Why Bootstrap Your Business Start-up?

Photo Credit - Phil Renaud

Photo Credit – Phil Renaud

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.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

Seth Godin quoteBootstrapping 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.

  • Brian

Library – Tribes, We need you to lead us – Seth Godin

Tribes-GodinMy desire is to put good resources in your hands and make you successful.  I am currently reading “Tribes: We Need You to Lead Us.” by Seth Godin.  This is an amazing little book.  I believe it should be required reading for every business owner and entrepreneur.
The world is rapidly changing.  The explosion of technology, information, and communication through the internet is amazing.  It has created opportunities that never existed before.  Just like when TV and Radio opened up a new form of communication and created wealth and opportunities, we are seeing the same thing through the internet.

A tribe is any group of people, large or small who are connected to one another, a leader and an idea.  For millions of years, humans have joined tribes, be they religious, ethnic, political, or even musical (think the Deadheads).  It’s our nature.

Now the Internet has eliminated the barriers of geography, cost and time.  All those blogs and social networking sites are helping existing tribes get bigger and enabling new tribes to be born – groups of ten or ten million who care about their iPhones or a political campaign, or a new way to fight global warming.

Who is going to lead these tribes?

The web can do amazing things, but it can’t provide leadership.  That still has to come from individuals – people just like you who have a passion about something.  Anyone who wants to make a difference now had the tools at her fingertips.

-Excerpt from the Book Jacket

For those of you who desire to follow your dreams, passions, skills and abilities to realize your destiny, ultimately you will need to lead a “Tribe” to turn that passion into your career.  You may not feel like a leader.  But in the words of John Maxwell, “Leadership is influence,” nothing more, nothing less.  Start by connecting with those who value your influence and grow from there.