Friday, March 1, 2013
Insights: Why You Should Bootstrap Your Startup
It's one of the questions every startup entrepreneur faces: should I start hitting the venture capital circuit for my company, or just bootstrap my company and get on with building my company? For our Insights and Opinions section this morning, David Ehrenberg argues that you should skip venture capital, and go ahead and bootstrap your company.
To self-fund or to raise funds? That’s the big question that many founders ask themselves as they try to get their product and service to market. You can find successful entrepreneurs on both sides of the bootstrap debate: there are definitely advantages – and disadvantages – to both bootstrapping and raising venture capital.
Admittedly, bootstrapping has its downside: the biggest drawback being the limit to how quickly you can get your product/service to market and how fast you can execute at a larger scale. Also, without VC funds, you will have less resources to focus on product development. But as someone who bootstrapped my own financial services company to great success –and has worked with many successful companies who started by bootstrapping – I wanted to extol what I see as the top virtues of bootstrapping (More...)
Read all of David's reasons why you should bootstrap your company in Why You Should Bootstrap Your Startup.