What does bootstrapping a business mean?

It means funding the business with your own resources.

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  1. Using your own financial resources ✔
  2. Selling stock on a public exchange
  3. Receiving only government grants

Why: Bootstrapping is another name for self-funding. It can preserve control, but the founder carries the financial risk.

Huh, didn't know that: SBA lists savings accounts, money from family and friends, and even a 401(k) as self-funding sources, warning about early-withdrawal penalties.

The dad joke
The bootstrapped startup tied its own laces before running.
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References

Answer: Using your own financial resources. Bootstrapping is another name for self-funding. It can preserve control, but the founder carries the financial risk.

  1. Fund your business legacy.sba.gov/business-guide/plan-your-business/fund-your-business
    Otherwise known as bootstrapping, self-funding lets you leverage your own financial resources to support your business.
    Checked 2026-10-11.

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