Category Archives: bootstrap

How To Create A Website Using Brains Instead of Money

Image representing Guy Kawasaki as depicted in...
Image via CrunchBase

By Gretchen Glasscock

A while back, in By the Numbers: How I built a Web 2.0, User-Generated Content, Citizen Journalism, Long-Tail, Social Media Site for $12,107.09,  web guru, Guy Kawasaki, details how he built a website on the cheap.  That is, for Guy Kawasaki $12,107.09 is cheap.  And it is cheap for a top ranking, major website.  But if you’re not in Guy Kawasaki’s league yet…. and most of us aren’t …. you can build an attractive website that captures eyeballs, brings in revenue and turns a profit for $100 to $250.00.  I know.  I’ve done it.  Many times.

Let’s look at how, working off Kawasaki’s list ( in italics).  Actually Kawasaki only had four expense items, and you can pare those down dramatically.

As Kawasaki says, “Here’s a quick overview by the numbers:”

  1. 0. I wrote 0 business plans for it. The plan is simple: Get a site launched in a few months, see if people like it, and sell ads and sponsorships (or not).
  2. 0. I pitched 0 venture capitalists to fund it. Life is simple when you can launch a company with a credit-card level debt.

Times have changed since people on the web spent weeks or months laboring over business plans. The web is fast, fast, fast and you have a built in, real world focus group.  Start from where you are with what you have. Put it out and see if people like it.  Or, as they say in advertising, see if the dogs will eat the dog food.  If they do, then keep leveraging up. You can and should leverage up for the life of the site to keep it fresh, interesting, constantly evolving and compelling.

As for money, I agree with Mark Cuban who said: “Rule #1: Sweat Equity is the best start up capital. There are only two reasonable sources of capital for startup entrepreneurs, your own pocket and your customer’s pockets. You shouldn’t have to take money from anyone. Businesses don’t have to start big. The best ones start small enough to suit the circumstances of their founders, As much as you want to think that all things would change if you only had more cash available, they probably won’t. The reality is that for most businesses, they don’t need more cash, they need more brains.”

Kawasaki has plenty of brains and, if you follow his moves, you will be using and improving yours.  On to Kawasaki’s next point :

3. “7.5. 7.5 weeks went by from the time I registered the domain truemors.com to the site going live. Life is also good because of open source and Word Press.

I couldn’t agree more. WordPress has revolutionized ordinary people’s ability to rapidly deploy an attractive, sophisticated website which can then be updated in plain text. According to Wikipedia, “WordPress is a free, open source Content Management System (CMS), often used as a blog publishing application, powered by PHP and MySQL. It has many features including a plug-in architecture and a template system. WordPress is the most popular CMS in use today.” Being open source, it has thousands of man hours of coding and is constantly being refreshed and updated.  It is powerful and elegant, plus it offers many plug ins and widgets, automated pieces of software which work in the background doing essential tasks it used to take programmers many hours to do. These tasks include search engine optimization, providing Google with a sitemap and a constant stream of updates and a thousand more functions, all of which work together to make your site a success.

As for design, WordPress has a huge array of free themes you can select.  There are also some premium themes for which you pay a small price. A lot of professionals prefer the Thesis theme, at $87,  because it is simple, elegant and endlessly customizable without having to code. Thesis is, right off the bat, an expertly-coded HTML + CSS + PHP framework. Thesis is known for the quality of its design and search engine optimization, SEO, which is critical because it is SEO traffic which drives the success of a website. There are also many free or inexpensive”skins” or looks available that overlay the Thesis framework. But to keep it simple, and for your own look, go to Istockphoto.com, put in your keywords to search for suitable photos then pay a buck or so each for a half dozen photos to go in your rotator or media box and you’re ready to go.  Add your Twitter.com widget on the sidebar to drive more traffic.

At BlueHost.com, you can get great web hosting, features and service, 24/7 for $6.95 a month, payable a year in advance and only slightly more by the month.  Among the many features they offer, to make life really simple for a webmaster, is the ability to install a WordPress platform to your site with one click.

  • · $4,500. The total software development cost was $4,500. The guys at Electric Pulp did the work. Honestly, I wasn’t a believer in remote teams trying to work together on version 1 of a product, but Electric Pulp changed my mind.

