Bootstrapping is no child’s play, which is why startup founders are usually wary of it. However, the truth is that bootstrapping is actually essential.
It may be hard to comprehend in the beginning but bootstrapping will actually help you grow. It will give you freedom, lower your stress, and motivate you to grow your business. If you are in doubt or in two minds about bootstrapping your business and you think that approaching investors is a better option, you should take a look at these reasons for bootstrapping:
Reason Number One: You Will Truly Own Your Business
When you have no investors to latch onto and when all the money you invest in your company is yours, you actually have complete control over your company. Your vision is your own as is your company. On the flipside, if you do have investors and backers on the financial front, directly or indirectly your company’s vision will be in sync with their vision and not yours. You won’t have complete control over your business because they will also have a say. The worst part is that you will have to listen to them whether or not you like what you hear.
Reason Number Two: You Won’t Have Restrictions
In continuation with the above point, if you go with investors, your dream will be limited to what the investors think is achievable. In other words, you will be restricted. You will have to mold your strategy and your growth based on what the investors are looking for. When you bootstrap you won’t have all this hassle. You can give yourself flexible time duration to grow and you can come up with the perfect strategy without worrying about someone else’s approval. You will be the sole decision maker.
Reason Number Three: You Will Have A Grip On Yourself
Bootstrapping teaches self-control, which is crucial for all entrepreneurs. When you bootstrap, you will not spend money until and unless it is absolutely necessary. For example, you will not hire until the need arises and until you can actually afford to pay a full-time employee. If you don’t have the funds, you will get creative and find ways to get the work done without hiring someone. You will have complete expansion control and that implies that you won’t over-expand when there is no need to.
Almost inadvertently, you will value your funds and you will be very sensible in your spending. That will make your business highly profitable and the growth will be at the right pace.
Hopefully, these reasons will clear all your hesitations about bootstrapping and doubts about its necessity for entrepreneurs.
Bootstrapping is much better than depending on investors for capital because bootstrapping gives you complete ownership of your business while teaching you how to control your expenditure. It will help you grow at the perfect pace.