Why bootstrap your business start-up?
And, How do you even do it?
These are big questions. Maybe you don’t even know what bootstrapping is…
Bootstrapping is the process of starting a business without raising outside capital. Basically, you fund the start up and growth of the business with revenue from the business.
Why would you even want to bootstrap your business? Don’t you need capital to get started?
Let me tell you my story…
When I started my construction company back in 2003, I fueled a lot of the growth with debt and capital investment. This capital allowed me to grow quickly, but when economic conditions changed, it left me very vulnerable to what was going on in the market. Therefore, going forward I am very vigilant about bootstrapping my future business endeavors
Here are 5 reasons to bootstrap your business.
- Less stress and headaches –Taking on debt to grow your business becomes a weight that you carry every day. Taking on debt is easy, but getting out is difficult.
- It forces you to be creative – When you have to cash flow your business, you have to look for creative solutions to the problems you face. Being creative takes hard work and intentional thought but it results in a better product and business.
- It keeps your business Lean – Many times get an extra capital allows you to spend money on things that are really important rather than forcing you to make the hard decisions and decide what is really going to make a difference in the growth of your business.
- You grow as a leader – Challenges always make us stronger, and bootstrapping can be very hard work. As you face these challenges, you will be forced to develop yourself, learn new skills, and grow.
- You own the success – Whenever you take on debt or investment you are giving away a part of your future success. Then when you realize that success, you have to give a portion of that to people that UL. But when you bootstrap the business you own all the success.
Bootstrapping is hard work but it is also very rewarding. One of the best resources I have ever found on this subject is the Bootstrappers Bible by Seth Godin . You can download it for free here.
How has bootstrapping benefited you and your business?
Share your thoughts on the comments.