Bootstrapping isn’t Dead
While lending is easing again, the lessons and reminders from a difficult borrowing environment these past few years should be remembered. Savvy entrepreneurs realize that the most readily available and cheapest sources of capital are to be found inside their businesses…aka “bootstrapping”. Finding, developing strategies for, and managing wisely the cash already in your business can carry you through difficult periods in your business driven by either constriction or growth.
In short, these strategies usually amount to the following:
- Actively managing the collection of the cash owed to you by customers, rather than passively letting it come in
- Minimizing the amount of inventory you carry
- Carefully analyze and control the payments you make to your vendors
Each of these very general strategies has many options to consider, but some are more impactful than others.
The available information on the internet to help educate entrepreneurs on the strategies to manage their cash for growth is almost endless. Nevertheless, here is a source that holds a tremendous repository of articles to help guide entrepreneurs to manage their cash on Inc.com.