Infographic: What Is Bootstrapping? How to Tell If It’s Right for Your Small Business

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.

How to Successfully Bootstrap Your Business

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.

For those of you that have a go-getter attitude and are weighing the pros and cons of this funding method, Fundera created an easy go-to infographic for everything you may want to know.

What Is Bootstrapping?

Meredith Wood
Vice President and Founding Editor at Fundera Meredith Wood is the founding editor of the Fundera Ledger and a vice president at Fundera. She launched the Fundera Ledger in 2014 and has specialized in financial advice for small business owners for almost a decade. Meredith is frequently sought out for her expertise in small business lending. She is a monthly columnist for AllBusiness, and her advice has appeared in the SBA, SCORE, Yahoo, Amex OPEN Forum, Fox Business, American Banker, Small Business Trends, MyCorporation, Small Biz Daily, StartupNation, and more. Email: meredith(at)fundera.com.
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