Why Bootstrapping Is The Best

[moonchild]

Bootstrapping is the act of starting a company out of one's savings or income without seeking for any kind of funds from Banks, Institutions, Venture Capital.

Most great companies started out like this and eventually turned out successful, and this is the only method that's tested and proven throughout histories.

When you started out to build a company, or a business, it is just like an experiment, nobody knows your business, you don't have a social proof etc, it is very wrong to just take other people's money and assume you'll turn out successful, in a report by business institutions, it is noted that 90% of start ups fail within their first year of launching, and anyone that priorities funding over the business itself is bound to be among the 90%.

But if you started with your own funds you'll make room for mistakes till you get it right without pressurizing yourself, which is very hard to do if you're building the same business with other people's money.

Next time you get that big idea, don't worry about taking people's money to build the next big thing, instead use your savings to start up and after an initial success you can go on and take other people's money.

 

[Yusra3]

Bootstrapping empowers entrepreneurs to retain the total command over their business without any scenario of equity loss or increasing debts. It leads to the efficiency, cost-effectiveness and ability to operate and survive in extreme environments. Financing yourself with your own savings, re-investing profits or taking the credit helps in cost-effectiveness and making more purposeful commitment to profitability. Shoe-string operation exposes you to risks, which in turn forces you to prioritize expenses and builds resilience. In addition, it aligns your risk-reward ratio with the potential returns. Many a startup views this autonomy and getting away from external pressure as fertile ground for unlimited growth of the enterprise.