What is Bootstrapping?
In my work life, I have bootstrapped two companies. Essentially that means bringing them to life and growing them from operating revenues with no outside investment. The biggest advantage of bootstrapping your own company is that you maintain control over decisions without the outside influence of venture capitalists or investors. The downside is the risk to the entrepreneur’s personal finances.
To minimize this risk, bootstrapped startups minimize overhead expenses so that revenues can be put to work efficiently. Overhead expenses for a service-based business could include expenses such as rent, utilities, and insurance. Even as the company grows, profits need to be reinvested and emergency funds need to be established for the inevitable lulls in business, shit storms and occasional outright chaos that comes with the territory. [Read more…] about Bootstrapping Your Life. How a low overhead lifestyle will make you feel 25 years younger.