Most of the founders I know come from families of limited means. And somehow they are making it big. Some of the companies founded by them have raised money and some have not.
But the ones who are still bootstrapped are smarter(read street smarter) in their approach than most of the others.
Many a times you hear that bootstrapping is better than raising funds.
Why do people say that?
Is it just because of the spite because they are unable to reach the upper echelons?
Let’s try to understand this.
I feel an entrepreneur is a person with not much to lose(not overly calculative about Opportunity Costs) and can take asymmetric risk. Also he is a person who can grow organs while on the job.
We all have more gifts than what we think we have!
Do you remember that scene from Harry Potter when Harry pretends to have put the (vial of an all powerful drug, Felix Felicis) in Ron’s pumpkin drink?
Ron’s problem was confidence not skill. And after having believed that he was invincible, he killed the game of Quidditch. He didn’t know that he had the organ, stomach, drive to play quality Quidditch.
Only in our case, we don’t have Harrys in our lives. Only in our case, we are both the Rons and Harrys. Only in our case, JK Rowling doesn’t know who will live or die, we do not know that too, but we will get to know — in time — as the story is still being told.
Ron had a make-believe falling back option.
The same kind of thing happens when you have nothing to lose or no accountability for someone else’s money or have no falling back option.
All you have at your disposal is your skill, perseverance, a couple of contacts and some loved ones — who listen to you rambling over your plans.
There is a common denominator amongst people who build companies. They create business out of thin air. Often with zero cash, pocket money, money borrowed from friends etc. They take care of things which they need the most. They are never headless chickens in their goals — they have sorted short term goals.
They build on their strengths not on their weaknesses. They try to find gears in their body which they think they never had. They are effectuate things
What can be better than telling/reminding someone that they have it in them! Remember the Monkey God Hanuman from Ramayana?
He didn’t know/remember than he could fly? He had no recollection whatsoever of the talent and yet when it was time Purushottam Ram gave this job to him and Hanuman did a wonderful job.
Having no money for business makes us connect to the Rons and Hanumans in us. :)
And that’s why, BOOTSTRAP.
Originally published at https://www.linkedin.com.