Reality of Bootstrapping

sasha uritsky

Aug 17, 2015

Going after investors? Do you know that less than 1 percent of startups actually raise VC (or angel) capital, which means that the vast majority are self-funded. Yet the main reason for it simply lies in the inability of most companies to find investors.

Bootstrapping, however, has several strategic advantages for your company's future growth. Perhaps the biggest is retaining the majority of shares and control over the strategy and direction your company is moving towards.

It also teaches financial discipline. Bootstrapping at the start helps to understand the importance of revenue and cash flow, as opposed to unabridged product development, and keeps you connected to your company's financial reality. Only when profitability increase do you then green-light new opportunities, increased risk-taking, and growth acceleration.

In reality, the founders are expected to be flexible. While entrepreneurs have certain intentions and philosophies when they are starting out, a hallmark trait for successful founders is the ability to adapt to changing environments and opportunities.

Sometimes, that means waiting a long time to generate the financial metrics that really matter, revenue and profit. By challenging your leadership team to focus on building the business organically and figuring out how to make the company consistently profitable on a model that can scale without VC capital, you make your company more valuable to future investors.

Interested in reading more? Check out our other blogs:

How AI is changing the work landscape

"For better or worse, robots are going to replace many humans in their jobs,” says analysts from BBC, and the coronavirus is speeding up the process. Consumer preferences are evolving and recently consumer behavior demonstrates that we as a society have become more tolerant accepting of using automation in our daily routines.

In the professional workspace, most if not all companies have moved towards working from home. Given the unprecedented times, recruitment, the employees management, and the corporate governance processes and communication have moved online. As a result of pandemics many companies are experiencing hiring freezes, but many others have moved their recruitment efforts online. A few companies have begun piloting recruitment with the help of artificial intelligence. They are now leveraging AI to conduct online interviews and assessments and deliver data back to the employer. Now more than ever, companies are realizing the importance of moving towards a remote-friendly workforce. Being able to scale human capital on a larger scale online has definitely been accelerated recently.

I know for myself, as a current student who recently had their internship offers rescinded due to COVID-19, I’ve put myself back into the market. I’ve seen both small businesses and corporations utilize screening questions, video pitches, and unique riddles to test students’ critical thinking and how they fit into the company culture. This experience in itself has been revealing – after so many years of in-person interviews to suddenly having to emulate the same energy online or via video. Given the adjustment, at times it definitely felt unnatural to sit in front of my computer camera and pitch myself or answer video questions. However, going forward, I can see how automation and online platforms will become more explored given the time it saves and the bias it could remove during the recruitment process.

Yet it is not just a change in the recruitment process that we are seeing. The customer service environment, as I have seen first-hand, is under large stress. One of the first calls I had made was to an online retailer, to try and put in a return order. What seemed to be an idea that everyone else had as well, I was put into a queue that lasted more than 30 minutes. After hitting that 30-minute mark, I gave up and put off the task for a later date. Now, a month later, more and more companies are adopting chatbots and artificial intelligence into their customer service processes. These companies are beginning to provide information in a more efficient manner, and with less human capital.

Moving forward, in the next few months and post-COVID-19, it would be interesting to see which companies are focusing more on their digital transformation efforts. I believe that a larger number of universities and educational institutions will partner with tech companies to help digitize their working environments. And private businesses will continue to implement some of the already existing practices and produce products that cater to the remote working lifestyle and online interactions.

One Fast Way To Increase Your Online Sales

Chatbots and conversational AI solutions offer easy and reliable sales channel.

Chatbots are helpful because they not only engage with your customers, they also retain them. This means that unlike other forms of marketing, chatbots keep your customers entertained for longer. For example, when a user has a customer care inquiry, the chatbot can answer it accurately and take the conversation a step further by offering personalized shopping advice based on the customer's purchase history and preferences.

Chatbots make communication with your brand proactive, thus enhancing your brand's reputation. By increasing interactions, they make a positive effect on your sales numbers.

Chatbots allow your business to reach out to a wider audience. They can gather and analyze customer feedback and data. Send relevant notifications. Make communicating with your brand more fun.

Chatbots help with top of funnel conversions. Offering your online customers a highly personalized experience of your site with the addition of a chatbot can help guide consumers down the sales funnel, and ultimately influence their buying decisions.

To summarize, chatbots opens new opportunities for you to increase sales. Opportunities that are easy to use and are not costly. Better not to miss them!