Bootstrapping: Doing More With Less

Some of you may have followed a recent discussion on my blog, 18,000 People On The Bench At Infosys.

I have to say, I am continuously frustrated by aspiring entrepreneurs telling me that they cannot move forward because seed funding is not available in India. My message has always been, bootstrap the beginning, and then you can raise funding after your business thesis has been validated. That way, you preserve equity, and have the option also to not raise money at all. In my book, Bootstrapping: Doing More With Less, which comes out in India in September, I have discussed this topic at length. Even in Entrepreneur Journeys (Volume One), I opened the book addressing the issue of bootstrapping. This book has been available in India for a few months now.

Indian entrepreneurs, you must learn to bootstrap. Here’re some short video interview clips that Dwevesh Divedi of Breaking the 9 to 5 Jail produced where I have discussed the topic further. If you have a 9-5 job, you are in a perfect position to bootstrap a venture on the side. Hundreds and thousands of aspiring Indian entrepreneurs in corporate jobs: your seed capital is coming to you in form of a pay check. Use it, my friends.

14 Responses to “Bootstrapping: Doing More With Less”

  1. They are the same book, Hachette published it under a different name in India.

  2. Sramana,
    Which is the book you wish to point at. I can see 2 similar books:
    a) Bootstrapping – Doing More With Less by Sramana Mitra (Paperback – 2009)

    b) Entrepreneur Journeys: Bootstrapping: Weapon Of Mass Reconstruction (Volume 2) by Sramana Mitra (Paperback – 2009-04-16)

    Or are they 2 geographic versions of the same book ?

  3. Vijay Anand says:

    Absolutely agree you on that Sramana. But there is a scheme rolled out which does collateral free lending, but it hasnt quite taken off. Am personally involved in some of that to make it happen – It has become one of the pet Projects for Jhun and Myself. Should see that roll out in a few months, and that’d make a huge difference.

    The terms in a gist:
    1. Collateral free loan for upto a crore
    2. 180 Banks signed up as partners for the scheme
    3. On Default, the govt covers for upto 75% of the repayment on the loan – which is quite high, given that the returns on Microfinance is only 65%, so its a safe bet for most banks.

  4. Sramana says:

    The biggest problem with loan-based financing for startups in India is the collateral issue. Equipment can be financed, property can be financed, but working capital cannot.

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