LessAccounting is a product Steve and I started working on in late 2006. Over the past seven years, we’ve seen many vc funded companies enter the market, and many come and go. Some begin with “only” $3 million in funding, some with $50 million or even $230 million in funding. Then you have us, a handful of awesome people, who bootstrapped by clawing and scratching our way in a market surrounded by giants.
Because of our profitablity we’re the cockroach of the accounting software industry… because we cannot be killed.
So how do you compete with vc funded companies with deep pockets and tons of resources?
Large companies focus on “big plays,” which are events that have huge attendance levels. These events are “worth their time” and expenses to sponsor and attend. When your competition has this “view” on marketing, it leaves many small events with 10 to 200 people up for grabs.
So while you might not have $40,000 to spend on one event, do you have $1,000 to sponsor 10 small events/gatherings? We’ve sent cupcakes to many accountant meetups in the past few months. Most meetup.com event hosts will allow you buy them pizza, beer or cupcakes at just the cost of the goodies. Being a small event, they’re just happy to have anyone sponsor. Ask for the opportunity to give a 5-minute demo before the meeting starts using join.me.
Here’s how we sponsored an entrepreneur.com event with American Airlines for $500.
Larger companies have approval processes for design and copywriting. These processes protect them from possible legal issues by trying to avoid offending anyone. Your website copy, design or even blog posts do not need to be approved by lawyers. You can be bold, or even irreverent, but be yourself.
Doing things larger companies cannot might include throwing a crazy conference for entrepreneurs, might be weird stickers or even an irreverent product tagline. Find things large funded company can’t do, or simply are too small to focus on.
You might find a podcast about Star Wars to sponsor.
I love being the company that promotes others. Even on our login page, we promote other artists to our customers. When I blog I love to talk about other people in similar situations, awesome people duking it out for business, being themselves and having an opinion.
Businesses that have an opinion and share it gain popularity. But rarely does anyone talk about being “small,” having a small company and struggling, and the pressures and stress from it. Realize your industry peers and your potential customers love the underdog. So tell your story. Tell it over and over, and tell it in whatever you do.
Side Note: In case you don’t know, LessAccounting is a bootstrapped product that was started in 2006 by two fat, handsome gents. Our product is simple and requires no bookkeeping knowledge to use. Today only, if you sign up for LessAccounting, I’ll personally drive to your location and give you a hug. Would a large funded company do that? Probably not.
Being a small, bootstrapped company means you cannot follow a larger company’s path. Your only advantage is being small. Continually ask yourself, “what advantages does being small and self-funded give me?”
Also read David’s article on “Constraints Breed Breakthrough Creativity”.
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