These guys at at Electric Pulp are top notch talent who’ve developed a well deserved reputation and  consequently are well known.  You pay top dollar for well known.  I am a believer in remote teams and, trust me, a lot of remote techs aren’t well known and their prices are correspondingly much lower.  Last week-end, I had an issue with a website and, through eLance.com, I located a Canadian demon coder who worked through the night and all the next day to fix it.  I paid him $150 including a $60 bonus.  I also brought on a certified IT Security Expert from Ireland who handled all the IT security for a global firm.  He did a review of my site security for $125.  You don’t have to be expensive to be good.  You just have to know what you’re doing.

  • · $4,824.14. The total cost of the legal fees was $4,824.14. I could have used my uncle the divorce lawyer and saved a few bucks, but that would have been short sighted if Truemors ever becomes worth something. Here’s a breakdown of what I got for this amount of money.

I agree with some of Kawasaki’s thoughts on this. With lawyers you can pay now or pay later.  And, if you get very successful and are negotiating an investment or liquidity event, you definitely want top notch lawyers  “not only for her expertise but to show opposing counsel that you’re not clueless.”  Agreed.  But, if you’re bootstrapping, you can defer this expense until you are bringing in those bucks.  Yes, your lawyers may cost more then, but you will be making more, so, in my judgment, it evens out.  If money is an issue, which it usually is, I’d go with later.

  • · $399. I paid LogoWorks $399 to design the logo. Of course, this was before HP bought the company. Not sure what it would charge now. :-)

It still charges $399.  In fact, you can get a package for $299.  But there’s a larger array of choices all the way up to $2999.  I paid $299 for my latest logo from LogoWorks. But there are other choices. When I started out on the Web in 1996, I used a royalty free Matisse painting of people joining hands around the world as my logo.  As I got established and began to see revenue, I paid $2, 000 for a custom logo.  But now, I’ve learned, you can find a logo designer on eLance.com for $125 for a static logo and $150 for an animated logo.  Either LogoWorks, another logo specialty shop which you can Google,  or one you find on eLance.com is suitable.  However, what I particularly like and I think you will like about LogoWorks is that you go down a decision funnel selecting the look and feel you want and have a lot of control over the process and the look and feel of the final product.

  • · $1,115.05. I spent $1,115.05 registering domains. I could have used GoDaddy and done it a lot cheaper, but I was too stupid and lazy. I registered 55 domains (for example, truemors.net, .de, .biz, truemours, etc, etc). I had no idea that one had to buy so many domains to truly “surround” the one you use.

A domain name should cost about $10.  I don’t want to quibble but I like to wait until a site is a proven success and bringing in revenue before spending a thousand dollars “surrounding it.”

Kawasaki goes on to say:

“· $0. I spent $0 on marketing to launch Truemors.

  • · 24. However, I did spend 24 years of schmoozing and “paying it forward” to get to the point where I could spend $0 to launch a company. Many bloggers got bent out of shape: “The only reason Truemors is getting so much coverage is that it’s Guy’s site.” To which my response is, “You have a firm grasp of the obvious.”

I do understand he’s Guy Kawasaki.  And, as he points out, it takes a lot of experience to get to the point where you could spend $0 to launch a company.  But it will never be sooner than today, so you might as well start.   If you’re known a bit around the web or in your specific field and you put up a good site, you will find your niche and get traffic also.

In concluding, Guy says, in part:

4. I learned four lessons launching Truemors:

1. There’s really no such thing as bad PR.

2. $12,000 goes a very long way these days.

3. You can work with a team that is thousands of miles away.

4. Life is good for entrepreneurs these days.

I agree.  You can do it for much, much less, a couple of hundred bucks perhaps.  And definitely, “Life is good for entrepreneurs these days.

Related articles
Enhanced by Zemanta

Social Media Changes Forever The Web Business Model

Zappos.com, Powered by Tweets
Image by Laughing Squid via Flickr

Remember when the Net roared on the scene and created new business models not even imaginable before?  “Opportunities where Amazon is 34x bigger than Barnes & Noble, where NetFlix destroyed Blockbuster, and where Skype is worth $2.6B while telecom companies drop like flies?”

