Check out bootstrapstudent.com for all kinds of links and information about the student bootstrapping community. The group was founded in 2003 by Ryan Pitylak and Michael Griffin, two students and serial entrepreneurs who bootstrapped successful companies while completing their degrees at the University of Texas at Austin. They started Bootstrap Student as a response to a lack of support and infrastructure for entrepreneurs to build a business from the ground up without first involving venture capitalists. The community now consists of thousands of bootstrappers across the nation.
The term “bootstrapping” comes from the German legend of Baron Münchhausen, in which he pulled himself out of the sea by pulling on his own bootstraps. The term has generally come to mean the use of a special process to perform a task that one would be unable to do otherwise.
For this and other interesting boostrapping content, visit Guy Kawasaki’s blog, “How to Change the World”.
Small business expert Peter Hupalo defines bootstrapping as using whatever resources you have available to gradually build your company and reach your goal. He offers the following allegory:
“Imagine trying to get a whiffle ball out of a tree. You can’t reach it, so you toss another ball up there to knock it down. But now, the second ball is trapped up there also. You look around for something to stand on, and see a picnic table and benches. You bring one of the benches over. But it’s not high enough. So you bring over the table. It’s not high enough, either. Then you stack the bench on top of the table, and, voila, you can reach the balls. That’s bootstrapping in a nutshell.”
From “Thinking Like an Entrepreneur,” by Peter Hupalo, 1999. Source
When discussing his philosophy on bootstrapping, Greg Gianforte (who retired at the age of 33 after he and his partners sold their software business, Brightwork Development Inc., to McAfee Associates for more than $10 million) stated, “A lot of entrepreneurs think they need money...when actually they haven’t figured out the business equation.” According to Gianforte, lack of money, employees, equipment—even lack of product—is actually a huge advantage because it forces the bootstrapper to concentrate on selling to bring cash into the business.
From “New Venture Creation,” 2004, by Timmons and Spinelli, page 348.
Bootstrapping resources
For a wealth of tips on every aspect of bootstrapping, from market research to office space to finance and capital, check out inc.com’s “Great Bootstrapping Secrets: 45 Ideas that Can Save Your Business Money”.
