More bootstrapping myths to learn from

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I wanted to touch on some more bootstrapping myths you will find when it comes to business that I didn’t mention yesterday. So, here are 7 more bootstrapping myths that we all can learn from.

Myth #1: “I need to use lawyers, accountants and consultants”

There are many lawyers and accountants out there who are doing high-way robbery. Do not let this happen to you. Earlier on bootstrapping blog, we covered some tools and websites that will benefit you, and the main one that pertains to this myth is our first post on essential tools for bootstrappers which lists a website named My New Company. All of the forms you will need to form your LLC / Corp. and get all of the “legal” work done is right on this website. For the right information, all you have to do is ask, and in most cases you will get the information you need. Business is in a nutshell, simple. It is the lawyers, accountants and consultants who want it to sound complicated so they can charge 150+ per hour for simple tasks you can do yourself. Who’s going to sue a bootstrapped company anyways? You have no money remember?

Myth #2: “I need a major new market”

Lets look at this example. A web design firm starts up, and is gaining many clients, but has nowhere to host the clients who really do not know enough about the internet to know the difference between web hosting and designing. This proposes a problem because they will eventually lose out on customers because they are not able to meet the needs of the clients. So, the web design firm looks around online and finds a nice, small hosting company and talks to the owner. The owner discloses that they have just enough clients to pay back the hosting bills each month for their website, but have no extra cash flow coming in. The web design firm has a light bulb go off inside their head, and tells the hosting company that they want to take the hosting company off the owners hands, since he is making no money, and is doing all of the work to maintain everything. Seeing an opportunity to get out without losing money, the hosting owner gladly hands over the website. Now, the web design firm has a hosting company that pays for itself (the already in use clients), and a nice setup to charge extra for the hosting they offer their web design clients, and no loss of business. There is ALWAYS another way. Remember that.

Myth #3: “I need to use a marketing agency”

Telemarking costs anywhere from $40.00 - $120.00 per hour, per person. Why would you need that kind of money to be spent on cold-calls? Like we listed in our first set of myths you don’t need to be afraid of, you would be better off finding a VOIP service like vonage, and doing the cold calls yourself. For marketing your business, who will speak more highly of you then an already satisfied customer? Treat your customers well, and the word of mouth will flow in, without a doubt. Your clients do not care about your “image” and your “marketing methods” so why should you? Stick to the thing that will convert best; SALES!

Myth #4: “I must order some glossy colored flyers”

Why? Most people will not care if you got a 1000 pt stock paper print with 20+ colors, laminated and printed on an ultra-fancy printing machine that is 10 years ahead of its time. It’s going to end up where most mail and brochures end up, in the trash. If you need to send some information to someone, send it in a PDF document through email, or fax them (you can use the eFax we talked about before to make life even easier for you). If a potential client gives you an excuse of “needing” a brochure, and not a printed black and white copy of information, then odds are, this potential client is going to be more of a hassle then the time is worth, so end it quick.

Myth #5: “I need to travel around the world for clients”

In the beginning, avoid traveling as much as possible. If you have a local business meeting, that is ok, but to travel from state to state to meet with potential clients is just a waste of resources, money, and time. Just because you go and meet these potential clients doesn’t mean they are going to become official clients right? Well, why risk a 200-300 dollar flight, a hotel room and food for your stay only to be told NO? If they do not wish to do business with you because you cannot fly across the country to meet with them, well, like we said in the last myth, they are probably more of a hassle then is needed. Focus on sales, not assets.

Myth #6: “I must partner up”

The vast majority of business leaders will try to force feed you this garbage that you NEED a partner. You will not survive without a partner. Your company will crumble if you do it alone. Guess what? They are wrong. Most partnerships will only complicate things more from the start, when the beginning of your business should be focused on growth. If you have a partner, thats 2 minds who might not agree on everything when you know you are right. Especially since you are a bootstrapper, and odds are, they are not a true to heart bootstrapper. Most partnerships will consist of money topics, and that is the last thing you need; more money spent. Stick it out alone as long as you can, and then hire sales team members, or someone to handle day to day book work, but do not jump into a business with a partner. Odds are, it will fail.

Myth #7: “I need to buy brand new”

This goes along with our first post on myths, in the sense that you need to spend 10,000 on a new computer system, 20,000 on a new 20 line phone system, and tons of office supplies. Why spend 200.00 on a set of 1,000 pens with your company name printed on them? That is not wise money management. If you need something big, like office equipment, or computer supplies, shop around. Look for the local pawn shops, or computer repair companies for some used pieces. If there is a computer show in your area, hit that up and get the lowest price you can find. If you have to spend some money on a package deal where you do not need ALL of the products in it, buy it, and sell off the other pieces. You might end up not spending anything after you sell off the non-needed parts. Buying new is not a necessity you need to worry about.