Instructor Resource
Neck, Entrepreneurship, 1e
SAGE Publishing, 2018
Chapter Exercises and Projects
Chapter 12: Bootstrapping for Resources
Chapter Learning Objectives:
12.2 Identify common bootstrapping strategies used by entrepreneurs.
12.4 Describe the effects of crowdfunding on entrepreneurship.
12.6 Explain the advantages of crowdfunding for entrepreneurs.
Proposed Activities
Activity 1: Bootstrapping
(This can be done solo or as a team exercise; it can be used for online, face–to-face, or a
blended format)
Your text offers a list from Sharp on bootstrapping strategies. Reflect on these items and
consider whether there any items missing? What else can you do as an entrepreneur to
bootstrap your business? What strategies do you find particularly appealing and why?
Rank the list from what you think is most to least effective.
Common “Penny Pinching” Bootstrapping Strategies
• Work from home to save on renting an office, or if you need an office, use co-
working spaces instead.
Instructor Resource
Neck, Entrepreneurship, 1e
SAGE Publishing, 2018
• Take as little salary for yourself for as long as possible.
• Use your network of friends and family to get what you need at a reduced rate
or for free.
• Hire help if you need it, but keep in mind some employees may agree to work
temporarily for an equity share in the business rather than a cash payment.
• Attend every possible networking event to make connections and get
introductions to people that may be able to contribute to or enhance your
business.
SOURCE: Based on information from Gordon Sharp, The Ultimate Guide to
Bootstrapping: How You can Build a Profitable Company from Day One. (Kindle Edition),
2014, Real. Cool. Media.
Learning Objectives:
12.2 Identify common bootstrapping strategies used by entrepreneurs.
Instructor Resource
Neck, Entrepreneurship, 1e
SAGE Publishing, 2018
Activity 2: Crowdfunding versus crowdsourcing
(This can be done solo or as a team exercise; it can be used for online, face–to-face, or a
blended format)
Learning Objectives:
12.1 Define bootstrapping and illustrate how it applies to entrepreneurs.
12.3 Explain the difference between crowdsourcing and crowdfunding.
Activity 3: THE FOUR CONTEXTS FOR CROWDFUNDING
(This can be done solo or as a team exercise; it can be used for online, face–to-face, or a
blended format)
Learning Objectives:
12.3 Explain the difference between crowdsourcing and crowdfunding.
12.5 Define the four contexts for crowdfunding.
12.7 Describe ways in which entrepreneurs can conduct a successful crowdfunding
campaign.
Instructor Resource
Neck, Entrepreneurship, 1e
SAGE Publishing, 2018
Activity 4: Crowdfunding Campaign
(This can be done solo or as a team exercise; it can be used for online, face–to-face, or a
blended format)
Using the crowdfunding checklist, outline the tasks involved in launching an effect
crowdfunding campaign. How would you go about implementing each? Discuss specific
strategies. How would you avoid common mistakes?
Figure 12.4
Crowdfunding Checklist
Crowdfinding Tip
Stage of Completion from 1 to 5 with 5 =
Fully Accomplished
solves a real problem.
2. Test and refine your idea.
3. Be prepared.
4. Seek and accept advice.
5. Get your campaign started—now!
6. Money matters.
7. Focus on the pitch.
opportunities.
9. Commit to your campaign.
10. Avoid the crowdfunding curse!
Instructor Resource
Neck, Entrepreneurship, 1e
SAGE Publishing, 2018
Learning Objectives:
12.5 Define the four contexts for crowdfunding.