Wednesday, June 20th, 2018

What Is Bootstrapping and Why Is It Important?


One term that you will hear a lot when first starting your business is bootstrapping.  This term simply means limiting your costs to the bare minimum in order to help increase initial profits while reducing startup expenses.

Bootstrapping is important for a number of reasons, and the next few paragraphs will help you understand why it should be an integral part of your business strategy.

When you are starting a new business, there is always a degree of risk involved.  If you go out and rent a large office and buy a brand new vehicle before you start your business, you are creating a great deal of potential for loss.

The amount of money that you need to make in order to see a profit is directly related to how much you are spending.  If you spend only the bare minimum to get your business going, you can turn a profit rather quickly.

If you are like most new business owners, your initial funding is going to be rather limited.  By bootstrapping, you can start a business for almost no additional investment.

If you already own a car, a cell phone, and a computer with a printer (or can access one), then all you will really need is a good startup kit.  This means that your entire investment in the company is minimal and that money generated will be almost entirely profit.

Bootstrapping when starting a courier business means literally operating at bare minimum.  In addition to the things listed above, you should only need a clipboard, business and car insurance, and the gas money needed to ensure that you can do your job and visit potential customers for the first month.

Most clients will pay their invoices every thirty days, and when your first client pays you for a job that required nothing more than gas costs, you will start to see that bootstrapping really is the most profitable way to conduct business.

  • dannyogolo

    Thanks for the info.
    I intend starting up a Messenger/Courier business in my city in Africa. But I was also thinking of Dispatch programme/software. I havent seen this covered in your forums.
    I intend hiring a bike guy or 2 while I or my wife focus on Dispatch and Info Tech and Marketing.
    What dispatch programmes do you suggest?
    I have only seen digital waybill and ontime360, but I will ideally like a stand alone system where I wont have to pay monthly bills.



  • Ben Adams

    I live in a small rural area that has no taxi service. I am curious if a combined courier/ taxi/ small delivery service would be practical? If it would work? As far as business courier I live in KY and we have many small counties so I could reach many different cities in a day’s time.
    Let me know your thoughts please.

    Thank you
    Ben Adams