Ho-Ho-How Santa's Workshop Manages Christmas
Santa Claus: one of the most well-known, eagerly anticipated, and incredibly successful entrepreneurs in history. Each year he oversees the production and distribution of toys to every single child on his Nice List — and with over 1.9 billion children on Earth, that's a lot of toys! He hasn't missed a year yet, but that's not to say it's all sunshine and snow angels. I met Mr. Claus for a cup of hot cocoa and he shared a few tips about how he runs the most successful toy workshop out of the North Pole. Not surprisingly, the big man has taken some project management training courses. From the jolly good fellow himself, here's how Santa's workshop manages to pull off Christmas: Plan and evaluate every day leading up to the Big Give. We always start our new year of toy production by outlining the requirements and scope for pulling off a successful Christmas. That means outlining all 365 days leading up to the finale, not just the 12 days that everyone sings about. It's a long process, but it sets the workshop up for another successful year. Our planning meetings are supplemented by many glasses of milk and platters of cookies to get all the elves excited. We review "The List" from years past to see how many gifts we gave, and predict how many children will make the Nice list this year. We do some market research to guess what toys will be high in demand this year. Yes, even Santa goes online! We set up benchmarks to hit throughout the year. How many dolls will we make by February, March, April, etc.? We also calculate the projected workload compared to how many elves we have employed this year, and then see if we need to hire additional help to meet our goals. Santa's Crumb of Wisdom: Take time to plan out every step of your project, and make sure you have the resources necessary to fulfill your goals. Consider every voice, big or small. I get letters from children all over the world 365 days a year. Billy wants a puppy; Jane wants a Princess Elsa doll. Since they take the time to send me their wishes, I read what they have to say and take their letters into consideration. If we're already making Princess Elsa dolls, I will certainly give one to Jane — why not please her when it's easily within my power? Billy is difficult though, since we typically let parents give out the new pets. Sometimes I have to upset a few children by deciding to say no, but I always make sure to listen first before rejecting their ideas. Santa's Crumb of Wisdom: Hear and actually consider what everyone — especially every customer — has to say, and THEN make your decision. Prepare for changes to The List. The real challenge at my workshop is managing fluctuations of "The List." Wishy-washy children have a tendency to change what they want ("I don't like Princess Elsa anymore, I want Olaf!"), or jump back and forth between Naughty and Nice, and the number of toys we need to produce changes accordingly. Every year we further refine our Nice-to-Naughty List algorithm, but it is still impossible to control these outside influencers! Our solution has been to insert some padding into our toy production timeline so that we don't miss our benchmarks even when the children are unpredictable. Santa's Crumb of Wisdom: Analyze your project risks and plan how you will deal with them ahead of time. Clearly communicate processes — from who's in charge to how to wrap a gift. My Head Elf manages the whole project, from start until Christmas Day. She's responsible for closely tracking our project progress. Accordingly, she dictates what's on the production lines each day. If we need more bricks or dolls, the elves in those departments hear it from her, no one else. Personally, I check in with her weekly to get a progress update, and I let her know if there are any changes to The List via our project management tool so she can properly adjust the toy production plan. Santa's Crumb of Wisdom: Set up communication guidelines in advance so everyone knows whom to go to with questions or problems. Schedule snow days. I think it's important to reward my elves with well-deserved breaks. It builds loyalty to the workshop so that they'll come back again next year. Cookie breaks: We frequently take cookie breaks together for a mid-day sugar rush of productive energy and some bonding time — which is important when you spend so much time together. Celebrating achievements: When we hit our half-way benchmark last year, the elves celebrated with a huge snowball fight that lasted over 4 hours! I did not win — those elves are nimble! Holiday breaks: After we've finished our delivery, December 26th until January 1st is always a company-wide holiday as a thanks for 360 days of hard work. Every elf is encouraged to relax, spend time with their families, and go reindeer-back riding. Santa's Crumb of Wisdom: If you want to keep your team happy, make sure they know you appreciate them! Actions speak louder than words; group outings make for fun bonding time. Ho ho ho! Merry Christmas to all, and to all a good night! Don't want to rely on Santa to bring everyone gifts this year? Read this next: 34 Holiday Buys for Productivity Junkies (Gift Guide)
