19 October 2011

Save, Skimp or Charge...How do you Bootstrap?

 If you are like me I start drooling when I read headlines like: "Startup Receives $20M Investment" or "Two-year-old startup closes an $8 million funding round." It’s probably because dreaming of insane amounts of cash sounds a lot sexier than the reality of the numbers in our own bank accounts. Truth is most entrepreneurial ventures are self-funded which means the majority of us are in the same boat of saving, skimping and charging our way to fund our companies and our dreams.

So take a deep breath.

We are all eating Ramen Noodles together.

Estimates of the average investment Entrepreneurs make towards their venture range anywhere from $20,000 - $70,000. Which isn't chump change and left me wondering... so we are not going to pay ourselves for 2 years, but we are going to charge our credit cards or get loans, utilizing our savings and possibly get jobs to have enough capital to fund our startup? Then how do I plan to finance preschool, hockey lessons, birthday parties, my house? Not to mention if we have a baby, want to go on a family vacation, need a car upgrade or plan to help our children through college!

While there is a fair amount of discussion outlining the "how to's" of raising startup capital for the business little emphasis is placed on how to bootstrap the family. Money is already one of the top three best ways to start a fight in a marriage (other two are family and sex in case you were concerned) and adding a startup doesn't exactly lower that rating.

Follow up with us tomorrow as we address Ways to Bootstrap Your Family for a Better Startup.

And on Friday I'll fill you in on one of the best ways (tried and true) to keep your family out of the red.

You won't want to miss it.