took what they wanted from the situation, but one thing is clear: Technology is driving wealth creation despite uncertainty in many sectors.

Some have called it the Second Gilded age of massive wealth creation — the original Gilded Age being the Roaring Twenties in the railroad era. Startup geeks and entrepreneurs are keen to take advantage, but so are investors. In his book, Richistan, the Wall Street Journal’s Robert Frank profiles the world’s new moneyed rich and it’s no surprise that technology is identified as a key source of wealth creation. Sales of companies to larger ones are a major source of that wealth.

As we’ve mentioned before on, even those looking at gloomy outlooks for the world’s markets are putting their positive sentiments on technology. Economist Nouriel Roubini, who predicted the 2007/2008 financial crisis, is a case in point. Besides predicting the US is headed for another recession, Roubini told attendees of the Discovery Invest Leadership Summit that the potential of technology-related businesses to drive economies growth. International speaker and investment advisory head Doug Casey shares a similar sentiment.

If we are expecting investors to hedge their bets on the prospects for technology, then we need to take a closer to look at what is required to get an acquisition completed.