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What Is 'Bootstrapping'?

Bootstrapping is the art of building and operating a business without outside funding.

Bootstrapping allows you to grow your business while controlling it 100%.

If you accept Funding, make sure that you use it to do things that you couldn't otherwise.

Bootstrap as far as you can go, then move up the Hierarchy of Funding as needed.

Josh Kaufman Explains 'Bootstrapping'

How much financing you need depends largely on what you're trying to do.

If you're grasping for the brass ring-becoming obscenely wealthy by building a massive public company-you'll probably need financing. If your intent is to be self-sufficient and free to make your own decisions, it's much better to avoid financing in favor of retaining control.

Bootstrapping is the art of building and operating a business without funding.

Don't assume that the only way to create a successful business is by raising millions of dollars of venture capital- it's simply not true. By limiting yourself to the use of personal cash, personal credit, the business's revenue, and a little ingenuity, you can build extremely successful businesses without seeking funding at all.

My business operates via a checking account, a savings account, and a business credit card, and I like it that way.

Bootstrapping allows you to grow your business while maintaining 100% control over the business's operations. You don't have to get anyone else's approval to make the decisions you think are best.

The drawback is that growing the business can take much longer-prudently used, funding can help make things happen much more quickly than they'd happen otherwise.

If you accept funding, make sure that you use it to do things that you couldn't do any other way. Force Multipliers are useful, but expensive-taking on funding in order to get access to critical capabilities can be smart. Otherwise, try to operate from cash and operating revenue as much as possible.

For best results, bootstrap as far as you can go, then move up the Hierarchy of Funding only as needed.

Having 100% ownership and control of a profitable, self-sustaining business is a beautiful thing.

Questions About 'Bootstrapping'

• Could you bootstrap your business idea?
• If not, how much funding do you need, and how can you raise that money will minimizing the control you give up?

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"Felix qui nihil debet." (Happy is he who owes nothing.)

Roman Proverb

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https://personalmba.com/bootstrapping/

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