Join Rudolph Rosenberg for an in-depth discussion in this video The hidden cost of bootstrapping, part of Entrepreneurship: Bootstrapping Your Business.
- When bootstrapping, you're pretty much on your own…with not necessarily a clear deadline…of what you need to achieve and by when.…In some way, this can be the hidden cost of bootstrapping…because you end up spending a lot of time…on a project without really making a breakthrough,…or waiting too long before realizing that this project…in particular might not make it in the end.…So the hidden cost of bootstrapping is time.…It is the time that goes by while you try and try,…and during which you're not making money or working…on another project that has more chances of success.…
So the first thing you need to do at the very beginning…is to set a deadline by which you need to have reached…a certain milestone so you can work towards that.…Once you reach that deadline, you can see where you are…and decide what to do next.…You can then measure your progress and decide…if you are on track, or better than expected…and need to set a new deadline and a new objective.…It is also a way to decide if it is time…to pull the plug on this particular project.…
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.