Lean growth = smart growth

One of our core beliefs here at Paddling Furiously is that you get to define success and your path there. That’s why we think everyone should consider the benefits of bootstrapping.

Bootstrapping!?!  You mean that fallback plan for also-ran companies who can’t find funding?  That thing where I pour my own money into the business?  No thanks!

Focus your efforts

Not at all.  When we talk about bootstrapping, we mean:

  • Focusing energy on your product, team and customers, generating sales revenues to drive your business
  • Launching new products – or starting your company – in a strategic way, testing assumptions, minimizing speculative spending, and then building as you learn more
  • Concentrating on cash flow by working to ensure that spending aligns with – or even follows – revenues, wherever possible

Smarter Growth = Stronger Operations

This approach can minimize, or even eliminate, your need for outside financing and helps you raise money, if needed, on your timing and terms, but the operational benefits are even more important:

    • Focus on sales: Concentrating on sales not only deepens customer relationships, it’s like having an incredibly knowledgeable advisory board.  Trying to figure out the next product or service upgrade?  Your customers may very well have already told you – if you’re listening.

    • Build your team and skills: By focusing on a few key initiatives at a time, you can hone the skills, find the staff, contractors or suppliers you need, create necessary processes and KPIs and build your reputation before moving on to the next challenge.

    • Faster, more agile growth: But wait, you may be saying, don’t I want to raise money to accelerate my business?  Not necessarily.  Many of the strategies we endorse allow you to jumpstart new products and services. Instead of waiting to build out a new distribution channel, for example, launch via a partner.

    • Try before you buy: Avoiding big cash outlays upfront – for equipment, facilities, staff, etc. – not only obviates the need to find funding for that purchase, it lets you test different options before committing, and allows you to spend the money when you know the business is ready to support it.

    • Develop strategic relationships: Many bootstrapping strategies involve reducing or sharing costs by, for example, co-locating in someone else’s space, sharing equipment, or paying commissions or royalties to another company for new sales.  These not only allow you to grow faster with lower investment, they develop potentially beneficial business partnerships.

    • Evaluate funding effectiveness: many companies can benefit from outside funding.  But having a bootstrapping alternative allows you to assess the impact outside financing will have and thus calculate the true cost / benefit.  It also allows you to go farther before facing that challenge, thus increasing funding options and reducing costs.

    • Make funds go farther: The benefits don’t stop if and when you seek outside funding.  Bootstrapping strategies allow every company to work more efficiently and amplify the impact of available funding.
    • Ownership and control: Oh, yeah, you’ll also be building this stronger, smarter company without diluting your ownership or ceding control – unless you really decide it’s worth it.

Other articles you might enjoy:

The trouble with business plans: A business plan is not the right tool for every situation

Business roadmaps: Set practical steps and priorities to guide and grow your business