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Bootstrapping For New Ventures Essay

950 words - 4 pages

Running head: BOOTSTRAPPING FOR NEW VENTURES

BOOTSTRAPPING FOR NEW VENTURES
Antoinette Brown
Metropolitan College of New York
BOOTSTRAPPING FOR NEW VENTURES

Abstract
Bootstrapping, frequently regarded as a means to an end when there are no other options to finance a business. Entrepreneurs commonly use bootstrapping practices to help get new ventures up and running. For most small start ups, the process of securing financial backing is risky. When outside capital financing, venture capitalists, banks, and angel investors do not exist
Bootstrapping is entrepreneurship in its purest form. It is the transformation of human capital into financial capital. The overwhelming ...view middle of the document...

Small companies, particularly a home-based business, often suffer from lack of marketing and financing.
The big risk in my opinion with bootstrapping techniques is exhausting your resources before the venture can become financially viable. Bootstrappers often work on a trade and barter method by trading on skills or collaborating to form a bigger network of support. For example, small marketing agencies regularly use this method by hiring out video production, market research, and various other services. It is you wash my back and I will wash yours.

BOOTSTRAPPING FOR NEW VENTURES
Bootstrapping businesses reduce risk and cut expenses by making healthier decisions and reducing expenses. Entrepreneurs with slight resources should include in their business model compensation subsequent to the distribution of products or services. Businesses that started from home frequently have the essential tools like, connections, resources, and specific skills that will help your venture from the beginning. Starting a conventional business using capital financing, venture capitalists, and banks, will also enable you the resources to operate the business. Using bootstrapping techniques, you really have to be creative to obtain the resources needed. It is not easy to borrow money to start a business. Most people are skeptics when investing in someone else’s dream.
Becoming an entrepreneur is different for everyone because no two businesses start the same. Starting my venture, I will use bootstrapping practices because I do not have the connections or the credit to have venture capitalists, and banks to fund the business. My sister is a technical writer and she will help with the web site and any other technical needs I have. My mom is willing to give me 20k after I have finished the MBA program to start my online venture.
I am working on gathering all the necessary tools now so I will be well prepared from the start. This course is really helping me to realize all the things that have to be included in my business plan in order for my venture to be successful.

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