In this climate it is harder to get investment as a start-up company without a track record, but that does not mean that there are not opportunities.

The Internet has matured a lot in the last 4-5 years meaning you can get your idea developed a lot quicker and more cheaply using languages such as Django and Rails. Once you got your prototype launched the hard work begins and it takes a lot of work to make an Internet business successful. The great news is that it does not cost a lot of money to run and promote your technology business. You have to be smart, make good use of the tools that are available and be prepared to bootstrap.

What is bootstrapping?

Bootstrapping is starting a business without external finance; you fund your business through your own savings, internal cashflow and most importantly by being cautious with your expenses. You do not hire plush offices until you can afford them (actually I don’t think there is a need for plush offices unless you need to entertain clients a lot), you do not pay yourself a big salary until you can afford it. Every time you spend money on something non-operating items you are potentially reducing your business growth.

How can it help you?

I think that bootstrapping is under-rated as it is not glamorous and could mean that it takes a bit longer to grow your business, but the upside is that when you try to raise finance you will have a profitable business and working prototype with real customers. As an investor it would be very central to my decision to see that the money invested in a business will be put to growing the business and not wasted on luxuries.

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