I am working over the break between our fall and spring semesters on a new book on bootstrapping. It is a text that is part of a new Entrepreneurship series from Prentice-Hall. It got me reflecting a bit on why bootstrapping is such an integral part of the entrepreneurial experience. It is worn by so many entrepreneurs as a badge of honor. They beam with pride when they tell of the creative way that they have gotten things accomplished for their business when operating on a shoestring budget.
So why do so many entrepreneurs bootstrap their businesses? That is the question I ask at the beginning of the book. The answer to this question is not as simple as it might first appear. Some reasons for bootstrapping a business are borne out of necessity. Resource limitations are genuine constraint of many start-up businesses. The average start-up in the US only has about $10,000 in capital to launch their business.
But in other instances, the entrepreneur makes a conscious choice to be a bootstrapper outside of resource limitations. Whether it be to improve the performance of their business or be it borne out of the values of the entrepreneur, sometimes bootstrapping is a conscious management style. Many entrepreneurs start out of resource limitations, but make the choice to make bootstrapping part of their culture.
Over the next couple of weeks I thought it would be fun to blend my book writing and my blogging a bit. I will be making several posts reflecting on the various reasons entrepreneurs bootstrap.
I like the look of the new blog design.
I’ll be looking forward to the posts on bootstrapping.
Thanks, Jason M. Blumer
Jeff,
As a bootstrapper, put me on the list of notification when your book comes out!
I would agree on the conscious choice: one common example is if you want to start a business part-time while still have a full time job. No investor would put money if the entrepreneur is seen as “not committed”.
Thanks! We will make sure to put a link here at the blog for both of my books that are coming out within the next year.
Good point about commitment. As my dad always says, “The difference between ‘involvement’ and ‘commitment’ is like a ham and eggs breakfast: the chicken was ‘involved’ – the pig was ‘committed'”
What are your thoughts on Seth Godin views on bootstrapping?
Seth has been writing about bootstrapping for a good number of years. I really like his book The Bootstrappers Bible, which is now available as a download. Good stuff!