The bootstrapping playbook: now with AI

In the last 12-18 months, there has been much more demand in bootstrapping technology businesses, driven by three trends

1. Less venture capital (VC) being available, compared to the few years before 2021/2022
2. Market changes leading to many people leaving their jobs and rethinking their careers
3. An overall market focus on efficiency, unit economics, and good business.

Not only that, but the increasing adoption of generative AI both created tailwinds and headwinds to building businesses cheaply.

On one hand, AI tools have made it easier for entrepreneurs to handle tasks like content creation, basic coding, and customer service more efficiently, reducing the need for large teams or expensive outsourcing.

This has lowered the barrier to entry for many types of businesses, especially in the digital space.

On the other hand, the rapid advancement of AI has also intensified competition, as more individuals and companies leverage these tools to quickly launch and scale their offerings.

Additionally, the integration of AI into existing products and services has raised customer expectations, potentially increasing the complexity and cost of developing truly innovative solutions that stand out in the market.

Bootstrapping businesses is nothing new. But it seems like we can build a new playbook for ultra-lean businesses now that we have Generative AI.