If you have stepped your foot into the startup world then you must have heard of the concept – Bootstrapping. The concept is not new to entrepreneurs and is surely the choice of many young Founders. Even the entrepreneurs with their companies bootstrapped have managed to built a sustainable business enterprise based purely on their own investment. Those self-funded startups achieve high profits and scaling is quite possible too.
Some may perceive this option as a path full of struggles but determinant businessmen have shattered those perceptions well by creating successful and profitable companies via bootstrapping their venture. However it’s not that easy. It takes a lot of courage, patience and faith in the product. Not everyone’s cup of tea to be honest. But if you manage to do it well then your startup can be the next big thing!
Following is a list of benefits of bootstrapping the venture and it will definitely push entrepreneurs to think twice before raising funds!
1. You can have total control on the product.
For a startup founder who is bootstrapping his venture, it means he is the only one responsible for making the important company decisions. There won’t be any interference as you chose not to get funded by a corporate company. The founders of company which is bootstrapped can stay honest to the objectives of the company they were building and this is surely not the case when an outside imposed board of directors or third party investor have a role to play in key business decisions and high level strategies. You and those third party investors may have a difference in vision creating chaos later.
2. If you think of it, you can build it.
The decision making process and innovating the product can be real quick if there are no investors on board. You can always pivot your product, build or add new features and functionalities or even change the idea without worrying about approvals. You can enjoy your freedom while bootstrapping. You can be creative and innovate each and every day, it’s all about think it and build it.
3. You can be a customer-oriented company.
In comparison to companies funded by outside investors, bootstrapped companies tend to be more customer-oriented, statistics speaks for itself. Raising and managing the funding, managing the investors can be a time-consuming task causing distraction from the orientation of the business and less care to customer demands and expectations.
4. Doubling the earnings of course.
If there is no one to share the cake with then automatically your earnings will get doubled. You fund yourself, work hard on the product and make hell lot of cash!
5. It boosts your confidence as an individual.
Not being funded and still making a certain profit is a great way to boost the confidence. It helps you to become a mature and responsible entrepreneur who believes in his ability and has faith in his product no matter what.