I've talked previously about the importance of bootstrapping. 

<em><strong>But what is bootstrapping?</strong></em>

The idea of bootstrapping a business comes from the proverb of <a href="http://www.phrases.org.uk/meanings/290800.html">pulling yourself up by your own bootstraps</a>, which basically means moving yourself forward without external assistance.

Applied to a business idea, it means that you should outlay as little of your own savings as possible when starting a business. If you appreciate the value of money, why would you burn it?

[caption width="445" align="alignnone"]<img src="http://www.openmarket.org/wp-content/uploads/2010/10/burning-money.jpg" width="445" height="292" class /> Source: openmarket.org[/caption]

Anyone who has worked an 'honest days work' knows that earning money is a lot harder than spending it. And, trust me, the last thing you want to do after saving up to start a business for a couple of years is to waste your hard-earned cash. For me, working as a 'labourer' during university was the way I learned the value of money. I spent that summer digging dirt, installing retaining walls for the family business. As a student, earning $10/hour was good,but the days were long and I was totally smashed by the end of the day. This was around the time of the dotcom bubble, with teenagers making a fortune from ridiculously bad business ideas. So I knew there <em>had to be</em> a better way...

This is such an important idea for a 'wannabe' business-owner, because our enthusiasm for a great idea is so intoxicating that we make choices that are less than rational. What would be a frivolous waste of money in the cold light-of-day, becomes an essential ingredient of success toward building our dream. And as entrepreneurs, that is what we are all about: <em>The Dream.</em> I like to call it the 'blue sky'. We are never happier than when we are thinking about the 'blue sky' of possibilities that our next business idea could bring.

[caption id="" align="aligncenter" width="507"]<img alt="" src="http://blogs.artvoice.com/avdaily/wp-content/uploads/2011/10/loser1.jpg" width="507" height="336" /> Source: Artvoice Blog[/caption]

<blockquote>In a nutshell, the idea behind bootstrapping is: To get your idea off the ground, spend as little of your own money as possible.</blockquote>

But doing this takes maturity and restraint, when you are so damn enthusiastic about giving your idea a go. But the important point to realise is that if your idea is <em><strong>that good</strong><</em>, it won't need that amount of commitment. Great ideas create their own momentum. Once your business idea is generating its own steam there is nothing wrong with re-investing your profits back into the business - in fact, there is probably nothing better that you could do.

<blockquote>The point is that, investing money in your business idea before it starts earning money is a 'leap of faith'. And these kind of irrational choices will not serve you well in your entrepreneurial career. What matters is <strong>results</strong>.</blockquote>

I could talk about about how essential bootstrapping is all day, but one of my mentors, Greg Gianforte, has already said it all. So take a listen to this podcast, and hopefully your perspective on how to start a successful business will change forever.

Good luck.<a href="http://www.smallbizpod.co.uk/interview-36/">Smallbizpod: Greg Gianforte Interview</a>