The Ultimate List of Legal Resources for Startups
Intellectual property rights, patent law, incorporation, equity distribution.... Navigating the legalities of starting a business can seem like an impossible feat, especially when one misstep could spell major trouble down the line. With an abundance of questions and limited resources, startups can’t afford to keep top legal minds on retainer for whenever an issue pops up. Time and money are vital to a fledgling company's success, so save both with this list of legal resources especially for entrepreneurs. Note: This list is a collection, not a ranking. Articles & Advice Choose Your Business Structure How to Work with Lawyers at a Startup An Entrepreneur’s Guide to Wrangling and Hog-Tying a Lawyer Online Legal Services: Are They Effective for Startups? Venture Beat's Ask An Attorney 10 Questions Co-Founders Should Ask Each Other 5 Biggest Legal Mistakes Startups Make 3 Things Entrepreneurs Need to Know About Patent Law Reform 5 Ways Not to Respond to a Cease-and-Desist Letter 10 Big Legal Mistakes Made by Startups Blogs A View from the Valley by veteran startup lawyer Matt Bartus Counselor @ Law by speaker, writer, and public policy activist William Carleton Gust.com by a group of experienced startup founders and investors The High-touch Legal Services Blog for Startups by startup lawyer Dana Shultz Likelihood of Confusion on internet trademark and copyright infringement by lawyer Ron Coleman Mashtag Blawg by Bottom Line Law Group, a firm specializing in lean startups and business growth Startup Law 101 series of tutorials for founders and entrepreneurs Startup Law Blog by prominent startup and corporate transactions attorney Joe Wallin Technology & Marketing Law Blog, award-winning blog on internet law, intellectual property, and advertising law by law professor Eric Goldman Walker Corporate Law Blog by a boutique firm that specializes in representing entrepreneurs Websites Entrepreneur's Legal Basics for Startups, a collection of expert articles and videos from Entrepreneur magazine Startup Company Lawyer answers hundreds of specific questions, from incorporation to stock options Startup Lawyer has articles on topics like incorporation and equity, plus a helpful glossary of terms Quora Term Sheet is a collection of legal resources for entrepreneurs and investors hosted on Quora Upcounsel is a service that matches entrepreneurs to legal professionals based on their specific needs Small Business and the SEC is the official SEC guide to complying with federal securities laws while raising capital Rocket Lawyer has a collection of sample documents and a group of on-call attorneys to answer your legal questions Start-Up Launchpad holds educational materials, checklists, and sample legal documents Templates Docracy is an open collection of legal contracts. Document templates are free to download, customize, store, and e-sign, including a retainer agreement template for consulting services FormSwift Customize, sign, and download common business, legal, and personal forms, including a retainer proposal Series Seed Financing Documents Free, open-source legal documents for seed financing in MS Word (.DOC) format National Venture Capital Association's model legal documents A set of legal templates and terms GitHub repository Templates of Series Seed documents Y Combinator Financing Documents Sample forms for raising equity rounds with angel investors Orrick Term Sheet Creator Create drafts of startup and venture financing documents based on your responses to a series of interactive questions Orrick Start-Up Forms Library Key legal forms for starting and growing your company Wilson Sonsini Goodrich & Rosati Term Sheet Generator Generate a venture financing term sheet based on your responses to an online questionnaire Tools Founders Workbench Access useful tools such as: capital calculator, financing terms dictionary, service tax on professional fees consideration, intellectual property laws, and more Markify Searchable trademark database Viewabill View all billable activity by your lawyer: accruals, hours, and average rate Google Patent Search Use Google to search for existing patents US Patent & Trademark Office File a patent, register a trademark, and review intellectual property laws Finding a Lawyer LawKick Find a lawyer based on price, reviews, and qualifications LawTrades Get matched with a lawyer at your budget, plus free consultation, price quote, client reviews, and law office profiles LawGives Choose from a selection of flat-fee legal services packages FINRA BrokerCheck Research brokers, firms, investment adviser representatives and investment adviser firms ShouldISign.com Post a request and receive fixed-fee proposals from vetted attorneys, and check out their bank of free legal forms Checklists Start-Up Legal and Licensing To-Do List for Small Businesses Legal Checklist for Startups The Legal Checklist Every Startup Should Read What would you add to this list? Once you've set up your legal framework, find the tools you need to launch your business: 25 Tools to Run Your Startup.
