0368: Build Or Rebuild Your Construction Company By Bootstrapping

This Podcast Is Episode Number 0368, And It's About Build Or Rebuild Your Construction Company By Bootstrapping   Bootstrapping is figuring out how to reduce the cash you need to start or re-start your business, by eliminating any unnecessary overheads while finding out who will give you a hand.   If for whatever reason, you're not able to raise enough capital to start-up, you might be able to get what you need by 'bootstrapping' (finding what you need through unconventional or low-cost methods):   Have others lend what you need   You don't have to purchase new equipment to start your business. Think about what items you might be able to borrow over the short term or do without until the business grows.   Draw up a list of your asset needs and make a determined effort to borrow from others what you can while searching online for second-hand items that will save your business money. Are there people you know that are already in the construction business who could lend you what you need?   Call in favors Time to talk to friends, other business owners' and family to see which assets, time, or money they can help with. It's a common bootstrapping technique to save money, and chances are there is more help out there than you realize. Reduced your set up costs and overheads Look at the bare minimum you'll need for your living expenses and cut your salary or work for no pay for a time. It's quite common for business founders to put in this unpaid 'sweat' equity to start with.   Look around your home and decide what you can sell to raise the cash you need. If your business is that important to you, then sell everything you can. Look for support Search online for what's happening in the construction industry to see if there is any support in your specific trade. Tap into any family and friends that are willing to help, which could be cash or just a helping hand setting up and spreading the word you're in business. You'll be surprised who in your circle of friends will help. Harness social media You don't need a large marketing budget to build a customer base. The Internet can help you develop a strong presence for free. Whether you decide to create a presence on Facebook, Twitter, LinkedIn, or Instagram, regular interactions, and postings are the keys to gaining customer awareness. Delay payment Possibly you can negotiate with suppliers a much longer payment cycle, free trials, or several months' rent-free in a new lease agreement. Low-cost marketing Effective marketing can be creative rather than costly. Some ways you can get your brand in front of potential customers include: Email campaigns – as you begin to sell to consumers' you'll want to get them coming back for repeat services. This is where building an email contact list and sending out regular deals with calls to action can keep your business going. YouTube videos – images can speak louder than words, and video even more so. Whether you're explaining what your business does or showing how your services works, videos are a cost-effective medium for getting your messages across to your target market. Build word of mouth referrals by actively asking new customers to refer you. Don't wait for word of mouth to build over time as it tends to be too slow. Outline all the ways that you can save money by first reducing what you need and then from what you can borrow. Spend your time like a currency and do as much as you can yourself (with friends) before you start paying others. Next steps Research your local construction industry to see if there are any specific start-up grants, subsidies, or support that you may be able to tap into and talk to your financial advisers (e.g. your accountant) if you're looking to fund from the crowd to make sure you're doing the right thing.   List everything you need and brainstorm with others how you can get access without paying for it and be confident you've accumulated more goodwill than you think; if you don't ask, you won't receive. About The Author: Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood, Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. Call 1-800-361-1770 or [email protected]