“Bootstrapping” is a term that gets tossed around a lot in startup and investment circles. The idea of “pulling yourself up by your own bootstraps” is familiar to most people as a metaphor for creating your own success, but what does it actually mean in a business context? Exactly what you would expect, actually.
When a company starts out with very little financial capital or other resources, it has to get creative to stay in the game. That means pinching pennies, taking a conservative attitude towards any additional expense, finding other kinds of resources to use without spending a bunch of money. That’s the bootstrap mindset. Continue reading