So, what kind of business do you want to build? Overview of Bootstrapped Business Models
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There are several common bootstrapped business models that do not require external funding. These include advertising-driven businesses that generate revenue through ads, software-as-a-service platforms, one-time purchase products, recurring purchase products, and productized services. Each model has pros and cons - for example, SaaS can provide recurring revenue through customer subscriptions but requires more time and money to develop compared to one-time purchase products. The best approach may be to mix elements from different models to create a hybrid business, such as generating ongoing revenue from both one-time and recurring purchases.
So, what kind of business do you want to build? Overview of Bootstrapped Business Models
- 1. So, what kind of business do you want to build? An Overview of Bootstrapped Business Models David McNeill
- 2. But before we dive in...
- 3. … who is David McNeill?
- 6. Typical VC-Funded Startups vs. Bootstrapped Companies No Vanity Metrics Profit First
- 7. Common Bootstrapped Business Models AdvertisingSoftware-as-a-Service (SaaS) One-Time / Recurring Purchase Productized Service
- 9. What are One-time Purchase Products?
- 10. Examples of Bootstrapped One-time Purchase Businesses
- 11. Pros ● Easiest to build without code ● Receive all of the revenue upfront ● Cross-sell and upsell opportunities Cons ● No built-in recurring revenue ● Needs lots of customers to profit ● Not paid for updates made to the product over time
- 13. What are Recurring Purchase Products?
- 14. Examples of Bootstrapped Recurring Purchase Businesses
- 15. Pros ● Consistent, recurring need for the product Cons ● May not have a large market ● Can be difficult to scale
- 17. What is a Productized Service? Providing a very specific service in a way that can be automated through scalable, repeatable processes
- 18. Consulting vs. Productized Service Consulting Productized Service
- 19. Steps to Building a Productized Service 1. Focus on a service that you already know well 2. Simplify offerings to a single service package deal 3. Find clients for the packaged service 4. Hire people to implement service package 5. Automate the work through building processes 6. Remove yourself from the business over time
- 20. Examples of Bootstrapped Productized Services
- 21. Pros ● Can be built around your area of expertise ● Can eventually scale it to the point that you do not need to be involved in it day-to-day Cons ● Essentially requires running an agency focused on a single key business process
- 23. What is Software-as-a-Service (SaaS)?
- 24. Examples of Bootstrapped SaaS Businesses
- 25. Pros ● Value-added products promote customer lock-in ● Target market tends to be businesses, which have higher budgets than consumers Cons ● Time and money-intensive ● Challenging to start and acquire initial customers ● Requires long-term commitment to high quality support
- 26. Advertising
- 27. What is an Advertising-Driven Business?
- 28. Examples of Advertising-Driven Bootstrapped Businesses
- 29. Pros ● Does not require customers to pay for the product directly ● Can monetize user-generated content Cons ● Requires a LOT of content to be able to monetize effectively ● High monetization may require custom ad deals ● AdBlockers have been on the rise in recent years
- 30. Mix and Match
- 31. Mixing and Matching: Example 1 One-Time Recurring Subscription Subscription
- 32. Mixing and Matching: Example 2 Recurring Ads One-Time
- 33. Summary
- 34. Common Bootstrapped Business Models AdvertisingSoftware-as-a-Service (SaaS) One-Time / Recurring Purchase Productized Service
- 35. Listen, and then Apply the Right Business Model
- 36. Questions? Thanks for listening! Where to find me E: david.e.mcneill@gmail.com W: davidemcneill.com T: @davidemcneill L: linkedin.com/in/mcneilld/