Jason Cohen, founder of Smart Bear Software reflects on what’s happening on the net today where, as he sees it…. and it sounds pretty reasonable to me…the same pattern is emerging, just in a different guise.

In, Why you have to engage in social media, even if you don’t want toJason talks about how social media has already changed the rules of the game. Here’s his take:

“The days of “have a website and advertise” are over. It’s too expensive to be noticed on an Internet that’s already full.

Social media is the only way LinksFor.Us could get traction. If Darren Rowse or Brian Clark talks about it, it’s visible. If it hits the front page of Digg, it’s visible. Once it’s visible, once you have things like incoming links and lots of regular traffic, then you have a shot at using traditional SEO techniques for staying visible. But social media is the only way to overcome static friction (short of spending crazy money).

Social media is already changing the rules of the marketplace, just like the web did a decade ago. It’s still early of course and no one — not even the experts — knows where all this is going. But it’s clear that times are changing again, and those that don’t jump in will go the way of print media.

Want examples?

  • In a test run by BazaarVoice, Rubbermaid discovered that adding customer reviews to their website increased sales and decreased returns of their products. Skeptics said sales of low-rated products would crater. What actually happened is that sales of low-rated products increased. When shoppers were questioned, they explained that when they read why someone else maligned the product, often they disagreed or didn’t care about that particular problem. If the price was right, it was worth buying anyway.
  • Fog Creek software makes millions of dollars from FogBugz, a bug-tracking system. There’s hundreds of bug-tracking systems — free, cheap, expensive, open-source, commercial — yet Fog Creek is highly visible and successful with no advertising. How? Because the founder, Joel Spolsky, has built an incredibly popular blog about writing software. He was before his time; before RSS he wrote essays and notified you by email when a new one was posted. It’s widely agreed that without the blog-before-it-was-called-a-blog, Fog Creek would likely have remained an unknown consulting company with a few struggling products.
  • Nike allowed people to build and order custom shoes on their website. Skeptics said deep customization is too expensive, design-sharing is too complicated, and people need to try shoes on. Wrong! Once the site took off, Nike created physical stores where you could do the same thing.  Joaquin Hidalgo, Nike VP of Global Brand Marketing says those stores now “represent 25% of our revenue.”
  • Speaking of shoes, Zappos also sells shoes on the Internet. CEO Tony Hsieh is so convinced that their legendary Twitter presence results in sales, he even wrote a popular beginner’s guide to Twitter. He insists that Twitter and other forms of open communication are required for excellent customer service; employees are trained in Twitter. Zappos raked in $1B last year even with the recession; they’re doing something right.
  • Oddly-named marketing site Marketing.fm gets double the traffic of marketing.com. One has a blog with useful content and one doesn’t. Guess which is which.
  • Zeus Jones describes 16 more terrific examples. (Thanks to David S. Finch for digging it up.)”

Conclusion: better jump in now while you still can and keep leveraging up with social media. Or, as Jason puts it, “Will there be another new thing someday? Sure.

But today and for the foreseeable future, this is the world. You have to jump in even if you don’t yet understand it.”

Reblog this post [with Zemanta]

Spiffy Digital Goods To Enhance Your Blog Or Website – For Net Setters

You know how it is when you start reading one thing on the Web, become engaged, then, like following a trail of crumbs, it leads you into a whole different experience?

Well, that is what I did when I got intrigued reading about a new blog, Netsetter , about online entrepreneurs dubbed here  “the net setters”,  remniscent of the old,  jaded term, the jet setters.  I pretty much got hooked when I stumbled upon the author/creator’s bootstrapping experience. More on that in a minute.  First, let me tell  about my discovery of a site, which I plan to use and you may want to use as well ,which offers tools and resources for “net setters”. It’s Envato, a digital goods marketplace and from there you can find, FlashDen ,a  community of buyers and sellers of stock Adobe Flash components; FlashDen’s sister site AudioJungle, which has branched into music tracks, loops and sound effects.  And you can also find:

  • ThemeForest – a marketplace for buying and selling site templates and CMS themes
  • VideoHive – a marketplace for buying and selling stock footage, motion graphics and video project files.
  • GraphicRiver – a marketplace for buying and selling layered photoshop, vectors, icons and add-ons.

