Bootstrapping 101

What is Bootstrapping? It is a term used to describe a person who makes something of themselves without the need for others. This person can pull themselves up by their “bootstraps” to rise to the top.

This is something a lot of entrepreneurs strive for.  It is a way for them to create value and wealth in their enterprise without outside interference. What a great dream1 Reality is though, that it is impossible to do it totally on your own.  But one can use many bootstrapping methods to get ahead.

Creativity. When it comes to raising the capital and finding the resources you need to get things done it is imporant to get creative. Instead of going to the bank or to investors like all those other poor schmucks (no offense) you must learn to utilize your resources to the best of your ability.

Use Wisely. I have learned that most of what is spent in a business is not necessary. Take paper for instance. There is no need for it anymore except for contracts / legal stuff. And using email instead of mail, other online utilities as well, can save you time and money.

Don’t Travel. You do not need to meet in person every time you talk to someone. Even with clients, you can extend the same feeling of care over the phone or even by email. Also ordering online most of the time has free shipping with larger products. You can wait that extra ten to fourteen business days, can’t you?

Excersize at Home. That gym membership you got to “network” is not necessary. How much business has it really brought in? More than the $300 a year you pay for it and the gas you spend getting there. This also gives you the opportunity to clear you mind right before getting to work.

Work at Home. Why do you need an office when you have that spare room (or corner)? Do you really need it? If you are small enough to work at home then do it! It is also a great time saver.

Go Warehouse. If you really need an office, don’t rent office space. Rent a small warehouse. It is the same thing but for a third of the cost! And you get high ceilings and big doors to open in the summer time. You can still get a good location if you look hard enough. This same principle applies for studio space.

Make Good Friends. If you make good connections with your distributers and clients they will cut you breaks. Cannot pay them until next week? Fine. They will understand if you are close with them. A college kid did this a while back with distributers for his sandwich shop. His mom drove him around to deliver payments in person so he got to know everyone. Have you ever been to Subway?

If you cut the costs and get creative you can do it on your own a lot of the time, and even if you need a little bit of help, using Bootstrapping techniques can save you time and money and help you grow faster. 

Photo by Omar Omar