Bootstrap Funding - Blog

Bootstrap Funding
Bootstrap Funding
jan 5th,2017/ Business Funding

’’Failure is simply the opportunity to begin again, this time more intelligently.’’

Wondering what the term actually refers to in the field of financing? Well the business dictionary defines boot strapping as follows: “It is basically a type of business funding that does not depend on outside investors or outside banks for debt. The owner needs to actually shell out money from his/her own pocket and hence, there is an increased level of risk in this type of funding.”

In more common terms, it is initiating a small business with your own money by accommodating funds through your known and own sources. Nevertheless, a universal fact that needs to be understood here is that to start any business one needs motivation, self-discipline and a focus coupled with hard work and dedication.

Agreed that are many types of funding that are available but to choose if boot strapping is the best optimum type of funding that is suitable for you or not, you need to have an idea about its advantages and disadvantages.

Advantages of Bootstrap Funding

You need not waste your precious time looking out for investment options. Instead you can focus more time on the actual business itself.

Usually people who want to establish start-ups have a clear thinking along with a strategy outlined for the future. By having complete control of the business and taking decisions all by yourself, you can avoid many interruptions and confusions that usually arise in cases where you have venture capitalists or investors.

You learn to work efficiently and spend money for meaningful things. Since you are the one who has chipped in your money, you would be very cautious on every penny that you spend. This is sure to improve your product and hence, improvise the overall customer experience.

As you are the only owner of your business, you tend to be more responsible such that you even concentrate on small aspects and minute details of your business which otherwise, cannot be achieved if someone else is involved. You cannot be sure that the other person would be as focused and dedicated as you.

In this type of business, the customer is your investor, buyer and the only reason behind the sole existence of your business. If your customer doesn’t buy your product then obviously your business collapses and lands you in debts. So every decision is taken with the customer in mind. The overall focus of your company would be to improve the customer experience in addition to, expanding the user base.

In this type of business, the customer is your investor, buyer and the only reason behind the sole existence of your business. If your customer doesn’t buy your product then obviously your business collapses and lands you in debts. So every decision is taken with the customer in mind. The overall focus of your company would be to improve the customer experience in addition to, expanding the user base.

You would have definitely put in your maximum efforts to acquire funds for your business and hence, you would always find innovative ways to get the work done in a cheap, quick and an accurate way. You would also work on creative ways to improve your business as you are not answerable or committed to anyone for anything.

Well, yes this type of business does have a lot of risk associated with it, as you allocate your personal assets to raise money and circumstances may arise such that you may not have a steady inflow of money during the initial years. However, once you learn the knack of bootstrapping then you are sure to enjoy a big large piece of share of the profits as you have no investors with whom you need to share the money!

About us

Women Entrepreneurs India is an independent initiative established with a social perspective in order to help women entrepreneurs grow in their fields of expertise. The organization was established in 2013 by Mahalakshmi Saravanan and has been providing compete support to women entrepreneurs. It facilitates training programs; education on new venture financial avenues, feasibility and enterprise benefits; motivation; encouraging innovative business ideas; support on product and services marketing and provides mentorship.

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