Bootstrapping

Meaning & Definition

Bootstrap is the process of building or growing a business using your own resources, such as personal savings and funds generated from employee performance, while also taking advantage of any minimal outside funding that might be available. In Human Resources terms, bootstrapped businesses typically have very small organisations and few resources available, which enables them to focus on controlling costs and optimising the efficiency of their employees through the employment of highly skilled employees who are proficient in multiple areas.

Highlights of Bootstrapping

• Hiring and employee planning with cost-effective staffing.
• Encouraging a culture where employees take ownership of their work and are skilled in multiple areas.
• Helping start-ups retain control without having to face outside investor pressure.
• Promoting and driving efficiencies in HR tools, payroll and other internal processes.
• Establishing a very solid base upon which to grow at an accelerated step.

Government & Policy Alignment 

There are no specific laws that apply to this word.

Bootstrapped companies must adhere to:

• Basic employee, payroll and compliance policies.
• Budget approval & Compensation framework.
• Transparent communication on growth, reward and benefits.

The legal obligations of compliance do not change just because you have limited resources.

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