The $100 MBA Show MBA2307 Why You Should Always Bootstrap Your First Business
If you're a new entrepreneur, the best way to start is by "bootstrapping" your first business: as in funding it with only your own resources, rather than getting a loan or outside investment.
Why? Well, that’s exactly what we’ll get into in today’s episode.
Truly seasoned entrepreneurs will tell you that your first business is not likely to be the one that brings you long-term success. That doesn’t mean you shouldn’t give it an honest try — but it’s more strategic to think of your first venture as (primarily) a way to develop your business skills.
Real entrepreneurs don’t sink all their hopes, and other people’s money, into their first idea.
Real entrepreneurs are agile. They learn and pivot. They fail until they figure out what works. It might be your second, third, or tenth idea that really breaks through!
The fact is, taking outside investment creates unhelpful pressure. You'll be responsible for paying back loans or delivering an ROI, which can be incredibly stressful. But by bootstrapping, you'll have the freedom you need to succeed on your own terms.
You'll also develop a sense of autonomy and self-reliance, which are crucial skills for any entrepreneur.
Explore why bootstrapping your first business is the best approach, and get some tips and examples for how to pull it off. Until you know how to win, play with house money.
SUBSCRIBE