Why Bootstrapping Your Business Is The Most Important Thing You Can Do

7 min read

Bootstrapping Your Business

Are you either bootstrapping your business or thinking about it?

The answer should be a simple “yes” or “no” answer.

I’ll ask the question  one more time.

Whether you’re a startup or established, are you bootstrapping your business?

Venture capitalists (VCs) have money to invest. A lot of money.

In comes the VCs with slick presentations, and you’re caught up in the dream.

As entrepreneurs, we dream about conquering and dominating our markets. The only thing standing between our dreams and reality is having the capital.

VCs give you promises of a better tomorrow for you and your company.

In your mind, you can already see your company accelerating its growth and profits. Long gone are the days of struggling to find the capital to keep up with your growth.

You can see your exit when you sell your company to retire rich and happy.

For the VCs, the only thing standing in the way is for you to sign on the dotted line.

You now have a decision to make.

Bootstrapping your business or ushering in the VCs.

What do you do?

There is no absolute right or wrong answer.

If you’re not bootstrapping your business, you’re missing out. You’re missing out on the biggest opportunity of your life.

Who am I, and how do I know?

I was that kid who started his eLearning company right out of school with no money, experience, or team. Thirteen years later, I became an “overnight” success when I had a 9-figure exit.

My opportunity would have passed by had I not done two specific things.

What are the two specific things that I did to enjoy a 9-figure exit?

Keep reading to find out.

Bootstrapping Your Business Today Has You Control Your Future And Profits For Tomorrow

Bootstrapping your business today unleashes massive success tomorrow – Jeffrey Feldberg

Control Bootstrapping Your Business

By bootstrapping your business today, you give yourself the control needed for a successful tomorrow.

VCs tell you that you’re better off owning a smaller piece of a bigger pie. You’ll hear how bootstrapping your business slows down growth and profits.

Are the VCs right?

The answer is “yes” and “no.”

There is a time and a place for VCs. But the time and the place isn’t at the beginning or middle of your company’s journey.

Bringing in VC money too early has you give up precious control in your company.

Some of the industry giants of today started out bootstrapping their companies.

Read and prosper from “Why You Need To Bootstrap Your Business And Not Raise Money.”

Bootstrapping your business gives you one thing VCs can’t.

What’s the one thing?

Control over your company.

Most entrepreneurs are too quick to give up ownership and control in their companies. If you think having VCs come in for minority ownership gives you control, think again.

There are strings attached any time you accept other people’s money. Nothing wrong with this.

The smart money is when you accept other people’s money.

Running a thriving and prosperous business is challenging in and of itself. Adding other people to the mix with different agendas ties your hands.

Control of your company gives you control of your future.

Period.

End of story.

Bootstrapping your business keeps control with you.

And bootstrapping your business protects something more valuable than money.

This one thing allows you to conquer and win in your marketplace.

What’s this one thing that you protect when bootstrapping your business?

Keep reading to find out.

Bootstrapping Your Business Keeps Your Time Focused On Growing Your Business

Focus and simplicity…once you get there, you can move mountains – Steve Jobs

Bootstrapping your business keeps your time focused on growing your business.

Chasing after outside money keeps your focus and time away from your business.

Your full-time job is meeting with potential investors, bankers, accountants, and lawyers.

Along the way, you’ll share your “secret sauce” with investors who want to know how you do what you do.

Chances are you’ll have many of the same meetings with different people.

Welcome to groundhog day. Only worse.

All that time, chasing outside financing could have gone towards better things.

What kind of better things?

Finding the next problem you’re passionate about solving and creating a market disruption.

Read and prosper for “Why You Need To Create Market Disruption To Lead, Succeed, And Prosper.”

You could have spent that time chasing after a key account to grow your business and profits.

The time spent could have gone towards building out your dream team to run the business.

When you’re focused on your business, you grow your market and profits.

When your chasing outside financing, you do none of the above.

And don’t believe for a moment that once you get outside financing, you can focus back on the business.

Bringing in other people’s money sets you up for meetings. Many meetings.

Your investors want assurances that their money is both protected and growing.

Weekly, monthly, and quarterly meetings aren’t unusual for outside money. And of course, you’ll want to put your best foot forward.

You’ll be drowning in financial reports and creating presentations.

Three words for you when it comes to outside financing: don’t do it.

Bootstrapping Your Business Has You Operate Like Cockroach Startups Where Resourcefulness Trumps Resources

Resourcefulness, not resources, unlocks your future success and destiny – Jeffrey Feldberg

Cockroach Startups Bootstrapping Your Business

Bootstrapping your business has you operate like cockroach startups.

What are cockroach startups?

Many of the industry giants today started as cockroach startups.

Read and prosper from “Cockroach Startups: What You Need To Know To Succeed And Prosper.”

A quick story.

I started my eLearning company with no money, experience, or team. The truth is that I had no business being in business. Despite the odds, my eLearning company led the industry. Thirteen years later, I enjoyed a 9-figure exit.

After my 9-figure exit, I started a healthcare company. This time I had the money, experience, and team. In a few short years I the healthcare company was up to 7-figures. But it was 7-figures of losses.