15 Under $15: Business Books to Gift to Your Colleagues This Holiday Season
It's that time of year again. When you're so busy scrambling around at the last minute trying to buy gifts for your family that you completely forget about your colleagues! The biggest challenge in colleague gifting is finding something that is both useful and inexpensive. Our solution? A business book! A book that inspires leadership, entrepreneurship, passion, and creativity can help propel their career, and possibly benefit your team as a whole. Here's a curated list of 15 great business books under $15 to give as 2015 holiday gifts: 1. Hooked: How to Build Habit-Forming Products by Nir Eyal What turns products into habits? And how do you make those habits long-lasting? Author and entrepreneur Nir Eyal unlocks the secret to building habit-forming products with his four-step process called the Hook Model. We were even lucky enough to interview Eyal about his book and how the Hook Model helps you better understand your customers. 2. Influence: The Psychology of Persuasion by Robert B. Cialdini An oldie but goodie: Dr. Robert B. Cialdini reveals the psychology behind why people say "yes" and how to put the art of persuasion into practice. This book explores the six universal principles of persuasion, and teaches you how to use them as well as how to combat them. 3. Compelling People: The Hidden Qualities That Make Us Influential by John Neffinger & Matthew Kohut As required reading at both Harvard and Columbia Business School, this book has a lot to offer. Everyone wishes they could be as influential as Oprah Winfrey or Taylor Swift. However, since most of us do not fall under the international celebrity category, what qualities make us influential? Neffinger and Kohut discuss how the balance of strength (root of respect) and warmth (root of affection) is the key to becoming charismatic and influential, and they reveal ways to apply that balance in your daily life. 4. So Good They Can't Ignore You by Cal Newport Have you ever heard the phrase "follow your passion?" Well, Newport says stop. He claims that pre-existing passions usually have nothing to do with why people end up loving their jobs and can be a source of anxiety and stress. In this book, Newport explores the welcoming world of people who love their jobs. He shares their strategies and experiences, as well as the obstacles they've faced and lessons they've learned along the way. 5. Give and Take: Why Helping Others Drives Our Success by Adam M. Grant Praised by Amazon, Wall Street Journal, and the Washington Post as one of the best books of 2013, this book really brings home the spirit of the holidays. Grant shows how the secret to success is not necessarily talent or passion, but how we interact with others. He reveals how giving without receiving anything in return can positively impact success and transform organizations. 6. Flow by Mihaly Csikszentmihalyi In Mihaly Csikszentmihalyi's account of psychological contentment, he describes "flow" as being a state of consciousness that makes our experiences easier to manage and more enjoyable. During flow, a person may experience joy, creativity, and feel completely engaged with whatever they're doing. In this book, he explains in-depth about how to reach this state, and even control it, on a regular basis. 7. The Lean Startup by Eric Ries Today, innovation is more important than ever. With more and more technologies readily available at our fingertips, the battle between the young startups and the tech giants continues to grow. Ries uncovers why some startups fail and others don't, and why it's important to have an even balance of efficiency and uncertainty in your startup mix. His scientific approach helps growing teams maximize their strengths, recognize their weaknesses, and embrace agility. 8. Purple Cow by Seth Godin Cow are pretty much everywhere. And once you've seen one cow, you've seen them all. Unless you see a Purple Cow; you'd probably remember where and when you saw it. In this book, Godin talks about the qualities that make companies like Starbucks, Netflix, and Apple into Purple Cows. He urges you to put the Purple Cow into everything you create, dream, and think. 9. Drive by Daniel H. Pink This book argues against the idea that people are motivated by material items such as money. Instead, Pink suggests that people are motivated by improving themselves, expanding their own knowledge and experiences, and directing their own lives. Pink's techniques for changing perspective help people transform how they think, work, behave, and live. 10. Thinking, Fast and Slow by Daniel Kahneman Written by world-renowned author and Nobel Prize Winner, Daniel Kahneman, this book takes you on an astounding journey through the way we think and looks at the psychology of what motivates us. One side of the brain is known as fast, impulsive, and intuitive, while the other side is slower, cautious, and logical. He provides insight into our decision-making process and how we can avoid the mistakes that often lead to trouble. 11. Creativity, Inc. by Ed Catmull What's the recipe to magic? Written by co-founder of Pixar Animation Studios, Catmull dives into what it's like to work at and be a leader in one of the most successful film and animation studios in the world. Also featured on our top books every manager should read list, this book really takes you behind the scenes and explores how to be a great leader at an exceptional company. 