Types of investments – Bootstrapping

Type of investment - BootstrappingOne of the simplest investment options in your startup comes from personal money, money and advice from family and friends. Basically bootstrapping yourself until you have at least a proof of concept product. You can then go to other types of investors to grow your business. Maybe you end up having a working prototype that you can start selling to your customers. Bootstrapping a startup has many meanings and this technique should be applied on every aspect of your incipient startup. Almost all the big entrepreneurs that every one of you look at in an aspiring way, have been bootstrapping their startups in the beginning (a lot of those big companies have started from garages and that is, on it’s own, a bootstrap technique where you save the rent costs).

Too many people forget or don’t appreciate at the real value the personal connections they have. In case you want to focus your startup in Cluj on IT, you should discuss it with all your friends. You probably know many of them which are working in this field. They might either help you themselves or put you in touch with other friends they have that might be interested in helping you out in the beginning.

Maybe you want to focus on a brick and mortar niche, a totally different than the tech one. In this case, you might find directly or via your friends a space suitable for your needs. If you go this route instead of simply searching for empty spaces to rent you can find a cheaper rent or some other short and long term benefits.

In both these cases, our suggestions are a bootstrapping techniques that is simple and straightforward to implement. Do your best and try to apply them every time you have the chance to do so.

Another important aspect that you must think about and analyze is marketing. Who will buy your products? Where your customers usually buy that product from? What your customers expect form such a product? How often do your customers purchase this kind of product? How much money are they willing to pay? When you want to create your Cluj startup it would be for the best to learn how people from this area think and act regarding such products – be them IT products (like software or hardware) or other kind of products by bootstrapping.

The best chance you have to find these answers would be with the help of some market research. The problem with professional market research is the cost; it’s pretty expensive to do such a research, at least in the beginning when you don’t have too much capital. Also, you don’t know if your product has some potential customers. A very good solution for bootstrapping this would be to ask your family (if they live around the area) and/or your friends here. For sure they will be very happy to help you with answers to your very important initial questions. Plus, it won’t cost you anything. They might even offer to help you reach more people or with other aspects of your endeavor.

As you can see, the importance of using your personal connections intensively when building your Cluj startup is an essential key to successfully bootstrap yourself and build something from the ground up. You should not underestimate any of your contacts or yourself. Don’t keep your startup idea a secret. Try to discuss it with as many of your friends and acquaintances about what you have in mind. Also, try to keep an open mind (very important). It may happen that while discussing about your startup idea you will find some issues or obstacles that might happen. It’s possible also that you get answers for some of the unanswered questions or problems you already found. Try to apply these ideas that we are sharing with you so we can see in the future more new startups in Cluj that we all can be proud of.