What is a bootstrap and why do I care?

You may have heard of ‘bootstrap financing’.  This means starting a business with little or no outside capital.  "But", you say, "I don’t need any money, I’m going to get a grant to start up my business".  Contrary to what you might hear from the guy on TV, or see in ads and seminars offering free money for start-ups, the majority of business start-ups require a significant contribution from the business owner.  I heard one speaker last week say that the average entrepreneur contributes at least $30,000 of his or her own money to start up their business.  This might be in the form of gifts or loans from friends and family members, maxing out credit cards or using personal savings. 

In Washington State, there are some small business loan programs, microloan programs and grants available for start-ups, but these still require an investment  on the part of the business owner.  Also, you will most likely also need a business plan, financial statements and financial projections for any grant or loan application.  There are extremely limited grants available for the average business venture, unless you have some revolutionary product or are working on a high-tech or technology product, grants are even fewer and farther between.

Want to learn more about bootstrap financing?  Attend a short class on business financing – Thursday, June 11th, 11:30 a.m. to 1:00 p.m.  This workshop will tell you what funding sources are available and  where to find them.  Perfect for the new business owner who needs to project financials, discover funding options or for the potential business owner who is evaluating whether starting a business makes sense. This class is part of a four-part Working Lunch Series – there is also a class on basic marketing on June 25th.  Classes are held at the Central Washington Business Resource Center and are $15.00, which includes lunch.  Call me at 575.1140 to reserve your spot.