12. The Alchemist by Paulo Coelho One of my personal favorites, this one is hard to put down. In this book, you join a young boy named Santiago on his quest to Egypt after having a recurring dream of finding treasure there. The story's theme revolves around finding one's destiny, and Coelho recognizes it as more of a self-help book rather than literature. On Santiago's journey, the author hopes readers find the truth in following their dreams and encouraging others to do the same. 13. Zero to One: Notes on Startups, or How to Build the Future by Peter Thiel and Blake Masters They say imitation is the finest form of flattery. But if you're the imitator, what does that make you? This book teaches you how to build on a whole new idea of your own making, and transform it from "zero to one." 14. The 4-hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich by Timothy Ferriss We all know the newest from of currency is time, not money. This ultimate life productivity guide provides worksheets, templates, and shortcuts for getting more done during the week without sacrificing quality or income. It shares real-life examples of how people have doubled their income while shortening their workweek. 15. Leaders Eat Last: Why Some Teams Pull Together and Others Don’t by Simon Sinek Another feature on our top books for managers list, this one exposes the sacrifice involved in being a good leader. Through actual examples and experiences, Sinek proves that individuals only perform well when they feel safe within their group — confirming that the most successful teams value trust and cooperation above all else. Any favorites that aren't on this list? Add them in the comments!
Wrike is being represented at Le Web 3
I would be glad to have an opportunity to meet you at the Le Web 3 on December 11th & 12th, 2006. “Les Blogs conference” for entrepreneurs, bloggers and web2.0 players around the world is taking place in Paris for the third time. The event seems to be sizable: since we decided to join the conference the number of participants has at the least, doubled. There are over 800 participants who are expected to be there. We are going to make a short presentation of Wrike as a web 2.0 start-up on December, 11th at 10 a.m. We will appreciate your attention and are open to face-to-face contacts and feedback.
6 Ways to Make Sure You Unplug and Recharge During the Holidays
Thanksgiving is coming. You'll finally be on vacation. The leftovers from the family feast will be stored in the refrigerator and all your Black Friday presents will be opened, installed, and played with. So what next? I'm betting half of you will check your work email just to see if there are any fires to put out. But hold on; don't give in to the urge right away. The challenge to keep work from interrupting your well-deserved vacation is difficult. According to the Randstad US Employee Engagement Study released just this August 2015, 46% of US employees worry about work while on vacation, and 49% are stressed upon their return. Yikes! You can avoid that extra stress by following these 6 very easy steps to truly enjoy your vacation and recharge: 1. Close Your Open Loops The only real way to enjoy your vacation guilt-free is to tie up loose ends before you get to your holiday destination. This involves informing your team about your travel schedule and ensuring there is a point person who can be contacted while you're away. Traditionally, vacationeers set up out-of-office messages for email and phone so everyone knows you're away. While some entrepreneurs consider this kind of disconnecting losing out on opportunities for future business, going offline is really the only way to vacation stress-free. Just ensure all tasks with deadlines that fall within your time off are delegated to someone else, or else postponed for your return. 2. Do Last Minute Work at the Airport In case you need some last minute work done before you begin relaxing, then make use of your airport time and the downtime you have on the flight. Just make sure you pack all the needed gear. 3. Put the Work Apps Away In general, your vacation will be more enjoyable if you can close down your work apps and resist checking your work email. Also, turn off your notifications! We won't suggest you lock your phone away in the hotel safe or in the hallway closet — because we know you can't do it (and neither can we). 4. No Devices at Mealtime Designate all mealtimes as periods where devices are put away and face-to-face conversation can be had. That's how our grandparents used to do it! 5. Jot Down Ideas, Old School If an idea comes to you related to work, don't open your computer and get sucked into doing work. Instead, jot down notes using a pen and a small (analog) notebook. Then put them away for later reference. 6. Set a Timer If Needed If work is truly inescapable during your vacation, then set a Pomodoro timer for yourself and stick to a strict 25 minutes of work per day. A lot can be done in 25 minutes if you know that's your only window. If you need more than that, then prepare for some backlash from family and/or friends. How Do You Recharge? Just remember that vacation is your chance to get away from the stress of work and the politics of the workplace. If you invite the stress back in by engaging in work-related tasks, you're wasting a perfect opportunity to recharge the spirit and return to work ready to face all its various challenges. Have a tip for maximizing your vacation? Share it in the comments.
