“You need to become intimately acquainted with the value of adding value.” –Richie Norton
Bootstrappers are the backbone of a good lot of the successful businesses that we have in our modern market today. We see them especially in music, tech and really most any market, as things are always changing and moving in everything we do. Bootstrapping is what makes an entrepreneur. The stories of bootstrapping from past success stories such as WalMart, Apple, Dell, GoPro and many others have inspired entrepreneurs to attempt what many see as impossible.
What Is Bootstrapping?
Bootstrapping is generally defined as building a company from the ground up with essentially no outside aid. Relying totally on personal savings and assets, bootstraps or bootstrappers are those who give all that they have to in time, money, and even their possessions, to see a vision come to life. These entrepreneurs seek little to no help from angel investors, or any other outside entity such as a bank or financial institution. Starting with an idea, hard work, savings and maybe a loan from family, friends or partners. Only seeking to grow from sales produced.
The term bootstrapping comes from an old saying to “pull oneself up over a fence by their bootstraps”, or basically telling one to do the impossible- i.e. making something out of nothing. This is why bootstrappers are inspirational, why they succeed, and why their businesses continue to grow. They know how to deal with adverse conditions; growing and persevering through the hard work and dedication it takes to push an idea to fruition.
Bootstrapping doesn’t stop at the start. It absolutely has to be a lifestyle and a discipline for any business. Any success story shows that innovation, through competitive nature, usually, is a lifelong pursuit for the business involved- if they want to continue to prosper, that is.
Risk Vs Reward
Bootstrapping puts the entrepreneur in a better starting position with control of their money. There is less cost overall to the business when debts do not need to be paid back with interest, or royalties paid out overtime to investors. This self-sustaining gives the owner complete control of their products and services, offering opportunity to pursue any business decisions they see necessary, without risking backlash from participating investors.
However, these endeavors can be costly and risky to the faint hearted, or over ambitious. Some have put all they have on the line, theirs and their families, to go into startups. Keep in mind, around 90% of startups fail, according to Forbes in 2015. Also, the entrepreneur usually has to put in extra time and money to gain visibility, credibility, and advancing tech and/ or services. Stress levels are high for any startup bootstrap, however, more work usually means more stress.
To Conclude
The Bootstrap must be prepared to endure any hardship they may encounter. Growth, innovation and prudent changes will always be necessary in this ever changing world in which we live. The 10% of startups that succeed inspire because they persevere.
Here at ofthefreemarket.com, we admire the bootstraps. We set out to help any who may be out there! Visit our Connections page to see how; this is also where you can find some investment and self-funding/ passive income opportunities! Whether you are bootstrapping, or have investors, whatever your startup story, we’d like to connect and inspire more growth and innovation.
Look out for more on the blog, podcast and our socials. Give us a share and leave us some feedback! Thanks for the read.
