10 Tips n’ Tricks to Raise Funds and Bootstrap Your Biz

Tuesday, March 27, 2007 at 12:58pm by David Askaripour in Bootstrapping

1. Jump on the ebay wagon

   ebay can be used as a powerful tool to help you raise some funds for your business. For years, I used to go to summer garage and yard sales with my mom and purchase tons of 10cent books from the boxes, sometimes the entire box, and come home to list them on ebay. You’d be surprised what some people were willing to pay for books, especially if you have entire volumes. On numerous occasions, I was able to package together volumes of books, purchased for $1-5, and turn around and sell them for $40+. Do that a couple times a week and you can start making some cash. And let’s not forget about selling all those gadgets sitting around your room collecting dust – ebay those babies!

2. Become a broker

   As a young entrepreneur how many times does someone come to you and ask “where they can have a website built?” or “if you know any good programmers?” Perhaps you don’t design and program yourself, but you know a bunch of people who do. Okay, so what about setting up the deal, taking a cut of the pie, and having one of your friends do all the programming/design? I know plenty of entrepreneurs that make a good living off of doing just that! You can broker anything, really. Mortgages, investments, websites, tutor lessons, etc… Get creative and leverage your networks.

3. Tutor someone

   You’re an entrepreneur so that probably means, at least to some degree, that you have brains and you know a thing or two about something. Maybe you excelled in English during college or you know a lot about history. Well, put those brain cells to good use and pick up a few tutoring lessons a week. Check out Craigslist or get in touch with your college and see what students are looking for tutors. You can pull a few hundred a week doing tutoring.

4. Stay in the cubicle

   Ok…ok… I’m saying it (yikes!). You should consider keeping your day job to raise capital for your business. In fact, that’s exactly what I did straight out of college — I got a 40,000 a year job, stayed there for a few months, raised about 10k, and left. Most of you hate your jobs, I know, but use them as a means to an ends. Why not? I mean, aren’t they using you to increase their bottom line? Well, use them to increase the size of your business bank account and then get the hell out of there, pronto!

5. Pitch mommy and daddy

   Let’s not forget about some of the most valuable assets in your network — moms n’ pops! Keep them in the loop of your business from the start. And one day, when the time is right, ask them for some assistance. Show them your plans and how you are going to change the world with your business. Most parents want to see their children succeed and would be willing to cut you a check to help you realize your dreams. My parents lent me close to 10k for my first venture and I will be forever grateful.

6. Books can be your friend

   One of the best investments an entrepreneur can make, besides actually spending the time “doing” something, is to read books. Don’t dismiss the value of books and learning from others. From books, you can begin to start thinking on new levels and become even more opportunistic when it comes to raising funds. Books like Richard Branson’s "Losing My Virginity" will show you how a young kid boostrapped his way to becoming billionaire — and to think that it all started from a small magazine. Books can be very powerful if you take heed to their advice and “act” upon what you learn.

7. Network like a mad man

   Get out and start meeting as many people as you can. Go to niche events where you are going to be submersed in an environment with plenty of passionate, intelligent, and savvy entrepreneurs. Places like that are breeding grounds for picking up clients, people who are willing to invest in your company, and people who can put you in touch with other key players who can lead you to the money. A few years ago, while in college, I ran a small paper editing business. Someone overheard me talking about editing papers at an event and approached me, telling me how he and all of his buddies were looking for someone to edit their papers. That one small connection led to thousands of dollars towards my business that school year.

8. Help the Earth and make some change in the process

   How green are you? Our environment is in trouble and global warming is becoming a bigger and bigger threat by the day (okay, I had to throw that in.) Be a good green entrepreneur and recycle your cans and bottles at your local supermarket. If you drink a lot of soda and beers, then expect to make a few extra bucks per week. It’s a win-win, you’re recycling and making some cash at the same time — can’t lose.

9. Save your change

   Is your wallet or purse weighed down with loose pennies, quarters, dimes, and nickels? Probably is. Go get yourself a jar and start saving all the change you get when you break bills. Over time, you’ll be amazed how much you can save. I did this for a year once and made out with over $100. Some people save upwards of $30+ per month doing this. Do an experiment and try it out for a month and see what happens. For one month “only” use cash and save “all” of your change.

10. Do freebies

    Every now and then, do some free work for a new client. Believe it or not, this is a great way to build loyalty and help generate plenty of cash down the line. We humans are skeptical beings and are always suspicious of using someone new. Destroy that skepticism and offer your services for free for the first time. If they like what you do, then they’ll become major “connectors” and help spread the word about your services — forever!

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