How to Build a Killer Growth Engine (Work Management Roundup)
It's Friday, November 20th. That means Hunger Games: The Mockingjay Part 2 is being released in theaters across the US — which is more relevant to work than you may think. After all, your company is competing against others in your industry for customers and capital — you're Katniss in your own right! Here is our roundup of links that will give you and your organization an edge over the other "tributes." May the odds be ever in your favor. How to Build a Killer Startup Growth Engine (Dan Martell): Entrepreneur Dan Martell shares the formula for creating a killer growth engine: it's a great marketing strategy + product story + product marketing. Study Links Daily Coffee Habit To Longevity (NPR): Rejoice, coffee addicts! A new study by the Harvard School of Public Health says that people who drink 3 to 5 cups of coffee a day have a 15% lower risk of premature death compared to non-coffee drinkers. And even decaf drinkers see benefits. You Have 70,000 Thoughts a Day. This is How to Organize Them for Maximum Productivity (Quartz): With so much going on in your head, how do you manage it all? Here are five steps to organize and declutter your mind so you're on track for a productive day. How to Be Good at Managing Both Introverts and Extroverts (HBR): Some excellent tips on balancing the needs of different personality types in your team. Best tips: promote privacy, and rethink the workday (eg: no meetings before 12:30 PM). What Entrepreneurs Can Learn From Steve Jobs About Silicon Valley (Fortune): Wrike CEO Andrew Filev answers the question "How important is it for startups to be in Silicon Valley?” More Work Management Reads Think About This: The Cult of Productivity is Preventing You From Being Productive (Quartz) Retailers Failing When Using Social Media to Answer Complaints (Forbes) Don't Believe These 5 Leadership Myths That Undermine Your Confidence (Entrepreneur) How to Run 4 Miles When You Really Don't Want To (Jon Acuff) Go Try This: How to Be Confident and Reduce Stress in 2 Minutes Per Day (James Clear) 10 Marketing Mistakes to Avoid at All Costs (Slideshare) The Simple Technique to Fit a 40-Hour Workweek Into 16.7 Hours (Fast Company) Browse The Work Management Roundup on Flipboard If you use Flipboard on your mobile device, then you can choose to read these links via The Work Management Roundup magazine. View my Flipboard Magazine.
Digging into the Value of Collaboration 2.0 with SDForum
SDForum, the organization behind the conference, is well-known for its successful efforts to foster innovation, entrepreneurship and leadership within Silicon Valley with the help of educational and networking events. The Collaboration 2.0 Conference is one of those events, aiming at exploring the opportunities offered by the innovative Web-based technologies. “Online collaboration has augmented current knowledge patterns in corporate environments, improved mindshare, boosted transparency and added a sense of community among coworkers,” state the organizers of the conference. This is just the beginning of the upcoming discussion of this topic, and we’re looking forward to taking part in it. If you’re interested in finding out more about the business benefits offered by the innovative collaboration technologies, or if you want to share your own opinion on how Collaboration 2.0 influences the business environment, then we hope to see you among the conference participants on October 30.
