Everyone seems to be wanting in on the action regarding fund-raising – it’s the new buzzword. The overnight star status has everyone wanting to turn to ecommerce and get funded. Many founders and entrepreneurs think that the only way they can create a successful business is by getting funded right from day one.
They forget that somewhere in the middle of all of that is the need to create a business – which is sustainable and long lasting and not dependent on funding. Studies show that the vast majority of these businesses are self-funded – which is usually known as bootstrapped.
Simply put – bootstrapping is where you start your company with your own finances. This could include help from friends and family but is basically your own money and where the risks are huge. If you do not have the right financial management skills and the knowledge, you could end up failing with serious debt issues. On the other hand, if you can pull it off, the rewards are huge.