Have you got a brilliant idea? Are you ready to roll out your startup? Do you have all the necessary knowledge and technical expertise? Are you still unsure whether your startup can be conveniently funded or not? If the answers to these questions are yes then you need to be familiarized with the advantages of bootstrapping. Many a times young entrepreneurs, instead of relying on investors to provide the capital for their startups, fund their own businesses. They begin their ventures using minimum capital and proceed independently towards their ultimate goal.
The only reason behind bootstrapping is not just the unavailability of proper funding. Working autonomously might be a primal motive too. When one has the pressure of pleasing their investors the creative and technical aspect of their products might be sacrificed for the financial profits. Thus delivering an average quality product. However when you are the boss you solve problems, handle everything your own way. Being the sole investor/developer/founder your responsibilities towards your project multiplies and everyone knows that a responsible and dedicated person is bound to succeed.
When there are many investors to back you up, you might not be as cautious or enthusiastic since you know there will be incoming money at all times. But with one’s own capital at stake there will be an urge to do things on time as every second is worth a penny. Investing smaller capital means lesser chance of faltering in financial terms and more consideration on improving the quality of products. You tend to give more attention to your final product and offer better service to your customers.
There are many advantages of bootstrapping. When a budding entrepreneur bootstraps he/she learns important lessons such as how to perform every task cost-effectively and also learns to value money. Utilizing the right resources and maximizing them becomes one of his objectives. When you hold the strings of the purse and have a constrained budget there is an increasing stress to deliver the output quickly. This is very crucial otherwise once you start procrastinating there is a very slight chance that your startup is going to prosper.
This concept of bootstrapping clears you of all sorts of obligations. You do not have to answer to your investors for any changes you make and in case the startup suffers an amount of loss the investors need not determine your next step. With your own funded small-scale startup you take steps calculatedly and the chances of suffering a huge loss is minimized. The best thing to do is bootstrap your venture in the initial period, work towards delivering best products, achieve your desired business model and then either continue flying solo or look for investors.
You might have to cut down on the expenses, work from home, gain a part-time job, borrow loan from the bank or run small errands for friends or neighbors but all these are going to ultimately benefit you and save your time and energy which would have been spent hunting out for investment from others. If Microsoft, Apple or Amazon could make it big by bootstrapping then so can you.