How can you start your social enterprise for a small amount of capital or even no capital at all? How do you ensure that this is one of your best business ideas?
One key way you can get in the business of social enterprises – the business of changing the world – is through bootstrapping.
Bootstrapping For Social Entrepreneurs Lacking Seed Capital
Bootstrapping is a key phase that many social entrepreneurs are very familiar with. Think of Bill Gates as he started his enterprise and created Microsoft, think of Steve Jobs starting in his garage before he created Apple or even Michel Dell who created the Dell company from within his own home. These examples in the business world give us inspiration they show us that with a small amount of capital that you can start your social enterprise today.
Bootstrapping really means starting your venture and doing it to create profit with as little cost as possible.
Now bootstrapping is quite useful and a lot more easier for service businesses or service social enterprises as opposed to social enterprises dealing primarily with goods; particularly because goods can often cost a lot of money and a lot of capital before you can start selling them at a profit. Services on the other hand require a lot less capital because you yourself or your team of original start-up team owners can be the one to provide those services yourself.
As you provide your services, for a small amount of capital, even using an office such as your home for a home business, you can then increase your profits and as you increate your profits, you can then reinvest those profits so that your enterprise can grow and you can scale your model to then hire others to handle the services that you provide. You yourself can then focus more on the strategic area of your social enterprises.
Bootstrap Your Way to Success
So if you’re strapped for cash, try bootstrapping.
Many of the great entrepreneurs have used it to start their social enterprise their commercial enterprise right from the beginning and it’s a great way to get things running particularly on your best business ideas. As you grow and as get more profits, you’re more able to reinvest it so that you can grow and therefore increase your cash flow and create a greater social impact in the world.