Bootstrapping in LA: Balancing Living Expenses with Entrepreneurial Dreams
Moving to LA has been exciting but also financially challenging. It’s not just about adapting to a new culture but managing expenses strategically while building my business. In a city where costs can easily spiral, the key is sticking to the essentials and focusing on what truly adds value. Below is a breakdown of how I manage living costs and approach entrepreneurship to stay on track.
Tips for Managing Living Expenses in LA
- Start Small and Use Your Network
- Before moving, I reached out to friends and contacts to get advice. I was lucky enough to stay with friends, which saved me a lot of time and money. This setup has also been a great starting point—giving me a small “base” to handle things like getting a Social Security Number, learning about the credit system, and more.
- Pro tip: Use your network early. It’s not just about saving money—it helps avoid costly mistakes when you’re still figuring out the basics of life in a new country.
- Keep Fixed Costs Low
- It’s tempting to upgrade your lifestyle in LA, but keeping fixed expenses lean in the beginning buys you time to focus on your business.
- My approach: Prioritize “need-to-have” over “nice-to-have” expenses. For example, I’ve avoided buying a car, even though I’d love to drive a sports car, because I need to see business results first.
- Example: Housing, transportation, and other essentials come first—luxuries can wait.
- Optimize Spending for Travel and Everyday Life
- Flights can get expensive, especially if you’re traveling between Europe and the U.S. I maximize travel points to cut down on costs, which is much more common here than in Denmark.
- The key: Be careful with unnecessary spending. Those little splurges might feel good in the moment, but they can add up fast and slow down your progress.
Entrepreneurship: Smarter Ways to Bootstrap Your Business
- Look for “Standard” Services to Automate Tasks
- Hiring lawyers or accountants can get expensive quickly, especially in the U.S. That’s why I opt for tools and software packages that handle the basics efficiently.
- Example: Use Doola to form your company—it handles compliance and paperwork at a fraction of the cost of hiring a lawyer.
- Automation and standard tools help keep your operation lean, so you can focus on growing the business instead of dealing with admin headaches.
- Hire International Talent to Manage Costs
- Salaries in many parts of the U.S. are very high, so I recommend hiring talent overseas when possible. There’s a lot of skilled talent available globally at more affordable rates, which makes a huge difference when you’re bootstrapping.
- Pro tip: Use platforms like Upwork or Toptal to find high-quality freelancers. This way, you get excellent work without blowing your budget.
- Ask for Help and Build Connections Proactively
- Networking is free and invaluable. Reaching out to people for advice, introductions, or partnerships can open doors without costing a dime.
- In LA, connections matter. The more proactive you are about asking for help, the faster you’ll find opportunities. Most people are happy to help if you just ask.
- Be Ready to Pivot and Track Your Progress
- You need to track expenses closely and make adjustments quickly if things aren’t working. Flexibility is key—whether it’s changing a strategy or cutting back on spending.
- Progress isn’t always linear, so stay focused and make small improvements consistently.
Q&A: My Experience with Bootstrapping in LA
Q: What has been the biggest financial adjustment since moving to LA?
A: The general cost of living is easily 50% higher or more than what I was used to in Denmark. Things like rent, food, and services add up quickly, so I’ve had to be much more mindful about where my money goes. The key has been focusing on essentials—spending on what really matters while holding off on lifestyle upgrades.
Q: How do you stay motivated when progress feels slow?
A: It’s important to be patient and realistic. From what I’ve seen, it takes 1-2 years of hard work before you start seeing meaningful progress, especially when building a business in a new market. It’s easy to get frustrated when things don’t happen right away, but staying consistent and focusing on small wins makes a difference.
Q: What’s your best advice for entrepreneurs moving to the U.S.?
A: Accept that everything takes time. Building a business and adapting to a new environment won’t happen overnight. Be patient with the process, and don’t be afraid to ask for help. Reaching out to others is one of the fastest ways to move forward, and most people are willing to help if you’re proactive.
Final Thoughts
Bootstrapping in LA isn’t easy, but it’s manageable if you stay focused, control your costs, and leverage your network. Keeping things simple and building gradually gives you the best chance of success. It’s not a sprint—it’s more like a marathon. But with careful planning and patience, I know it’ll be worth it in the long run.
