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Having a rich investor buy into our business ideas to fund the growth of our empires is a dream for many startup founders.
For the rest of us, we have to wake up and fund our own businesses.
Review this thread for practical tips for Bootstrapping your business.
#startupgrind
For the rest of us, we have to wake up and fund our own businesses.
Review this thread for practical tips for Bootstrapping your business.
#startupgrind
What is Bootstrapping?
The Small Business Encyclopedia defines it as: Financing your company's startup and growth with the assistance of or input from others.
I define it as: Building a business with out of pocket financing w/out the guidance of a parent company.
The Small Business Encyclopedia defines it as: Financing your company's startup and growth with the assistance of or input from others.
I define it as: Building a business with out of pocket financing w/out the guidance of a parent company.
Bootstrapping Strategy #1
Know your operating costs and expenses. Ruthlessly manage unnecessary expenses.
If your partners are money-motivated, it is important to form an agreement to delay gratification. Run a lean ship in order to stay afloat.
Know your operating costs and expenses. Ruthlessly manage unnecessary expenses.
If your partners are money-motivated, it is important to form an agreement to delay gratification. Run a lean ship in order to stay afloat.
Bootstrapping Strategy #2
Get to know your Co-founders upfront.
You never learn more about a person than you do if you live with them or start a business with them.
What are their chief motivations? Money, fame, legacy?
What do they value?
Ask the tough questions.
Get to know your Co-founders upfront.
You never learn more about a person than you do if you live with them or start a business with them.
What are their chief motivations? Money, fame, legacy?
What do they value?
Ask the tough questions.
Bootstrapping Strategy #3
Become a regular fixture on your local startup scene.
Bootstrappers tend to thrive on collaborative models of work and fellowship to
develop their early products and services when funds are low.
Build relationships!
Become a regular fixture on your local startup scene.
Bootstrappers tend to thrive on collaborative models of work and fellowship to
develop their early products and services when funds are low.
Build relationships!
Bootstrapping Strategy #4
Become profit-focused immediately.
Bootstrappers don't have the pile of $ to leverage nor do they have an investor on speed-dial.
Build a sales funnel alongside the best consultant you can find. Tweak and adjust.
Become profit-focused immediately.
Bootstrappers don't have the pile of $ to leverage nor do they have an investor on speed-dial.
Build a sales funnel alongside the best consultant you can find. Tweak and adjust.
Companies that have succeeded with the Bootstrapping model?
Let's start w/ GitHub.
Tom Preston-Warner turned down an offer valued at $300k to focus full-time on launching GitHub.
Let's start w/ GitHub.
Tom Preston-Warner turned down an offer valued at $300k to focus full-time on launching GitHub.
Companies that succeeded with Bootstrapping?
Craiglist.
Started in 1995 in the San Fran area to keep updated on local events started to spread into jobs and for sale items. Craig Newmark funded the business for almost 10 years until eBay bought in for $32 million.
#startup
Craiglist.
Started in 1995 in the San Fran area to keep updated on local events started to spread into jobs and for sale items. Craig Newmark funded the business for almost 10 years until eBay bought in for $32 million.
#startup
If you're in the Baltimore / DC #startup founder and enjoy this thread on Bootstrapping, join myself and @henrymort for breakfast this Friday in Mt. Vernon.
Bootstrappers Breakfast meetups are guaranteed high value experiences.
meetup.com/Bootstrappers-…
Bootstrappers Breakfast meetups are guaranteed high value experiences.
meetup.com/Bootstrappers-…
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