Recession or revolution
As worries persist over a possible broadening U.S. recession, does a troubled economy bode well or ill for bootstrap entrepreneurs?
In a recent interview on NPR's "Fresh Air" Michael Greenberger, professor at the university of maryland School of Law and the director of the University's Center for Health and Homeland Security argues for creation of businesses that will benefit society to build value back into the struggling economy.
Here are some ways bootstrappers do just that:
• Build a product people want. Because they have only one person to please-the customer-bootstrappers focus on creating value for the market rather than satisfying investors.
• Create profit instead of debt. Since bootstrappers focus on creating value and finding customers willing to pay for it, credit becomes a less important issue for them.
• Grow companies without capital. While others spend or worse yet mortgage to make money, a bootstrap entrepreneur draws funding for growth from customers by providing a valuable product or service
• Speed up the time to market. Both Greg Gianforte and Guy Kawasaki speak of the importance of having a product to sell as soon as possible. Less expenditure on a venture that may or may not succeed means less chance for further financial failure.
Other thoughts on how bootstrappers may fair in a recession? Be sure to enter them in the comment section.