What is Bootstrapping?
Bootstrapping is used to describe a company that is operated by an entrepreneur with his own personal funds. Bootstrapped companies have very limited funds and often seek out investments from partners or financers to keep their business afloat.
Bootstrapping is mostly referring to startup companies or sole proprietorships.
Why is Bootstrapping Important?
The purpose of bootstrapping is to avoid risky upfront investments. Many startups fail to even reach their second year. Pouring a large number of resources into a new business idea is a risky investment. It’s important to limit the amount of personal money put into a bootstrapped startup.
This is why many startups choose to bootstrap. They can get the doors open and begin building their prototypes and business plans that will help entice investors and funding, all while operating at the lowest costs possible.
Bootstrapping involves a lot of personal risk. The business could still go under at any time. The minimal resources of the company could affect the opportunities and connections available. Startup owners who bootstrap have full financial and creative control of their company.
Bootstrapping in Startup Wars
In Startup Wars, you will start a company with only a small amount of starting capital. This starting capital is what you’ll be using to bootstrap your company. It will be up to you to choose how to use your limited resources. Will you hire more employees to get more work done and finish before funds run out? Will you try to build up as many funds as possible from product revenue and investments?
When bootstrapping a company, you have full control of the direction of the company. Every decision matters in Startup Wars. When everything is on the line, it’s all on your shoulders to get your startup through the bootstrap phase.
