In the world of startups, one fact that is very often glossed over is that most startups do not ever raise any money, much less Kleiner-Perkins venture capital money. Even then, only a very small percentage of companies do raise any venture capital – and the majority still fail.
For the startups who don’t raise venture capital, how do we fund our businesses from startup, through cash-flow positive, through profitability? We bootstrap it. But what does that look like?
Completely simplified, bootstrapping a business is very clear: you use only the money you have and the money you make from the business to start, build, and grow the business. More specifically, here are a few of the things that you may and may not do in order to bootstrap your business.