Bootstrapping in hard times
Not surprising (to me anyway) is point number 8 about starting a business. Bob writes:
It's not a bad time to start a company, but you should focus on bootstrapping and efficiency.
â€¢ In a period of belt tightening it is less likely competitors will even notice your "Big Idea" at first
â€¢ Tough economic times mean you'll have to use you resources efficiently.
â€¢ One way is to hire talented people more interested in "the dream" of working for a startup and the future of what you are doing than the size of their regular paycheck.
â€¢ This one might be seen as somewhat controversial to some bootstrappers. Warfield recommends paying with equity instead of cash. This may be a hard pill to for bootstrappers who have taken this route to avoid diluting equity in their startup.
â€¢ Finally, Warfield points to the fact that in recession consumers will be more discerning meaning if you find your company does well when things are tight, you can be sure things will only get better when fortunes turn.