Be extremely selective when hiring team members as early hires are crucial. But part ways quickly with wrong fits - the wrong people can sink a small business. Opt for skill fit over culture fit.

Hire Slow, Fire Fast

<ul><li>Manage cash flow aggressively, not just profitability. </li><li>Tight cash flow will cripple otherwise viable bootstrapped businesses. Maintain adequate reserves and runway.</li></ul>

Focus on Cash Flow 

<ul><li>Continuously identify and focus on delivering the core value that customers truly want. </li><li>Say no to superfluous features or scope creep that don't address the core job to be done. </li><li>Refine strengths rather than chasing breadth.</li></ul>

Obsess Over Core Value 

Proactively engage with real and prospective customers to understand their needs and pain points. Solicit feedback early and often. Iteratively improve products based on user insights rather than assumptions.

Talk to Customers

Grab your customer's attention with a strong value proposition that showcases the benefits of your product. Your value proposition is the ultimate bait, hook, and sinker that can reel in your target audience and set you apart from your competitors.

Communicate the Value Proposition Clearly

Automate processes only after nailing down the essentials. Avoid prematurely over-automating before identifying core pain points. Outsource selectively - don't relinquish control of critical processes.

Judiciously Automate

Research, test, and validate your software product idea before investing time and resources. Avoid falling into the quicksand of an untested idea and ensure you have a solid foundation to build upon.

Validate Your Idea Early On

Obsess over your sales funnel by monitoring key metrics. Diagnose and improve lead generation, conversion rates, and customer retention through testing.

Mind the Sales Funnel

Start Small, Stay Lean<ul><li>Bootstrap your startup and avoid premature funding that adds complexity. </li><li>Begin with a minimum viable product to validate assumptions before scaling up. </li><li>Keep operations lean, delaying hiring and overhead until revenue justifies it.</li></ul>Scratch Your Own Itch<ul><li>Build products that scratch your own itch - solve a problem you personally face. </li><li>This ensures a target audience exists and allows intuitive refinement based on your own user experience. </li></ul>

The Small Itch You Have

<ul><li>Bootstrap to maintain control rather than giving up equity prematurely. </li><li>Take funding only when needed for pivotal growth. Retain leverage to make key decisions.</li><li>Have a target sales number in mind that allows an attractive exit. </li><li>When a serious acquirer offer meets that number, be psychologically ready to walk away on solid terms.</li></ul>

Maintain Control 

Zero to Sold: How to Start, Run, and Sell a Bootstrapped Business is a book written by Arvid Kahl in 2020. The book provides a step-by-step guide to starting, running, and selling a bootstrapped business. It covers topics such as developing an idea, creating a product, finding customers, hiring employees, raising capital, and exiting a business. It also provides advice on the key elements of an effective business, such as goal setting, customer service, financial planning, and marketing. The book also offers actionable advice on how to use technology to create a successful business. 

Zero to Sold is a comprehensive and actionable guide through the four stages of a bootstrapped business: Preparation, Survival, Stability, and Growth. From your first idea to successfully selling your business for life-changing amounts of money, this book will help you become a world-class entrepreneur. By focussing on your niche audience, finding their critical problem, and solving it with a product that your customers can't resist to pay for, you will learn how to create a recurring revenue engine that will make you financially independent. It's easy to build software products. The hard part is turning them into viable businesses that stand the test of time. If you want to build a business that survives, you have to know what challenges you will encounter. Zero to Sold tells the story of a sustainable, bootstrapped software business that grew to thousands of customers before it was acquired. Arvid Kahl is a software engineer turned entrepreneur who has accomplished just that. He co-founded and grew an online teacher productivity SaaS business called FeedbackPanda to $55,000 Monthly Recurring Revenue with his partner Danielle Simpson. They sold the business for a life-changing amount of money in 2019, just two years after founding the business. Arvid writes on The Bootstrapped Founder blog. In Zero to Sold, Arvid shares his experiences, learnings, and insights from building a Software-as-a-Service business from start to finish. He shows what worked and what didn't work. If you want to build your own bootstrapped business and stay sane while doing it, Zero to Sold will be your guide. You will learn how to: <ul><li>explore and validate your idea before you jump into building a prototype that no one needs.</li><li>find a well-defined audience, locate their critical problem, envision a solution that fits into their workflow, and build a product that makes them want to pay. Then, build a repeatable process of selling your product: a business.</li><li>grow your business sustainably and make it sellable, even if you want to keep it forever. Or sell it for a life-changing amount of money. Either way, you can prepare.</li><li> </li></ul>Zero to Sold is the ultimate business documentation: a memoir, a manual, a journal, and a guide. It will help you validate your ideas, build your products, and grow your businesses, whatever stage you might be at right now.

Focus on Cash Flow

Similar ideas to Focus on Cash Flow

Keep Cash On Hand

STOCK & FLOW

Practice deliberately to bring on more Flow