Bootstrapping – what is it?
Unfortunately, there is no Wikipedia article about Bootstrapping related to foundations. So here’s the attempt of a definition:
“Bootstrapping is a funding strategy for a start-up that ideally requires no outside capital and leads to growth of the business by avoiding spending and reinvesting revenue.”
Put simply: spend only money on your business that your business has brought in as well. Like Baron Münchhausen, you pull yourself out of the swamp on your own head.
If money has to be put into your business all the time, you run the risk that you are only promoting a hobby but have not developed a solid business idea. Benefits of this start-up financing is the extremely low financial risk and, in the case of business success, the feeling of having done it without the wallet of your parents.
However, the disadvantages should not be concealed. Anyone who has an idea that only works if the entire market is penetrated in no time, 1000 employees hired and high-tech production facilities are procured, for which bootstrapping is certainly not the right concept.
So, now to the individual steps: Continue reading “15 Steps for successful Bootstrapping – Part 1”