If you have heard of a new startup business, you most likely already know what bootstrapping a business means. Bootstrapping entails contributing your own personal savings, or those of your loved ones, into your startup in hopes for success to reinvest back into your business operations.
The first few months, or even years, most businesses self-fund their practices until they have maxed out their funding sources, forcing them to seek investors in exchange for partial control of their company. Bootstrapping your business allows you to control every operation, 100%. You are able to be your own boss and implement new innovated ideas whenever you choose too, at a price.
Even though this sounds like an intimidating business model to partake in, it has shown tremendous success amongst some of the most well-known companies out there, SPANX, Patagonia, and GoPro just to name a few.
Even though bootstrapping your business can be a rather nail-biting business move, many companies have made it a long way starting in the same place as you.
For those of you that have a go-getter attitude and are weighing the pros and cons of this funding method, Fundera created an easy go-to infographic for everything you may want to know
Meredith Wood Vice President and Founding Editor at Fundera, Meredith Wood is the founding editor of the Fundera Ledger and a vice president at Fundera. She launched the Fundera Ledger in 2014 and has specialized in financial advice for small business owners for almost a decade. Meredith is frequently sought out for her expertise in small business lending. She is a monthly columnist for AllBusiness, and her advice has appeared in the SBA, SCORE, Yahoo, Amex OPEN Forum, Fox Business, American Banker, Small Business Trends, MyCorporation, Small Biz Daily, StartupNation, and more. Email: firstname.lastname@example.org.