Bootstrapping means that you grow your business slowly, with profits you make from the business by cutting costs to an absolute minimum. Sometimes this might also involve using small amounts from your personal savings, but largely the money will come from the work the business does.
Here are some examples:
These examples give some ideas of how you can effectively reduce the amount of money you need to start your business.
Bootstrapping often means that the business owner needs to take a significantly reduced salary in the early stages to enable the cash to be reinvested in the business.
It is really important to keep good financial records of every cent spent on the business and the income it earns. This will show the history of how the business was able to grow. At a later stage when you need to raise finance for expansion, these records will provide lenders with a valuable picture of careful financial management and the profitability history as well as the amount of money you reinvested in the business.
Finfind provides its services free of charge to businesses seeking finance. Our primary purpose is to link SMEs with all the relevant finance providers and finance products that match their funding needs. As a matching service we are not required to be a registered finance provider as we do not loan money directly.