Bootstrap Your Business

[S1:E2] Bootstrap Your Business: My real-world YouTube Channel Launch & Business Startup Costings Explained!

Bootstrap Your Business Timestamp

  • [00:56] Workout your pro’s and con’s for Bootstrapping
  • [01:36] Time Require to Launch a YouTube Channel
  • [02:43] Little Funds will affect your ability to Promote Your Business
  • [03:53] 100% Business Ownership
  • [04:40] Interest on loans is Dead Money
  • [05:50] Maintain the Status Quo
  • [06:12] Avoid Cashflow Starvation
  • [07:10] McCall Media Ltd Startup Costs
  • [08:13] Equipment Costs
  • [09:42] Software Costs
  • [13:22] Adhoc or One-Time-Only Costs
  • [14:19] Wish List Items and Necessities
  • [15:07] Always Plan to Pay Yourself!
  • [18:08] Future Operational Budget
  • [19:25] Year 1 Approximate Financial Revenue Target
  • [19:56] Bootstrap Launch.. Is it feasible?

What does it mean to Bootstrap Your Business?

Bootstrapping a business, product or service launch means to do so without any major financial cash injection or having access to a pot of money by which to use.

You literally have to pull yourself up by the boot-straps to succeed.

Advantages

Generally comes down to the fact that you own 100% of the business, you don’t answer to anyone (such as Angel investors or even credit card companies when the bill arrives each month).

Disadvantages

When you are ready to take your product, business or service to market, you’ve no real means to pay for the advertising necessary to promote yourself so need to be creative in your strategies.

Bootstrap Your Business Mindmap of Key points!
Bootstrap Your Business Mindmap of key points!

It also means you’ve very little ability to manage the daily cash flow needed to operate your business when it comes to purchasing stock, paying for services or just generally operating.

Gorilla (FREE) Marketing

To bootstrap, a business often means to use any resource available to you, by which to promote and spread the word on your business.

Back in the day, this would have resulted in people posting flyers under the windscreen wipers whilst your car was in a car park, or seeing posters stuck on tree’s, lampposts for you to read whilst sat at traffic lights.

Of course, in today’s world, we now have access to the internet and the power of social media, so these free tactics have become digitalised, but the principle behind freely promoting and advertising your business remains the same.

How to know if Bootstrapping Your Business is the best option for you?

Bearing in mind that the target audience for my articles, video’s and business are solopreneurs, freelancers, creatives and other such micro-business owners, the chances are many will find themselves suddenly considering solopreneurship as a result of redundancy or having made the plan to quit work and go-it-alone.

Regardless of your why, money and income will be tight until you’ve manoeuvered your business operations to a point that they function like a well-oiled machine.

Step 1: Feasibility Study into your Year 1 Essential Business Costs & Wages

Wages

In my YouTube video above, you will see that I divided my skills into different categories and costed that skill based on what it will cost me to outsource that task to a freelancer.

It’s my opinion that if I am willing to pay £x to someone else, then I should be worth that as well for the task.

Working this way means I build a forecast (as a rough guide) to what my business needs to generate in gross income by the end of its first financial trading year.

It also means that although I don’t intend to draw a wage directly from day 1, I’m working towards a goal that by the end of the first year, my business will be able to afford me a wage.

Without costing in my time, I won’t have a true financial goal to strive towards and check that my business is on the correct path to being able to pay me at some point in the near future.

Equipment, Software, Office, Travel, Buffer etc Costs

As best you can, calculate what you need to pay out for in all these and other areas of your businesses operations.

If you pay for software monthly multiply that by 12, don’t use the annual fee (which is often less) unless you intend to pay that way.

Most of my software at startup is paid monthly, with fewer of the lower-cost annual service fee’s having now been paid annually.

Rough Guide to Year 1’s Financial Target

Once you’ve done your homework, you will be able to add your predicted wages and your business costs together (and then add on another 10% at least as a buffer) you’ll start to generate a figure that represents your year 1’s minimum financial revenue target.

It won’t be accurate, there will be things you’ve not thought off, but the object of the exercise is to know what your costs are (more or less) and where you need to be heading.

Rough Guide to Bootstrapping Costs

In my personal situation, I intend to launch my business alongside working part-time.

The reason being is that I have no idea how long it is truly going to take me to successfully launch and establish my YouTube Channel.

I may have set goals and put measures in place to work towards, but that does not mean it will actually happen that way.

So without knowing how long this journey will take, I knew that I needed to find a method of funding my business, that wasn’t reliant on me making it inside a given fixed time frame (eg like I would be stressed to achieve if I have taken a loan out) and likewise had to make repayments before I was generating a profit to do so, thus cashflow starving any chance of my business operating.

Bootstrap Your Business
Bootstrap Your Business

Therefore, I needed to work out what my monthly business expenses were going to cost me. This would allo me to cross-compare it to my own income and the “spare” cash I could invest, to keep things ticking over.

Ultimately, my business costs forecast worked out to be less as a monthly expense that I had managed to free up as spare cash.

Thus bootstrapping this channel launch and in turn, my business launch became a very feasible path to take!

Bootstrap Your Business Launch Video Timestamp:

  • [00:56] Workout your pro’s and con’s for Bootstrapping
  • [01:36] Time Require to Launch a Channel
  • [02:43] Little Funds will affect your ability to Promote Your Business
  • [03:53] 100% Business Ownership
  • [04:40] Interest on loans is Dead Money
  • [05:50] Maintain the Status Quo
  • [06:12] Avoid Cashflow Starvation
  • [07:10] McCall Media Ltd Startup Costs
  • [08:13] Equipment Costs
  • [09:42] Software Costs
  • [13:22] Adhoc or One-Time-Only Costs
  • [14:19] Wish List Items and Necessities
  • [15:07] Always Plan to Pay Yourself!
  • [18:08] Future Operational Budget
  • [19:25] Year 1 Approximate Financial Revenue Target
  • [19:56] Bootstrap Your Business Launch.. Is it feasible?

Tools Needed For this Task:

  • Microsoft Excel: to work out all your financial costings.

Tools Used to Make this Video:

Other Tools Mentioned in this Video:

  • Paypal: online payment merchant services
  • Stripe: online payment merchant services
  • Calendy: a digital diary that connects to my Outlook Calendar
  • Adobe Suite: of creative design tools.
  • Ionos: my website hosting provider
  • Microsoft Office 365: Excel and Outlook specifically for this video.
  • Tube Buddy: for YouTube analytical research
  • Keywords Everywhere: For SEO keyword research
  • Rev: subtitle scribing service
  • Yoast SEO: a plugin on WordPress to help make my site more SEO friendly.
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