There was a time when a smart, young, first-time founder with an idea scribbled on a napkin could raise a million bucks from a venture capitalist. That time is past. Today, the vast majority of new ventures get started via bootstrapping (for example, only 26% of 2010 Inc. 500 founders raised money from outside investors).

What is bootstrapping? It’s about getting through the early stages of startup growth with limited funding.

Why bootstrap? Many founders bootstrap because they have no choice. Their teams or business may not have the stuff investors look for (e.g. experience, scale, exit opportunities). Or they may just be too early in the game to prove they can succeed. Other founders bootstrap by choice. Bootstrapping gives them the flexibility to experiment without having to answer to investors, and lets them sprint to get a product in front of customers instead of spending months trying to raise capital for a team and idea.

What to bootstrap? Some businesses are better suited to bootstrapping than others. Expensive products or services have enough margin to be sold in-person or via phone without expensive marketing. Copycat ideas are bootstrap-friendly, since you already know they’ll sell, and can bypass market research and testing. Selling services or digital products avoids costly inventory. And in general, look for opportunities where you can get a product developed and into the hands of customers quickly and inexpensively.

How to bootstrap? Here are a few ideas:

• Start with a founding team that has the skills and expertise necessary to build a product. That way, you and your founders can get all the way to launch without spending out of pocket on service providers or employees.
• Get a consulting gig to keep money flowing in, social interaction high, and fear at bay. Try to consult on specific days of the week, or during mornings / afternoons only, so it’s easier to plan your schedule, and carve out time for your startup.
• Use “rented” materials to test demand. Before you invest in building technology, use a rented platform (e.g. WordPress for a blog or site, Ning for community, or MailChimp for email) to get a basic form of your offering in front of customers. Similarly, use “stock” packaging (e.g. Snapple bottles with customized labels) before you create customized versions (e.g. POM bottles).
• Follow lean startup techniques. For example, strip your concept down to a minimum viable product, and sprint to build it and get it in front of customers.
• Use inbound marketing tactics instead of hiring expensive PR firms.
• Seek opportunities to barter for goods and services. If you’ve got a media business, and you haven’t sold all of your advertising inventory, trade it for space on a site with a similar audience, and run cross promotions. Trade a few hours of consulting each month for a free sublet.

To learn more tactics, and craft a bootstrap strategy tailored to your specific resources and challenges, get an UpStart coach in your corner.