Originally published on the Wavefront on Wireless blog
Starting a business with minimal resources is tougher than it looks. I spoke with two entrepreneurs who, over the past 18 months, have mastered the art of bootstrapping their tech startups.
Here are their top 5 tips to help you bootstrap your own tech business:
1. Find the right partners.
When funds are tight and you can’t offer big salaries, it’s essential to tap into your network to find partners who share your vision.
When Marco Hunstad launched Spotcast just over a year ago, he reached out to former colleagues in mobile and local search who were eager to join an exciting new venture. He offered them equity, flexible hours, opportunities to grow their skills, and the freedom to be creative—perks that big companies can’t always provide.
“There’s no company without the team—it’s a partnership. We’ve got each other’s backs, and we’re in this together—through the highs and hurdles.”
Marco and his partners built their company on openness and trust—qualities that money simply can’t buy.
2. Set clear limits—and stick to them.
Before you dive into developing your product or service, take the time to set clear boundaries for yourself and anyone else involved. Marco sat down with his family to agree on how much they were willing to invest and how far they’d go.
“We’ve had to make a lot of sacrifices. But I’ve always respected our limits.”
Managing with a lower salary to control the company’s burn rate and extend its runway, plus working long hours, takes a lot of support from family and friends—especially with young kids at home. Marco even negotiated with his children to turn their basement playroom into an office. That cut Spotcast’s overhead and gave the company more time to succeed.
“Everything is an investment. We work relentlessly to hit our goals and keep our promises. From day one, we focused on generating revenue and validating our ideas early. We run a lot of A/B tests, and when we spot an opportunity, we go for it. Our team is laser-focused, and because we move fast, we don’t waste time writing out plans—we just make things happen.”
Set limits and regularly test your concept to make sure it’s worth pursuing.
3. Find other sources of income to cover expenses until your startup brings in revenue.
Not every founder has a partner or stakeholder who can make sacrifices or provide extra support before the business starts earning money. Doug Hagedorn, founder of Invici Technologies, pays his bills by working extra shifts at a bike repair shop on weekends.
“Being a good entrepreneur means being creative. You have to find different ways to earn and spend your money and your time.”
He adds that a side job isn’t just about income—it’s also a great way to build a network outside the tech world and take a break from startup life. “I’d go crazy if I didn’t do something else a few times a week, and my ‘other gig’ introduces me to people outside the tech scene who often become valuable contacts.”
Doug launched Invici Technologies right after finishing his master’s at the University of Calgary and ‘never had the luxury of a salary.’ Luckily, he’s been able to borrow small amounts from family and friends and has won several awards, including a $10,000 cash prize, Tecterra’s $50,000 Commercialization Support Services grant, Innovate Calgary’s Perfect Pitch Competition, and Startup Calgary Launch Party’s Biggest Social Impact Award.
Many founders offer consulting services on the side to help cover startup costs. “It can be a nice cash buffer or parachute if you ever need to shut down and walk away,” Doug explains. “Bootstrapping scares a lot of people because you’re so invested in your company’s success. But if you have a safe exit plan, taking bigger risks feels less intimidating.”
4. Take advantage of grants, vouchers, and tax credit programs.
Early on, it’s crucial to research non-dilutive funding programs and understand their requirements. There are excellent options like the Scientific Research & Experimental Development (SR&ED) tax credits, NRC’s IRAP, WINN Tecterra, and the Interactive Digital Media Tax Credit (IDMTC), among others. Each program is different, and some require upfront investment, so plan ahead and start saving.
Doug recommends reaching out to funders early and building personal relationships if you can. That way, you’ll learn their language, timelines, the types of projects they support, and how to present your technology effectively—before tackling the sometimes lengthy application process.
Marco emphasizes the importance of finding opportunities that align with your company’s vision. “The funding is out there, but it has to fit your goals… You need to learn how to leverage grants and programs early so you can factor them into your financial planning.”
FREE DOWNLOAD: Click here to discover 20+ grant programs in this Ultimate Guide to Innovation Funding.
5. Stay alert for win-win opportunities.
Sometimes, the best business opportunities don’t involve exchanging money for services. Look for ways to offer value or share your expertise in mutually beneficial partnerships. Doug explains,
“Sometimes what you need doesn’t come from money or funding—it comes from the relationships you build as you grow your business.”
Instead of just looking for ways to save money, Doug looks for ways not to spend it at all. “Just ask. You never know what someone else might need or what you could offer in return.” For some tasks, Doug has asked people to teach him the basics so he can do things himself. “If you can’t afford to pay a skilled person for fifty hours of work, you can probably afford a few hours of basic training and review—or even teach them a skill they need in exchange.”
Every company is unique, and what works for one may not work for another. What tips would you give other entrepreneurs who are bootstrapping for the first time?
—
Spotcast
Spotcast is a local discovery and marketplace app that instantly connects retailers and event promoters with consumers interested in their products and services nearby. Users can also create posts tied to specific times and locations to share deals, special finds, great events, and anything related to a business or place. Spotcast is available across North America for iOS, Android, and BlackBerry 10 at get.spotcastapp.com
Invici Technologies
Invici Technologies puts spatial data at your fingertips. Our products offer a computer interface platform that empowers blind and visually impaired users to explore, create, and share digital media and spatial information with unmatched ease. www.invici.ca
