How Bad Do You Want It?

When it comes to startup, it’s not enough to take risks–you have to love them.

By Hayli Morrison • Jul 13, 2009

Opinions expressed by Entrepreneur contributors are their own.

This article is part of the Spend Smart series. Read more stories

There are risk-takers and then there are “startup people.” Startup people make risk their bedfellow, keeping an eye on the prize even when the world seems pitted against them. A team of startup people can make all the difference when cash is low and morale even lower.

“To take on this level of risk only comes from passion. It’s an issue of, ‘How much do you want that company?’ It’s total torture,” says Penelope Trunk, founder and CEO of BrazenCareerist.com, who has blogged openly about cash-flow challenges.

Trunk discusses events most entrepreneurs prefer to keep quiet, like when her company couldn’t meet payroll or the electric company cut her off for non-payment. “I would distract myself–eat a lot of bagels,” Trunk recalled. In a startup, she added, each team member must ultimately be responsible for keeping his or her own chin up. “You need people who are startup people, so if that’s not who they are, you can’t change that.”

Even with the right team, the odds of long-term success are heavily stacked against any startup. However, the game ends only when the players quit, and startup people inherently rely on a few strategies to persevere.

Don’t sweat the debt
Debt is often viewed as part of the startup process. While some startups have managed to navigate the waters with gradual, revenue-based growth, they are the exception. Most entrepreneurs view debt simply as part of the puzzle, and try to factor repayment into their future business plan.

“You can carry debt, as long as you have great prospects in front of you that motivate you to go out and win business,” says Pete Bush, certified financial planner and owner of Horizon Wealth Management. “You can make case after case of people who were right on the brink of bankruptcy–even came out of bankruptcy–and saw huge success.”

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3 Boostrapping Tactics for Lean Times

Bootstrapping thrives even in tough markets with a little creativity. Fortunately, that’s a foremost trait in most startup people.

Look at regional banks. Traditional business financing may be more viable locally. “You find a little bit more loose purse strings, because they tend to know their clients better and they’re not mass-producing these relationships like larger banks are,” Pete Bush says.

Trim expenses. Minimal expenses is a worthwhile goal and key to any success formula. Hire interns for college credit, offer commission-based pay, or forego a personal salary. Trim costs in non-essential areas while preserving quality of customer service and overall profitability.

Pursue guerilla marketing. Marketing during a recession can yield dividends when the economy rebounds. Many entrepreneurs put time and energy into low-cost guerilla marketing tactics like grass roots efforts, viral marketing through social networks, subtle product placement, and word-of-mouth publicity.
Bootstrapping: Weapon of Mass Reconstruction Quality over quantity Ramp up revenue

There are risk-takers and then there are “startup people.” Startup people make risk their bedfellow, keeping an eye on the prize even when the world seems pitted against them. A team of startup people can make all the difference when cash is low and morale even lower.

“To take on this level of risk only comes from passion. It’s an issue of, ‘How much do you want that company?’ It’s total torture,” says Penelope Trunk, founder and CEO of BrazenCareerist.com, who has blogged openly about cash-flow challenges.

Trunk discusses events most entrepreneurs prefer to keep quiet, like when her company couldn’t meet payroll or the electric company cut her off for non-payment. “I would distract myself–eat a lot of bagels,” Trunk recalled. In a startup, she added, each team member must ultimately be responsible for keeping his or her own chin up. “You need people who are startup people, so if that’s not who they are, you can’t change that.”

Even with the right team, the odds of long-term success are heavily stacked against any startup. However, the game ends only when the players quit, and startup people inherently rely on a few strategies to persevere.

Don’t sweat the debt
Debt is often viewed as part of the startup process. While some startups have managed to navigate the waters with gradual, revenue-based growth, they are the exception. Most entrepreneurs view debt simply as part of the puzzle, and try to factor repayment into their future business plan.

“You can carry debt, as long as you have great prospects in front of you that motivate you to go out and win business,” says Pete Bush, certified financial planner and owner of Horizon Wealth Management. “You can make case after case of people who were right on the brink of bankruptcy–even came out of bankruptcy–and saw huge success.”

Share stories

3 Boostrapping Tactics for Lean Times

Bootstrapping thrives even in tough markets with a little creativity. Fortunately, that’s a foremost trait in most startup people.

Look at regional banks. Traditional business financing may be more viable locally. “You find a little bit more loose purse strings, because they tend to know their clients better and they’re not mass-producing these relationships like larger banks are,” Pete Bush says.

Trim expenses. Minimal expenses is a worthwhile goal and key to any success formula. Hire interns for college credit, offer commission-based pay, or forego a personal salary. Trim costs in non-essential areas while preserving quality of customer service and overall profitability.

Pursue guerilla marketing. Marketing during a recession can yield dividends when the economy rebounds. Many entrepreneurs put time and energy into low-cost guerilla marketing tactics like grass roots efforts, viral marketing through social networks, subtle product placement, and word-of-mouth publicity.
Bootstrapping: Weapon of Mass Reconstruction Quality over quantity Ramp up revenue

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