Bootstrapping aids women entrepreneurs
Photo courtesy of iStockphoto, nicole waring
A post here from an unusual source suggests women entrepreneurs may be as discriminated against when seeking funding as they have been in the workplace.
One of the solutions, the post suggests, may be bootstrapping.
An article by MaryAnn Shank of www.BusinessPlanMaster.com at, of all places, the Psychic Reading blog explains the problem:
[It's] not that the money isnt there. On the contrary, there are billions and billions of dollars in new venture capital funds and new angel groups. I track those funds, and I know there is a lot of money there.
The simple answer is that venture capital and angel investment firms are run by men.
I can think of a couple of reasons off the top of my head why bootstrapping may be a good fit for women or any group that might find themselves discriminated against by the largely male, and I would presume white, investment world:
• Customers look at product. In most cases you're not selling the product to investors anyway. Your selling the idea, and whether investors, right or wrong, believe you are the best person to make it work. Customers want to know only if the product is right for them and care less about those making it.
• Little groups make big changes. A few investment types at a big male dominated firm may be able to stop your idea cold with a simple no vote, but a few loyal customers who love your product can spread the word and make the old boys investment club irrelevant.
• Cash flow is the great equalizer. Those customers can give you cash flow, the life blood of the bootstrapper and likely to place you in a better bargaining position no matter who you are.
• Bootstrapping involves team building. Look for other female entrepreneurs, perhaps those offering complementing goods or services, who may be eager to help another up and coming woman break in.