The future’s bright: What are the current top industries for tech startups?
September 28, 2020
Series: Bootstrapping your tech startup to success – Part III
November 3, 2020Series: Bootstrapping your tech startup to success, Part II
Welcome to our latest entrepreneurial series. This one covers bootstrapping, with tips and advice on the best way to get your business moving with minimal funds. If you didn’t catch our first one on “What is bootstrapping and is it right for you?”, you can catch up anytime by visiting our blog here.
Last time we defined and explained bootstrapping. Now we’re ready to jump into the advantages and disadvantages of this approach when it comes to your tech startup.
Let’s start with the advantages of bootstrapping:
- As you aren’t spending hours looking for investment, you can put 100% of your time into your products/services.
- Since all your money will be coming from your customers (and not investors), you will naturally make them – and your offering – your main focus.
- You will find you become very creative, solving problems with little money, and coming up with clever, cost-saving ways to market your offering.
- You will also find ways to manage the company’s funds efficiently and create an agile company – think of it as great training for the future.
- If your company is a success, the process of bootstrapping will have created a lean, customer-focused business.
- Finally, you’re the boss. You’re not answering to investors. This is your chance to lead, to decide on the direction of your company, and to see your idea all the way through to the end.
Now let’s look at the disadvantages of bootstrapping:
- Company growth can take much longer without investment.
- For some companies, a large investment is required simply to get off the ground – bootstrapping isn’t an option. It’s investment or nothing.
- When you bootstrap, it’s likely you won’t have much money coming in for a considerable period of time.
- You could open yourself up to personal financial risk.
- It can be very stressful, with everything resting on your shoulders.
- Investors can bring a huge amount of experience, good ideas, and a ready-built network to the table.
This wraps up Part II of our bootstrapping series. Part III will cover 10 tips to successfully bootstrap your business. Until then, consider the above points carefully, as the decision to bootstrap is not one to take lightly. It can decide the entire course of your company.
