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Bootstrapping or ... ?

by Troy_Phillips
4 replies
It appears the common business model for most is to bootstrap their business.

You know, start out small and reinvest some of their profits into going bigger.

Have you as an online business owner tried to secure traditional funding for an online start up.

I ask for two reasons. First I found it was a lot easier to secure a personal loan than to try to tie it to a new business model and get the loan personnel to understand what was going on.

Second, I finally found a S&L that wants me to set up an affiliate type deal for them to offer and put the offer for financing up as a resource on my site. AS a new marketer or an old pro that wants to start a new venture, would you be interested in securing relatively easy financing to push the venture into a faster gear?

Troy
#bootstrapping
  • Profile picture of the author Suthan M
    I am quite wary of starting a business on a loan, unless It is something that has proven to be money making to begin with.

    (please don't confuse money making venture for others to be automatically be a money making venture for you too)

    I have seen a lot of business flops due to the fact that they took financing way before they should.

    Ideally bootstrapping initially, until you find a stable ground is the best way. Once you have achieved that, and are VERY VERY confident of moving forward, then start to look for bigger financing.
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    Whats the latest movie you watched? Anything good?

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    • Profile picture of the author Troy_Phillips
      I don't have a problem with bootstrapping .. been there done that.

      Say you are starting a lawn service. Is it smarter to cut grass with a borrowed push mower until you can buy the zero turn and hand out business cards or secure enough capital to buy the zero turn and profitable advertising upfront?

      Both have their own merit.

      Situations vary. What works for one could scare the other to death.

      While it could scare some to get into the situation of owing money before job one .. some like me would be scared to drag a business out to the point of never regaining lost clients who didn't get my message in time to choose me.



      Originally Posted by Suthan M View Post

      I am quite wary of starting a business on a loan, unless It is something that has proven to be money making to begin with.

      (please don't confuse money making venture for others to be automatically be a money making venture for you too)

      I have seen a lot of business flops due to the fact that they took financing way before they should.

      Ideally bootstrapping initially, until you find a stable ground is the best way. Once you have achieved that, and are VERY VERY confident of moving forward, then start to look for bigger financing.
      Signature

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  • Profile picture of the author hustlinsmoke
    I have heard of some getting startup when buying a proven website. If I was a finance company I would not invest in this though. Look how fast the web changes. I do not care if your site has been up since 1995, it could all change in a blink of the eye.
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    • Profile picture of the author Troy_Phillips
      AS I said .. it was less hassle for me to just do a personal loan. My accountant says it will still be a tax write off and for a long term business .. things of that nature are important.


      Originally Posted by hustlinsmoke View Post

      I have heard of some getting startup when buying a proven website. If I was a finance company I would not invest in this though. Look how fast the web changes. I do not care if your site has been up since 1995, it could all change in a blink of the eye.
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