You’ve launched your startup ideas and are ready to bring this vision into long-term success.
But your startup requires funding, especially as you are looking to grow it in its early development stages.
In this scenario, we will look at funding your startup with personal finances, otherwise known as bootstrapping. Bootstrapping refers to creating a new business without the use of external funds, one of the great advantages being that it allows for greater flexibility.
Revenue can be taken from personal savings, low or no interest credit cards, mortgages or lines of credit on your home.
This article is the first in the startup funding series, providing you with the guidelines and resources to help you expand your startup.
Bootstrapping is often one of the first funding methods used by entrepreneurs.
After all, the first investor in your startup is yourself, showing to the world that you have a long-term commitment to your projects and are willing to take risks.
When you believe in the vision of your startup, other investors will be far more likely to trust and invest in your ideas.
The preliminary task is to maintain a strict discipline related to the cash flow.
Bootstrapping has a number of advantages, including:
It’s important to understand all aspects of bootstrapping when making a decision for self-funding your business.
Disadvantages to bootstrapping can include:
There are a few ways that you can begin putting bootstrapping into action.
Bootstrapping allows you to be fully in charge of your startup.
Your commitment and responsibility to it will shine through during these early stages, as you build it up towards long-term success.