Bootstrapping is the right choice if you have no other option or if it is your cheapest option. if you cannot access other capital - then look into bootstrapping. Bootstrapping can come in many, many forms - from using personal assets like home equity, personal savings or retirement accounts to tapping friends and family or even finding loal investors in yoru community. It is essentially doing whatever you need to do to get the capital to start, run or grow your business. The reason is the rewards. There are no rewards without risk. But, if you can mitigate or control those risk - and work hard to overcome them - the rewards should far outweigh any risks. Bootstrapping is the right choise if it is your only or cheapest choice for capital. I have bootstrapped several businesses - just do your homework - belive in yourself and your ability and willingness to succeed and protect yourself with well drawn up documentation and agreements. Message Edited by phanio on 12-15-2009 08:24 AM

Bootstrapping your business is all about how much risk you are willing to take yourself (assuming you can self fund). I self funded a franchise purchase a few years ago. I was in a position to be able to start over if need be. Divorced and kids on their own, I could take the risk. If you have a family to support it might be too risky. Chances are quite high that your new biz won't survive. Bootstrapping is the way most small businesses are started. Loans are very difficult to get and grants don't exist for start ups. It used to be that you could take out a home equity loan or max out your credit cards to fund your small business. But self funding that way is difficult these days.