It doesn’t matter who you are, what part of the country, what nationality, what industry. If you’re starting up a new company, odds are ten to one that you will be bootstrapping it. That’s right: over 90% of all new businesses are bootstrapped.
“Bootstrapping” often makes the difference between success and failure of a new business. “Bootstrapping” does not mean starting a little do nothing business. On the contrary, it means forming a dynamic business of any size, big or small, with the strength of co-bootleggers helping you along.
Remember that companies that are bootstrapped are far more likely to survive the long term than those financed by venture capital or angel investors. Do you remember the dotcom bust of the late 1990’s? That was caused by too many venture capital firm putting too much money into worthless ventures. The companies that bootstrapped during that time did very well.
Determine if your company is a bootstrap candidate
Not all companies are bootstrap candidates. If yours is, you are a long way further on the road to success.
I recommend: Entrepreneur.com ran a great series on bootstrapping: "
Walk This Way: Lessons in the fine art of bootstrapping", by Bob Weinstein. The information is as fresh now as when it was first printed. They followed it up with another great article, "
Bootstrapping Your Startup".
Understand why bootstrapping is a good idea, even if it is a necessity
Learning the techniques of bootstrapping, including the networking and cost-conscious approach to operating a business, may be your saving grace in tough times.
I recommend: Guy Kawasaki is a venture capitalist like no other. His article on bootstrapping a business, "
The Art of the Boot", is a must read for anyone entering business.
Identify cost cutting measures for your business before you ever start
Go over your initial outline or business plan. Identify each place where you can save some money. It may only be a few dollars here, or a few dollars there, but those dollars do add up.
I recommend: Inc. magazine had an excellent series titled "
Great Bootstrapping Secrets: 45 Ideasthat Can Save Your Business Money". Read this from time to time to get ideas on where you can save -- this is an ongoing process, not a one time shot.
Be Proud of the Company You Keep
When over 90% of all businesses began as bootstrapped entities, some of them had to be successful. Some were even amazingly successful.
I recommend: Take a look at "
Grand Plans", the story of seven companies started for $1,000 or less. Then look at the
blog for the Bootstrap Network out of Austin, the real grandaddy of the modern bootstrap network movement. Along the left column is a list of very impressive companies that began as bootstrapped endeavors. You will also find a lot of other resources here -- take time to explore them.
Form a bootstrapping group in your area
You now know more than 90% of the businesses out there, and you probably have a pretty good appreciation for bootstrap networks. So form one in your area.
I recommend: If you haven't checked out
Boostrap Network yet, do so. This group in Austin, Texas, started with a handful of entrepreneurs, grew to 600 businesses in
Austin, and is now expanding across the U.S. and even in India. You may choose to link up with this network, or form your own. Either way, you will win.
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