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Bootstrapper Resources
by Shawn Hessinger on October 14, 2008
Photo courtesy of iStockphoto, Tatiana Gladskikh
Despite the market's dramatic rebound today, some in the business community continue to be pessimistic about the immediate future.
But, as I mentioned in a recent post at the Bootstrapper's Gtoup on Yahoo!, Mark "Rizzin" Hopkins is not one of them and in a recent post at Mashable predicted, not surprisingly to readers of this blog, that bootstrappers will be among those who cope most successfully.
Hopkins insists that bootstrapped ventures will continue to thrive in an uncertain economy because they:
• Do more with less. Since the very definition of bootstrapping is getting along without outside investment this implies a startup and growth without loans and credit though some bootstrappers certainly have used it.
• Require a sharper business mind. This is due to the economic discipline that bootstrapping requires meaning bootstrap entrepreneurship is likely to attract only the best because these are the only entrepreneurs that can survive and thrive with its rigors.
• May face more pitfalls on the road to success. And so are theoretically better able to navigate tough times since they must always deal with not having enough.
• Must be more nimble and responsive to market changes. Largely because of the previous point giving them a better edge when it comes to survival.
• Offer far greater rewards to the entrepreneur. With less dilution of earnings among shareholders, this allows founders to keep much of what they have created, a key point often also raised by bootstrapping guru Greg Gianforte. The exact opposite of a modern company strapped for credit, a bootstrapper is flush with cash flow and hopefully can keep much of it for owners' draws and re-investment
Permalink: Bootstrapping key in tough economic times
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Response from:
ThePowerStocks.com Team
(10/14/08 4:56am)
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Here’s our market view on American stock market for 13th October, 2008
You all know my opinion - we have the characteristics of at least "a" bottom. Look at the scoreboard - Dow and S&P 500 down 18% last week, in only a week. If that doesn't show irrational dumping the only other environment that probably would is an official end of the world pronouncement from on high.
The VIX Index (69.96) soared to a record high; bears at extreme high levels, bulls no where to be found; valuation levels the best since Black Monday, October 19, 1987. And back then you could buy AAA long term munis yielding 10% or better vs. around 4.75% today.
No one can call bottom in advance with confidence, but we can correctly report that the conditions for at least a bounce are in place, assuming we are not headed for a 1929 depression.
We are not, but don't take my word on this. Last Tuesday, Oct. 7, Gary Becker the 1992 Nobel economic laureate, professor of economics at the University of Chicago stated in the Wall Street Journal - "we're not headed for a depression."
He states, "World economic growth will recover once we are over the present severe difficulty." Also he states, "Although it is the most severe financial crisis since the Great Depression of the 1930's it is a far smaller crisis, especially in terms of the effects on output and employment."
ThePowerStocks.com Team
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