Starting a business by relying on yourself means primarily funding your project through personal savings and initial sales revenue, rather than relying on outside investors. While it’s an approach that can provide you with greater freedom and decision-making authority as your business grows, it can be stressful trying to build a brand while maintaining positive cash flow. Lindsey McCormick, founder of the eco-friendly personal care brand Bite, did just that.
Tips for Running a Self-Funded Business
Lindsey managed to fund her business from day one, thanks to a full-time job and the skills she learned while working as a film and television producer. Here are some of her tips for staying in positive cash flow while building your business.
1. Prioritize Your Product
Self-funding can be a stressful process, as it takes longer to launch when you don’t have outside funding. By prioritizing product development first and business operations second, you can create a strong hero product that sells well.
“In all the planning and research I did, I wasn’t thinking about whether this was a good business idea?” Lindsey says. Instead, she asked herself, “How can I make the best possible tablet?”
Since creating a tablet-shaped toothpaste was the priority, Lindsey invested in equipment and clinical testing to ensure she could provide high-quality products to her customers that actually worked. “We conducted these clinical tests because we want to have something that is not only better for the planet and our bodies but is science-backed as well,” Lindsey says.
Lindsey’s process was successful because she prioritized product quality instead of trying to do many things at once. She spent her entire initial investment on purchasing equipment and developing the perfect hero product: toothpaste tablets.
2. Research and More Research
One of the best tools you have as a self-funded business owner is your research skills. “I started talking to dentists and dental hygienists, and I spent a lot of time on YouTube and Reddit to really find out what a tablet is and how I can make these things,” Lindsey shares.
At first, Lindsey was very eager to create a toothpaste alternative without using the tablet-making machine due to the cost of the tool. After countless hours of research and experimentation, she realized it was worth the investment and reached out to a company in Texas for assistance. “They had customer support where I could fly out there and learn how to use the machine. They showed me everything about it and how it worked, and that was invaluable,” Lindsey says.
The more hands-on research with experts you can rely on, the greater your chances of success, as you’ll be able to rely on the quality of your products without spending a ton of money redoing work later. Lindsey spent time working directly with the factory that supplies the machine, which gave her a better understanding of the production process and how much it would cost her in the future.
3. Define Your Values and Ensure You Share Them
Having a self-funded business means you don’t have a huge marketing budget to share your company’s message and values. This means you need to become an ambassador for your brand and express your company values in everything you do.
When sharing your company values, take the perspective of a new customer who has never heard of your brand before. “Look for the confusion a customer might have with your product and figure out how to bridge that gap and make it make sense for them,” Lindsey says. To help others understand the backstory of Bite, Lindsey emphasized the eco-friendly benefits and why they were so important in her life, and why people should care.
She managed
Lindsey shares the company’s values by focusing on the knowledge gaps among consumers and highlighting the educational aspects of her brand.
4. Use Skills from Your Current Job in Your Work
“I believe that something that is really valued is the importance of what they learn in their daily lives,” says Lindsey. “What skills can help you from your job from 9 AM to 5 PM while building your side business?” Lindsey recommends focusing on these questions to find transferable skills, as running a business requires different expertises.
“Because I was managing a demanding job as a television producer while working to build a side business, when Bite became popular [and I became a full-time part of it], I was able to handle responsibility and management,” says Lindsey.
You may discover skills from your current job that help you manage your business. Lindsey leveraged her experience working as a television producer to develop new Bite products, including mouthwash tablets, deodorant, skincare cleanser, and toothbrush.
By relying on self-funding rather than outside investment, Lindsey says, “You can do things your way and build slowly and sustainably, and you don’t have to worry about scaling or hiring faster than you want.” Funding your business may take longer, but it will give you more control in the long run and may lead to a more successful and valuable business.
To hear more of Lindsey’s tips on self-funding, product development, and brand building, listen to the full Shopify Masters episode.
Source: https://www.shopify.com/blog/bite-bootstrapping-new-products
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