First let us what bootstrapping is all about .In brief, bootstrapping is when a person starts building a company with limited funds. Basically, you use your own personal funds to start your company, and then use its operational revenues to keep it going. Here are a few reasons why bootstrapping could be the best thing you ever did.
- Fundraising? What a waste of time.
Every minute you spend trying to raise funds for your company (once you get into it, it just vacuums up your time!) could have been spent trying to improve your product. This happens to quite a few startups. Don’t lose focus. Save your precious time for your product.
- Accelerators are just startups like you.
If you didn’t already know, business accelerators are the ones that mentor and fund a startup. Even the best accelerators don’t provide as much as you’d think. You’re better off funding yourself.
- You can be your own boss.
Funded startups have to update their investors regularly on every business decision and progress they make. Fund yourself and you have no one else to answer to. Be independent! Choose your own mentors, and you don’t have to justify your decisions or even include anyone else in making them.
Also Read : Start a Startup Company And Innovate !
- You are motivated to focus on revenue.
With the absence of a chunk of funding from a bank company or investor, you are scared as hell of going flat broke. What better motivation do you need to work fast? Being your own only shareholder is the most effective way to drive yourself to generate revenue.
- You understand the value of money.
This is a very important trait to learn in the hardest way possible as an entrepreneur. And nothing teaches you better than bootstrapping – a situation where no one helps you but yourself. You learn to stand on not just two – but maybe even one foot!
- You can grow organically.
When you take funding from an investor, they take a part of your company’s ownership and have a hand in influencing your decisions. Suppose you’ve taken off well and got your company functioning well, and you’re happy with how things are. If your investors want higher revenue generation, you will be forced to comply and figure out a new way to run your company – even if you don’t like it. Fund yourself and you can do things the way you like.
- You meet people like yourself.
Bootstrappers tend to meet bootstrappers, and this is pretty transparent company to be in because you know exactly how they work and you can learn from each other.
- You make better products.
When funds are limited, you focus more on your product and service because every last rupee matters. You put more thought into what your customer wants and this is the best thing for your company. The pressure motivates you to make the best product.
- You make good decisions.
You care more about money when it’s from your pocket, rather than an investor’s. Self funding enables you to think thrice before every decision and prioritize your luxuries, and this is a quality that will last you a lifetime. You learn to understand what’s best for your company on your own.
- You can raise funds at ease.
The best time to raise funds? When you don’t need it. Investors will come prowling when you’re profitable and growing. They’re always on the watch for successful startups. You’ll be firmly standing on your own feet then, and this is when you can have your pick. If you don’t like a deal, feel free to walk away!