Today, you’re going to learn about 10 powerful advantages of bootstrapping your business.
So, if you want to build a business from scratch, and you want to know if it’s worth it to use your own money, time, and self-discipline to make it happen, you’ll want to pay attention.
Let’s dive in!
Table of Contents
1. Full Ownership and Control
My favorite thing about bootstrapping is ownership.
When you control 100% of your business, you get to make the decisions.
This means you don’t need to meet investors’ expectations, listen to the rules of a board, or get permission from anyone other than your customers, the people you’re serving.
2. Every Dollar Counts
When you bootstrap your business, you’re using your own money. This means you’ll think much harder about every single dollar spent and every business decision made.
This financial pressure makes you more frugal and causes you to run a lean, profit-first organization.
3. Faster Decision-Making
You get to make faster decisions when you bootstrap. There’s no corporate red tape, which means you can quickly deliver your products and services to the market.
And speed is king in an economy where customers want everything NOW!
This is truly where you can shine as a bootstrapped founder.
4. Financial Discipline
Like I said earlier, every dollar counts, which means your financial discipline will be forced.
This means you’ll learn how to spend wisely, invest in your business, and embrace smart, lean financial systems and tools.
Remember: Growth without waste is stress-free.
5. No Debt
When you bootstrap, you don’t need to worry about debt. Many startups have to worry about venture vultures, but not you.
You get to control your finances and do what you want with the profits.
No debt = entrepreneurial freedom
6. Authentic Growth
Customers are king in the real world, and they drive your growth as a bootstrapper, rather than investors.
This means you can focus on delivering value at an exceptional level and truly deliver an idea with a great product-market fit.
7. Better Customer Focus
Bootstrappers know their customers. Investors don’t.
Obsessing over your customers will give you an extraordinary edge over the competition, which will lead you to less churn, more customer referrals, and world-class reviews.
8. Less Pressure and Burnout
Bootstrapping can be hard, but at least you don’t have to face the outside pressure of investors.
You can grow your business on your terms and preferred pace, and you get to define business success for yourself.
9. Higher Profit Potential
Your personal profit potential rises drastically when you don’t have investors taking a cut.
So ask yourself: “Do I want to keep more money?“
10. Exit And Scale on Your Terms
Exiting and scaling your business is a breeze when you’re a bootstrapper.
There’s no committee telling you to limit business growth or wait around to sell the business.
You control your growth levels and exit strategies.
Advantages of bootstrapping infographic
Conclusion
That’s it! Those are 10 powerful advantages of bootstrapping your business.
If you want to make more money from your business, have complete control over the operations, and know your customers like the back of your hand, you might like bootstrapping.