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Elon Musk isn’t one for taking a conservative fiscal route. Despite the fact that both his businesses, Tesla and SpaceX have been around for more than 10 years now, both are still heavily in debt and financed from outside. Given the demand for electric vehicles and satellite launches, many people are still at a loss as to why, but Musk is sticking to his guns, pursuing a course of high growth and high debt, despite what the pundits might think.

 

Musk’s strategy hasn’t always been easy. Back in late 2008, both his companies hit crisis point. He desperately needed an injection of cash, or the whole thing would have gone under. At the 11th hour, just before the Christmas break, Musk got the money he needed, and his business survived, even thrived.

 

There’s are a bunch of reasons Musk doesn’t like bootstrapping. Here’s why.

Read More Elon Musk Doesn’t Like Bootstrapping. Here’s Why

Starting a Business

Bootstrapping your startup is the art of funding your enterprise out of your pocket, and building it up to a stage where you can attract investment. And while bootstrapping is certainly cost-effective, there are, of course, inherent problems with the method. You have to get some sort of traction, first and foremost. And you will have limited funds to make your dreams come true.

 

Plus, it’s important to remember that there are no guarantees you will get the funding you need beyond your personal investment, meaning you could walk away with nothing. With this in mind, here are some smart suggestions on how you can bootstrap your business and prepare it for a successful future.

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Read More Smart Guidelines For Bootstrapping Your Business

Starting a Business