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
way)
- 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.
- 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
way)
- 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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