Greg Gianforte’s 8 Reasons to Bootstrap

In a Mar-14-2005 article on entitled “Bootstrapping: The Secret to Entrepreneurial Success” Greg Gianforte, CEO of RightNow Technologies and author of “Bootstrapping Your Business: Start And Grow a Successful Company With Almost No Money” offers “eight solid reasons why Bootstrapping will consistently deliver better results than the fund-and-burn model that has become entrenched in Silicon Valley and elsewhere.”

  1. Bootstrapping ensures that you build your business on a legitimate, real-world value proposition.
  2. Bootstrappers initiate the critical sales learning process sooner, not later.
  3. Bootstrappers don’t waste money; they make it.
  4. Bootstrapping accelerates time-to-market and time-to-profitability. You can start immediately!
  5. Bootstrappers are less likely to make big, fatal financial mistakes. They don’t have huge amounts of cash to spend.
  6. Bootstrappers are forced into unconventional thinking. Necessity truly is the mother of invention.
  7. Bootstrappers have more freedom and flexibility. No external funding parties to answer to.
  8. Bootstrappers wind up owning much, if not all, of what they create.

I think these are accurate, especially if you understand what’s not said.

  1. Or you go broke quickly.
  2. Or you go broke quickly.
  3. Or you go broke quickly.
  4. You get more information from trying to sell to customers than investors.
  5. You are in a battle of maneuver not attrition, you have to out-think and outperform–not outspend–the competition.
  6. If you don’t attack undefended hills and “hit them where they aint” you will not win.
  7. But advisers can help you steer and consider overlooked possibilities.
  8. You also should know when to trade in your small pie for a piece of a larger one.

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