SmartCompany explainer: What is bootstrapping and why should I do it?

Dominic Powell - SmartCompany - 20 July 2018

The concept and practise of bootstrapping is something often talked about and lauded in business circles, but there’s likely many current or aspiring startup founders and business owners who don’t have a full grasp on what exactly the concept entails.

‘Starting a business with no external investment’ is a fairly standard definition, and one that serves well when explaining the concept to someone outside of the business space. But when it comes to actually doing the bootstrapping, there are a few extra things that need explaining and clarifying.

So if you’re wanting to get a solid understanding, sit back and relax because this SmartCompany explainer will fill you in on the what, why, and how of bootstrapping.

What is bootstrapping?

Unlike most pieces of startup or business jargon, the term “bootstrapping” actually has some modicum of sense about it. As StartupAus’ Alex McCauley describes it, to bootstrap means to “literally pull yourself up by your bootstraps”.

“It’s the classic garage startup model: keeping your spending low, eating ramen every night, doing whatever you can to make ends meet with a plan of driving growth through revenue and customers,” he told SmartCompany. Read more