No venture capital, no angel investor, no problem. Startups can combine business fundamentals with new digital technology facilities to bootstrap their business.
The Silicon Valley model is often touted as the gold standard for the modern startup. However, the assumptions that underlie the US startup scene seldom apply to emerging markets.
In regions like Latin American and the Caribbean, access to investment capital, available human resource skills, intellectual property protections and even basic business startup facilitation can be debilitating obstacles for entrepreneurs and their startup ambitions.
Setting up your team with the right talent, getting your admin and infrastructure systems right from the first day and transforming your ideas into intellectual property all speak loudly to investors that you and your startup have what it takes to succeed.
To successfully bootstrap a company, it's important to consider a few things:
1. Talent and connectivity first, frills after
Success for any startup is highly dependent on the talent that is secured to take it from idea to enterprise. Avoid unnecessary expenses, such as office overhead, unnecessary gadgets or other frills. Free up cash to secure the best talent and connectivity build your product or service.
Setting up virtual teams can allow you to tap into a global resource pool. Investing in the right broadband connectivity and cloud-based collaboration tools can provide extremely cost-effective means for managing distributed teams.
Use freelance consultants provide your with niche talent on demand. Build and keep a solid list of trusted and intelligent freelancers for services like administrative and other non-core services. Focus your cash-spend on hiring the best staff needed for success.
2. Balance engineering with customer needs
Whether you are building a new widget, or cool new app, startups need savvy engineers to come up with innovative designs and to actually build it into products and services. At the same tim, market success depends on being able to understand market needs and how best to reach desired target audiences. Having these two competencies working in sync is critical for any startup.
Using professional-focused social media sites, like LinkedIn and SpiceWorks, can help you easily identify and secure key talent for your startup.
3. Right from the start
If you hope to instill confidence in the stability and legitimacy of your business, don't cut corners. Employees, investors, suppliers and customers all need to know the business and its leadership are stable and legit, so do everything by the book.
Once they get involved, investors will want to see paperwork, including up to date financial reports from the start. Nailing down your administrative systems should be a priority from day one.
Secure a reputable accountant and proper accounting software to ensure that your startup records are in order. Insist on a disciplined approach to record keeping, procurement and expense tracking.
Consider Web-based administrative and reporting systems to ensure that you have access to your information whenever you need it.
4. Focus on pleasing customers
When you don't have a lot of money, the best source of funding is one that rarely tolerates mistakes: your customers.
Focus your efforts on designing a product, app or service that customers want, will enjoy, or find useful. Do this and you give your startup a much better chance at success than someone and likely attract investors, instead of having to hunt them down.
Invest in your online presence, as this is a key channel for customers and investors to find out about you and your startup.
Use social media tools like Facebook and Twitter to engage your audiences and promote your business value.
5. Protect your property
Your great idea can quickly transform in contention, heartache and expense if you don't take the steps to secure it. Put priority to legally protecting your intellectual assets and closing loopholes that could allow someone to steal your intellectual property or contest your ownership.
Whenever you speak to potential partners, developers or investors, use non-disclosure and confidentiality agreements. Additionally, take the time to copyright any designs, prototypes, mockups, trade names and even processes. You won't regret it.
Enjoy the ride, it is important to stay focused on what's needed to keep moving from one growth stage to the next. Get it right and eventually, the process will likely bring you to the attention of investors willing to help you take your startup to the next level. In the meanwhile, work hard to perfect your product, please your customers and build your business.
Bevil Wooding is the chief knowledge officer of Congress WBN, a Caribbean-based international non-profit organisation, and the founder and executive director of BrightPath Foundation, a technology education non-profit organisation. Reach him on Twitter @bevilwooding or on facebook.com/bevilwooding or contact via e-mail at technologymatters@brightpathfoundation.org.