What is Bootstrapping??

Updated: Feb 10

Bootstrapping refers to founding and running a business from scratch using personal finance without attracting external investors.

This concept of business is in contrast to the businesses which rely on Angel Investors and Venture Capitalists and other modes of finance.

Pros of Bootstrapping:

  1. Here the entrepreneur has complete control over his business and there does not exist any dilution in the ownership.

  2. Here the entrepreneur gets a lot of time to concentrate on his business as he is not depending on time-consuming external finance.

  3. There does not exist any Finance cost to the Bootstrappers as they do not rely on external financial sources.

Cons of Bootstrapping:

  1. It becomes extremely difficult for the entrepreneur to manage the business alone if demand exceeds the ability.

  2. The scope for expansion of business is very limited as the entrepreneur completes depends on his personal finance.

  3. The entrepreneur undergoes a lot of stress in managing all the business affairs.

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