Now, the back story. I am always drawn to stories of entrepreneurs who bootstrap their way to glory.  I’ve bootstrapped businesses many times and I also like to share these stories because I think they show the light at the end of the tunnel when you’re in the tough midst of a bootstrapping experience  yourself.  The founder of Envato and also Netsetter is a fellow named Collis.  He has the archetypal bootstrapping story.  I’ll let him tell it:

“..Having no money is pretty much the ultimate constraint a startup can be under, and for most bootstrappers that’s not far from how they have to operate.

Having nothing forces you to figure out a way to bring in some income – any income – and to do so fast. It forces you to work out how to do things in the cheapest way possible. It forces you to really, truly evaluate what is necessary in your business and what is simply deadweight.

When my wife and I cofounded Envato, we did so while working a freelance business where invoices always got paid late and cash flow was erratic. We started out with some modest savings in the bank but by the time our first site was up, we were thirty thousand in debt, I had worked for four months without a day off, lived for two of those months with my in-laws to save money and still there was no sign of a reprieve.

Because we spent everything we had, and then some, on building our website we were forced into a series of practices that made our business ultimately viable. We had no revenue, so none of the three founders could quit our jobs – we just started working one in the day, and one in the evening. We had no money so we couldn’t hire anyone beyond our one valiantly underpaid freelance developer, so every job had to be done by one of us – regardless of whether we knew how to do it. We had no advertising budget so we had to embark on a series of guerrilla marketing strategies trading time and ingenuity for money. We had no content on the site and no users, so we made a whole heap ourselves and invited, cajoled, persuaded and begged people to test it out.

In short we saved and scrimped, worked in odd hours and off hours, used our lack of income as a motivator to find revenue quickly and basically did it tough. Nobody saw a pay cheque for the first year, and even today after two and a half years when we have a staff of twenty something, I’m proud to say that all the management team and founders still get paid far less than the top authors on our sites.

Under the umbrella of Envato. we’ve build digital goods marketplaces like FlashDen and ThemeForest, a chain of successful tutorial blogs at Tuts+, a popular freelancing community at FreelanceSwitch, some successful ebooks at Rockable Press and lots of other projects!”

Well, there you have it.  That’s how bootstrapping is done.  And Collis has done all this since 2006.  Pretty impressive!  Congrats!

Reblog this post [with Zemanta]

The Delegation Or Outsourcing Imperative

Outsourced
Image via Wikipedia

I’ve written before on the critical importance of delegating or outsourcing to give you time to focus on the big picture and develop the right strategic direction so your business can grow.

It’s not easy.  Some people have an extraordinarily difficult time doing it.  I have a friend who’s a very successful but rather harried and definitely overworked leader of a national organization.  She often says:  “I can do it myself in the time it takes to show someone else how to do it.”  I respond: “Yes.  When I teach someone how to do something it takes about as much time as it would take for me to do it myself.  Maybe a bit longer. But that person is now able to do it forever.” Do the math. It’s an investment of time that will bring you a great return on your investment.

To succeed, without working yourself to death, we all must learn to delegate or outsource.  Finding and training people to delegate or outsource to will give you a support system which will facilitate your success:

First – decide what to delegate: the point of delegating is to free yourself, first, from routine, low level or mechanical tasks which someone else can do, perhaps better and more efficiently than you.

Delegate anything low priority or which doesn’t require your personal attention to achieve your primary goals.

Select the most capable person for the task: you may not like to file, but there’s someone, somewhere, who does.  Let them do it.

Give clear direction and reach an agreement on expected results: You should be willing to take the time, up front, to review your expectations and reach an agreement on what the end result should be. Communication is a key component of this process.

Be available for questions and mid course decisions

Set a clear deadline with accomplishment milestones along the way

Finally, give credit to your assistant, volunteer or support staff

The only way to develop a support system for yourself is to let the people you delegate to have the responsibility to do what you’ve asked of them; let them do it their own way; let them make their own mistakes and learn from them. Praise them when they complete their assignment. Point out that the completed task contributes to the success of the company as a whole. Give them credit within the company.

