Quite justifiably, the apparently constant unfolding of bad economic news has left many individuals angry, frustrated and anxious.

What was once seen as a somewhat removed and isolated unfortunate event is now hitting closer to home — too close for some. Many are becoming aware that their own job security and all that goes with it is often inextricably tied to the competence of the folks that run the company employing them.

For many, this grasping of the veracity of the moment underscores and gives rational credibility to their anxiety. Properly channeled, however, this distrust in the competency of others can be a major propellant for self-directed wealth generation.

Entrepreneurship continues to be the single best antidote to anxiety caused by realizing that others control your fate. While never easy, success in entrepreneurial pursuit represents the best opportunity to seize control of one’s fate and truly compete in the world of meritocracy.

It is important to note, however, that while there is always a market for a new and better solution, the way to get to this market is undergoing significant change.

As paper wealth and its subsequent leveraging have evaporated, so has the quantity of “disposable” investments. Viewed differently, the money that is still available is now available for a significantly higher price.

This higher price might be reflected directly in an offer sheet, but can also show up in the initial thresholds for consideration. Start-ups seeking equity funding need to be aware that the pool of available money has decreased as the hurdles to access it have increased.

This fact of the financial world, however, does not have to stop individuals from pursuing their entrepreneurial dreams.

To the contrary. Achieving the dreams are our best hope to crawl out of this mess, but the “how” of doing it has to change.

Where the term “bootstrapping” might have generally referred to a process of self-funding by entrepreneurs who couldn’t get financial assistance anywhere else, now it will be seen as a fundamental skill, a key learning necessary for survival.

Central to the entire concept of bootstrapping is the basic acceptance of the ability to manage and live within your self-generated cash flow. As common sense as this may appear, unfounded optimism often allows budding entrepreneurs to engage in enough self-delusion to take this as a given. While business plans and their budgets almost always show a steady increase in revenues, all you have to do is cut the revenue in half and ask if the resulting income is sufficient.

If the response is “no” then the next question is, “How long can you live off your savings?”

The cold logic is that there will be no investor funds, you will not be as successful as you think (at least in the beginning), and you will need money to live. Simply going through this exercise will force revisions in how expenses are viewed, the meaning of “luxuries,” and the utmost criticality of sales.

Armed with realistic answers, today’s entrepreneurs can live their dreams founded on peace of mind. This very personal awareness is driven by their knowledge that it is their competency and theirs alone that will determine their financial security. And they acknowledge this awareness and they welcome it every day.

John F. Riddell Jr., director of the Center for Entrepreneurial Growth-Hamilton County, writes each Tuesday about entrepreneurs and their impact on companies and the marketplace. Submit comments to his attention by writing to Business Editor John Vass Jr., Chattanooga Times Free Press, P.O. Box 1447, Chattanooga, TN 37401-1447, or by e-mailing him at business@timesfreepress.com

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