How to Bootstrap

Think Cheap

We asked some successful bootstrappers how they were able to build their companies on a shoestring budget, with no outside start-up money. Here are some of their tips:

• Train employees to be experts - don't buy outside expertise unless you have no other option.

• Entice potential employees with performance-based compensation plans and bonuses rather than high salaries.

• When at all possible, don't outsource what you can do yourself, even if it means jumping on your bike rather than calling a courier service.

• Tap into the mom-dad market. Stay-at-home parents are a great part-time labor pool.

• Give the company checkbook to the tightwad.

• Don't buy for the future. Buy only what you need right now.

• Tell your customers that your policy is to collect at least partial payment up front and that you will give them below-market prices because of this policy.

• Sell yourself to your vendors as you would to your customers - convince them they will be thankful they did business with you (and allowed you to pay in 60 days, rather than 30) because you'll remember them when you make it big. Pay early when you can.