Here’s an example from Chaitanya Sagar on how learning to delegate: ,Delegate or Outsource – If You Want Your Business To Grow

“…In the initial days of my company, I did everything myself. I spoke to customers; I interacted with investors; and wrote business plans. At the same time, I cleaned my office and went long distances just to deliver legal documents somewhere. I spent a lot of time on those tasks which were not strategic or something that contributed to my customers. I did everything because I had nothing better to do. If I hired someone else, I would pay them and I’d have to sit idle!

As a small business grows, and as the scale at which a task is done increases, you have to find ways to get the time to focus on the bigger picture. If you don’t, you will get caught up in myriad routine activities, and can’t progress on strategic areas of your business. You have to make time to steer your business in the right direction. And you can do that by delegating work to others, by outsourcing, and at times, it’s as simple as asking the other party to visit your office instead of you visiting them!

My startup has been growing gradually. And some of the rules I had learned in the initial days are obsolete already. Though I saved precious dollars in the initial days doing all the routine work, time and again, I found myself asking myself, “Why am I doing this? How does my customer benefit from it? Should I not be working on something that enhances value to my customer?”

So now I do what is strategic and outsource many activities like coding for my website, marketing material work, accounting, graphic design, etc. In areas I do outsource, I am glad I do because it led to a lot of progress. Inn hindsight, the decision to outsource my work to others has greatly paid off in the following ways:

1. Where it was not my core competency, I rode on other’s competency and made wonderful progress.

2. When the project (such as product development) was over, I had the ability to scale down the activity reducing the “burn rate” without having to fire employees (had I hired them).

3. I was able to save time and could focus on the strategic aspects of the business.”

What about you?  Do you have any delegating or outsourcing examples or experiences to share?  We would like to hear from you.

Reblog this post [with Zemanta]

Seth Godin’s 7 Tips for Startups in a Down Market

You know, I’m always looking for ways to do business better, faster and leaner.  Well, I guess what all of that boils down to is doing business smarter.  And two of the smartest people out there dishing out smart advice about doing business are Guy Kawasaki and Seth Godin.  For this interview I have to thank Andrew Warner Internet entrepreneur and  founder of Mixergy. He interviews successful people to learn how they did it. Here’s his take from Seth Godin’s 7 Tips for Startups in a Down Market.

“Seth Godin, Squidoo’s founder, is the best-selling author of 10 books that have helped companies build remarkable products and promote them. He’s never written a book about how to grow in a down market, so I called him up and interviewed him about it for Mashable.

Here’s what he said:

1. Recognize that you’ll have less competition

You should know that this is the best thing that ever happened to you because it makes it easier to be the winner when so many people are dropping out.

The dip is closer and shallower then it would be if these were the boom times.

2. Focus on building value

The emphasis should not be on “how do I raise money and hire people.” The emphasis should be on “how do I build value today.”

Because, every day you’re doing this, you’re building value, connecting with people who find you irreplaceable, then you will become irreplaceable.

3. Expect your costs to go down

Understand that in a down economy, not only is there less money for people to spend on you, but you have to spend less money to make stuff that’s worthwhile.

4. Don’t hire like it’s 1999

It makes me sick to see organizations that race out to hire 50 people, because they think that get big fast matters. And then “it’s not their fault” when they lay off 20.

Well sure it is. It’s totally your fault Mr. entrepreneur, because you shouldn’t have hired 50 people to start with.

5. Focus on the irreplaceable

The goal is NOT how fast can you hire as many people as you can. The goal is how irreplaceable are your people. How much can you boil down the essence of what you’re building?

6. Get lean to beat the behemoths

When we look at the home runs online. They are not the Daily Beast with $18 million and hundreds and hundreds of people. They’re Twitter, with a tiny team of people who have a very fine focused, vision.

7. Be disciplined about what you’re building

One of the things the guys at 37signals say is, if you want to be on budget and on time, what you have to do is, the day you hit the budget, or the day you hit the deadline, you have to ship. And it’s a race.

So that’s how you do it. You don’t say how do I get more money to match the spec? You say, how can I get the spec out there for the money I have?

