Is Your Company A Bootstrap?

A bootstrap company is one where an entrepreneur starts and grows the business using personal resources and revenue generated by the company.

Instead of seeking external investments, the owner relies on minimal upfront capital, often from personal savings or lean operations.

This approach allows the entrepreneur to maintain complete control over decisions. For instance, a bootstrapped company might take preorders for its product, using those funds to build and deliver the product. While bootstrapping offers control, it can also pose financial risk.

Unlike raising capital from investors, bootstrapping avoids outside influences, making it a path chosen by many successful companies like Amazon, GoPro, and Facebook.