Bootstrapping and Innovation, don’t go together?

Posted on | October 7, 2009 | View Comments

We have some fantastic example of high growth businesses, they tend to be in the IT, biotechnology, advanced manufacturing, medical research etc. Although just being in these sectors and having an offering which is compelling isn’t good enough.

Story

Let me explain, I recently read a book which highlighted a company with an innovative product. They launched in the market and got a fantastic reception. Everyone expected the world from them. But they stopped the innovation process and spent their budget on customer relationship. As a result, the product which once was innovative now was just deteriorating in value. They had competition, some merely copy cats, ripping their idea and IP. All that they had now was an initial concept and buzz!

Suddenly the company realised that they weren’t innovating, they decided to fund product innovation through client work. But it was too late, they ran out of money and had a disappointing ending.

Conclusion

• As a startup you can’t stop innovating
• Bootstrapping is a fantastic way to get the company going but not (constantly) innovating
• Raising money is a legitimate way to build an innovative startup
• Raising enough money is vital for a startup

Suggestion

So if you are a start-up and you are proud of the flexibility and innovation of your product. I suggest:

STEP 1: Evaluate your development road map

STEP 2: Look for funding and advice. Perhaps look for investors who can advice

STEP 3: Get on the case and don’t stop innovating

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