- HOW TO: Raise Money in a Down Economy
- Startup Hacks: An Early Stage Checklist
- Startup Hacks: Seven Ideas for Building Your Team
- Startup Hacks: 7 Questions VCs Will Ask You, What They Really Mean and How You Can Answer Them

Reblog this post [with Zemanta]

Find Online Bargains To Launch Your Business Identity

I’m always on the lookout for ways to run my business more cost effectively, particularly when it involves using online tools since that also collapses the time it takes to accomplish your tasks.

Michelle Madhok of  www.Shefinds.com,  writing in Ladies Who Launch,has identified a few cost savers.  These are particularly useful when you’re trying to launch a business and need some reasonably priced collateral materials:

“1. Don’t pay someone else’s rent. I live in Manhattan where real estate is extremely pricey so when I need a printer I don’t want to pay for the copier’s Manhattan address. Search google.com for the service you need. Color copies at the neighborhood copy shop cost .89 cents each. A quick search finds www.colorcopysite.com in California that will produce the copies for .10 cents each and ship for next day delivery.

2. Cyberscale. Use online businesses where the sole focus is on what you need. For business collateral go virtual. Vistaprint.com is a bargain, offering 250 business cards for $19.99 and 250 postcards for $49.99. Need 200 photos for your press kit? Bonusprint.com charges just 29 cents for a 5×7 print of your digital photo. Compare that to $1 per photo at your local developer.

3. Fair trade. Many people looking to make a career change or get experience in your industry may be willing to trade their expertise for yours. Visit sites such as ryze.com and craigslist.com where you can post a message about the services you need. Personally I found people to help me with marketing, analysis, copy editing and photography all in exchange for my experience or advice.”

Related articles by Zemanta
Reblog this post [with Zemanta]

Green Tech – Next Boom Or Bubble Set To Burst?

My company is located in the high tech corridor that runs between San Antonio and Austin, Texas, so I am more than a bit familiar with the wild swings and boom and bust cycles in both high tech and housing.

I was slam bang in the middle of the dot com bust of 2001, having gotten on the Net with the pioneers at the onset of Netscape and the graphical browser. I remember the wailing and the moaning.  I even remember a “friend”…… a rather cliche-ridden friend, and not such a rock solid friend, it turns out… saying: “Rather see ya than be ya.”  Even in the midst of the crash and the doom and gloom, I retorted,”Are you kidding?  A very small per cent of the people are on the Net yet.  It’s in its very earliest stages.  Bubbles are about over hype and not real profits.  The Net is the future.”

Of course, I had kept my costs low and had to make a profit.  I didn’t have a venture capitalist leaning over my shoulder and breathing down my neck saying “Capture eyeballs, forget profit.  It’s a real estate grab and a race to critical mass.”  I was slowed down by the need to build a profitable business now, not later.  And, that turned out to be a good thing.

So the question is, will green tech be the next big bubble that bursts?

Here’s how I look at it.

Business is all about cycles.  If a particular sector becomes overheated and rampant with speculation, there  naturally are going to be some wild rides.

Let me put it this way.  If you got all excited about real estate values booming and put your money down on two high dollar condos in Miami or a couple of spec houses in Phoenix, you may have to walk away from your investment with only your experience to show for it.

If, on the other hand, you bought your own home, or a rent house in Phoenix, at a reasonable price, you can just live in it, or rent it out for enough to cover the mortgage, for two or three years or most of your life.  The real estate market will recover and your investment will recoup its losses and continue to rise. All you need is time.  And, if you structure your investments or your business right, you will have time.

Time is the answer to most investments and most businesses.  Time to grow.  Time to accumulate…..assets, customers, understanding, markets. Time to ride out the downturns and take advantage of the upturns.

That’s why it’s so important to conserve your cash, and if you’re a small business or an entrepreneur, run your business with an eye towards thrift.  That will give you the ability to withstand the sometimes sudden shocks and typhoons that hit the market and your business in particular.

If you create a business that offers real value, and you are careful with your cash, you will survive and thrive.

Green business, or the green tech sector, is no different I think. It offers a lot of value and increasing efficiency for the future.  It is only at the very beginning, as the Net was in the 90′s.  It’s a good time to get in before the field becomes incredibly overcrowded.  Will it be here for the long term?  I would make a serious bet on it.  In fact, I am making some serious bets on it.  Just put on your hard hat for that inevitable fall out when the speculators have climbed too high and created an avalanche of nay sayers.  But that, too , will pass. And you will still be there to reap the rewards.

