Bootstrapping

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Bootstrapping means building a company from your own money and assets. Profits are then reinvested in the business. Typically, bootstrapping works best for very small companies with low startup costs, short sales cycles, and simple products. This is the route that many part-time, home-based businesses use. Although it can decrease your debt and increase profits, if you don’t generate enough revenue to invest back in the business it can also stunt the business’ growth.