When it's time to raise funds for your startup which option should you choose? Keeping Your Balance sheds some light on funding your entrepreneurial dream!
Whether you take out loans, crowdfund or accept investments you might need outside funding as well to make your business go from great to successful! These are all viable choices and come with their individual pros and cons.
However, if your the kind of entrepreneur that wants full creative license and have the funds to do so, you might want to consider bootstrapping. The one big pitfall of bootstrapping is that if you lack financial management skills you could end up in serious debt.
Business News Daily delineates the advantages of bootstrapping:
- Complete control over your business- son't have to share ownership
- Manage the pace of your products marketing and sales efforts. -Investors could push you to pursue revenue before your product is ready!
- Don't need anyone's approval to spend money.
- Drives you to work efficiently and intelligently
To build your business on a budget you can do some of the following:
- Lower your hiring costs at first - This will mean that you'll need to wear many hats but that is cool
"This affords the owner the flexibility to build a revenue-generating foundation without incurring unaffordable fixed costs at the start," said Mark Buff, CEO and founder of HDTV antenna maker Mohu
- Create repeatable, scalable process - You don't have the luxury to spend frivolously; you have to analyze spending decisions carefully
- Save & Plan - Raise money before you need and always try to have backup plans in case things change like they most often do.
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