Telecommuting Leads to Decreased Job Satisfaction (Work Management Roundup)
Fourteen years ago today, Apple introduced the very first iPod at the staggering price of $399 and basically disrupted the way we purchase and consume music. It may not be hoverboards or "Jaws 19" (sorry, Back to the Future II), but at least we have portable music libraries in our pockets and virtual reality goggles. And furthermore, the way we do our work today is a definite improvement from the way our parents worked 30 years ago. Which only means we're on the right path. So let's keep creating those disruptive technologies and improving the way we work. Our weekly roundup gives you some tips on how to work smartly, lead humanely, and manage excellently! A Lesson in Negotiation (Lenny): A little over a week ago, Hollywood actress Jennifer Lawrence penned an essay for Lenny, the feminist newsletter run by Lena Dunham, explaining how she failed at negotiating for a better salary because she didn't want to appear spoiled or difficult. Lesson: know your worth and fight for it. Translating Quotes into Woman Speak (Washington Post): To illustrate exactly how difficult it is for women to speak honestly in the workplace, Alexandra Petri of The Washington Post tried converting famous historical quotes into how a woman would have to say them in a meeting to be taken seriously. Eye-opening, to say the least. Good Managers Know How to Listen (Entrepreneur): Speaking is only half the equation. Matt Mayberry over on Entrepreneur writes: If you can listen properly, you'll be a better leader. And not the "pretend" listening you do when you're on the phone while Mom shares neighborhood gossip. You need to practice careful, invested listening where egos are set aside so that the needs of the one speaking can be addressed. Young Entrepreneur Mistakes (Fortune): In Fortune Magazine, Wrike CEO Andrew Filev talks about the common mistakes that young entrepreneurs make. The best bit: "If your gut and your data are telling you the same thing, it’s time to listen. Don’t let burning all your cash be the thing that brings you down." A photo posted by Wrike (@wriketeam) on Oct 21, 2015 at 3:42pm PDT The Dark Cloud Around Remote Work (Fusion): We all know working from home is a growing trend worldwide as companies seek to save money leasing office space and workers seek to avoid horribly long commutes. But an article on Fusion.net shows new research that is casting doubt on the benefits of telecommuting. Their telecommuting productivity statistics say that people who telecommute 2 days a week experience decreased productivity and job satisfaction. So the advice now is: only work from home in small doses, and make sure your working-from-home equipment is up to scratch. Top Jobs with the Best Work-Life Balance (Fast Company): If you're dissatisfied with your current job and you're looking for a job that gives you the work-life balance you crave, then check out this Fast Company article. It lists the top 25 jobs with the best work-life balance. Although if you really want to reclaim control of your life, you could simply follow the Mayo Clinic's advice for workaholics. No One Cares How Much You Work (99U): Whether you work in an office or in your garage, please don't confuse effort with results. Oliver Burkeman over at 99U writes,"if you’re judging your output at the end of the work day by your level of tiredness, you’re sure to be misled". There's a difference between simply doing busywork and working smartly to get results! More Work Management Reads Think About This: How a Former Factory Worker Built a $7 Billion Fortune (Medium) Making the most of your 5–9: Why You Need to Take Microadventures to Stay Inspired (Medium) 10 Simple Practices for an Uncreative Life (Medium) Go Try This: 5 Reasons You Should Be Podcasting Right Now (LinkedIn) How to Have the Perfect Workday (Infographic) (Wrike) 6 Sleep Habits of Productive People (Fast Company) Browse Productivity Works on Flipboard If you use Flipboard on your laptop or mobile, then you'll enjoy our magazine on productivity tips. Check out Productivity Works or click on the widget below: View my Flipboard Magazine.
