Bootstrapping Key to Success

Sramana Mitra tells aspiring entrepreneurs that they need to be ready to bootstrap if they intend to launch a business during the recession.  But, bootstrapping does not mean that you can’t build a successful and worthwhile venture:

Businesses often fail to take flight because they cannot raise funding. Well, start with the assumption that funding will not be available until the business is substantially further along, if ever, and that bottleneck is removed.

Additionally, most businesses should not look to raise money. They are truly small businesses – in this day and age even a $5 or $25 million business can be considered a small business, and does not really fit the framework of professional venture capital.

That does not, however, mean that these businesses are not worth building. In fact, a $12 million a year company fully owned by the entrepreneur is a wonderful situation. Full control. Loads of cash. And true independence. Heck, even a $300,000 a year business has many of those same attributes, and is plenty worthwhile.