Down here, the angel investors and venture capital ecosystems are almost non-existent. We don’t have seed-stage funding ventures –a la YCombinator– either, so our only options for funding are funds granted by the government and bootstrapping.
Governments funds are complicated and have political strings attached, so I don’t want that. That leaves me bootstrapping.
For what I’ve read, common options for bootstrapping are credit cards, life-savings and borrowing from friends and family. You guessed it, I don’t have those options either. I’m not pessimistic, but my family doesn’t have any money or savings and my credit card has a USD$1,00o limit. So I need another option, this is what I’ve thought so far:
I’ve been doing freelance web design work for the last four years. I think I’m pretty good but until now I’ve been awfully cheap. Truth is: being a third-world guy living with little responsibility, earning $400 or $500 a month is a small fortune.
Yeah, I was that cheap.
So my plan is this: I’m going to raise my freelance fees, while I keep living on that $400-$500 a month, so I can bootstrap my startup with the rest. Is that a bit insane? Is there a chance that the only reason I’ve been hired in the past is because I’m cheap? I think there’s a chance, but I’m confident that I’m good at what I do and some people are going to appreciate that.
So, if you or somebody you know needs UI design, CSS/HTML coding, and/or top-notch WordPress development feel free to contact me. I’m going to be less cheap than before but still very reasonable and startup friendly. Check my portfolio.
What do you think? is bootstrapping by freelancing a good idea?
If you already have a primary job, then it’s probably not a great idea. If free-lancing IS your primary job, I say go for it. The freedom to work when and where you like cannot be overlooked. I currently have a full-time, salaried position and I find it hard to bootstrap my start-up simply because by the time I’m done at the end of the day, I don’t feel like coding.
Good Luck!
Yes! Freelancing is my primary job. Because my cost of living is somewhat low, I can freelance half time and spend the rest of the day on my idea.
I’m hoping that it will work.
Please send me url of some of your workto piyush AT hotmail com
We used some contractors a few years back who were working on a startup – wouldn’t do it again! They were constantly disappearing for days or weeks at a time, only threats of non-payment got any results out of them before they abandoned the job half-way. My advice is don’t tell anyone about your side project, and make sure you’re always delivering your freelance work to a schedule, whether one has been imposed or not. I’m sure it can work *for you* but if you might end up liking contracting – so do it right. If you’ve annoyed clients with spotty work AND your startup plans don’t pan out, you might not have anything to fall back on.
I think you are right. I’d rather be honest with my customers, but I realize that it may annoy them.
I’ve been bootstrapping all of my projects from freelancing the last 4-5 years. The amount you charge should be dictated by how much time you want or can afford to dedicate to developing your own ideas. Contract work or consulting lower some risks, but incur others. For example, you have a long run-way when bootstrapping yourself compared to taking money, but you may not be able to dedicate enough time to bringing projects to full fruition.
I think it’s a great idea and it’s exactly how I got my business off the ground. Could you contact me about freelancing? I’d like to help you get started. I’m pretty sure I could book all of your freelance hours, which would give you a lot more stability and flexibility to do your own thing without constant client interruptions.
Not sure how you used to be doing your finances before, but I was always taught to:
1. Establish your monthly salary.
2. Everything that you earn besides it goes to your company’s growth.
Basically the idea is to keep in mind that you are always working for a company (when freelacing, YOU are the company). Savings and related are deducted from your salary, and everything else goes to your company (office furniture, new ventures, whatever).
It’s not easy at it seems tho, but can be approachable.
Its exactly what I am doing. Its certainly not the best scenario, as once you take on a client (or multiple as is the usual case), you are still beholden to them, as well as your startup.
You are certainly fortunate though that you can manage your living expenses so well and for so little. Being in the US with a family makes that part a lot more difficult.
By the way, really like your portfolio… drop me a line with your rates and maybe we can work on some stuff together.
Cheers and Good Luck!
- Matt
Hi,
I am in the same position, but in Bulgaria. I can tell you that this is possible, but depends on what are you trying to make. Personally I am making themed social networks sites, so I only need to invest my work and little money for co-location. Half of the time I work for other people, the other half for my projects.
Good luck.
I started my own consulting business in June ’09 with the ambition of overtime doing a 50/50 mix of consulting and original product development. It’s actually going really well and the consulting has generated a lot of product ideas. The great thing is I typically have my first customer right out of the gate, so there’s far less risk.
Where are you located? You should be able to ask for plenty more if you’re in México and have a reputation or established customers. A small fortune at US$500 a month sounds like you might be in la provincia. Prices will depend heavily on where you are.
So what is it you want to start up?
Hi! I would like to get in touch with you by email to ask some questions. Please send me an email.
Thanks!
Hey there — great post. I say goo for it!
I don’t have client work to send you, but I do wish you well.
All the best from up north.
Edit: *go for it
(Or goo for it, too — why not? LOL.)
Same here with your situation. But I may be a little better than yours.
I have a friend running an advertising video company and he is considering getting website design expertise (preferably) on WP platform.
Maybe we can talk and see what’s possible.
I live in Brazil, there a few more opportunities over here, but they are a little hard to bootstrap something, I think freelancing is a good start, if you live with your parents and doesn’t have great expenses.
My suggestion, as I can see, you’re a good designer, get your idea in mind and find some proactive developer to help you with, I’m pretty sure you’ll have something ready in couple of months.
ps. I need some freelancing, email me =)
I’m currently doing the same thing here in Eastern Canada Armando. Good Job!
I’m assuming that you’re fluent in Spanish. Won’t don’t you offer that as a freelance service too? I’m sure a lot of North American web-based businesses would want to take their service to Mexico, and Central/South America. You could be their Latin American guru – translation, advertising know how, cultural implications, etc…
Good luck!
I say go for it. The more you commit the more successful you will be in the long run, so long as you don’t quit.
Can you send me some samples of your work? We are always looking for a good freelancer.
Do it! There are a lot of great reasons to raise your rates. Better pay, better customers, etc. It’s one of the best things I’ve done for my freelance career.
Kudos and best wishes for the bootstrapping initiative.
I’d like to talk to you, what’s your email?