Bootstrapping vs. OPM (Other People's Money): Generational Growth Strategies for Funding Your Empire

In my two decades as a 10x entrepreneur and strategic investor, one of the most persistent questions I’ve faced – both personally and from those I advise – is how to fund growth. The media often glamorizes massive venture capital rounds, implying that "Other People's Money" (OPM) is the only path to building an empire. I'm here to tell you that while OPM has its place, bootstrapping – using your own resources – can be the most potent strategy for building truly durable, generational wealth.

I’ve owned over 10 businesses, and I’ve used both methods, often strategically switching between them. My experience isn't based on analyzing others; it's from making these funding decisions with my own money, sitting in my office, and feeling the very real implications on control, risk, and long-term value.

The Brain on Autonomy vs. Pressure

From a neuroscience perspective, autonomy is a powerful motivator. When we have a sense of control over our destiny (and our money), our brains experience less stress and greater clarity. Bootstrapping provides this immense sense of autonomy. You make the decisions, you set the pace, and your vision isn't diluted by external demands. This can lead to a more resilient mindset, crucial for the long haul of generational wealth building.

Conversely, while OPM can accelerate growth, it often comes with pressure. The constant need to hit investor milestones, the loss of equity, and the external influence on strategic decisions can be a significant cognitive load. While this can sometimes be a positive push, it can also lead to short-term thinking and compromise the very long-term vision needed for generational growth.

My Experience: When to Go Solo, When to Partner

I've approached funding my ventures with a nuanced perspective.

Bootstrapping: My Default for Deep Roots

Early in my career, and for many of my acquisitions, bootstrapping was my go-to. When I acquired my first small retail business, I used personal savings and carefully managed its cash flow to fund its expansion. This forced discipline. Every dollar spent was scrutinized. There was no safety net of external capital to fall back on, which meant I had to build a lean, profitable, and cash-flow positive business from day one.

The result? I owned 100% of the company. Every dollar of profit was mine to reinvest or take. This full ownership has been critical for building my overall portfolio. It meant I could decide to hold the asset for decades, pass it down, or sell it on my terms, rather than being forced into an exit by impatient investors. This is the essence of building generational wealth: maintaining control over your assets.

OPM: Strategic Accelerant, Not the Main Engine

However, I'm not anti-OPM. There were times when a strategic infusion of external capital made sense. For example, when I saw an opportunity to scale a digital platform rapidly, I leveraged a small amount of debt financing. The key was that I controlled the terms, I understood the repayment plan, and I used it to accelerate a proven model, not to prove an unproven one. This was about speeding up an existing trajectory, not validating an initial idea. The goal was always to use OPM to generate enough returns quickly to pay back the capital and retain control.

My golden rule: 🗒️ Never give up more control or equity than the capital infusion is truly worth for your long-term, generational goals. If OPM means sacrificing ownership or forcing a premature exit, it's often not worth it.

The Generational Growth Imperative: Ownership and Control

For entrepreneurs and ambitious women looking to build their own empires, here's how to think about funding:

1. Prioritize Profitability and Cash Flow: Bootstrapping forces you to build a profitable business from the outset. This financial discipline is invaluable and creates a stable foundation for long-term growth.

2. Retain Ownership: The more equity you retain, the greater your share of future profits and the more control you have over the business's destiny. This is paramount for wealth transfer across generations.

3. Understand the Cost of Capital: OPM isn't "free." Whether it's equity (giving up a piece of your company) or debt (interest payments and obligations), there's always a cost. Evaluate if the accelerated growth truly outweighs that cost.

4. Use OPM Strategically: If you do take OPM, use it like a precision tool, not a blunt instrument. Apply it to proven growth initiatives, not speculative ventures. Ensure it aligns with your long-term vision, not just a short-term valuation boost.

The goal isn't just to make money; it's to build sustainable, valuable assets that can provide for your family for generations. This often means slower, more deliberate growth funded by your own efforts and wise reinvestment, rather than chasing the immediate, often illusory, promise of massive outside capital.

Be emPOWERed 👑 

Tactical Advice: If you're building a new venture or considering an acquisition, first, map out how you could bootstrap it. Can you start smaller, pre-sell, or get creative with initial funding? Only after you've exhausted reasonable bootstrapping options should you consider OPM. If you do explore OPM, draft a clear list of what you're willing (and unwilling) to give up in terms of equity and control before engaging with potential investors.

Affirmation: I am the master of my financial destiny. I build with my own hands, leveraging capital wisely, ensuring maximum ownership and control for enduring generational wealth.