Bootstrapping

What is Bootstrapping?

Bootstrapping is the practice of starting a business using personal savings, revenue, or other internal resources, rather than relying on external funding such as venture capital. Bootstrapped startups often have to operate leanly, focusing on generating revenue quickly to sustain growth. While challenging, bootstrapping allows founders to retain full control and ownership of their companies.

Advantages and Challenges of Bootstrapping

• Retained Ownership: Founders maintain full control over the company.
• Lean Operations: Encourages efficient use of resources and cost-conscious decisions.
• Limited Resources: Can face difficulties scaling without significant capital investment.

Related Terms and Concepts

Self-funded, lean startup, venture capital, early-stage startup