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vishakha Jangir
•
Set2Score • 5m
𝗪𝗵𝗮𝘁 𝗶𝘀 𝗕𝗼𝗼𝘁𝘀𝘁𝗿𝗮𝗽𝗽𝗶𝗻𝗴 𝗶𝗻 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀? Bootstrapping refers to starting and growing a business using only personal savings, cash flow from initial sales, or minimal external help. It means building a startup without relying on external investors like venture capitalists or angel investors, at least in the early stages. Key Features of Bootstrapping : The business is funded by the founder's own money or revenue from customers. Founders retain full ownership and control. Emphasis is on generating income early to support operations. Operations are run with frugality and financial discipline. All business decisions are made by the founders without investor involvement. Advantages of Bootstrapping : Full ownership stays with the founders. Founders have complete control over business decisions. Promotes sustainable growth and early focus on profitability. Encourages financial discipline and strategic thinking. Disadvantages of Bootstrapping : Limited capital can slow down product development or scaling. Higher personal financial risk for the founders. Limited capacity to handle market fluctuations or failures. Competing with well-funded startups can be challenging. Common Bootstrapping Methods : Using personal savings. Borrowing from friends and family without giving equity. Reinvesting profits from early sales. Working part-time jobs to fund the business. Using low-cost tools, free software, and shared resources. Examples of Bootstrapped Startups : Zoho – A SaaS company from India, built without external funding. Mailchimp – Built using internal revenue, sold for billions. UClean – Started with ₹20 lakh from founders before raising funds later. GitHub – Operated without VC funding in its early years. Follow me vishakha Jangir for more such business and insights.
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