What made the difference?

My eLearning company ran like a cockroach startup where resourcefulness rules the day. I couldn’t write the check, and instead, relied on resourcefulness.

My healthcare company didn’t operate like a cockroach startup. I had the resources to write the check, and I did.

Know this and know this well.

Resourcefulness trumps resources. All-day. Everyday.

Resourcefulness forces you to think outside the box.

The systems and strategies you develop from being resourceful make you more efficient. And your efficiencies lead the way to higher profits.

Having the money to write the check doesn’t mean you should.

Bootstrapping your business isn’t easy.

But doing what’s right usually isn’t doing what’s easy.

Bootstrapping your business has you rely on resourcefulness today so you’ll win tomorrow.

Speaking of tomorrow, do you know the biggest danger when you bring in outside financing?

Keep reading to find out.

Warning: What You May Gain In Money From Outside Financing You Lose In Control

You must gain control over your money or the lack of it will forever control you – Dave Ramsey

Bootstrapping your  business or outside financing, that is the question.

Neither solution is perfect.

A word of advice on one one thing entrepreneurs overlook to their detriment.

What gains you feel you have from outside financing you lose from lack of control.

VCs point out how their money gives you resources to gain market share and win.

Yes, VCs will tell you all the things you gain when using their money.

But it’s the same VCs who are silent on what you’ll lose.

What do you lose when working with VCs and outside money?

Control.

VCs are in business to be in business.

It shouldn’t be a surprise that VCs want their money plus interest and profits within three to five years.

VCs, and not you, dictate how your company grows and exits.

Your  business now runs on a quarter-over-quarter basis. Short-term thinking rules the day.

When selling your  business, you have one chance to get it right, and you better make it count.

Your exit may enrich everyone else except for you.

Put in those terms, does the risk of outside money outweigh any so-called benefits?

Not a chance.

The likelihood of creating a successful new company is slim to nil.

I’ve said it before, and I’ll say it again.

Doing what’s right usually isn’t doing what’s easy.

Bootstrapping your  business is the right thing for you, your company, and your future.

Bootstrapping your business gives you one thing that you won’t get with outside money.

Do you want to know what this one thing is?

Keep reading to find out.

Bootstrapping Your Business Gives You Peace-Of-Mind That You’ll Never Achieve With Outside Financing

You are the strongest when relaxed and at peace – Mario Teguh

Peace of Mind Bootstrapping Your Business

Bootstrapping your business gives you peace-of-mind that you’ll never achieve with outside financing.

How?

The answer is one word: Control

You have control over your company, actions, and future.

There are no guarantees in neither life nor business.

It’s also true that bootstrapping your business brings with it challenges and risks.

Navigate through the challenges, and you build your character, leadership, and skill set.

Yes, you’ll still have sleepless nights ahead when bootstrapping your business.

But, and it’s a big one, you have control.

Is there a place for outside financing?

Yes, on your exit should you choose to exit.

Outside financing to grow your company ushers in risk and robs you of control.

With outside financing, you are at the whim of investors who put their money first and you as a distant second.

Say goodbye to control of your time, actions, and vision with outside financing. Many entrepreneurs say goodbye to their future as a result of outside financing.

Bootstrapping your business allows you to either succeed or fail, but on your terms. No regrets.

Period.

End of story.

The cross-section of risk and opportunity is where your destiny awaits.

Bootstrapping your business, not outside financing, gives you this opportunity through control.

The choice is yours and always has been.

When it comes to building your business, you have one chance to get it right. Don’t blow it.

Conclusion

When it comes to running your business, you have a choice to make that determines your future and destiny.

You’re either bootstrapping your business or seeking outside financing.

Neither bootstrapping your business nor outside financing is perfect, as each has downsides.

A generation of entrepreneurs, to their detriment, have fallen under the trance of VCs.

As with all things in both life and business, there is a time and a place for everything.

The time and place for outside financing is on your exit.

Who am I, and how do I know?

I was that kid who started his eLearning company right out of school with no money, experience, or team. I had no business being in business, and the results showed.

My saving grace was my grit and determination, which kept me in the game long enough for success and a 9-figure exit.

What’s the secret to my success?

I bootstrapped my company.

The process of bootstrapping my company ushered in resilience and resourcefulness. From resourcefulness emerged a company culture that was second-to-none.

In short, bootstrapping your business has you run like cockroach startups.

Many of today’s industry giants began as cockroach startups.

Know this and know this well.

Bootstrapping your business today sets you up for massive success tomorrow. Your massive success enables you to welcome outside financing on your exit.

What do you do and where do you begin?

Start with the first principle I’ve revealed and stay with it until mastered. When done, move on to the next principle until you’ve mastered all five.

You can do it. I know you can.

Here’s to you and your success.

Your Biggest Raving Fan,

 

Jeffrey Feldberg

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YES! Save Me Time And Frustration And Send Me Your Free Emails On How I Can Supercharge My Success

SIGN UP AND RECEIVE:

- Free eBook
- My 9-figure exit playbook
- Your Midweek Wisdom Email
- Little known success principles
- VIP access to free resources

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