Burkett's bootstrapping tips
Filed in archive Bootstrapper Tips by Shawn Hessinger on September 30, 2006

(Actually, unlike many of the tips we post here at BootStrapMe.com which often deal with how to get along with less money when launching a business, these are really kind of more like places to get money besides angels and Venture Capitalists.)
• First Burkett suggests looking to the 3F's. (These are friends, family and...well, fools)
Burkett observes:
Now, not everyone's family or friends has the idle capital to hand over to the family entrepreneur. The good news is that there are plenty of fools out there, so focus on finding them instead.
• Another option is leveraging personal assets:
This is probably a last resort for most folks. I mean who relishes the idea of ponying up the pink slip to the house in order to "be their own boss." However, if you truly believe in what you are doing this may be an option.
• He also suggests making early clients/customers into fund sources. This is not in the typical bootstrap method of using early revenue to fund growth.
Instead, Burkett recommends:
... since they loved your product/service so much, they should pony up some cash and invest in what you are doing. You'll never know until you ask. This happens more than you may think.
• Ask the competition?!!! This is a combination of start-up and seeking a buyer for your company all rolled into one.
Burkett says:
...if you are creating a product or service that is targeting a niche market that one of your competitors has left alone, they may find it feasible to invest in you first. I will admit, that this can be tricky, but if you can successfully convince a competitor (current or future) to invest cash in your business, then that is the first step for lining them up as an acquirer for your big liquidityevent at the end of the rainbow.
This is like Venture Capital without the Venture Capitalist! Wonder how often it's done?
• Finally, Burkett recommends leaving no stone unturned.
Go outside of your local market for capital. Good ideas attract investors - the origin of your capital is not important.
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