Small Business Funding

The pros and cons of bootstrapping in business [Video]

The expression ‘pulling yourself up by your bootstraps’ evolved to mean ‘attempting to do something without outside help’. In business, ‘bootstrapping’ is the practice of building a business without outside capital investment.

Financed at the owner’s expense through internal sources, such as savings, credit cards, mortgages and loans, the bootstrapping business model may be the best option for those with a lack of experience in formulating business plans or attracting investment.

Securing external funding can be challenging and stressful. Some startup founders don’t want to spend time searching for an investor – or share their income with one. The ‘bootstrapper’ gets to focus on the key aspects of the business, from product development to sales.

Limited finance also gives rise to more innovative solutions in business development and the bootstrapper reserves the right to all ideas and assets accumulated during the development of the business. Ultimately, this makes a business …

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