Bootstrapping a Startup | Why it Matters

Chris Herbert
Feb 28
3 min read

Let’s talk about funding. When most people think about it, they picture investors or loans. But here’s the truth: the best funding for your business comes from your customers. That’s the core of bootstrapping —letting your product or service pay its way as you build your startup.

Start with Customer Dollars

Here’s why this approach works so well: when customers pay for what you’re offering, it’s proof that your idea has value. It’s like a stamp of approval. Plus, you’re not relying on outside money, which means no pressure to grow faster than you’re ready or to give up control of your business.

In a rural setting, this is especially important. Investors might be hard to come by, but customers? They’re everywhere, especially now that you can reach them online.

💡 Example: Imagine a local artisan who wants to launch a handmade goods business. Instead of taking out a loan, they start small—selling a limited run of products online. As demand grows, they reinvest profits to expand their business.

This approach works for tech startups, service businesses, and product companies alike—no matter where you're located.

Why Bootstrapping Fits Rural Entrepreneurs

If you’re starting out in a rural area, bootstrapping can be your best friend. Sure, there might not be a huge local market or a lot of funding options, but that doesn’t have to hold you back. It’s all about working with what you’ve got:

Tap into your community: Think about bartering services or using shared resources. Maybe there’s a local makerspace or a community group, like AREA 81, that can help.
Stay focused: Spend only where it really counts—like tools or software that help you deliver better or faster.
Go digital – Rural businesses have one huge advantage: online reach. Whether it’s through social media, marketplaces, or an e-commerce site, your customers don’t have to be local.

Let Your Customers Guide You

When you’re bootstrapping, every dollar counts, so it’s smart to test your ideas before you fully commit.

Start small:

Offer a basic version of your product or service...or better yet and offer.
Get feedback from your first customers.
Use that feedback (and their dollars) to improve and grow.

💡 Example: A rural entrepreneur with an idea for a specialty food product could test demand by selling at a farmers' market or online before investing in large-scale production.

By doing this, you’re not just building a business—you’re creating something people truly want. And that’s how you attract even more customers.

Bootstrapping vs. Venture Capital: A False Choice

A lot of people think you have to either bootstrap or raise venture capital, but that’s not how successful startups actually work.

Bootstrapping is the best way to start.
Venture capital is an option—but only when it makes sense.

Many of today’s biggest companies—Apple, Facebook, Airbnb—started by bootstrapping. Once they had traction, they raised funding to scale, not survive.

💡 The key takeaway? Customer funding puts you in control. Investors today want to fund traction—not just ideas. If you have paying customers, fundraising becomes a choice, not a necessity.

💡 Want to hear more about why bootstrapping isn’t just an alternative to venture capital—but often the smartest way to start?

📺 Watch this video by Ash Maurya, creator of the Lean Canvas, where he breaks down why customer funding should always come first and when (or if) raising outside money makes sense.

🔹 Mi6 is implementing Ash's Continuous Innovation Framework and uses his companies tools through our Rural Entrepreneurship Accelerator Program AREA 81 to help entrepreneurs apply these principles in their entrepreneneurial lives and ventures. As a Coaching Lean certifided coach, I’ve seen firsthand how bootstrapping helps founders build strong, sustainable startups before they even think about raising capital.

The Long Game of Bootstrapping a Startup

Bootstrapping isn’t about avoiding outside funding forever. It’s about starting with customer dollars to build a strong foundation. Once your business has traction and you know what works, you’ll be in a great spot to decide if you want to scale with outside help.

By then, you’ll have proof that your idea works and a much stronger bargaining position.

At the end of the day, bootstrapping is all about creating a business that’s sustainable, resilient, and yours. It’s not the easiest path, but it’s one that pays off in independence and long-term success.