The narrative around startups often prioritizes venture capital over self-funding. But most venture-backed startups never turn a profit.
Bootstrapping offers a strong alternative. It lets entrepreneurs grow naturally and stay in control. In fact, 38% of bootstrapped startups have solo founders, showing just how common and doable this path really is.
Take Jesse Pujji, for instance. He bootstrapped his digital marketing firm, Ampush, to a mid-eight-figure exit in 2023. That kind of success is inspiring, but bootstrapping is also financially intense.
You’re using your own money, so being smart with spending isn’t optional but essential. A few clever hacks can help you keep expenses low while still building something strong. Here are some of them.
Hack #1: Opt for Co-Working or Shared Office Spaces
Forget about that fancy corner office for now. Traditional office environments are costly to set up and run.
Office supplies alone cost between $61 and $124/month, which can amount to $1,488 annually. Add in security deposits, furniture, utilities, internet setup, cleaning services, and a laundry list of other expenses, and your budget takes a serious hit.
Co-working or shared office spaces are a smarter alternative. You won’t need to pay for full rent, utilities, or cleaning services. Instead, you share essential resources with other businesses, so you split costs.
What’s more? The Farm Soho adds that commercial office space options come with amenities such as conference rooms, high-speed internet, and technical support services.
In expensive cities like New York City, co-working or shared office spaces are a safer bet. That is because a 5-star office space can go for $100 per square foot, and some high-end leases are hitting $200 or more. That is a major capital expenditure for a startup.
Co-working office space in New York City, by contrast, can start at around $300 to $500 per month, fully furnished, plug-and-play, and ready to roll.
Hack #2: Outsource Non-Core Tasks
No single person or small team can handle every aspect of a growing business. Outsourcing tasks that are not central to a startup’s main product or service can be incredibly efficient and cost-effective. Managing payroll, handling customer inquiries, or designing the company website are examples of non-core tasks.
Delegating these tasks allows your core team to focus on what truly makes the startup special and drives growth. It eliminates the need for in-house salaries, benefits, office space, and equipment associated with dedicated staff. This approach transforms fixed costs into variable ones, allowing you to pay only for the services you need.
Outsourcing also serves as a powerful accelerator for scalability. It provides the flexibility to quickly scale operations up or down based on demand, without the complexities of recruiting, training, and managing new in-house employees. So, you can respond faster to market changes or growth opportunities.
You can also make use of AI-enabled workers and automation bots. Around 83% of executives use them in outsourced services. And around 20% are developing strategies to manage these digital workers.
Hack #3: Use Open-Source Software
Why pay thousands for software when free alternatives exist? Open-source software (OSS) offers a significant advantage for budget-conscious startups.
The most compelling benefit of OSS is the elimination of licensing fees, which can be a substantial expense for proprietary software.
Many open-source projects are free to get started, with payment options only arising if additional support or advanced scaling is required. This allows you to reallocate funds that would otherwise be spent on software licenses to other critical areas of the business.
For office productivity, skip Microsoft Office and use LibreOffice or Google Workspace. Both handle documents, spreadsheets, and presentations without the hefty price tag. Google Workspace is especially useful because it includes email hosting, cloud storage, and collaboration tools for about $6 per user per month.
Need a website? WordPress powers over 40% of all websites, and it’s completely free. With thousands of themes and plugins available, you can create something professional-looking without hiring a developer. Pair it with affordable hosting, and you’ll get a solid web presence under $100 per year.
Small Changes, Big Savings
Building a successful startup on a shoestring budget isn’t just possible, but it’s often the best way to learn what really matters for your business. When money is tight, you make smarter decisions and focus on what actually drives results.
The hacks shared here are more than just cutting costs. They are about building smart, efficient operations from day one.
The goal isn’t to stay cheap forever. As your revenue grows, you can invest in better tools, bigger spaces, and more team members. But starting lean gives you the runway to figure out what works without burning through your savings.
Keep these principles in mind, and you’ll be amazed at how far your bootstrap budget can take you.
Lynn Martelli is an editor at Readability. She received her MFA in Creative Writing from Antioch University and has worked as an editor for over 10 years. Lynn has edited a wide variety of books, including fiction, non-fiction, memoirs, and more. In her free time, Lynn enjoys reading, writing, and spending time with her family and friends.
