WHY IS IT IMPORTANT TO UNDERSTAND THE VALUE OF BOOTSTRAP STARTUP, BEFORE GETTING IN STARTUP FUNDING
With the Increasing growth in Startup Culture, the trend of raising Startup funding from Investors is also increasing. Today mostly people are doing a startup with a sole motive of getting funded by some Investor, without having a Sustainable, Viable & Concrete Business Model & thus ends up as a failure and burn investor’s money.
There is nothing wrong in Getting Funded, but it is necessary to understand some points before jumping in Startup Funding thing; Like:
1) What is your startup motive?
2) Why are you doing it?
3) Do you really need funding for implementation of your idea? If yes, then at what stage? Why Can’t you do it initially without Funding by remaining bootstrapped?
Most of the People think that by being a bootstrap startup, their startup will not be able to survive for a long time or they have to struggle a lot for that. Well, that’s not true in every case. There are many famous Startups like Zoho, Quickheal, Microsoft, Mailchimp, TechCrunch, etc. who chose to remain bootstrapped at their initial stages.
Here are some points that will help you to understand why bootstrapping is right at the initial stage of a startup:
1. YOUR FOCUS IS ON EARNING REVENUE
Since you have very limited amount of money with you to start your startup, you always concentrate more on the ways that can help your startup to generate revenue.
2. YOU DEVOTE/INVEST MUCH TIME IN YOUR STARTUP.
As raising Startup funding from investors is not an easy task and it takes a lot of time. But if you are bootstrapped, you can save that time and devote it for your startup which helps in the growth of your startup.
3) NOT ANSWERABLE TO OTHERS AS ALL RISK AND INVESTMENT IS YOURS.
When Investor invests in your startup, you become responsible to them for every profit and losses. But when you are bootstrapping, you are solely responsible for your decisions and thus make decisions more carefully.
4) VALUE OF MONEY
Being a bootstrapped, you know the value of every single penny and thus invest very wisely. You think twice before investing in anything, that how will it be beneficial for your startup and should you invest in that or not.
5) LEARN TO COPE UP WITH CHALLENGES AND STRUGGLES.
Bootstrapping is not a natural phase, and you have to face many challenges in your initial days as your income source is limited. So by being bootstrapped, you learn how you can survive with the limited amount of resources.
6) INCREASE IN ORGANIC GROWTH
You try to grow more through organically rather than spending on inorganic ways of growth. And thus it ends up to bring genuinely interested and right audience for your startup.
Hope this article will help Startupreneurs to understand the benefits of Bootstrapping and they think once before jumping into raising startup funding.