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Benefits of Bootstrapping Your Start-up


Bootstrapping is using your own money into your startup. When you are new to startup world,funding decision plays an important role in your survival and growth.You have to decide whether to bootstrap or to raise funding?

As in India 90% startups fail every year and only 10% survive and grow.About 40% startups fail due to insufficient capital or lack of operating funds.It's very important to not only estimate the cost of starting a business, but to estimate the cost of staying in the business.But about 50% well funded, VC-backed startups fails due to overexpansion, lack of planning and lack of innovation.

Mostly these well funded startups only spent money, instead of investing it as they are easily getting the required funds.They started to grow their business and diversify to soon and started building their team unnecessary without proper planning and market research.

In case of bootstrapped startups you are forced to get good fast and invest your money to make more money fast .In bootstrapping when revenue and profitability increases then only you take more risk,hire more staff and can thing about growth and expansion.Therefore bootstrapping is good thing for any startup in India.

Amit Khanduri (Founder-gotrig.com)

Benefits of bootstrapping

Full control-The owners of the business will have the full control and complete decision making authority.When venture capitalists or angle investors fund your startup,they have their personal goals and motives in funding your business.

Innovation-When you have little money,survival becomes very tough,at that time you will either innovate or fail.

Responsibility-As you have the decision making power you will be held responsible for the end result.This thing will create a sense of responsibility because your decision will effect the future of your business.


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