BENGALURU: What do Github, Zoho and QuackQuack have in common? They are all successful bootstrapped startups. But in this era where startups are going crazy over fundraising, why do founders still want to bootstrap? Here are some important reasons why you should consider it:
Post-fundraising, founders sometimes are made to run on a treadmill based on the directions of the investors. Some founders pack their dreams in a box and start executing someone else’s vision. If you have the necessary resources to execute your startup plan and a capital pool that can sustain you from getting drained out, then nothing can be better than a bootstrapped startup as you will enjoy complete creative and business freedom over your startup. No taking approvals for making business calls or making startup pivots.
Building a business that has revenue sources makes it more sustainable than ventures that rely on funds from venture capitalists. If you look at the street tea vendor, he is not relying on any funds, right? He is concentrating on building sustainable businesses. When you have revenue sources coming in from different sales and service orders, you can better plan how to utilise the funds for buying goods, planning inventory and hiring.
Working on fire helps you create gold. What I mean is working under pressure with limited resources and burning deadlines can help you forge gold. Such conditions can prepare you and help you bring out the best version of yourself.
Quick B-plan execution. Since the decision making is in your control, you can execute B-plans quickly. The go-to-market time is the shortest because once the founders decide, the next step is just executing it instead of convincing your board or investors. A bootstrapped startup is more like charting deep dark woods that you have never explored before. But to the founders who love adventures, nothing else can get the adrenaline rushing. With that, I would like to leave you with some beautiful lines of Robert Frost:
The woods are lovely, dark and deep, But I have promises to keep, And miles to go before I sleep, And miles to go before I sleep. Hope you enjoy bootstrapping! For any queries, write to me on Rajeev@TBSPlanet.comRajeev Tamhankar is IIT Roorkee Silver Medalist, Founder, TBS Planet Comics.