Important Bootstrapping Techniques to Meet the Need for Capital:

  • Withhold → Entrepreneur's salary payment for short or long period of time

  • Pay employees with company stock (that is, save on cash expenditures and give the employees some ownership and additional motivation to work hard)

  • Seek out best purchasing conditions with suppliers

  • Deliberately delay payment to suppliers

  • Use the entrepreneur's private credit card for business expenses

  • Obtain capital via the entrepreneur's assignments in other businesses

  • Obtain loans from relatives and friends

  • Barter underused products or services with other firms

  • Franchise or license the product or business idea to others for a royalty fee.

     

 

 

The least employed bootstrapping methods used to meet the need for capital include raising capital from a factoring company (through selling the firm's accounts receivable to the lender) and obtaining central or state subsidies.

 

   

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