Join Rudolph Rosenberg for an in-depth discussion in this video Defining bootstrapping, part of Entrepreneurship: Bootstrapping Your Business.
- What exactly is bootstrapping? Bootstrapping is about starting and running your business through your own means, without the help of outside investors. It's not about running a business with no money, there's always a need for some money, but there are ways to reduce big time the money you need to start your business. Not by not spending where you should be spending, but rather by using proven techniques to evaluate what you actually need to spend your money on. That means learning new ways of working to make sure your money is well spent.
As you'll see in this course, being cost conscious is only a part of the solution, there are business development techniques that can have a real positive influence on the finances of your business. They will have you doing what you originally planned but in different ways, and at the same time cut significantly the investments you need. Bootstrapping is not only about avoiding spending money, it's also about taking actions that cancel the need for some spending. There are many kinds of bootstrappers, from the hardcore one to the one that will use bootstrapping techniques to optimize his business, and run his company more efficiently.
You'll have to define by yourself what kind of bootstrapper you want to be or need to be. Since a bootstrapper does not plan on using money from outside investors, it will largely depend on the money you have, versus the money your company needs. Being a bootstrapper is not about doing it on your own with no outside help to prove the world something, it's about using techniques that make possible a venture that would not have been possible otherwise. By the way, most bootstrappers use those techniques to start their company and get to the size they need to attract investors, so the two are not incompatible, it's just different phases of the development of a company, and using bootstrapping techniques during the entire life of the company is a good business practice anyway.
He shows why beginning with the end is important: framing the venture by anticipating your exit strategy. He explores key resource-planning factors as well as the competencies and considerations required to fund and grow a bootstrapped business. The course then details how to manage the startup and evaluate it realistically to determine whether to stay the course or pull the plug. Finally, viewers will learn how to validate the business-plan assumptions effectively to determine viability and growth trajectory.
- Summarize the five pillars of bootstrapping.
- Determine which type of office space would be most beneficial for a given business.
- Explain the concept of linearizing expenditures.
- Identify the reason why making sales quickly is important to bootstrapping.
- Recall strategies for attracting new customers.
- Recognize the advantages of working in short cycles.
- Explain the importance of having a work-life balance.