Reblog this post [with Zemanta]

A Viable Path To Bootstrap A Startup

I have bootstrapped a number of startups in different industries. If you’ve been following this blog, you know that bootstrapping consists of using your own brain, wiliness, sweat equity and resources, rather than have a bank or investor fund you.  Which ….99 to 1…. they won’t anyway.  So it’s a good thing you’re looking at bootstrapping

And in the current economic climate more people are looking at bootstrapping…. or freelancing as an entry into bootstrapping… than perhaps ever before.

There are a number of tried and true formulas, which will help you bootstrap, and we’ve shared some of those before.  But the advice that follows stands out, in part, because the author,  Evan Carmichael, YoungEntrepreneur.com Blog Manager, takes some of it a step further.  We always tell you to outsource.  But Evan discusses how to stairstep your outsourcing from free labor to part time help, to hiring full time, which is exactly the smartest way to do it, I think.

Well, here’s Evan himself in YoungEntrepreneur.com Blog » 7 Steps To Build A Startup From Scratch With No Money.

“I recently did an interview about how to build a business up from scratch with little or no money and I used my own story as an example.

Here are the steps that I took.

This process helped me build my business with $0 in startup capital.

Hopefully you can learn from my experience and make it even better.

Step 1: Moonlight Until You Find Something That Works

I’m a big believer in not spending until I’m earning so I started my company while working at a venture capital firm in Toronto. I used my site to drive traffic, expose myself as an expert, and drive leads for the venture capital firm. I was driving thousands of people to my website and began to wonder if there was a way to monetize that traffic beyond lead generation for the venture capital company.

I found out about Google AdSense and put it up on the site as an additional revenue generator. In my first month (January 2005), I made $8.38 – not much to write home about.

Step 2:  Tweak, Tweak, Tweak

Too many entrepreneurs jump full in with no plan and no proof that your idea will work. It’s always better to tweak the concept while you already have some sort of stability in your income. I wasn’t about to go full time making $8.38 a month.

My next step was to learn as much as I could about how to better optimize my ads and how to drive more traffic to my site. I read every ebook, blog, newspaper article, and website that I could get my hands on. There were a lot fewer resources than there are today. I learned as much as I could in the extra time I had and implemented the ideas I learned. Slowly I started making more and more money.

Step 3: Go Full Time

I looked at how much I was spending on my apartment, food, entertainment, etc and once I started to hit that revenue number with my website, I jumped ship and did my business full time. It wasn’t a lavish lifestyle by any stretch but I wouldn’t have to worry about paying my monthly bills. I knew that if I was able to build a site in my spare time that could support my entire lifestyle, then if I gave it a full go, I would be able to do much much more!

Step 4: Get Free Help

As your typical entrepreneur I wanted to grow very quickly and took on too many responsibilities. I was doing manual data entry when I should have been doing more value-add work. But that manual work still needed to get done. The solution? Get free interns. I started with foreign language interns. They were basically university students who came to Canada on a student visa for work experience but they couldn’t get paid for the work. I couldn’t give them too many communications projects because English was their second language but I was able to unload a lot of the work off of my plate.

The next free help I got was from high school students who were on a co-op term. I was able to give them more tasks where they were able to connect with partners and customers because they were fluent in English. They sounded very young on the phone so they usually stuck with email.

Step 5: Hire Part Time Help

At some point you’re going to need more skilled labor than the free interns. They were a stepping stone to help you grow and take some of the work off of your plate but you’ll eventually get to the stage where you need people who don’t need as much hand-holding. But you don’t have enough money coming in to support both you and them. The solution? Hire part time workers. The first guy I hired was for one hour per day to update my database. He worked for me for five hours per week which was much more easy to manage. I wasn’t going broke and I got a skilled worker to help me grow my business. It wasn’t as fast as I would have liked, but it was growing nonetheless.

I hired people to create code for my website, write articles, do marketing projects, edit content, sell advertising… almost anything you can think of. But they were all part time to start. I had an entire organization running with people working only a couple of hours per day. The good thing was that they worked every day… so every day we made progress forward. I found people using elance as well as hired friends and family who wanted to help as well as make an extra pay check. At one point I had eight part time people working for me.

