How to Bootstrap

    Bootstrapping is funding your business through your clients: using revenue from real sales to pay for what it costs to build and run what you're selling. It's the most common funding strategy for businesses, and the foundational skill every business has to master no matter what else they raise later.

    If you can't eventually turn customers into the funding source for your business, you don't really have a business. You have an expensive hobby.

    Is this right for you?

    Bootstrapping is the right answer for everyone, at least as a skill. Every business has to figure out how to use customer revenue to fund itself, including ones that also raise outside capital. The real question isn't whether bootstrap fits you. It's whether bootstrap alone fits you, or whether you'll need to combine it with borrowing or betting along the way.

    Bootstrap alone fits when:
    • You're building for current income or to build an asset (not necessarily a unicorn)
    • You want to keep full control
    • Your business model doesn't need a big upfront investment
    • You can plot a realistic path to break-even on the runway you have
    It's harder as your sole strategy when:
    • You're in a winner-take-all market where speed is the moat
    • You're in a capital-intensive industry (hardware, biotech, regulated)
    • Your business can't get to revenue without significant upfront investment

    Get good at bootstrapping early and you give yourself options later: you can keep going on your own, choose to borrow or raise equity from a position of strength, and pick the partners that fit your vision instead of taking money from the first person who offers it. Depending on your industry, you may also be able to layer in non-dilutive funding: grants (including SBIR/STTR), prize money, R&D tax credits. All of it can supplement bootstrapping without costing you equity or requiring repayment.

    Still working out where you land? Read more on the To Raise or Not to Raise page.

    Foundations

    Carol Dweck - Mindset: The New Psychology of Success

    Dweck's research on growth vs. fixed mindset is foundational reading for the long bootstrap path. Building a real business is a multi-year endurance and learning problem, and the fixed-mindset trap, believing your abilities are static, is one of the most common reasons founders stall before they should. Read this first to make sure you're approaching bootstrapping with the right frame. About the book.

    Annie Duke - Thinking in Bets

    When you bootstrap, you're the first investor in your business, and your own time is the biggest thing you're putting in. Duke's poker-derived framework is about being a good investor of it: outcomes are rarely binary, so every call (which client to take, what to charge, when to hire) is a bet on uncertain outcomes, not a right-or-wrong choice. She shows you how to judge decisions by how you made them, not just how they turned out. It's the same thinking behind the FRIC method. About the book.

    Mike Michalowicz - Profit First

    The money mechanics of funding a business through your clients. Michalowicz flips the usual formula: take your profit first, then run the business on what's left, by moving a set percentage of every deposit into separate accounts before you spend it. A simple system for making sure customer revenue actually funds the business, and you. About the book.

    Other voices

    Four founders who have built real businesses on customer revenue, in software and well beyond it. My take on each one is on the left; where to start reading is on the right.

    Jason Cohen

    Two unicorns, one bootstrapped and one funded. The rare voice who's done both.

    Best for: Operators who want a thinking toolkit, not just war stories.

    My take

    Jason has built four companies and produced two unicorns: Smart Bear (bootstrapped to millions in profit, sold in 2007; later resold for ~$2B) and WP Engine (bootstrapped for two years, then raised $300M+ to fuel hyper-growth to a unicorn with 1,200 employees). That combination, built one bootstrapped and built one funded, is rare. He knows when each path is right and how to make the switch.

    His writing is the most useful "operator's handbook" out there for early-stage founders: pricing, positioning, finding repeatable customer acquisition, and getting to true product/market fit. The one I quote most often is his use of Fermi estimation for decisions that look like they don't have a quantitative component. It brings real rigor to calls most founders make on gut feel alone.

    Reach for him when you're stuck on a decision and need a framework for breaking it into knowable parts.

    Start here

    Jason Fried

    25+ years bootstrapping 37signals. Built Basecamp, HEY, and ONCE without taking a dollar of VC.

    Best for: Founders building software companies who want to challenge the venture-default assumptions.

    My take

    Jason has been profitably bootstrapping 37signals since 1999, building Basecamp, HEY, and ONCE without taking a dollar of venture money. He's the co-author of Rework, It Doesn't Have to Be Crazy at Work, Getting Real, and Remote, some of the most influential books on running a calm, profitable software company.

