Startup comes with their own set of risks, and this applies to every startup whether you start from scratch or not.
How ever when you talk about Boot strapped startup this risk is significantly high and in addition to that it has many cons.
But there are always two questions to ask yourself :
- How much risk can you afford to take?
- Is it even sensible?
In order to answer the later question you must weigh the pro and cons of the situation. Most of the people while talking about bootstrapping just focus on the advantages, just a single google search will give you a million results. But shat nobody answers is, is it even practical? Forcing you into making a half minded discussions and thus today I will be drawing your attention towards the cons, so next time you consider bootstrapping you know everything about it.
What is bootstrapping?
Bootstrapping is the process of building a business from scratch without attracting investment or with minimal external capital. It is a way to finance small businesses by purchasing and using resources at the owner’s expense, without sharing equity or borrowing huge sums of money from banks.
For many entrepreneurs, it’s not always clear which funding model best suits your business goals. Should you go with a VC, an angel, an accelerator, crowdfunding, or all of the above? Should you simply fund your company on your own? Each route, whether bootstrapping or tapping into outside investors, has its pros and cons.
Since now we are done with the basic concept if bootstrapping,
Let’s draw our attention to the challenges it tends to throw at you.
1. You are on your own:
What bootstrapping really means is pulling your own weight, with maybe the support of another buddy who’s was egually crazy to believe that you can turn an idea into billions of dollars. What I would like give you is a reality check, are you goddess Durga? No. Do you have ten hands? Again, no. How exactly are you planning to do it then?
When you bootstrap, you need to solve more problems with fewer resources. However, since every cloud has a silver lining, that necessity allows you to become resourceful and learn new skills you never even thought are capable in a short span of time.
2. You might go at a tortoise’s pace:
Without a large amount of cash on hand, the company might not be able to develop key components as quickly as desired.
A certain amount of revenue will be required for expanded R&D, hiring and marketing, and more time and planning will be needed to achieve those goals. Some growth milestones may take longer to reach, and targets might have to be pushed further down the line.
3. A scarce availability of skilled talent.
Skilled talent often comes at a high price, for people want to charge fairly for the amount of the work they put in so chances are that since you are already running in tight hands when it comes to finances
Although this becomes an upside when you find first-rate employees who are as passionate as you are in your vision. More often than not, these are buddies and former colleagues who are willing to leave high-paying jobs to join you in building what they believe would be a life-changing cause.
3. You will have to juggle ten things at once
If you’re bootstrapping, you’ll need to keep costs down as much as possible. You can’t afford to pay a full staff or outsource work, so your job title won’t just be owner – it’ll be owner, marketer, accountant, manager, and so on. To successfully handle all of these responsibilities, you’ll need to dedicate extensive time and mental energy, which could lead to burnout. Your family and social life will take a firm backseat to your company, so you’ll need to ask yourself if this is a sacrifice you’re willing to make.
Now since you are acquainted with all the cons. Hope you can make a well informed discussion.
Do you have any more insight on bootstrapping? Comment down below!