What is Bootstrapping
We all must have heard the name of the term Bootstrapping. But what really bootstrapping means and how does it work, is it some kind of rocket or it a process? Today in this precious content by Ur Startup we will discuss this important topic which you need to know if you are a businessman.
WHAT IS BOOTSTRAPPING
BOOTSTRAPPING is a business term which is referred to any business starting without outsourcing fund. It refers to self-starting business with no capital from outside means by using own resources like personal saving, personal computing equipment to grow.
You can Maintain and can take responsibility for every task which you want.
The person has full control over it because of its owns investment and resource. It is not easy to start any business as bootstrapping because there is a risk. As there you need to manage all resources, financial decisions.
Bootstrapped businesses need a good business idea. If you think the only idea is enough then wait, no its really not enough. Your idea firstly should be out of the box. It must have a unique selling product that means USP so that it could perform better in the market.
There is a lot of people out there in the market and they start a business every day. We all have seen or we use to read every day that how new startup comes in the market and emerge and also fail. Every day someone in the market either wins the market with their plan or fail to convey an idea or generating need of that idea in the market
So that shows us how it is difficult to win the market and taking place in the market with your competitor too. So their only your product USP can make a difference. So their bootstrapped business is quit tuff to follow. As there is a great market risk too.
Is Bootstrapping Tuff?
Now you must be thinking with a great idea you can now start your business then wait for you are going on in the wrong way. Yes, bootstrapped business is indeed tuff to follow and you need to come with a great business idea but at the same time what team you choose also matters a lot in bootstrapped business.
Behind every success story of a company, there is a great team effort needed. Hence you can make your idea, your vision successful if you have a good smart working team as well as a great hardworking team.
So any bootstrapped business needs great teamwork and work execution.
Benefits of having a bootstrapped business.
The bootstrapped business has the same benefits as:- they don’t need to worry about the growth expectation by investors and they can make big changes by themselves, they can have their own authority to run that organization by themselves.
According to a new survey done by Forbes in 2015, 90% of startup fails. Every day a new startup comes in the market try to beat the competitor or tries to create something new in the market and fails. But yes you will be sock to know that most of them which fail are not bootstrapped. Yes, you heard it right. Most of the successful startup is bootstrapped, which started its business without any outer funding, investment.
The reason behind the success of any startup which is bootstrapped is simply because an Entrepreneur puts his full effort to make that work, idea, dream successfully. The entrepreneur makes full research on that particular topic. He takes full knowledge of that particular field and makes that idea execute properly.
Its tuff to decide without any funding, funding is like the backbone for any business. You can easily make a decision related to money. But at the same time, you need to deal with pressure and investor. Investor sometime also questions your decision as they also have the pressure of their return on investment. They use to show their authority which becomes tuff for them to experiment.
Some great Examples
We all know about Facebook, but as we have discussed with you, it was not the first startup by MARK ZUCKERBERG. He first started HOT OR NOT. Then he realizes it is not going to worth his effort and created Facebook. So being free in business play an important role in running the business, making idea execute, dreaming, and achieving of what you use to thought.
Now we were discussing above that a great idea with a great team also needs to make startup successful. Hence you must have a dedicated team who can pursue business with a great idea, with aim and dream as you have seen for yourself.
How you can make a Business Successful by Bootstrapping.
First, you need to have a plan for finance and processes. Now you need data of profits and cash flow and you have to implement those data into a process of reinvesting. Reinvesting is something which you need you to create a bootstrap business successful, for this you need to know the main core need of your business system this means that how you could make more impact by that same value in your organization.
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