- Bootstrapping can give you more independence, but also carries risks
- Tips on how to successfully get your business going with personal assets
- Negative cash conversion cycle, financial monitoring, and more
Summary by Dirk Langeveld
Bootstrapping can be a rewarding, if risky, way to launch a business. Rather than relying on venture capital or other options that can dilute your ownership share or create debt burdens from the outset, you’ll be able to use your own assets to kick off operations.
Of course, you’ll also want to combine this effort with a sound business strategy to ensure that your company will be successful and that you won’t see your money go to waste. Varun Sharma, co-founder of Laumière Gourmet Fruits, recently offered tips on bootstrapping in an article for Entrepreneur.
- Bootstrapping businesses should use business plans that focus on generating money as quickly as possible so your working capital isn’t depleted
- Maintaining a negative cash conversion cycle is essential, as this allows you to collect sales revenue faster than you pay your suppliers
- Concentrate your efforts on growing a customer base, and don’t spend beyond your means
- Monitor your financials closely, especially your expenditures
Read the full article here.
