If you have heard of a startup, you most likely know what bootstrapping a startup means. Bootstrapping means building your company from the ground up with your own, or your loved ones, personal savings and reinvesting all earnings back into the business. Bootstrapping a startup may sound like a nice idea, but in reality, it can be a little harder than expected.
Companies like Patagonia, SPANX, GoPro, Tuft & Needle, and GitHub are a few examples of companies that have mastered this business funding approach. They grew their company without needing external assistance or investments other than their own to be able to own 100% of their business.
Of course, just like every business decision, there are various pros and cons to be weighed before making a final decision. Even though bootstrapping a business takes some serious dedication and motivation to keep up and running, it can be more than rewarding.
When most think about self-funding a startup, they may be thinking there needs to be endless amounts of unused cash waiting around. Yet, in reality, self-funding your own business can be started off just $10,000. If that is the exact amount you have in your savings, running through this money may be risky, but you will be able to cut down on time and stress when continuously pitching your business to investors.
Even though bootstrapping your business can be a rather nail-biting business move, many companies have made it a long way starting in the same place as you.