What is financial bootstrapping and what does it mean for ownership and profits?
Bootstrapping originates from the expression “pulling yourself up by your bootstraps”. In practice, it means using your own money, money from co-founders, or money that the business generates from customers to finance growth. Bootstrapping keeps full control with owners and founders, who also retain all profits. One of the most appealing by-products of bootstrapping is that it forces entrepreneurs to operate efficiently or organise the business model so business finance is covered by operating revenues. With successful financial bootstrapping, you can demonstrate cashflow and profitability, placing yourself in a greater position to secure the first choice of external finance on more favourable terms.
Key: paid for service registration required official
WHEN: You are setting up your business or are considering raising any type of finance for growth.
WHY: Seth is one of small business’s most respected advisers on bootstrapping.
WHAT: A free online book and toolkit reviewing all aspects of bootstrapping and making your business more effective and valuable as a result. Seth challenges entrepreneurs to see external finance as only a last resort for effective growth.
