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Bootstrapping in bits and pieces

Filed in archive Bootstrapper Tips by Shawn Hessinger on April 22, 2008

Bootstrap_Puzzle.jpg


Sometimes the pieces of the puzzle just don't fit together immediately.

A business idea may not be able to be bootstrapped all at once because of the revenue needed.

Take PostRanger.com, launched in 2007 and still just a fraction of what it was meant to be because I lack both the technical background to program the website service myself and the money to hire the job out.

The alternatives?
• Partner with a programmer able to create the on line platform I have in mind for a share of what it might eventually realize in revenue
• Develop revenue from another simpler and potentially related bootstrap business than invest the money in growing the larger enterprise.

Since the creation and organization of content is the distinctive piece I bring to the entrepreneurial table, I've decided to focus mainly on revenue I hope to generate by providing this content through existing means on line.

Over time I hope to use this revenue to build the needed on line platform for PostRanger.com by outsourcing or hiring the programmers needed to do the job.

Keys to success in this approach:
• Maintain focus...until you decide not too. Make sure not to loose site of the fact that the smaller piece of the business is the means to an end. That is unless that means becomes a better business in itself. Of course, there are plenty of examples of businesses developed while trying to accomplish something else. Be open to opportunities and willing to change plans.
• Start with something you can do today. The worst possible scenario is to pick a piece of the puzzle or an alternate means of generating revenue to bootstrap your dream business and discover that business too may be immediately unattainable. For a secondary business designed to raise revenue to fund your bootstrapping vision never choose anything that can't be started at once.
• Be clear about your goals. If your preliminary business is meant to generate revenue for another business startup be sure you are clear about this goal from day one and be ready to drop that venture as soon and whenever it is not meeting these goals.
• Don't go to extremes. Never pick crazy money generating schemes or seemingly easy earning scenarios to create revenue for funding your bootstrap business. I realize some entrepreneurs consider even a temp job to fall into this category but use discretion. If it sounds too good to be true, don't use it to fund your startup.

Photo Credit: Arvydas, MorgueFile


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Tags: bootstrap  bootstrapping  venture  small  business  entrepreneur  entrepreneurship  investment  startup  reve 

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