Page 48 - The Bootstrapper Bible

ChangeThis You can pick any business in the universe to bootstrap. I recommend picking one thatʼs friendly to bootstrappers, that wants you to succeed, that will likely give back what you put in. Itʼs easier to tell you what to avoid than to point you in the right direction. Businesses that are also hobbies usually cause bootstrappers the most trouble: restaurants, toy design and invention, creating gourmet foods. On the other hand, mail order, consulting, acting as a sales rep or other sort of middleman, all work great. So does focusing like a laser on a very obscure market that is growing fast. Maybe it wonʼt make you as famous as Spike Lee or Marc Andreesen. Thatʼs okay. It will make you happy. HOW TO BOOTSTRAP A BUSINESS THE SMART WAY I have a friend who can do miraculous things with fabric. Iʼve seen her turn leftover clumps of velvet into a show-stopping shawl. And she adores kids. She decided to break into the toy business. For four years she tried to sell a better diaper bag to Fisher-Price or a new kind of catch toy to Mattel. She went to the right trade shows, got the right meetings, was careful about whom she associated with, how she positioned herself, and how she pitched her goods. She watched her expenses like a hawk. And she kept 100 percent of the equity. There were some close calls. Fisher-Price starting going to contract on the diaper bag. Mattel asked for more details. But each time, at the last minute, the company turned her down. My friend eventually realized that she was competing in a world where she wasnʼt wanted. Toy companies work hard to keep inventors away, because theyʼre scared of lawsuits and the | iss. 6.01 | i | U | X | + | h 48/103 f