moonchild
VIP Contributor
Bootstrapping is a method of funding a business individually, trough family or savings or salaries etc.
Some unicorns today were bootstrapped when they initially started, an example is the apple computers, Steve Jobs and his partner bootstrapped Apple till it reaches profitability.
Bootstrapping has a huge advantage because when you are using your own funds you'll be wary of making mistakes, which will help the company to move faster with limited funds.
Bootstrapping will also help a founder to have confidence in the business, due to the fact that it's built without any investor's money.
On the other hand, there's also the option of funding, where a founder will write a business plan and start talking with investors trying to get them excited about the idea and hopefully invest.
There's nothing wrong with finding investors to put in money in your idea, the problem is there will always be rules and they may take some percentage out of your company, bureaucracies and all.
In my opinion it makes more sense to bootstrap a company to profitability before seeking for investors because you'll be more in control and your investors will have more confidence in you that you'll be able to scale the company.
Some unicorns today were bootstrapped when they initially started, an example is the apple computers, Steve Jobs and his partner bootstrapped Apple till it reaches profitability.
Bootstrapping has a huge advantage because when you are using your own funds you'll be wary of making mistakes, which will help the company to move faster with limited funds.
Bootstrapping will also help a founder to have confidence in the business, due to the fact that it's built without any investor's money.
On the other hand, there's also the option of funding, where a founder will write a business plan and start talking with investors trying to get them excited about the idea and hopefully invest.
There's nothing wrong with finding investors to put in money in your idea, the problem is there will always be rules and they may take some percentage out of your company, bureaucracies and all.
In my opinion it makes more sense to bootstrap a company to profitability before seeking for investors because you'll be more in control and your investors will have more confidence in you that you'll be able to scale the company.