Photo courtesy of iStockphoto, Alex Slobodkin


Here's a brief list of reasons I've come up with through brainstorming:
• Networking. Knowing what your fellow bootstrappers and their supporters in the community have to offer can be critical to the process by helping the bootstrapper determine what resources are available and what he/she may have to do without.
• Inspiration. Finding out what others are up to and sharing your own projects can be important. I'm hoping the group will be a place of ideas too, most rising right out of discussions on line.
• Pooling resources. From knowledge bases to freelance or full-time talent, bootstrappers must use what's available. Let's see what we can share to improve all bootstrappers' lot through cooperation.
• Bartering. Trading one product or service for another among struggling bootstrappers should be a way of life. A social group like ours can be a clearing house for such transactions. Join up and tell others what you have to offer.
• Team building. I've saved perhaps the most important for last. Bootstrapping guru Bijoy Goswami suggests team building may be at the heart of the bootstrapping process. Finding other entrepreneurs whose personalities and talents compliment your own may be the first step toward building this team, so join up.

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?

Photo courtesy of iStockphoto, Image# 3233994


I've added some more retro posts to our MySpace blog, links to some of our earliest posts back in 2006.

Check out the earliest entries from our archives most still full of great advice and information and visit the MySpace profile for this blog as well.

You can become a friend by either creating a new MySpace profile or, if you have an existing account, just signing in and adding us.

You'll meet more friends interested in entrepreneurship here opening additional networking opportunities and you can also join our Bootstrap Your Business Today group at MySpace.

And don't forget, we're still trying to renew interest in our Bootstrapper's Yahoo! Group. Bloggers and other entrepreneurs are all welcome and I hope will take this opportunity to share and to network.

Thanks,
Shawn
www.bootstrapme.com

Photo courtesy of iStockphoto, Kateryna Govorushchenko


O.K., so there are reasons every entrepreneur might be intimidated by the bootstrapping approach.

I've committed to bootstrapping the startup of my own blog network PostRanger.com (a network, by the way, that should soon offer a great value for sponsored posts unparalled on the Net so stay tuned.)

So what is it that I and others think is so great about starting a business with little or no money?

Here are some of the main reasons:
• Low or minimum risk. Bootstrapping guru Greg Gianforte argues one of the best things about bootstrapping is the ability to start up with as little or as much as you feel comfortable risking. Forget all that 'you need money to make money" crap. If you have a product or service you can trade for cash, there's no reason to mortgage the house.
• Ability to start immediately. As in today. No waiting to find investors who share your vision. No waiting for completion of a complex business plan. (More on both of these later.) No waiting for that rich uncle of yours to die. If you've got a product, start selling it. If you haven't developed one yet, try consulting to pay the bills.
• No need to wait on investors. Folks with money may have their own ideas about how your business should be run and may insist on your following their suggestions in return for taking their money...whether those suggestions are right or not.
• No need for extensive planning. Business plans can be a great way of putting your thoughts in order, but in the end there's no way of telling how customers will react to your product or service. Spending weeks or months painstakingly creating a business plan including projections of revenue and expenses for a business that is not yet operating may be an exercise in futility.
• No excuses. Finally, bootstrapping is a great way to start a business because no better method exists for determining whether a business model is workable or not. Since bootstrappers must rely on revenue to launch and grow their ventures, entrepreneurs can have little doubt about the reasons for a business's failure. Without the cushion of outside investment, bootstrappers cannot deceive themselves about the viability of a venture.

Bootstrapping puts the emphasis squarely on revenue and a workable business model, the real world elements that make a successful business and eliminate waste and speculation.

Like to suggest another benefit of the bootstrapping technique? Do so below in the comment section.

Photo courtesy of iStockphoto, Andres Peiro Palmer


This is the first in a series of posts of what I'm calling the "BIG WHYS" here at BootStrapMe.com.

Briefly, the idea is to ask a couple of questions about the bootstrap process both rhetorically, in the sense that I'm going to try to answer them myself, but also in the hopes that we can get some responses from readers, so I'm hoping you will participate below.

Our first question is listed above and I'd like to answer it with a few points below.

Bootstrapping is so damned scary because:
• It means working without a net. Without big investors no revenue means no business and even though you could startup a bootstrap business tomorrow, you could out of business the next if you don't bring in revenue.
• It means looking for the business model. That's right. It's time to throw that business plan in the garbage and look for what really works. What are the chances projections on a couple of pieces of paper can adequately predict a non-existent market? Bootstrapping makes you prove a model not just plan one.
• It means letting the customers decide. Read what Guy Kawasaki has to say about the true nature of marketing. Many entrepreneurs are dreamers with a vision they hope to realize. But bootstrapping is about realizing that beautiful website you've designed is being used not by academics and artists for lofty discourse but for teenagers trying to hook up...and being cool with that.
• It means assessing your strengths...and weaknesses. Since you will be the one doing much of the work in the beginning, it's time to separate reality from fantasy. What can you realistically accomplish if you must hold down a full-time job while running your business on the side. What are you prepared to do and where do your skills lie.
• It means being the salesman. Remember, you will be bootstrapping so you won't be hiring a sales staff. Greg Gianforte insists sales is the most important aspect of business and bootstrappers must get to it early. So if sales is something that freaks you out, get over it fast. (Read more)

If you've got some other suggestions that would fit into this list, leave them in the comment section below and join us next post for part two of our series "Why is bootstrapping so damned sweet?"

Photo courtesy of iStockphoto, kutay tanir


It's something I've seen plenty of with my current employer.

Smart growth even at most established companies these days often means using existing resources, or bootstrapping, at first with the idea that great revenue will allow for growth.

So here, from my own experience, are some tips on how to expand your existing business through bootstrapping:

• Invest time, not money-Don't immediately assume that growth is tied to financial investment. Taking the time and energy to simply divert resources to a new project can sometimes prove much more rewarding.
• Use staff efficiently-Can you add new services or products to your existing business simply by changing the way your existing employees do things? Ask the employee who answers the phone in the office to also field product orders from the website or see whether some additional drop shipped items could be added to your existing goods and services.
• Cut unnecessary expenses-Nothing is more sobering than seeing how unnecessary, or worse yet wasteful, spending is draining your company of the ability to expand. Don't keep spending money on things because that's what you've always done. Resources spent on wasteful, unprofitable projects are the ones best redirected to your bootstrapping growth.
• Try anything. That includes conventional websites, e-commerce and blogs, of course, but also lots of conventional goods and services you haven't tried offering before, including perhaps some that have little to do with the company's core business.
• Believe in results. Track results of your experiments meticulously and believe the message they send you. If something works, don't drop it because you can't see how it fits in with your overall business model. If it doesn't, don't hang on trying to win a clearly lost battle.

Like startups, established companies can often find ways to expand in the most fragile economies simply by using available resources instead of riskier financial investment.

When planning your company's next expansion, consider a bootstrapping approach. Using available resources instead of new investment to fuel your growth is a great way to find out immediately what will work out and what won't without spending a nickel for the learning process.