AI-generated summary
Technological entrepreneurship typically follows a fast-paced model involving rapid idea testing, team assembly, MVP launch, market entry, funding rounds, and scaling. While effective, this approach can be stressful and demanding. An alternative gaining traction is bootstrapping, which emphasizes starting a business at a slower, more manageable pace without relying on large external funding. Bootstrapping is characterized by three core elements: limited financial resources, a deliberate slow pace focused on clear direction, and prioritizing sustainability over rapid scalability.
To adopt bootstrapping, entrepreneurs should begin with a simple, manageable idea and a small team, growing gradually rather than aiming for immediate large-scale success. Funding may still be necessary, but investors should be informed that the goal is sustainable returns rather than exponential growth. Long-term planning is essential, contrasting sharply with the lean startup philosophy’s short-term focus. Finally, bootstrapping is best suited for stable, sustainable sectors where speed is not critical, as it may not be effective in rapidly changing industries. This approach offers a more measured, less stressful path to building a viable business that supports its team over time.
Don't go crazy: you don't have to start at full speed, there are other alternatives. Bootstrapping philosophy.
As a general rule, technological entrepreneurship tends to have an exorbitant pace: testing the idea, assembling the team, launching the MVP as soon as possible, going to market, getting funding, growing, scaling, possibly getting more funding… Sounds stressful, right? Well, yes, it can be.
Compared to this model, which is the most common (and surely the most logical, let’s not fool ourselves either), in recent years another one has been implemented that should be studied carefully: bootstrapping. In other words, to start a business at your own pace, calmly and without getting into the usual maelstrom.
What is bootstrapping?
We can summarize it in three ingredients:
- Few resources. It is clear that from the outset you will not have millionaire financing, far from it. In fact, you will most likely have your own resources or, at most, modest funding from your immediate environment.
- Slow pace. Compared to the usual accelerators, bootstrapping becomes almost a ‘decelerator’: it is not about going fast, but about knowing where you are going and taking your time to do it.
- Sustainability. Bootstrapping does not seek to make your company the most scalable in the world, precisely: it is satisfied with creating a sustainable project that supports all the members of your team.
Do you want to install the bootstrapping philosophy in your company?
Here are four steps to get started:
- Be light. And by this we mean everything: don’t look for a very complicated idea, don’t put together a great team and don’t try to start with large amounts of money. You should start humble and grow little by little.
- Do you need financing? Probably so, like almost everyone else, but be aware of one thing: maybe the big investment funds will decide not to bet on you, since your model does not adapt to their way of investing and (above all) divesting. You can start with financing, but let your investor know that you aim to get their money back at some interest, but not multiply it.
- Long term. In the post on the lean startup philosophy we talked about not thinking about the future of your startup in five years, but in five months. Well, here we tell you the opposite: plan your future well and without too much option for improvisation.
- Choose the sector well. Be careful, bootstrapping can be very good, but it is not valid for any sector. If your niche is one where things change every so often, maybe you should change. Look for sustainable sectors in which haste is not an essential value.