    For founders in the building stage, Jason is one of the longest-running voices for an unglamorous-but-resilient path: charge for your product, keep your team small, build the company you actually want to work at. He's been making this case for 25+ years and has the receipts to prove it. A truth-teller who shares the nitty-gritty and isn't afraid to say what no one else will.

    Start here
    • Books: Rework and It Doesn't Have to Be Crazy at Work - short, punchy, full of operating principles you can apply this week.
    • Jason on HEY World - His current writing home; short, frequent, opinionated.
    • REWORK podcast - Bite-sized episodes on pricing, hiring, product, and how 37signals actually runs.
    • More from Jason: 37signals

    Jasmine Bhatti, RN

    Built Navi Nurses to 200+ nurses in Phoenix. A rare voice writing publicly about the non-tech bootstrap path.

    Best for: Mission-focused founders building real multimillion-dollar service businesses outside the venture default.

    My take

    Jasmine is a Registered Nurse who founded Navi Nurses, a private-duty nursing company in Phoenix, in 2021, and has bootstrapped it to a network of 200+ nurses providing in-home care across Arizona. She's a non-tech, services-business founder who has deliberately chosen profitability over outside capital, and she shares her thinking openly on LinkedIn about that choice.

    She speaks openly about what it's like to build a business focused on profitability now, and she got there after seriously considering outside capital, so she knows both sides of the conversation. She's pursuing a business that fits her own goals: creating an opportunity for other nurses, serving an underserved population, and letting her live the life she wants. Not the rise-and-grind vision of entrepreneurship that gets pushed everywhere else.

    Especially good for female and underrepresented founders who are mission-focused and trying to reconcile that mission with building a real multimillion-dollar business. And she's a great example for anyone starting without a traditional business background. Jasmine built Navi Nurses by leveraging local resources (starting with ASU Venture Devils) and growing from there.

    Start here

    Marie Forleo

    Interviews diverse leaders like Oprah Winfrey, Brené Brown, and Richard Branson on the heart and mechanics of building a business, for non-tech founders just getting started.

    Best for: Aspiring and early-stage non-tech founders, especially those who haven't taken the leap yet.

    My take

    Marie is a long-running entrepreneur, host, and educator. On MarieTV and the Marie Forleo Podcast she's interviewed Oprah Winfrey, Brené Brown, Richard Branson, and hundreds of other leaders, researchers, and entrepreneurs. She also runs B-School, her flagship online course for new entrepreneurs, and writes regularly on her blog. Her body of work is built for non-tech founders, especially those who haven't taken the leap yet.

    What makes Marie distinctive on this list is that she takes the human side of building a business as seriously as the mechanics. She talks about heart, soul, courage, and identity alongside marketing, pricing, and customer acquisition, and her interview library brings in voices on vulnerability, creativity, and leadership that you wouldn't encounter in a strict business curriculum.

    She fully embraces her personality, including her unique takes and musical tastes, in everything she puts out, which makes her content feel personal and unmistakably hers. Great for those moments when you're feeling stuck and need a push, or if you're a recovering perfectionist like me, when you're procrastinating to make things "better" instead of just doing the thing that needs to be done.

    Start here

    Also worth knowing

    Survey and benchmark data for founders building outside software. Use these the way you'd use Peter Walker on the How to Raise side: for actual numbers when you need them.

    Consulting Success - Fees & Statistics surveys

    Annual surveys of 1,000+ consultants on pricing, revenue, business models, and demographics. Use for benchmarking professional-services pricing and structure. Fees Study · Statistics

    Starter Story

    4,400+ structured case studies of small business founders: manufacturing, services, retail, food. Filterable by industry and revenue. The largest non-tech founder case study set on the web. starterstory.com

    FieldPulse, Brentwood Growth, Construction Dive

    Trade-specific benchmarks on pricing, revenue, and margins for plumbing, electrical, contracting, and construction businesses. FieldPulse · Brentwood Growth · Construction Dive

    Kauffman Foundation, US Chamber, SCORE

    Cross-industry small business data: startup rates, sentiment, demographics, financing methods. Kauffman Indicators · US Chamber Small Business Index · SCORE Megaphone of Main Street

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    Last updated May 2026