Bootstrapping remains a great method of startup

Filed in archive Bootstrapper News on August 23, 2007

Ashish Kumar, co-founder of India-based Tekriti Software, has this to say about the value of bootstrapping on the Fast Company Weblog.

While he admits it may not work for every business, Kumar insists he wouldn't trade his own bootstrapping experience for the alternative, VC or some other outside funding.

Among his reasons:

• It demonstrates an entrepreneur's serious intent about his business. Kumar claims you're risking more as a bootstrapper. I could make the opposite argument. Unless bootstrapping to you means risking the family fortune or your life's savings, I'd say there's no safer way to start a business than with no outside investment and very little beginning expense.

• It helps you control your finances. No huge Trinitron monitor when you start out. You can't afford it. You've got no money. Bootstrapping keeps entrepreneurs from making what Greg Gianforte calls "fatal mistakes."

• You'll attract a more committed team. Romanian software engineer Cristian Dorobantescu made a similar observation in a great series of guest posts here at BootStrapMe.

• You'll retain control of what you create. This probably goes without saying but those who invest in your company will expect a certain amount of oversight. If you don't like that idea, bootstap.

• You'll get the chance to field test your business model. Sometimes I think business plans wouldn't be so bad if they were written after doing a couple of months or years of bootstrapping to refine the business model and come up with projections based on experience.

• The whole thing is more fun. Sure you don't know what you're doing-exactly-that's part of the thrill. We'll be dealing with the idea of an entrepreneur's "greenness" and the freedom it can bring in a future post.