Bootstrapping: Definition, Benefits, and Tools
For some companies, bootstrapping is the first choice when it comes to expanding or innovating. Using funds from the firm's internal operations allows owners to retain their firm's equity while reinvesting profits into more profitable ventures. But you may be wondering, what is bootstrapping? In this article, we’ll help you better understand what the term bootstrapping means, as well as its benefits and challenges. Keep reading to discover tips and must-take steps that will lead your business to bootstrap success at any stage. What is bootstrapping? Bootstrapping is a word that originated in the early 19th century. It became a lasting symbol of success. The concept of being able to pick yourself up by your bootstraps is a metaphor for overcoming the limitations of life. In business, it means overcoming the limitations of traditional financing. Bootstrapped companies are traditionally defined as those that get off the ground without external funding. Google and Facebook are two of the biggest examples of this. The word bootstrapping in business also refers to the process of developing complex software programs in various stages. But for this article, we define bootstrapping as building a startup company with little or no outside support. Instead of starting with a blank check, a bootstrapper uses their own personal savings or loans for initial funding. Bootstrapping is a strategy that involves taking on significant financial risk, which is one of the many threats to startup success. It can be very challenging to get started. The entrepreneur is more likely to have total control over all aspects of the business, which includes but is not limited to sales, marketing, and operations. The biggest appeal to bootstrapping is its ability to establish a safety net for future investments. Entrepreneurs can experiment with their brands and products without the pressure of investors or venture capital. On the other hand, there is a lack of credibility to bootstrapping despite its known success stories. This can prevent a business from obtaining the support of respected investors later on. When it comes to funding a startup, the entrepreneur’s mindset must be different than that of a venture-funded company. For instance, while the former expect to be around for a while, the latter believe they will have high business growth and therefore need outside funding to fund their exit strategy. Entrepreneurs who choose to bootstrap must have a wide variety of skills and experience to succeed. Creating and maintaining a culture of excellence should also be part of their core values. What are the benefits of bootstrapping? For some people, it's a decision about how much they should retain to maximize their gains. Others believe that they should keep all of their capital to maximize their returns. And, there are also some other people who are simply looking for a way to get started without taking on external financing. By paying back these debts, you can start to grow your business and avoid incurring any costly late fees or interest. And after you reach this stage, you can start looking towards future expansion (theoretically) sooner than if you had gone with a bank loan. There’s also the ownership aspect. Some bootstrappers have a desire to retain all of the company's equity and receive all of its profits. Plus, bootstrapping has a much lower barrier to entry compared to the alternative. So it’s an attractive option for new entrepreneurs or people who want to get their idea off the ground as soon as possible. Another advantage is that bootstrapping is not just for startups. It’s a strategy that can be executed later on in the life of your business too. This is true even if you've already held an equity financing round. While some major shareholders might object to the use of company profits for new ventures (unless they receive a dividend payout), bootstrapping can still provide the same benefits as long as everyone is on board. Companies that benefit the most from bootstrapping include: Early-stage companies that do not require large amounts of capital Serial entrepreneur companies, which are typically started by former employees turned entrepreneurs What are the challenges of bootstrapping? Bootstrapping your company requires that you have a strong belief that your business can gain significant value quickly. It also means having an unwillingness as a business owner to give up decision-making powers to outside investors, no matter how tempting it may be down the road. For these reasons, having the right mentality is one of the biggest challenges of bootstrapping. In fact, being a bootstrapper puts you at greater risk than you might think. If your venture doesn't go well, potentially losing the friends and family members who invested can be devastating. When your company needs an extra boost to expand or meet a one-off cost, it might be time to consider alternatives to bootstrapping. There are many types of finance available for businesses, and it's not just one type of loan. Knowing all of this might make keeping your nerve even more challenging, but it’s important to fully understand what you’re getting into before moving forward. How to bootstrap your startup There are quite a few bootstrapping methods to come up with your own business funding. However, here are some foundational steps every business should take. Step 1: Know what stage you’re in You're either a beginner who is doing it on your own while also working another job, or you’re at the stage where crowdfunding and a personal connection with your audience provide most of your financial backing. If you're neither of those, then you're likely at the growth stage, and you can focus on credit or expanding your offerings. Step 2: Create a roadmap It is best to break a big idea into several parts and then execute it piece by piece. Doing this will allow the startup to execute smoothly. This should include gathering your essential tools, your investor pitch deck, and your team if you're choosing not to go it alone. You then need to outline both