Bootstrapping is a common way for many entrepreneurs to launch their own businesses. Many even do it without realizing that they have done it. So, what is bootstrapping?
Bootstrapping is when an entrepreneur solely uses his or her own finances and launches the business. When bootstrapping, the entrepreneur only depends on him/herself and doesn’t reach out for additional revenue from elsewhere. The business is totally and one hundred percent independent of outside assistance, and all the decisions are made by the founder/owner.
Some items one wants to consider before bootstrapping are:
- Costs of Launching and Upkeep – Bootstrappers should lay out a spreadsheet of over three years on how much it will cost for the upkeep of their business. Some business don’t require much, however, there are some that require much more.
- Personal, Emergency, Investments and Business Cash Savings – Your own personal funds are at risk, so it’s quite easy for a bootstrapping entrepreneur’s business to tank if all financials aren’t considered prior to making the leap.
- Maximization of Skills/Training – Bootstrappers should consider growing their knowledge and understanding in various fields such as accounting, business planning, customer service and other items necessary in order to keep costs as low while launching.
- Time & Effort – Consider the time and the effort one must put in to any business before investing only to find out that you don’t have the time and don’t have the will to make a way. Business is more than just a bright idea. It’s work and takes up much time. As a bootstrapper, it’s a loss without daily follow through.
Some Black Entrepreneurs in history were bootstrappers, and because they were dedicated and saved money, they succeeded in marvelous ways, such as Garrett Augustus Morgan, who educated himself and always reinvested in himself and his business as an entrepreneur and inventor of the gas mask.