Bootstrapping

Bootstrapping your startup can be the most difficult means of launching a new venture — but it can also be the most rewarding. Bootstrapping means launching your startup with your own cash and sustained revenue. In simple terms, bootstrapping means cutting costs wherever possible, devising innovative means of solving problems without excessive expenses, and remaining as lean as possible through critical growth stages.

Startups that choose to bootstrap their ventures may, in some cases, restrict the speed at which their business scales, but they gain a critical advantage — bootstrapped startups don’t need to dilute their equity in early stages, placing them in a highly secure position once their business takes off.

Importantly, bootstrapped founders are wholly independent and aren’t obligated to consider the opinions or input of any other parties when making business decisions. A startup that is able to bootstrap for an extended period will possess more equity to distribute should they choose to pursue equity funding at a later date.