Time to pull up your socks and start bootstrapping. Got a great idea but it’s still in your head? Not sure if any customers would give your idea a second look? Bootstrapping is great way to give you and your idea some validation and a jumpstart. It allows you to take the time and effort to assess and tweak your idea using your own funds before seeking rigid external investors. The obvious case study is Sara Blakely who grew her Spanx empire to over $1 Billion without the help of investors.
However, you don’t hear about the other side of bootstrapping. Extreme and obsessive budgeting will impede your progress. Penny-wise pound-foolish will slowly become ton-foolish and it will negatively impact your startup. This is an avoidable #entrepreneurfail. Bestselling author Ramit Sethi attests that we are cognitive misers – making it a waste of mind energy to save a few bucks on lattes (or chewing gum or whatever your vice). We instead should focus on growing the big opportunities, and shrinking the big gaps.
Allocate a budget to your startup, and draw the line between personal and business expenses. Sacrifices are, of course, necessary when you bootstrap. But allow for small indulgences of things you really enjoy, which will help you get through when you are strapped in.
Read more about this comic and bootstrapping your business here.
Are you bootstrapping your business? Has it impacted your personal spending drastically?
Tell us about it in the comments below.
