Why you should bootstrap the business of your dreams today

Filed in archive Bootstrapper Tips on August 13, 2008

Photo courtesy of iStockphoto, Justin Horrocks


It's the basic idea behind our MySpace Group, and, I guess, the idea behind bootstrapping itself.

Why wait to start that business you've always dreamed of until someday in the distant future, when with no outside investment you can start right now? Here are some thoughts on why there's no time like the present:

• There will never be a better time. Markets may go up and down, but ultimately your business will either work or it won't. With bootstrapping, you don't need to wait for investors to feel secure. Offer customers your product or service and see what happens.
• Track record is important. Yes, you're bootstrapping, so you're not worried about investors or banks right now. But remember you will never look attractive to these people by just biding your time. Prove a business model through bootstrapping and you may soon find those who wouldn't give you the time of day before now offering a helping hand.
• There is no reason to wait. Once you've settled on the bootstrapping course, there's no need to wait for banks or investors. If your product isn't ready today, offer a related service to start the cash flowing. Developing a revenue stream is what's most critical first, so get started.
• There is nothing to lose. You don't need to worry about putting up collateral or quitting your full-time job just yet. Starting a bootstrap business means testing a business model without many resources, but it also means that in the beginning before that model is proven there's no reason to take the bigger risks.
• There is much to gain. Bootstrapping at its bare essential means developing a model for increasing revenue without substantial investment. That means more money without a big cash outlay to be used either to supplement existing income or to eventually replace it. Either way its all or mostly gain, so what are you waiting for?