the practical steps that will get you from point A to point B and your philosophies or mindset behind your approach. The latter will help differentiate you from the dozens of other pitches your potential investors are considering. Establishing a successful long-term strategy is a key element to building a successful startup. Step 3: Consider proactive solutions Bootstrapping assumes a high level of risk, which is why you need to plan ahead and create contingency plans now before something goes wrong. Ask yourselves what problems do you know of that other bootstrap companies have experienced? What about other bootstrap companies in your industry? What will your team do if these come up at any point during your own bootstrap phase? Step 4: Consider building a team Even adding one member can help your bootstrapped business grow faster and more efficiently. For example, having a great co-founder can help you get more funding, spread the work out, and avoid tunnel vision. If you don’t have anyone in mind, try using a startup networking site to meet new people. Remember that our first employees are the ones who will help make your business successful. Make sure that your team is motivated and committed to your goals so you can maintain a high level of standards and business continuity. Step 5: Use a lean model Before you start working on a product, you need to make sure that it is a viable product that can be used by early customers. This is also the time to learn about your product and its customers. This model works seamlessly with the nature of a bootstrapped startup because it requires minimal financing and is typically faster than a traditional startup approach. Step 6: Get real about finances If you're bootstrapping a startup especially, then you’ll need to discuss your financial situation with your co-founders. Don't go overboard with expenses—there are plenty of ways to cut costs that startups have done successfully. For example, if you're not afraid to try new things, then you might want to consider taking on a side job or even buying used office equipment instead of brand new gear. You could also start a home-based business by avoiding renting an office. This is also easier today due to the rise of online communication. Consider applying for grants sooner than later. And keep up the practice before, during, and after launch. Tips for getting bootstrap funding Work with an angel investor. Angel investors are individuals who are able to provide advice on how to start a business or get your products on the market. If you're a new startup entrepreneur, having the expertise and experience of other startup professionals could be very beneficial. Remember, it’s not about you. It's about doing the right thing for your business and your shareholders. That should be the number one motivator you share with partners. Always think big picture. If you can keep up with your cash flow and clear any debts that you owe, you will be able to keep your company running smoothly for the long term. Getting this vision in writing will go a long way towards impressing potential investors. Start small. Even if your business requires a lot of capital, even some small form of investment can help you get started. Follow your expertise. Getting started with a new venture can be challenging if you have little or no experience in the industry or have no idea how to market it effectively. This is why it is important to create a company that’s already established in a certain industry or a specific area. Prioritize creativity. If your product or service is easy to replicate, a larger company with more resources can steal it and scale it much faster. Potential investors will be able to see that from miles away. Do market research. Before you start investing in your small business idea, it is important to validate that your target market will pay for it. Bootstrap and startup tools you can't go without The top must-have tools for bootstrap and startup companies are project management software, website creation platforms, and SEO tools. Project management software Project management software like Wrike is essential for showing potential investors an actionable roadmap they can feel confident about. Wrike is a collaboration tool that works seamlessly across all types of businesses. It has bootstrap-friendly features such as visual project map tools that make it easy for collaborators to see exactly what you have planned and how you intend to execute on it. This allows you to manage the wide variety of bootstrap-related projects you’ll have going on all at the same time. As an added bonus, your team can easily sync and collaborate across all your devices in real-time, so everyone stays on the same page even when working with third parties such as freelancers. Plus, it’s secure and will keep your data safe. Website creation platforms Even running an offline, local business can be challenging without a strong web presence. However, you don’t need to spend thousands of dollars on an expensive web design agency. It’s possible to build a website from scratch using an intuitive website builder such as WordPress or Wix. But either way, having your own domain and website is a must for proving the legitimacy of your business. SEO tools When you can’t afford paid search ads and collaborations, you have to rely on organic efforts to reach the right audience. That’s where SEO comes in. Although it takes an investment of time, a solid SEO strategy and the right combination of tools can land you above your competitors for high-earning search terms on Google. Every bootstrapped entrepreneur should use: A keyword suggestions tool for finding competitive targets A domain analysis tool to see where your strengths and weaknesses lie A website crawler for uncovering technical SEO ideas Getting started with cash flow is an important step in any business. Bootstrapping can help you avoid running out of money and control your debts at any point during your company’s lifetime. Use the right tips and tools like Wrike to get your bootstrap strategy started today. Begin your free trial.
