Bootstrapping Startups Advantages and DisAdvantages

Bootstrapping Startups is a process by which a new business starts its operation without external funding. The business is responsible for its own survival. The growth of the business relies on the revenue obtained. Ideally, you are required to work hard to enable run the business. Bootstrapping Startups promotes innovativeness. You must think of alternative ways to earn money to make your business grow. It promotes proper utilization of time. Looking for investors might take a lot chasing them and sometimes is not a guarantee you will get funded by them. Money is spent wisely as you are the only one to control the business and resources are few.

Bootstrapping Startups Advantages:

At some point, I would recommend Bootstrapping Startups because of the following valid and solid reasons.

Full control

The future of a business is determined by itself as it takes its full control. Owners are not answerable to any outsiders but themselves. Business owners should have a clear direction of their own business. Their beliefs should guide them in the direction to take with their business. Sober decisions have to be made as this will determine if it will affect a business negatively or positively. Investors or any other money lenders come with their own vested interests and might give you different ideas from what you believe in. Bootstrapping startups works very well in such a scenario. There is freedom and you can run a business the way you wish.

Customer oriented and focused business

Bootstrappers need to treat their customers well because customers act as their bosses. (Investors). It is very easy for a business to die if, for whatever reason, the customer will not be convinced to buy from your business anymore. Think of that customer whenever you are making any move or decision with an aim to attract and convince them more and more. Bootstrapping removes unnecessary interruptions from outsiders and focuses on your goals.


This is considered a business model that is profitable. As business continues to grow, you gain more experience and sustainability of the business is experienced. External funding cannot guarantee this. Startups that are externally funded might end up relinquishing in debts to a point of giving up. The business might end up not profitable to them.

Promotes efficient management of resources

Realistically, when you don’t have enough, you will be careful in spending. This brings efficiency in terms of managing and spending the little cash you have into a meaningful sense.

Promotes creativity

Ideally, when you don’t have enough cash, you look for alternatives on how to sort out your problems. To make the ends meet, you will be required to identify the resources around you and make use of them. Bootstrapping makes you think of ways to get things done in a cheaper and affordable way.

Bootstrapping Startups DisAdvantages:

No Shared Risk

Investing in any business alone may attract a lot of personal risks especially when the business closes. If the business doesn’t make any profit everything will be lost.

Minimal Networking

Any business needs a lot of partnership so you may network. Capitalists and other investors have huge networks. Linkage creates opportunities for new market and makes you visible. Investors usually offer advice and full support required for any business. You miss this expertise to run the business.

Slow Business Growth

Basically, when you don’t have enough money for start-up, business growth is always slow because you are operating with very minimal and limited resources. When business starts earning money, this is when you can invest more.


Many Bootstrapping Startups become very successful. Owners are careful and wise in spending and accountable for their decisions. They get business experience at every stage of their business growth. They also develop their own strategies on how to execute the business hence promoting creativity. The customer base is established hence increase in sales.

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About Shubham Kumar

Founder @StartupTalky. IIT KGP grad. Learner. Dedicated to the service of the startup Ecosystem. Love meeting people. Let's connect - [email protected]
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