When starting your business, you have two basic options in terms of financing your new venture. The first option is to bootstrap, or basically get started without taking on a large amount of debt or money from others. The second option is to not bootstrap, and basically raise money from others to help start and grow your business. Which one should you use? In this episode, we will break down both options and provide you our opinion on this topic.
Episode Key Points
- We dive into how we funded each of our businesses
- What does “bootstrapping” actually mean?
- Why would a company want to bootstrap when starting?
- Funding sources that are available if you want to bootstrap your business
- Some strategies to reduce your cash needs early on in your business
- Several reasons that a company may NOT want to bootstrap
- Funding sources that are available if you don’t want to bootstrap
- Our preferred approach when it comes to bootstrapping
Links and Resources Mentioned in the Episode
- Show 12 – An Overview of Our Wine & Liquor Store
- Show 13 – An Overview of Our Real Estate Investing Business
- Show 14 – An Overview of Our Internet Marketing Business
- Show 15 – An Overview of Our Entrepreneur Coaching Business
- The Profit (Tom’s Favorite Show) (Season 1 – Season 2 – Season 3)
- Show 29 – Does Your Business Have Enough Cashflow?
- Introduction to the 3 Main Financial Statements (Free Download)