One of our local employers was on the front page of the Monadnock Ledger last week regarding a $400,000 settlement with OSHA for worker safety violations. Ouch! They not only have to pay the fines, but they also must take corrective actions & improve the safety of their workplaces for all of their employees. They have agreed to get a full time safety &...
Bootstrapping: Pulling Your Business Forward With Your Own Savings
Submitted by MBRP on Fri 2/11/11 5:38 pm
Are New England business owners taking advantage of the Five Financing Trends for 2011 featured on Entrepreneur.com? Last week's blog post touched upon Credit Unions - but are entrepreneurs using Bootstrapping to finance their business?
Although less of a trend and more of a necessity, bootstrapping or “pulling yourself up by your bootstraps” means self-financing your business with your savings. Bootstrapping businesses keep costs low by starting small, setting up delayed payments with vendors, bartering for services, using used equipment, working from home or renting office space by the hour – any methods that keeps the cash flow healthy and the business moving forward. More about bootstrapping.
One example of a New England-based bootstrapped business is Boston Beer, the makers of Samuel Adams beer. In 1985 Jim Koch and his partner, with no office or distributors, went from bar to restaurant and found 25 venues who would sell their beer. Today Boston Beer has 750 employees and its beer is available in all 50 states and more than 20 countries. Another Boston company called Sittercity started with an idea and $120 to buy a domain name.
Now let's hear from you. Do you think bootstrapping is a trend - or a tried and true financing method used by most start-ups?