Bootstrapping

Bootstrapping (in Business) is to start a business without external help or capital. The hard thing about bootstrapping is that there are a whole bunch of business processes and areas of expertise that have to be known and executed correctly. Now, often when someone is talking about bootstrapping a startup, they have some minimal and often much more significant financial resources, and they are able to outsource a whole bunch of those business processes and just pay for them. What happens if a startup doesn't have the funds to pay for such services. Well, they better be good at accounting, and have a thorough understanding of legalese, and be technologically savvy, and know hr policies, oh, and not just regular accounting, they also need to know enough about merchant accounts and banking to be able to make sure they are getting paid. They need to be an expert at taxes, which while most people think that means accounting, there is a whole separate class of accountants that deal with taxes.

My personal experience with bootstrapping wasn't quite that bad, but close. We got a pretty big contract right out of the gate which paid for things like an accountant/tax professional, got some legal advice on trade, and had enough cash that when our merchant account got messy, we were able to make it through that without too much problem. We had the technology understanding, so we were able to get around that. They problem was, we wanted to do far more than what we could afford. We did contract work for other companies with the hope that it would pay enough for us to work on our own projects. Well, being our first attempt at running our own business, we didn't execute it flawlessly or even close. We did survive being stiffed $40,000 by a client, and were able to continue operations for 2 years until the economy collapsed and most of our clients went with it (for some reason, we had a lot of mortgage and real estate clients at that time).

Since then, I have reverted to the garage band version of business. I am developing a big software system in my spare time with two partners, but we have no business at this point, as we have no product to sell. We have no cash, and all our work is done on our personally owned machines. We would love to try to venture a small trial balloon offering to see what kind of response we would get, but that would constitute conducting business, which would mean bank accounts, business licenses, accountants, lawyers, taxes, and so forth. I think back to the days of yore when you built something or had something or provided some service, and you just went about doing business. Sure, the tax man would want his share, so some simple accounting would be needed to track what you did so you could pay your share of taxes, but that would be the end of things. I know there are some who still try to do it that way today. The problem is that complying with the law and regulations has become more complex than most people can manage unless that is all they focus on.

It shouldn't have be like that. We need some kind of established system that in a very cost effective way, provides all these services so that a businessman/bootstrapper could focus on what they are doing. Intuit provides a lot of those services, and even pretends to integrate them, but it really doesn't meet the needs. They, or their competitors, need to provide a complete small business we take care of your headaches so you can take care of business package. No nickle and dime marketing, just a single upfront, complete, take my headaches away small business startup solutions package. Yeah, I know, each small business has different needs, so they can offer an a-la-carte service selector, but when all is said and done, they take care of the headaches. They business registrations, the tax payments, the payroll, the hr, etc, etc, etc. Yeah you will need to sign off on things, but they do all the prep work. Much of it could be automated, and the rest could reach into a community of providers that work from a standardized set of requirements. And, I should be able to get price without committing to the purchase, just in case I am not ready to pull that trigger yet.