moonchild
VIP Contributor
Bootstrapping in business is when a founder starts a business with his own funds, this can be from family, personal savings or any type of income that a founder use to start a business without any help from an outside source like Banks, Corporations or other types of venture capitals.
The importance of bootstrapping a business cannot be overemphasized because it takes away any type of pressure that a founder might face when running his or her business, financial pressure can lead a business owner into making immature decisions that will run the company down.
To bootstrap a business effectively, you have to get creative and devise other means that will effectively sustain a business, internet businesses has the lowest start up cost, because most of the times, the only thing you'll be really spending on is monthly hosting, domain and advertisement, that is if your business requires it.
Another point in making bootstrapping successful is by reaching a positive cashflow in the nearest time, because without this, overtime you will lose your bootstrapping cash and get stranded, which will later push you to do other things that deviate from the bootstrapping plan.
Bootstrapping can also be a way to get started initially, then after a while you can seek other investors to put in money to scale the business.
The importance of bootstrapping a business cannot be overemphasized because it takes away any type of pressure that a founder might face when running his or her business, financial pressure can lead a business owner into making immature decisions that will run the company down.
To bootstrap a business effectively, you have to get creative and devise other means that will effectively sustain a business, internet businesses has the lowest start up cost, because most of the times, the only thing you'll be really spending on is monthly hosting, domain and advertisement, that is if your business requires it.
Another point in making bootstrapping successful is by reaching a positive cashflow in the nearest time, because without this, overtime you will lose your bootstrapping cash and get stranded, which will later push you to do other things that deviate from the bootstrapping plan.
Bootstrapping can also be a way to get started initially, then after a while you can seek other investors to put in money to scale the business.