Why bootstrapping is a smart way to finance your business in the early days

For many new startups, raising funds for the business can be tricky, particularly in the early days. In fact, chasing capital can become almost a full-time job in itself, becoming a distraction from actually building products or a great service offering. So what’s the answer? Well, for a large number of aspirant entrepreneurs it’s a case of either approaching friends and family for startup capital, or balancing a full or part-time job with an entrepreneurial venture at the same time. And, there’s nothing wrong with either of these approaches if it allows you the chance to get your business idea off the ground, whilst at the same time, minimising risk in the startup phase. So what are the benefits of bootstrapping a business? Many bootstrapping entrepreneurs love the fact that they are able to self-fund their businesses and maintain control of the business without having to give up precious equity to an investor. Also, bootstrapping in the early phase means having complete control over the vision and the product development, without external indue influence from other stakeholders - this means innovation can have free reign. It also means new business ideas can be tested without the risk of jeopardizing personal financial well-being. Having said all that, bootstrapping a business isn’t without its challenges. It means working long hours, balancing the needs of multiple customers and stakeholders, not to mention personal relationships, and managing time and resources. But, the positives can outweigh negatives with some good planning.