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What is Bootstrapping?

Bootstrapping: Growing a business from its own earnings, without outside investors.

Where Bootstrapping fits

Bootstrapping is part of Lean Startup in Entrepreneurship. Lean startup means building the smallest test (an MVP), learning from real customers, then pivoting or persevering in short cycles.

Practical tip

Validate with customers first and measure what they actually do.

Related terms

Minimum viable product
The simplest version of a product that lets you test an idea.
Crowdfunding
Raising small amounts from many people, usually online.
Scalability
Ability to grow sales a lot without costs growing as fast.
Customer discovery
Talking to likely customers to test assumptions.
Iteration
Repeating a cycle of build, test and improve.
Validated learning
Proof gained from real customer behavior.
Lean startup
Building and testing in small, quick steps.

Formulas you will use with it

Customer churn rate

Test yourself

Which term means: “Growing a business from its own earnings, without outside investors.”?

Bootstrapping · Iteration · Crowdfunding

Answer: Bootstrapping

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