One of the major sticking points of starting your own business is the envitable question... "Where do I get the money to do it?" I ask this question on any project I work on and so does every entrepreneur. It's actually the biggest wall to hurdle for most new startup companies. Of course the answer is different for every business...but the pro's and con's are all pretty much the same.

My answer has always been to bootstrap your startup at first. It's not easy, but it forces you to do several things.

Be Creative: When you don't have several months or years of backup cash in the bank, you're forced to claw and scratch to find money to keep building your product. Yes it can be distracting when you're starving, however it helps you in the long run fine tune and adjust your business model.

Build basic business priciples: We see so many startups in the online world trying to defy basic business principles. It's as though the founders think their business doesn't need to follow the basics because it's so much better than the rest. I've been there. Trust me, it doesn't work. Focus on the basics and the rest will follow. The likelihood that your startup is going to eventually succeed without the basics is worse than winning the lottery.

Eliminate waste: This is pretty straight forward, but I feel it needs to be said. When you don't have a ton of money, you don't spend it. When you do have the money, you do. Many times you can get by without spending that money. It's the old adage..."A penny saved is a penny earned." That cannot be more important than when starting a business.

Focus on profits: I can hear Jim Mora right now..."Profits? Don't talk about...Profits? You kiddin' me? Profits?" (See video reference below) It seems so many startups forget about profits when they have plenty of money in the bank from a loan or investors. However, it's the whole reason they're in business. If you can bootstrap your business and find a way to be profitable at the same time, congrats! You've just found the holy grail of starting a business. Pop a cork or tap a keg, it's time to celebrate.

Stop Daydreaming: This is something I have a hard time controlling myself. I like to day dream just like everyone else. The rewards of having a successful business are great, however it gets you no where to dream about your 100 foot yacht when you have a sales call coming up.

It seems everyone is always looking for the easiest way to do something. I can't blame them. That's just basic human nature. However, taking venture capital or getting a business loan is not always that simple or easy. It takes a long time, distracts you from the core of your business and decreases your profitability in the end.

Bootstrapping is what I call the "tiny door". It's the one that is the most difficult to get through, but when you do make it through the rewards are always greater. The choice is up to you, but now you know where I stand.

Enjoy the Jim Mora Reference: