Growing A Viable Day-One Business Model For A Modern Bootstrapped Startup

Growing A Viable Day-One Business Model For A Modern Bootstrapped Startup

While some of the most prominent startups of recent history have focused on securing venture capital funding early on, that well is beginning to dry up. Certain ideas and technologies are especially well suited to that basic business model, where early infusions of capital are used to secure growth and dominance in newly developing markets. On the other hand, many business ideas benefit from a more considered and thoughtful approach to growth and developing what a company has to offer. For those who prefer this lean startup style of founding a business, the steadily decreasing availability of venture capital can seem like nothing to worry about at all.

On the other hand, opting for this style of business also means needing to account for all the related realities. It is to be expected that a company of this kind will not have at any early stage the kind of resources typical of one that relies on angel investors and venture capitalists. Instead of being able to burn capital in order to grow quickly and without worrying about actually making money in the short term, young businesses of these kinds have to build their revenue-generating foundations much more quickly.

What this typically takes is a lot of intensive design thinking very early on. Instead of putting off for years the question as to just how a company will make money and focusing on growth instead, the founders and leaders of such businesses have to become hard-nosed virtually right from the start. In other words, developing a viable business model has to be seen as a top priority right from the very first day of operation.

There are ways of making this generally challenging work quite a bit easier, though. One increasingly popular tool is the business canvas tool, a technological gadget that is especially well suited to duties of this kind. A business model canvas allows startup founders to explore a range of possible approaches to making money, right from the beginning and such that nothing needs to be risked in the process. By referring back to established models and allowing users to experiment with and manipulate them, tools of this kind can make it much easier to pin down the approaches and processes that will actually make a company viable.

Naturally enough, not every such effort will succeed, but that is part of what makes this style of business so attractive. With relatively little invested and some strong, grounded ideas to test out, the lessons learned almost always prove to be valuable.