In the startup world, bootstrapping is a term for financing a company the old-fashioned way — on your own and from scratch.
A scrappy entrepreneur starts with very little money, sinks in her own savings, takes on little to no debt or any major investment and pours in sweat equity (and some tears) to build a business. Money is important, but startups also rely on friends, borrowed office space and other cost-saving resources to help move the business forward. Even in the venture capital age, startups are choosing to bootstrap their endeavors in order to more securely control their company’s growth and direction.
So what can those of us who aren’t (yet) entrepreneurs learn about budgeting from bootstrapping startup founders? Plenty. Here are five lessons about living within your means, adopting a DIY attitude, and learning how to turn limitations into opportunities based on bootstrapping principles that you can apply to your own life.