Strategic Bootstrapping, livre ebook

Strategic Bootstrapping is about helping entrepreneurs sift through the “noise” regarding bootstrapping a start-up. The cold-hard facts on bootstrapping are presented. Practically speaking, most entrepreneurs should avoid bootstrapping, realistically, most entrepreneurs will need to engage in some form of bootstrapping. The argument
then shifts to how should one bootstrap? In this era of lean start-ups, effectuation, and bricolage, bootstrapping is oft romanticized but seldom analyzed. This book is different from other bootstrapping books in two key ways. First, it draws on evidence from scienti c study to offer best practices. Second, it utilizes this evidence to help en-
trepreneurs thrive—not just survive.
Chapter 1 Bootstrapping Described ...................................................1
About This Chapter ..........................................................1
What Is It? ........................................................................3
The Cowboy Way—Brief History of Bootstrapping ..........4
Bootstrapping Involves Making Choices about
Initial Financing ................................................................7
Bootstrapping Involves Creatively Operating
in Resource-Poor Environments ........................................8
Myths Associated with Bootstrapping ...............................9
Strategic Bootstrapping versus Reactionary
Bootstrapping .................................................................12
The Structure of the Book ...............................................13
Chapter 2 Bootstrapping and the Problem of Being New ................15
About This Chapter ........................................................15
Engage in Self-Reflection ................................................16
Newness ..........................................................................18
Overcoming Newness Liabilities .....................................21
The Importance of Legitimacy in the New Venture .........22
The Importance of Signaling in the New Venture ............24
Summary ........................................................................24
Chapter 3 New Venture Finance Considerations for the
Bootstrapper ...................................................................27
About This Chapter ........................................................27
The Funding Gap ............................................................28
Types of External Financing ............................................30
The Bermuda Triangle .....................................................35
The Financial Growth Cycle ............................................38
Summary ........................................................................39
Chapter 4 Financial Bootstrapping ..................................................41
About This Chapter ........................................................41
How Common Is Bootstrapping? ....................................42
Why Do Entrepreneurs Bootstrap? ..................................42
Types of Bootstrappers ....................................................46
Types of Bootstrapping ...................................................47
Summary ........................................................................49
Chapter 5 Bootstrap Strategically .....................................................51
About This Chapter ........................................................51
A General Model of New Venture
Survival and Growth .......................................................52
Sending Legitimizing Signals ...........................................53
Summary ........................................................................61
Chapter 6 Typologies for Strategic Bootstrapping Success ................63
About This Chapter ........................................................63
Strategic Bootstrapping—Behavioral Typologies .............64
Strategic Bootstrapping—Business Model Typologies ......68
Points of Caution and Tactics to Avoid ............................71
Summary ........................................................................72
References .............................................................................................75
Index ...................................................................................................85