Jon Fisher, CEO and founder of Bharosa.com

Entrepreneurs discuss bootstrapping businesses

By: Justin Perry

Posted: 3/11/09

More than 100 SJSU students heard successful Silicon Valley entrepreneurs speak about "bootstrapping" startup companies in a panel discussion on Monday night in the Engineering Auditorium.

The discussion was presented by the Silicon Valley Center for Entrepreneurship, and moderated by accounting and finance lecturer Steve Bennet.

"Bootstrapping traditionally means growing your business as a function of your revenue or your progress, rather than taking in investment capital," said panelist Jon Fisher, CEO and founder of Bharosa.com.

The panel also included Ilya Ronin, the co-founder and business development manager of Marpo Kinetics Inc., and Gustavo Alberelli, director of Kennet Partners.

The panelists discussed the significance of bootstrapping and shared strategies and personal experiences starting companies with little or no capital.

"Bootstrapping, no matter what kind of entrepreneur you are, is the default method," Fisher said. "You're not raising traditional forms of capital, you are just getting started with the resources that you have."

"We believe bootstrap companies, long term, are better companies," Alberelli said.

The panelists explained how bootstrap companies can be stronger and more successful because the lack of capital forces the company to focus on profits.

Fisher said the lack of capital also forces bootstrap companies to focus more on customer needs because of the pressure to sell products.

Fisher said bootstrap companies are an integral part of our economic future.

"In this economy and the effects we are going to experience from this economy, I think entrepreneurs are really the silver bullet," he said. "These are the people who are going to lead us out of this recession. They're gonna create jobs, they're gonna create their own stimulus by putting good products and services into the market and we need to embrace them and protect them."

Michael Walters, a senior entrepreneurship major and president of the Entrepreneurial Society at SJSU, said presentations like the panel discussion help students gain valuable insights into real world of business.

"A huge value to events like these is you bring in someone who's been there and who's done it," he said. "It's a way to experience, with a closer perspective, what it's like and how possible it is and that it really is possible to do something bold like go out and start a business."

Students felt that this presentation was beneficial and gave them a lot of important advice.

"It's great to hear from people that are actually doing business," said Alejandro Cabrera, a junior business major. "It gives you a different point of view. It helps you get a perspective for when we graduate."

Tomer Fishel, a senior finance major, agreed.

"I think it was very inspiring, to be honest with you," he said. "When you enter a market with either a product or a service, or some sort of a benefit, in order to gain capital it's very, very difficult."

Walters said it doesn't take a special type of person to be an entrepreneur, and that anyone is capable.

"The best thing about you is that you're unique, and events like these show people that normal people, who were at some point just students like themselves, can go out and start a business," he said.