Bootstrapping is for Beginners (The True Cost of Bootstrapping)
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Bootstrap (verb) – relying entirely on oneself without the aid or resources of others i.e. strap on boots, slog through the mud, which results in a huge opportunity cost to oneself
We are brought up to believe that bootstrapping in a business is a noble thing to do, and we should take great pride in “doing things ourselves.”
This is a myth.
Also, not asking for help and “doing it alone” is a very masculine way to be.
I know all the common reasons why solo entrepreneurs tell me they must bootstrap:
“I don’t have the money…”
“I’ll save a lot of money doing it myself…”
“I want to learn how to do it myself, first…”
“I just need a little bit more time to figure this out…”
“My [insert relatives’ or friends’ names here] is going to help me…”
Truth be told, I do see some value in bootstrapping when you’re a beginner, just starting out in business. The start-up phase is chock-full of blundering around, course-correction, and is naturally part of the deal. There is value in getting some things figured out before investing a lot of money in areas that may end up not being helpful to you, or your business.
But, the time arrives very quickly (within 3 months) when not getting help will cost you BIG in lost time and income.
There is nothing noble about spending hours, months, and even years trying to do something yourself and achieve a level of success, when a mentor could have told you how to do something in 5 minutes.
All that time easily adds up to thousands, tens-of-thousands, and even hundreds-of-thousands of dollars in lost opportunity and income over time.
So, when is the RIGHT time to get help and a mentor? Here are a few questions to consider:
Have I been working hard, and has my business been performing at the same level for 6 months or more? Have I been making the progress I want?
Would I hire a mentor in an instant “if I only had the money”?
You can also easily calculate the cost of not getting a mentor i.e. bootstrapping:
1. Write down the hours you spend each week trying to figure out how to do something you’ve never done before in your business, or had success doing, such as creating a marketing plan, Internet marketing, getting new clients, selling, branding, creating a successful business and systems, launching a new product, etc.
2. Multiply this number by your desired income hourly rate. (Desired Annual Income divided by Annual Hours to Work).
3. Multiply this result by 52 weeks. The result is the annual cost of NOT getting help from a mentor.
Plain and simple, the cost of bootstrapping is much higher than money saved by “doing everything oneself.”
Bootstrapping is for beginners.
Savvy solo entrepreneurs quickly realize that growing a successful business takes more than one person’s efforts. A mentor can provide the priceless advice and support needed to grow a successful business.
Are you ready to get an experienced mentor’s help to grow your business? My “6 Steps to Create a 6-Figure Business 1-Day VIP Intensive” is now available! It’s complete with all the training tools, scripts, templates, and examples you need to create a 6-Figure business in 12 months (or less). Only 2 1 opening is available. Email me at Bonita@BonitaRichter.com to get more information.
Bonita, great blog. I have been struggeling with this for ever. I am realizing that growing up poor, my family had to be very frugal to survive. This mentality has been deep seeded within me.
I realize the importance and power of community effort and leveraging help from professionals that can work much more effectively.
My other concerns is balance; how much services to invest in, and not bankrupt before realizing the returns. Another one is that there are so many so-called experts, which one will will offer real value? Additionally, I do enjoy learning new thing, so bootstrapping can be addicting in that sense.
Thanks for your contribution. Ty
Hi Ty, thanks for your thoughtful response. You brought up many good points.
As far as knowing how much to invest in your business, there are a few things you can do. If, at first, you answered the questions in the blog and they seem to ring true, some additional things you can do are a 12-month cash flow budget, pluggin in the investment and expected return in cash in and cash out sections. Also, calculate ROI for any money you invest. For example, if you invest $500 in a program that can easily yield 2 to 3 times the investment, then, it is probabaly wise.
Yes, learning is wonderful, and should be a continuous process to learn how to build your business. The key is the other calculation I gave in the article—-what is the opportunity cost for not getting help? By getting help you will still learn—but at a much faster pace
Then, you will have time to learn even more. The result is your business will grow at a much faster pace. Getting a mentor is a winning strategy, no matter how you look at it!