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Quote:What is bootstrapping?

So, what does it mean to bootstrap a company? Bootstrapping involves launching a business on a low budget. Practically this means that you’ll outsource (most likely off-shore) your design and development, you’ll rent your servers, you won’t have an office and you’ll have no salary. Prior to launch, the only expensive professional services which you’ll buy will be your legal advice and accountancy services. Everything else, you’ll have to pick up yourself and learn as you go along.

Why bootstrap? There are a couple of good reasons a company should consider bootstrapping its market entry. The founders may believe they are onto such a good idea that they don’t want to give up any equity. Or the founders have taken on a small amount of seed financing, just enough to get them into the market. Either way, bootstrapping is a viable model.