Bootstrapping

Question 1

What is new-new approach?

Answer 1

A start up approach to business in which a brand new concept is introduced to a brand new marketplace

Question 2

What is new-old approach?

Answer 2

A start up approach to business sin which the concept provides a new angle to something that already exist sin the marketplace

Question 3

What is family-succession?

Answer 3

The process of transferring the assets of a family business from one generation to the next

Question 4

What is re-enginerring organisation

Answer 4

Renovating and configurating organisational cultures, structures and systems to achieve high levels of innovation enterprise.

Question 5

What is bootstrapping?

Answer 5

Means of starting a new venture through higly creative acquisition and the use of resoources, the use of existing resources and a new business without financing.

Question 6

What is cash flow?

Answer 6

The measure of movement of money within a business venture, including outflows and in flows. It is measured over a period of time. Flow of money in must provide timely coverage for any necessary flows of money out of the business venture. You must never run out of cash flow, even temporarily.

Question 7

What are some bootstrapping options for product development?

Answer 7

• Prepaid licences, royalties or advances from customers
• Special deals on access to product hardware
• Customer funded research and development

Question 8

What are some bootstrapping options for business development?

Answer 8

• WFH using personal savings
• Space at below-market or very low rent
• Deals with perso

Question 9

What are some bootstrapping options to minimise the need for capital?

Answer 9

• Buying used equipment instead of new
• Hiring personnel for shorter periods instead of employing permanently.
• Deliberately choosing customers who pay quickly
• Sharing business premises with others or running the business from home.

Question 10

What are some bootstrapping options to meet the need for capital?

Answer 10

• Withholding entrepreneurs salary payment or log period of time
• Seeking out best purchasing conditions with suppliers
• Obtaining loans from relatives and friends
• Franchising or licensing the product or business idea to others for a royalty fee

Question 11

What is the least useful bootstrapping option for product development?

Answer 11

• Research grants and university based research incubators

Question 12

What is the least useful bootstrapping options for business development?

Answer 12

• Severance payments, barter and special terms with customers

Question 13

What is the least useful bootstrapping option to minimise the need for captial?

Answer 13

Sharing of equipment and employees employed with other local businesses

Question 14

What is the least useful bootstrapping option to meet the need for capital?

Answer 14

Raising capital from a factoring company by selling the companys accounts receivable.

Question 15

What are some low-cost but quality sources of assistance for bootstrapping entrepreneurs?

Answer 15

• Access to business information
• Training programs
• Business referrals
• Government programs
• Business networks
• Workshops
• Mentoring support
• Business analysis
• Business incubators
• Access to finance

Question 16

What is an example of a successful entrepreneur creation program?

Answer 16

In Thailand, OTOP - One Tambon One Product - Focuses on creating markets of community entrepreneurs and assisting in exports.

Question 17

What are the pros and cons of bootstrapping?

Answer 17

Pros
- Less equity dilation, greater control, stronger incentives, measured and focused progress and greater flexibility

Cons

• Slower growth, less cash for adequate or timely product development.
• Limited choices in support and stuff which undermines the quality and performance of the venture
• Inability to defend against or target disruption to larger, better resourced competitors