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Advantages of Bootstrapping

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Bootstrapping is a self starting process which proceeds without any external input. It is the main reason behind the success of many startups like Facebook, etc where the developers didn’t have to worry about the external debts. While bootstrapping, you need to make sure that you have quite a reliable stack to fund to your business. This means you don’t rely on any banks or investors for the required funding at the start. This reduces the external pressure on you which lead to a self sustaining business. At some of point of time you may find your business to have a smooth curve, then you may opt for some loans for further expansion of it. The idea may seem easy but you need to be very aware about the financial problems, and set your tolerances accordingly. Of course, there are several advantages of bootstrapping your business.

  1. Sole equity holder: If you are a business geek, you might know about the importance of the term equity. For every external investor you apply, you need to share a certain percentage of your business’s equity. Thus, losing your own part. The more investors you are bringing, the less will be your equity share. But bootstrapping rules out the idea of sharing because sharing is something very childish. You own 100% of your business’s equity share which gifts you more amounts profit for every net profit of your business.
  2. Total control: Bootstrapping means you are the prime owner of your business and no one can force any idea on you. Sharing your business control will lead you to present idea and fight for its commencement. Being the only owner cuts the fighting time and help you to make decisions about the operating procedures and market strategies in a calm and correct manner.
  3. Time saving: If you are dependent on the external investors, it will cost you endless time and physical effort to avail them and persuade them on the basic of your business strategies so that they opt to invest in your startup. Bootstrapping, on the other hand, will lead you to devote that time in building your business and searching for the opportunities the upgradation of your business plans.
  4. No exit strategy: When you are bootstrapping your business, you can decide to grow and keep your business for years without any pressure to sell it for maximised profits. In fact, you can grow with business, bring on technological advancements and make it a giant business in the future. You need plan an exit strategy to escape the business and also, you don’t face any critical condition if the investors plan exit strategies because, you won’t be having any.
  5. Easy pivoting: When you are dealing with your business, time may come when you have to change your marketing strategies for increased profits. But it takes a lot of energy commitment to make the investors understand about the drift in direction. Moreover, they will hesitate to have a change. Being a bootstrapper, you can gain access to master control your business in whichever direction you find comfortable in.

These were some of the 5 advantages of bootstrapping your business. Being one’s own master is the best way in learning life. But bootstrapping isn’t possible unless if are financially flooded.

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