Bootstrapping Vs. Fundraising

You may have all of the ideas that you want to express and create something of your own. But thinking about how to construct it can seem overwhelming and difficult. But the most crucial part about building your foundation is to start from the bottom and work your way up. That is why at Starting Small Media, we advocate helping others in starting their journey from their first step. We host our annual Podcast where we interview other successful entrepreneurs who started small, just like you.   

What is Bootstrapping?

Bootstrapping is when you are starting your business at a minimal investment. In other ways, you practice your financing in your own capital instead of relying on other capitals that are outside of your startup. Additionally, Bootstrapping allows you to control your own business, which gives you more freedom to make decisions and seek out opportunities. 

Bootstrapping is a great way to test out your business idea while finding affordable marketing opportunities. It pushes you to think within your own realm rather than investing a lot. 

What are the Pros of Bootstrapping? 

Bootstrapping provides many pros when launching your Startup. Here are some to consider.

You are in Complete Control

You get to take control and ownership of your company and don’t have to deal with other investors. You have the opportunity to do whatever you want. 

You Can Focus On Marketing And Product Development

You can focus on your main priority of finding your Target Audience when you don’t have to worry about investors. You can focus on Marketing your business and work on increasing your product development.  

What are the Cons of Bootstrapping? 

Although there are pros for taking on this pathway, there are prone to be cons. Here are some cons to consider. 

There Maybe Financial Risks

When you fund a company by yourself, it may be a higher risk when it may or may not be paid off. This is why you need to create a Set Mindset. Since you may not have any outside investment, this may increase the better chances of competitors with their marketing. 

Slow Start to Growth 

Since bootstrapped startups don’t have the funds to rise up quickly, it may halt the growth process for a little while. You may be halting on visibility, marketing, etc. 

What is Fundraising?

Fundraising is when you get more capital, which helps increase the growth of your business faster, while looking at the horizon of a return on your investments. The main reason for looking out on funding is to step up from when you can manage your own finances. For example, it can be for sales and marketing, product development and other factors. 

What are the Pros of Fundraising 

There are many pros within fundraising. Many of them can venture into your business. 

Increase of Growth 

With the help of other investments, startups can gain the top talent to increase their business at a faster rate. And they can focus on their business growth strategies. 

Higher Chance of  Credibility

When you have an investor, it creates a more confirmed source for the company. When your investors are wanting to give sustainable funding, it shows the potential growth. 

Assistance with Advertising and Marketing 

One of the biggest challenges that Startups face are advertising and marketing. Funding helps you scale the marketing and advertising. Therefore, you need to gain the target audience and funding will assist with that. 

What are the Cons of Fundraising

Even though the pros may outweigh, the cons are still present. Here are some of the cons to consider. 

Strict Timelines 

Before any funds are released, many founders are often stuck with abiding by strict timeliness. The decisions must be made from the investors and the business owner loses a lot of the claims to them. 

Relying on Others Rather Than Yourself 

After receiving your startup, you may have strings attached to the investors. Moreover, you cannot do whatever you want with your funds. Before they are released, they need to abide by the investors’ conditions. 

Contact Starting Small Today!

Starting your business can seem overwhelming and scary. It can feel like you have this big, open space that you are trying to fill. That is why at Starting Small Media, we advocate in helping prospective entrepreneurs take their first small step into their business. We host our interviews, and our in person events! We host our Starting Small Summit where you can get hands-on experience with workshops and networking. 

Contact us now to get started with your first step today!