Step 6: Hire Full Time Help

Just like you eventually outgrow your interns, you will also eventually outgrow your part time help. At some point you’ll realize that it’s too much work to co-ordinate all the various part time staff and you need more from them. Some may be able to step into full time roles while others will not be able to commit to more hours because of the other jobs they have. You’ll likely end up having less workers but will get more work done. For example, when I hired my marketing manager, he was originally one of the guys working for me on a part time basis. By hiring him I ended up not needing four other people who were working with me in marketing related positions part time.

Step 7: Figure Out Your Job Description

This is where I’m at now. What is it that I love to do and who do I need to hire to take over the jobs that I don’t want to do anymore? In January I brought on two new full time people to free up more of my time. When you’re first starting a business you end up wearing all the hats but as you grow I believe the whole point of entrepreneurship is to do something you love doing. If you have the opportunity to design the perfect job, why not go for it?

I would love to hear your thoughts on how you’ve built your business up or how you plan to do it if you had a $0 budget.”

For more pearls of wisdom on entrepreneuring, from Evan and others like him, go to YoungEntrepreneur.com Blog

And if you have any thoughts yourself on bootstrapping or entrepreneuring, and you’d like to share them, we’d love to hear them

Related articles by Zemanta
Reblog this post [with Zemanta]

Green Business Opportunities

I thought you might be interested in a new umbrella of business sites I’m starting.

Green business.

I mention this because the new business landscape seems to present unusually favorable opportunities in several sectors. One such sector is in green businesses.  Environmentally friendly businesses.  And it certainly doesn’t hurt to get in early, before the field gets too crowded.

Two posts where I’ve discussed these opportunities, with the help of green future experts and gurus like Tom Friedman,  are Bootstrapping A Green Business and Clean Energy Will Be Big – Just Look Who’s There

New Energy Research is the first of these sites.  It deals with conversions you can make very simply to conserve energy for yourself.  But it has a dual purpose, in that any of these methods suggest a business you may consider starting to help others take advantage of these new conservation techniques.

If you get a chance, take a look and let me know if you have something to add.

Related articles by Zemanta
Reblog this post [with Zemanta]

15 Top Business Blogs

Of course, you know there are many more great business blogs out there.  For the moment, these are some that strike me as particularly useful.  If you’d like to add to the list, just post your comment and I’ll put it up.

So, here goes:

Career News & Job Search

All Top Career News:  a cornucopia of career news, articles, tips by hundreds of bloggers.

Job Mob: has some insightful articles and good tips.

Entrepreneurship

How To Change The World: Guy Kawasaki, is a pretty down to earth guy, but he is actually world famous as a tech entrepreneur, evangelist, author, speaker and blogger. He gets it, big time, and he shares his insights generously.

Toilet Paper Entrepreneur: If you can get beyond the initial toilet paper analogy, which is humorous, if a little indelicate, Mike Michalowicz offers good advice and tips for new entrepreneurs.

About Entrepreneurs: Scott Allen’s practical guide for entrepreneurs.

Planning Startups Stories, the very seasoned and successful Tim Berry’s blog, sharing his insights on starting your business.

Bootstrap Me: about bootstrapping, small business, entrepreneurs, start up.

Escape From Cubicle Nation: a favorite and one which will start you thinking about how to move on.

Marketing

Duct Tape Marketing: John Jantsch has to be at or close to the top when it comes to marketing.

Seth Godin’s Blog: marketing guru has insightful things to say about all things marketing

Winning the Web: internet marketing strategy and other very insightful tips on running a blog.

Social Networking

How To Change The World: Guy Kawasaki, from time to time, has more social networking how to information in one blog than others do all year.  Yes, I know I mentioned Kawasaki under entrepreneurs, which he definitely is, but he is an uber successful guy, who wears many hats, so I thought I’d mention him again in this context.

ChrisBrogan: one of the most popular social networking bloggers, sharing many moments of his life with you and informed tips on how to raise your social networking IQ.

Tech
TechCrunch: Tech news for those in the know.

Silicon Alley Insider if you like to keep up with gossip and goings on in Silicon  Valley

Related articles by Zemanta
Reblog this post [with Zemanta]