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Bootstrapping a business

John Omokayode
(@beloved)
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 Bootstrapping is building a company from the ground up with nothing but personal savings, and with luck, the cash coming in from the first sales.

 In the sphere of business today, many people are fond of complaining about capital as the major hindrance in starting up their business.

 As much as this might be a very valid concern, a founder must do everything within his means to ensure that he surmounts every problem, rather than whine about it.

It's the reason you are an entrepreneur/business person in the first place.

 Bootstrapping is a valid way of starting a business without outside help.

 Perks of Bootstrapping

1. Avoid unnecessary investment/loan pressure

Accepting outside money could be an invitation to people looking above your shoulder to ensure you deliver.

There is limited time to experiment to achieve a good product-market fit.

2. Have sufficient ownership interest in your business

Many businesses have been lost to hurried investment decisions in a desperate need of capital.

3. Teaches money management/ process efficiency

In the face of limited cash, one would be forced to learn money management and cost-cutting principles that will help the business going forward.

Finally,

Before you conclude there's no capital for starting up or even an expansion

Consider, how you can cut the cost to start - in most of the cases, there is a way you can startup with a fraction of the capital and build up from there

or

get close relatives to believe in you to invest in your business. ( You can make them an offer - shows that you know what you are doing)

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Topic starter Posted : 12/05/2021 11:35 pm
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