People Don’t Know: bootstrapping

Startit Admin

Thursday 5 July 2018

People Don’t Know: bootstrapping

A bootstrap? That’s something we all know and probably have all used before. But did you know that the word has a completely different meaning in the startup world?

If you ever pulled up your shoes or boots before, then you know what a bootstrap is. It’s that little loop on the back of your heel that you use to pull ‘m up. The word is even used in a popular Americans saying: to pull yourself over the fence by the bootstraps is to do something that seems completely absurd and impossible.

 

 

No external help

The word bootstrapping has a similar meaning in a startup context, be it a little less extreme. If you’re bootstrapping, that means you’re starting up a company, using only your own financial resources. It’s pulling yourself up with your own strength, without any external help. No investors, no bank loans, no external funds whatsoever.

For startups in an early phase, bootstrapping is often the preferred way to go. It enables them to keep full control of their business, without shareholders getting involved. But obviously, the down side is that they don’t have a lot to spend and they need to be very economical. One way to do so, is by getting a part-time job or going back to live with their parents.

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