Bootstrapping a startup means growing your business with little or no venture capital or outside investment. It requires entrepreneurs to rely on their savings, sweat equity, lean operations, and, at times, the cash coming in from the first sales. Here are some rational (and a few off-the-wall) ways to bootstrap a startup:

Rational:

1. Self-funding: Use your savings to fund your business. It’s the most straightforward way, but it does come with personal financial risk.
2. Freelance or Consult: Use your expertise to offer consulting services or freelance work, funneling the income into your startup.
3. Pre-sales: If you have a product idea, consider selling it before it’s fully developed. This can provide you with the funds to develop it.  (Go back to one of my older posts about crowdfunding – Kickstarter and Indiegogo are great ways to get orders and payments for your product before it is built.)
4. Barter: Exchange your product or service for something you need. This can save costs and build relationships.
5. Hire Interns: Consider hiring interns from local universities. They bring fresh ideas and often work for experience or college credit.  (However, there are employment standards and you need to at least pay them minimum wage in Ontario … but check with your legal adviser to be sure of the requirements.)
6. Outsource: Use platforms like Upwork or Fiverr for tasks that don’t require full-time employees.  The work may be brilliant or terrible, but given enough time, you will be able to recognize the individuals with the best chance of getting you just what you need at an incredible price.
7. Lean Inventory: If you’re in a product-based business, keep your inventory lean and use just-in-time inventory practices.  Although economy of scale shows up in large purchases of your raw materials, you need to live with the higher costs at this stage just to keep the cash flow positive.
8. Open Source Software: Use free and open-source software to save on software licensing costs.  Given enough research you may be surprised at how much you can get done for free without springing for very costly licenses at this stage of your company.

Crazy:

1. Live with Parents: Move back in with your parents or in-laws to save on rent and utilities.
2. Sell Personal Items: Got a collection of vintage toys or an old guitar? Selling personal items can give you some quick cash.  (I have done this, and I have sold other people’s items by mistake as well.)
3. Participate in Game Shows: It might sound absurd, but winning a game show could give you the funds you need! (Cash Cab, The Price is Right, and Supermarket Sweep to name a few.)
4. Crowdfund with a Twist: Instead of traditional crowdfunding, offer quirky rewards or challenges to your backers.
5. Host Events: Organize themed parties or events and charge an entry fee. Use the proceeds for your startup.

Successful Bootstrapped Companies:

• MailChimp: An email marketing tool that started as a side project. It’s now worth over $4 billion and has never taken any outside funding.
• Basecamp: A project management tool that was funded with consulting revenues from its founders’ web design and development business.
• Shutterstock: Founded by Jon Oringer who shot 30,000 stock photos to start the platform. It went public in 2012 and is now worth over $2 billion.
• TechSmith: The creators of Snagit and Camtasia were bootstrapped with personal savings and have been profitable since its inception in 1987.
• Spanx: Sara Blakely started Spanx with $5,000 from her savings. She’s now a billionaire.

Bootstrapping is challenging, but it allows entrepreneurs to maintain control over their business and can be incredibly rewarding. Whether you choose the rational route, the crazy path, or a mix of both, the key is resourcefulness and determination.

You will be surprised how your dedication to bootstrapping may actually bring you head and shoulders above other founders who can’t start their dream because they can’t find an investor.