Bootstrap Financing Your Way to Business Success


Do you need to start or grow your business but havelittle money? Before you look to banks and similasources of financing, why not bootstrap your way tobusiness success?A bootstrap is a small loop of leather or othermaterial that is found on the top rear or sides of aboot. The purpose ofthebootstrap is to help youpull your boot on.In business, bootstrapping has come to mean helpingoneself without seeking outside help. It means usingyour own resources to finance, promote, and developyour business.Here, then, are some ways of financing your ownbusiness by using your own initiative and dependingless on outside bank financing.1. Operate a Home-Based Business


Operating your business from home could save you afortune. First of all, you eliminate the costs ofexpensive commercial rent, commuting, et cetera.As well, your business use of home expenses would bedeductible for income tax purposes. Since your homeis your base of operations, your travel and automotiveexpenses from your home to clients would be deductible.


2. Accept Credit CardsRather than financing receivables and assuming the riskfor bad debts, why not accept credit card payments?For more information about accepting credit cards, visit:


3. Drop Ship ProductsRather than financing and stocking inventory yourself,


consider drop shipping.With drop shipping, when you make a sale you contact


the manufacturer or authorized distributor who shipsthe product to the customer with your invoice andshipping label. Advantages include no warehousing,shipping, or inventory costs.For more information about drop shipping, visit


4. Use Your Customer`s MoneySelling memberships, subscriptions, gift certificates,and coupon books are just a few ways of getting yourclients to pay upfront. Obtaining advance deposits


and retainers from your customers can help finance yourbusiness operations and reduce or eliminate the needfor bank financing.5. LcensinInstead of trying to finance the manufacturing andmarketing of your invention, which could cost millionsof dollars before you have your first sale, why not license itto a company with the necessary expertise and capital?You will then receive royalties in return for your idea.














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