Still looking for ways to raise money? Learn how I launched my startups, Dining Dialog & eateria, with zero debt.

When beginning a new venture, entrepreneurs often look to bank loans and venture capital, friends and fools, and angel investors as the only way to go to get their business going. Crowdfunding is also a new go-to option that many startups consider. Some great businesses have been built with these funding methods, but those are not the only options!

Bootstrapping is another route that entrepreneurs should seriously consider to build their businesses. By starting with little or no capital you incur less risk and zero debt. Here is what I did to launch my bootstrapped companies successfully.

Start with the bare essentials. Entrepreneurs are dreamers and visionaries. Large corporations that are successful today were once only dreams in someone’s head. They had to start small. Instead of jumping into an office with several employees, starting a business from home with a partner can be best. I began Dining Dialog from my basement with the few resources I had available to me. I would go out and meet restaurant owners to understand what they needed and find out areas where they had difficulties. This allowed me to target my audience and gain new customers. After a lot of research and networking, I was able to start growing Dining Dialog and eventually move to an office. I hired people first on a part-time basis and then full time as the business was able support the position with enough receivables. Over time I grew my team from a co-op office space now to an office of 6 people.

Look into business plan competitions. Business plan competitions are a great way to help fund your business and get exposure. They give you the opportunity to get the word out about your business plan while also giving you the chance to win money to put toward your business. There are multiple types of competitions with different prizes.

A few tips if you are looking into a business plan competition:

• Be careful of the contest you decide to enter. You want to choose one that focuses on your market or can add value. Not only will this help your chances of winning but you also receive more meaningful feedback from business leaders or judges in your field. For example, do not sign up for a social business plan competition when you are a tech company selling retail products. 
• Talk to previous winners for tips. They went through the process and can help guide you through the compeition.
• Make sure you practice your pitch well. You want the judges to be curious about your plan and ask questions just make sure you will be able to answer them well. Staging a mock pitch for industry friends can help prepare you for curveballs.

In 2012 I won the grand prize in the MillerCoors Urban Entrepreneurs Series competition. The prize was $50,000—no equity exchanged—all cool cash. With this prize, I was able to expand my business while also netting valuable connections with others in the restaurant industry. Just one year later, eateria was one of 20 companies to receive a $50,000 grant from Arch Grants which allowed me to network and expand my business further.

You can find a listing of some of the best business plan competitions at Biz Plan Competitions.

Consider service grants. Service grants are grants that are given by different companies for startups to use toward specific business expenses. In 2012, I received a service grant of $60,000 from Microsoft BizSpark which we used for software. We have the latest of everything from Microsoft. Another great payment option to consider is Braintree — they waive credit card fees up to $50,000. This can really help you in the beginning when every penny counts. Grants and discounted items like these supply necessary services and infrastructure to entrepreneurs and offer some cushion as they get their company on the up and up. For more information on opportunities for your startup, go to www.f6s.com. It catalogs a list of freebies and discounted items you can use.

Network like crazy. It does not cost a lot of money to be at the right place and meeting the right people. I was able to network my way to a partnership with a food company — Ben E. Keith — to reach their customers. Through our partnership they provide us restaurants in need of marketing assistance and in return we help their customers grow.

These are just a few of the creative ways that entrepreneurs can start their businesses without accumulating debt. By not borrowing or handing over your equity prematurely, an entrepreneur may invest revenue back into the business to continue stimulating growth. Many years ago when I first came to America from West Africa, one great lesson my street smart brother gave me was: It’s not what you make— it’s what you can keep.

If you have specific questions regarding my startups, you can reach me at olaaye@myeateria.com.