What is bootstrapping?
Bootstrapping is great for entrepreneurs who are starting their companies with few resources and little money. If you’re building your business with your personal savings and cash from first sales, then you are a bootstrapper! While you will be finding partners and investors who can help support you, your first and top investor will be YOU!
How do I use bootstrapping in my business?
As a bootstrapper, you are using all your personal resources to launch your business, which means that you will take all full financial responsibilities and risks. While that might sound a little scary, it can also comes with great benefits. As the sole owner, you will have full control of your business and you won’t have to wait for external investments. When combined with Lean Methodology, it will give you the freedom to take more risks with your personal branding and to experiment with new business ideas. With careful planning and budgeting, bootstrapping is a great way to build your business quickly.
Why is bootstrapping important?
Bootstrapping is important because most entrepreneurs do not have the full financial resources needed to start a new venture nor the network to gain credibility before they launch. Not only that but as the sole investor, you will have full authority to create, plan and launch exactly how you want.
As a bootstrapper, we recommend that you invest all your energy into the product (or service) itself. Arm yourself with iterative research and customer feedback to make the best version of your business before full deployment.
eBay was created by Pierre Omidyar while working at General Magic. He had written the code for an auctioning site called Auction Web, which would later become eBay. Pierre financed his side venture through the small fees he collected on every transaction and only quit his full time job after he realized that he made more money from eBay than from his day job. Pierre successfully used bootstrapping to found a brand we all know and love.