The Art of Bootstrapping

The article, "The Art of Bootstrapping," was an excellent article and should be a read for any start up entrepreneur. This first rule, to mind your cash flows is essential - it always surprises me how often this is overlooked. I basically agree with all the rules asserted. Beyond the first rule, on a technical level I like the idea of bottom up forecasting. People are prone to look at top down always and it seems that even if the estimates that come with such forecasting are accurate (and that is saying something) capacity is often overlooked. It doesn't matter how much demand is if there is a cap on supply. Strategically I really thought the "pick your battles idea" is great. Many people who start businesses are independent and stubborn. This is usually an essential quality, but can lead to picking fights/taking stands that just aren't worth it. Sometimes you need to swallow your pride and take your licks. I also like the idea of position yourself against your competitor. I didn't think about this, but it makes a great deal of sense.

I do take issue with one rule, but only partially  This is the idea that you don't need a proven team. I disagree. While everyone need not be a polished expert, having one or two warhorses to  ride is a good thing. This can help get your name out and build your reputation. When trying to differentiate yourself, a little expertise is required to produce a differentiated product. I have found in smaller businesses that success is based upon the people and not some legacy infrastructure of brand. So I think you do need some high quality talent to boost yourself of the ground.

Other than the proven team aspect, I thought this article was excellent. It was succinct and understandable. While there is some need to just drive into ventures - it is easy to over think them - such a rubric helps an entrepreneur plan strategically and hopefully avoid some of the pain. And don't forget, cash is king!