Do you need to start or grow your business but have little money? Before you look to banks and similar sources of financing, why not bootstrap your way to business success?
A bootstrap is a small loop of leather or other material that is found on the top rear or sides of a boot. The purpose of the bootstrap is to help you pull your boot on.
In business, bootstrapping has come to mean helping oneself without seeking outside help. It means using your own resources to finance, promote, and develop your business.
Here, then, are some ways of financing your own business by using your own initiative and depending less on outside bank financing.
1. Operate a Home-Based Business
Operating your business from home could save you a fortune. First of all, you eliminate the costs of expensive commercial rent, commuting, et cetera.
As well, your business use of home expenses would be deductible for income tax purposes. Since your home is your base of operations, your travel and automotive expenses from your home to clients would be deductible.
2. Accept Credit Cards
Rather than financing receivables and assuming the risk for bad debts, why not accept credit card payments?
3. Drop Ship Products
Rather than financing and stocking inventory yourself, consider drop shipping.
With drop shipping, when you make a sale you contact the manufacturer or authorized distributor who ships the product to the customer with your invoice and shipping label. Advantages include no warehousing, shipping, or inventory costs.
4. Use Your Customer`s Money
Selling memberships, subscriptions, gift certificates, and coupon books are just a few ways of getting your clients to pay upfront. Obtaining advance deposits and retainers from your customers can help finance your business operations and reduce or eliminate the need for bank financing.
5. Licensing
Instead of trying to finance the manufacturing and marketing of your invention, which could cost millions of dollars before you have your first sale, why not license it to a company with the necessary expertise and capital? You will then receive royalties in return for your idea.
6. Other Bootstrap Financing Methods
Aggressively control costs, barter, get extended terms from suppliers, establish strict credit and collection policies and procedures, rent (or lease) instead of buying equipment, buy used equipment instead of new, sell off excess inventory and equipment, obtain free publicity instead of paying for advertising, and do whatever else is necessary to generate cashflow and profits.
In these ways and many others not listed here, you may be able to start and grow your business successfully with very limited capital. Thus, you will avoid having to obtain expensive debt or equity financing.
Many who were unable to obtain financing from any other source have successfully bootstrapped their way to business success.
Showing posts with label home-based business. Show all posts
Showing posts with label home-based business. Show all posts
Monday, October 24, 2011
Tuesday, September 28, 2010
Answers to 5 Questions about Ty Coughlin and the Reverse Funnel System
Among those looking for home business opportunities, there is a lot of buzz about Ty Coughlin and the Reverse Funnel System. What, exactly is a reverse funnel system and who is Ty Coughlin? Read on to find out....
1. What is the Reverse Funnel System?
The reverse funnel system refers to the way that prospects are accepted into a specific home-based business opportunity. Instead of simply collecting names of prospects, many of whom may not be serious about the business opportunity, a reverse funnel system asks prospects to pay a fee in order to get additional information about the opportunity. The fee is relatively low - usually about $50 - and serves to weed out prospects who are not inclined to follow through with the business opportunity. The reverse funnel system is sometimes known as a "funded proposal" or "funded prospect" system. If you sign up for the system and launch your own business, you will generally get a significant percentage of the prospect fees that are paid through your referrals.
2. Who is Ty Coughlin?
Ty Coughlin is the person who has used and codified the Reverse Funnel System to make it profitable for others. According to his biography, Ty Coughlin lives in Hawaii and worked for a construction company prior to owning his own business. He had also tried multi-level marketing, and eventually came up with his own Internet-based system that utilizes Internet marketing and advertising. His system has proven to be a roadmap to riches for many people, since it has few variables.
3. What Actions are Required?
Once a person is accepted into the program, he or she has to take high converting advertisements developed by Ty Coughlin and then place those ads. As leads start coming in, the person has to answer any questions that arrive through email and attend a daily conference call.
4. Does it Cost Money to Start the Business?
All business owners invest money to launch their businesses, and the Reverse Funnel System is no exception. However, when compared to other business opportunities, such as franchises that can cost tens or hundreds of thousands of dollars, this home business opportunity costs around five thousand dollars. The person who signs up is responsible for paying the prospect fee, as well as the costs of marketing and advertising the business. Typically, however, there is a money back guarantee. If a person is not accepted into the business, their prospect fee is refunded.
5. What are the Advantages to the Reverse Funnel System?
According to the website of Ty Coughlin, there are many advantages. There is a potential for making 6 figures in 6 months, access to a proven system that can produce seven different income streams, and business automation advice. In addition, the system is self-replicating, so new business owners don't have to have a lot of knowledge about building websites or Internet marketing.
1. What is the Reverse Funnel System?
The reverse funnel system refers to the way that prospects are accepted into a specific home-based business opportunity. Instead of simply collecting names of prospects, many of whom may not be serious about the business opportunity, a reverse funnel system asks prospects to pay a fee in order to get additional information about the opportunity. The fee is relatively low - usually about $50 - and serves to weed out prospects who are not inclined to follow through with the business opportunity. The reverse funnel system is sometimes known as a "funded proposal" or "funded prospect" system. If you sign up for the system and launch your own business, you will generally get a significant percentage of the prospect fees that are paid through your referrals.
2. Who is Ty Coughlin?
Ty Coughlin is the person who has used and codified the Reverse Funnel System to make it profitable for others. According to his biography, Ty Coughlin lives in Hawaii and worked for a construction company prior to owning his own business. He had also tried multi-level marketing, and eventually came up with his own Internet-based system that utilizes Internet marketing and advertising. His system has proven to be a roadmap to riches for many people, since it has few variables.
3. What Actions are Required?
Once a person is accepted into the program, he or she has to take high converting advertisements developed by Ty Coughlin and then place those ads. As leads start coming in, the person has to answer any questions that arrive through email and attend a daily conference call.
4. Does it Cost Money to Start the Business?
All business owners invest money to launch their businesses, and the Reverse Funnel System is no exception. However, when compared to other business opportunities, such as franchises that can cost tens or hundreds of thousands of dollars, this home business opportunity costs around five thousand dollars. The person who signs up is responsible for paying the prospect fee, as well as the costs of marketing and advertising the business. Typically, however, there is a money back guarantee. If a person is not accepted into the business, their prospect fee is refunded.
5. What are the Advantages to the Reverse Funnel System?
According to the website of Ty Coughlin, there are many advantages. There is a potential for making 6 figures in 6 months, access to a proven system that can produce seven different income streams, and business automation advice. In addition, the system is self-replicating, so new business owners don't have to have a lot of knowledge about building websites or Internet marketing.
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