You do not have to depend on external investors to fund your business; you can do it yourself via bootstrapping.
Bootstrapping is commonly understood as starting up a business with minimal or no resources, including the lack of external help. When you’re just starting out, you are the CEO – Chief Executing Office. Yes, it read “Chief Executing Office”, because you will be your CFO, COO, VP of Sales and etc. You played pretty much all the essential role in your newly incorporated enterprise. You started out with nothing, no cushion, no money in the bank. Under these circumstances, there is a great sense of urgency to make money, and make it – fast.
Bootstrapping forces you out of your comfort zone. In order to make money fast (not necessary means getting rich quick), you have to be realistic. You have to be practical about what you can offer to the marketplace, solving problems, to make real money. It forces you to take action upon the dream that inspired you to build your business in the very first place.
From taking realistic actions, you learned what is practical in the marketplace, from the feedbacks you get from your customers. The results you get will be useful in evaluating your overall business strategy. By constantly practicing bootstrapping, and getting practical feedback, you are gradually training yourself to be an excellent business person. It takes practice to be perfect. By infusing practical actions, with real problem, you are building yourself up to handle more complex problems for more money. No doubt, customers are willing to pay for solutions to their problems.
Rather that thinking “frugal”, why not think about generating the most revenue, with little or no resources to start with. Remember, you are in the business to make money, not to spend money. You do not always have to spend money to make money. Understand that money is just the end, the means can be an idea, money, or other resources you have available. Bootstrapping is about being resourceful, not acquisition of resources. Making money is just another habit, so is spending money to make money.
So what do you do with the money you make from bootstrapping? You reinvest the profit into your business; use it to fuel your business capital to generate more revenue. This is a test of you holding yourself accountable for the goals you set, and agreement you’ve made with yourself. Done repeatedly and successfully, you will realize that not only you have known yourself better; you have also found yourself a great partner in business – which is you, and qualities you need to look out for, when you get to a point of needing to hiring more help for your business.