Bootstrapping: Ideal or Not?

Some startups are waiting for magic to happen (aka the help from rich investor), but other startups are brave enough to do bootstrapping. Bootstrap is indeed, a critical decision for your ‘baby’ startup.

Which would be better? Raising funds through venture capital? Or self-fund your startup by bootstrapping? The implications of each decision will be significant to the growth of your startup.

Since the real entrepreneurs are always trying to reduce uncertainty, bootstrapping is obviously a preferred decision. Yet, we all know that it is never easy. Are you sure it is ideal for your startup?

The answer is yes. There are various benefits from bootstrapping. Here they are:

  1. Freedom

All countries expect freedom, so does startups! Freedom in running your own startup is priceless, and that only happens in a startup who do bootstrapping. No interruption, no force, and no outside voice to protect its investment.

When you bootstrap, you are that voice. You can show your true colour (for your startup, of course). You will enjoy the complete control and power over your own business. Thanks to bootstrapping.

  1. Authentic products

After you get the power, you’ll have a greater focus on your products and services. The limited budget plays as the pressure, and eventually force you to make the right products. Not only right, you’ll customise it to be as authentic as possible. Because every dollar matters.

You’re going to pay a lot of your attention to your customers. With those insights and dedication, your startup will increase the possibility of generating revenue and building your own brand in a much shorter time.

  1. Start small, and only get a little bit of consequences

Any bootstrap startup has to start small. They will test their assumptions carefully, and then scale up. Whenever they make mistakes, it will be on a smaller scale and impact. You wouldn’t need to be worried about huge consequences if you made mistakes.

  1. Careful Decisions

You are the founder, and only shareholder. If your startup fails, so do you. But if it succeeds, you’re the one who will gain more rewards than anyone else. Thus, bootstrapping aligns your incentives with the success of the company. It forces you to make rapid, but careful, decisions since the early days.

Do you think it’s hard? Not really. It will make you a better manager and initiator. People with those qualities are usually close to having a much more successful life.

  1. Bigger profit margins

Bootstrap entrepreneurs are smart on cutting costs. In fact, companies running with low overheads often enjoy a much larger profit margin. Plus, as the only shareholder, you’ll get bigger profit margins.

  1. Faster growth

Less cash means less time to get a startup alive. Turns out, it could be the greatest motivator to quickly build a product and get it to market. You can also enjoy quiet time during the development, because nobody else would care. Staying off the radar can make all the difference in maneuvering around competitors and building a great product. In the end, it will dramatically increase your startup chances of success.


We can conclude that bootstrapping is an ideal path to success. Will you do it?


Next read: 7 Mistakes That Could Kill Your Startup: Avoid These for Better Results

Article contributed by Startup Jobs Asia‘s Team.

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