Bootstrapping a start-up business
U.S. News: Can you give me some examples of good bootstrapping techniques?
Frey: Bootstrappers are looking for unusual arrangements—trading, barter, delayed payment, volunteer help, and tons of things for free. They're not afraid to ask for ridiculously one-sided deals because if you don't ask, you'll never know how far you can push it. A bootstrapper will tackle a problem from a hundred different angles looking for ways to create a wedge into a problem and begin prying the problem apart. Good bootstrappers are relentless and tenacious, never letting a good problem get the best of them. They actually look forward to the next problem to tackle.
U.S. News: Could you give an example?
Frey: A small business gets started, and they put everything they have into getting a contract with Wal-Mart. They create marketing material, spend countless hours on the phone and in conversations to land the big Wal-Mart deal. And when Wal-Mart says no, the business owner feels crushed and wants to throw in the towel. But usually they don't get a no answer; they just don't hear anything, and they wait and wait and wait. People need to avoid the single point of failure and constantly keep moving. There are thousands of possible distribution channels, and Wal-Mart, in most cases, should be at the bottom of your priority list because they typically want you to be a well-established business before they order from you. And too large of an order, too soon, can kill a business.
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