One of the major dilemmas that entrepreneurs face is seeking funds from external sources. To ensure that you have adequate resources and to mitigate risks, startups often consider funding. If you are a startup looking to expand your business, bootstrapping is a good strategy to grow your venture quickly. Although bootstrapping gives you access to money it brings along a host of challenges as well. You need to answer several questions and be accountable to those from whom you have accessed the money.
Here is why bootstrapping is an excellent option for startups looking for quick funds to grow quickly:
Enjoy business ownership
As you move through various sources of funding, you are making the equity share dilute. However, bootstrapping gives you single ownership of the company and allows you to become the owner of the business. Even if you have co-founders, you will still have your right to a significant share of equity. Overall, you can singlehandedly control the business and its financial infrastructure.
Have a clear vision
Entrepreneurs often have a clear vision of where they want their businesses to be in the long term. However, with more people entering the business landscape, the expansion plan may move from its previous stage. This may halt the long-term success. That is why a bootstrapped venture is one of the best options for investors trying to step into a new realm.
Get hold of time
Investors usually don’t have much patience. So, when they invest a significant amount of money into the business, they expect good returns as quickly as possible. They often fall prey to strict deadlines and conditions, and it may seem forcible. Bootstrapping allows you to choose your deadlines, and targets and chase the business growth. That way, you will build better products and offer the best customer service. Finally, you can create a good company culture that will eventually allow you to create a work-life balance.
Get more time on hand
You must have often heard that investors have to spend substantial time looking for funding opportunities. However, bootstrapping won’t put you in such a situation. You can avoid wasting time scheduling for raising money or lose your focus while explaining to them about your growth prospects.
Avoid debts
Bootstrapped companies may usually be in debt or acquire funds from various sources, usually friends and family. Naturally, the loan amounts are returned promptly. That helps in lessening the chances of debts, which may later create dark clouds over business growth. If you want to avoid the hassle of bank loans, bootstrapping is one of the best ideas to choose.
Love what you do
As an entrepreneur what do you love doing the most? What is that thing that gives you immense pressure? Are you the one to feel happy about satisfied clients or building and selling unique products? When you get funds from outside, you need to manage them tactfully.
Moreover, you may face a series of troubles when the funds dry up and again start looking for more. Once you are caught in seeking funds too often, you will spend a lot of time pleasing the investors and stop focusing on your business. For bootstrapped companies, one of the major advantages is that they love what they enjoy doing the most.
Bootstrapped companies may record low growth but the overall journey of the startup becomes stress-free. You need not listen to others and control the entire business without any intervention from outside. Just fix the business model right and embark on the path of success.
Amilia Brown is a seasoned business writer & strategist who simplifies complex business concepts and turn them into engaging narratives. As a trusted business writer, she delivers actionable insights with precision.
