Wednesday, February 16, 2011


The term "bootstrapping" comes from the phrase "pulling yourself up by your own bootstraps." In this case, instead of relying on financial institutions and investors. You self-finance until you have a provable operation. Then you can borrow to fund expansion. Whether you are a family business, a partnership, or a solo-preneur, you can brainstorm some appropriate bootstrapping options. Start by cutting your costs so much that you need less money to start. Here are some ideas to get you started:
  - Instead of renting office or operation space, use the spare bedroom or
    garage (don't ever use your own bedroom)
  - Use Vonage or Lingo or other internet based phone system
  - Create an inexpensive website (ask us if you need ideas), then pay
    someone to create a better site after you have cash flow
  - Outsource menial tasks to a lower-paying country
  - Suspend a sheet of plywood over boxes rather than buying a desk
  - Hire students. They want the CV experience and need part-time work,
    but cost minimum wage.
  - Buy equipment off of eBay (but remember that it is not always the cheap
  - Use freelancers rather than employees
  - Ask lots of people for advice

Years from now, when you are a mogul, you will look back and relish the bootstrapping days.

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