Running a startup the bootstrap way is all about founding and running the startup using personal finances or operating revenue. This form of financing allows the entrepreneur to maintain more control even though it can increase financial strain.
The Story of Jacado Games
In 2001, J2ME (Java 2 Micro Edition) emerged, and I was one of the first developers to start using J2ME in the development of games and applications for mobile telephones. The momentum of being the first helped us to get access to mobile operators that controlled the content market at that time. Within less than a year, we found ourselves having signed distribution agreements with more than 300 companies worldwide. Within three years, we already had more than 300 titles, both games and applications. I was the founder, and I held 100% of the shares. In 2007, I took the decision to stop this business and move back to my passion for teaching and never ending learning. The business of developing mobile games and applications did well. I believe that I could easily get others to invest. I didn’t want that to happen. I didn’t like being a manager. I preferred getting back to coding, learning and teaching.
I chose to write this post in order to share the experience that I gained during the years and the lessons that I have learned from the Jacado case. This post summarizes the lessons that I find relevant for every startup that choose the bootstrap way. I exclude lessons that are specific for the Jacado case, such as lessons that relate to the business model and lessons that relate to the technologies we were using. If you are interested in learning about the lessons been learned from using J2ME I recommend you to check out the post I wrote in 2008 at https://lifemichael.com/en/java-me-historical-perspective.
Hiring Employees
When bootstrapping, most tasks usually require creativity, exploration, and rapid adaptation. Employees excel when the tasks are well-defined. Startups doing their first steps rarely operate in a structured environment. Don’t be in a rush to hire new employees. You better do the groundwork yourself or rely on co-founders who share your vision and are more committed to the company. Doing so will save money and help you better understand your market and product.
Paid Advertisements
Using paid advertising can become a tremendous expense. When the startup is still refining its product, it would be best to wait. We don’t want to lose potential customers just because they were disappointed with the nonrefined product. We better do our best to rely on organized growth strategies, such as content marketing, word-of-mouth, and partnerships. The paid ads approach works best when we know exactly how to achieve a profitable conversion rate.
The Startup Website
When bootstrapping, we can’t afford to waste time or money on aesthetics that don’t directly contributes to the growth itself. We should do our best to develop an eye-catching website the simplest cheapest way. Using the WordPress open source proeject together with the Elementor plugin might be the best option.
The Startup Office
Don’t be in a rush to rent an office. Try working from home first. Consider taking a flexible solution such as a desk or a small office at a co-working place. That will save a huge amount of money. Renting an office doesn’t end with the rental fee. There are multiple additional costs, such as electricity, cleaning, etc. When the future is not clear, it might become cheaper to take a place in a co-working office.
Finding The Talents
Hiring an employee is not a problem. The real problem is finding the talents. That applies not just to software developers. Finding talented graphics designers or finding a professional accounting manager is also a challenge. Having a talented software developer might be more effective than having hundreds of intermediate ones. The same applies to graphics designers and accounting managers.
Company Registration
The registration of a new company is not cheap. I strongly recommend you wait with the registration itself as much as possible. Implementing the accounting and legal requirements when having a company is not cheap.
Outsourcing The Development
Outsourcing the development or the marketing might seem like a shortcut. However, it can cause huge damage that can even lead to the end of the startup, especially when dealing with a startup that evolves the bootstrap way. Outsourced teams will often treat your tasks as just any other task in their daily work. Keeping the core responsibilities in-house and ensuring you stay in control won’t only save you money. It will also allow you to evolve the startup with fewer limitations.
Adding More Features
When the product or the service your startup offers isn’t gaining traction, adding more features most likely won’t make any difference. In most cases, people don’t use products or services because of a long list of features. In most cases, people will use your product or service because it solves them a problem. Instead of expanding the scope by adding new features, it would be best if you perfect the core features in order to deliver maximum value.
Learning from others is a never-ending journey. Sharing your experience is kind of a refinement process for the experience you have already gained.
The RDNE Stock project took the Photo I am using on top of this post: https://www.pexels.com/photo/woman-in-gray-sweater-holding-white-printer-paper-7413919/
