Founders of startups find theirselves in this position at some point of time: should I take investors’ money or should I try it on myself?
As I went the way of bootstrapping a company couple of times already, I want to give you some insights of what is nice with trying it on your own, and what isn’t. So here are 3 quick pros and cons about bootstrapping your company.
3 Pros of being a bootstrapped company
- You have full control over your actions and can decide all on your own. It gives you great freedom in working towards your goal without having additional external pressure from VCs who have their own motivations.
- Bootstrapping makes you very conscious about your resources, you take decisions about people, time and money extra seriously. Therefore you tend to be more effective in the long run.
- Planning long-term, means your decisions are based on what is most beneficial to reaching your goals versus what is easiest or trendiest.
3 cons of being a bootstrapped company
- You don’t have a circle of investors or experienced people around you without putting in the work of building that network on your own.
- High pressure on your actions, it feels like you got to be over-performing all the time to stay in momentum and grow with limited budgets.
- Can be very scary, especially in times when some things just don’t want to work out. Here and there, it sometimes even gets existence-threatening. Keeping a cool mind while growing under such circumstances can be exhausting.
Of course, it depends on what your startup is about and if bootstrapping is an option at all. But if it is, I hope this short article helped you with reflecting your decisions and thoughts.