Page 13 - The Bootstrapper Bible

ChangeThis Thatʼs why the gourmet food business bugs me so much. Every year, another 2,000 gourmet items—jams, jellies, nuts, spreads, chips—are introduced. And every year, 1,900 of them fail. Why? Because the bootstrappers behind them are in love with an idea, not a business. Successful bootstrappers know that just because they can make a product doesnʼt mean they should. Making kettle-fried potato chips from your grandmotherʼs recipe may sound appeal- ing, but that doesnʼt mean that you can grow the idea into a real business. Big companies have access to capital that a little guy can’t hope to match. Given the choice between building a thriving, profitable business with a niche and a really boring product and putting your life savings into an intensely competitive business where youʼre likely to fail but the product is cool, the experienced bootstrapper will pick the former every time. If you find an industry filled with wannabe entrepreneurs with a dollar and a dream, run away and look for something else! Now letʼs take a look at the good news. You have plenty of things that the big guys donʼt, things that can give you tremendous advantages in launching a new business. 1 NOTHING TO LOSE. This is huge. Your biggest advantage. Big, established companies are in love with old, established ways. They have employees with a huge stake in maintaining the status quo. How many of the great railroad companies got into the airline business? Zero. Even though they could have completely owned this new mode of transport, they were too busy protecting their old turf to grab new turf. | iss. 6.01 | i | U | X | + | h 13/103 f