What is Bootstrapping?
Building a business using your own money and its own revenue, without outside investors.
Bootstrapping means funding your business from your own savings and the revenue it generates, rather than raising money from investors. You grow slower, but you keep 100% ownership and control.
The upside: no investors to answer to, no dilution, and a forced discipline around profitability from day one. The downside: no rocket fuel, so you scale at the speed your cash allows.
Plenty of great businesses were bootstrapped. Not every company needs to become a venture-backed spaceship — some just need to make their founder rich and free.
Related terms
Definitions from the Business Dog Glossary — educational, occasionally satirical, never financial advice.