By: MJ Gonzales | Executive Chronicles
Building a business without enough capital is not an issue even for some new and small-time players. It is because they know how bootstrapping works and how they can use this for their entrepreneurial quests. Do you want to try this popular and simple technique?
May be you’re only not familiar with the term, but being a bootstrapper is typical for startup businessmen. It’s as simple as establishing your business on your own even if you don’t have ample money. You’re resorting to small-time sources of income and other financial supports than relying to partnership, crowd-funding, and venture capital methods. Bootstrapping is believing in your guts that your hard work and determination will pay off very soon.
According to Small Business Trends, using this technique could mean you’re doing minimalistic approach. You tend to focus on how to grow your business organically. The site also added that the first rule to follow in this technique is to concentrate on how to grow your profit first. They emphasized that since bootstrapped businesses don’t have support from external factors; entrepreneurs should be extra careful, passionate and skillful in making money. Because of these, the possible disadvantage of bootstrapping is the slow growth of the business.
“Even so, they have only about a 50-50 chance of making it five years, as startup failure statistics show,” SBT shared. “Startups that bootstrap learn to grow on their own. They can’t afford elaborate resources and don’t wait to get started.”
Apart from the money issue, bootstrapping is also very rewarding for businessmen well-being and success. Jay Wu, Creative Director at Best Drug Rehabilitation, shared the taste that you started from a scratch will let you experience ‘creative freedom,’ doing your best to produce the best product[s] or astute decisions, and silently make your creation a thriving business. Since you do the dirty works mostly all by yourself, you solely reap the entire high yields and accolades.
“It’s never easy, and it’s not always glamorous, but bootstrapping will force you to become a better, stronger entrepreneur with a more vibrant business,” the young entrepreneur who established a digital marketing agency and an e-commerce store, imparted via YFS Magazine.