Preventing Frugality from Interfering with Business Growth

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The Bootstrapping Conundrum

Why being too risk-averse can actively interfere with making good investment decisions

By Andrea Hill

In technical terms, bootstrapping means building a business from scratch using one’s own money and reinvesting organic cash flow to grow instead of seeking outside capital. In practical terms, bootstrapping has come to mean using an incredibly frugal approach to investing in one’s business. Bootstrapping has become a mindset and a buzzword rather than a growth strategy.