With young entrepreneurs becoming millionaires, it has become a mindset of budding entrepreneurs to look at their ventures from a standpoint of creating market capitalization and then selling it off. Most entrepreneurs nowadays look for venture funding to scale up their businesses through aggressive marketing at lightning speed and eventually increase the company’s and their own net worth. It is understood that most aggregator models do require huge funding but not all product or service based models do.
In such process, the business model is primarily focussed on achieving a certain scale of operations through use of the ‘funding to be received’. This usually overlooks the financial viability of the business model in several years to come.
In contrast, running a bootstrapped business helps test and evaluate the fundamentals of the business model. It makes much more sense to run a start-up business ground up with organic funding as it helps test the business viability and validate the model. Below are some of the pointers which will further entrust your psyche to run a bootstrapped business:
- Organic growth helps assess the robustness of the business model
- Company gets to spend ample time to test the products/services and its feasibility in the prospective market
- The business plan on paper converts to a working business model which helps test the waters and fix the initial hiccups
- Entrepreneurs learn the art of working with limited resources and yet excel in producing desired results
- Saves the additional time of founders otherwise spent on ‘dealing with stakeholders’ and focus on getting the core of the business right at initial level
- Entrepreneurs have the option of steering it the way you want
- Running a bootstrapped business helps bring out the creative side of entrepreneurs and ability to stay frugal
