Buzzword Buster – Bootstrapping

Finding its origins in computing, bootstrapping has traditionally been seen as a self-starting and self-contained process or element of software. In the artisan roastery scented innovation language we find ourselves surrounded by, bootstrapping means a self-starting start-up designed to run without capital injection.

Bootstrapping obviously has its benefits, in that founders can maintain a significant equity stake further into the development cycle of the business. The self-contained nature of successful bootstrap businesses is leveraged to drive revenue until the enterprises have enough money to start paying for more staff, increasing marketing spend etc.

While some bemoan the lack of aspiration of bootstrap businesses for not wanting to go after the “big prize” of venture capital funding, for many there is a recognition that VC funding is only a prize if you can ultimately drive a successful business. Boot strapping is a great way of figuring out the core engine room of a business and its viability in the market before too eagerly giving away equity.

N.B. Bootstrap is also a front-end web development framework originally developed at twitter as a framework to encourage consistency across their internal tool development.

 

Disagree or want to add something? What does Bootstrapping mean to you?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s