In business, bootstrapping refers to a business model where a company’s founder builds up their company with little or no external funding. Most or all of the funding comes from their own finances. This business model has its advantages and disadvantages. With bootstrapping, the entrepreneur has full control over their business and products. This means that they can steer the business in a direction that is in line with their vision. In addition, they don’t need to buy it out from the investors. However, relying on their own resources means that the entrepreneur has to be able to cover all the costs with the business income. The chances to fail are quite high and growth can be difficult. All in all, bootstrapping is hard work, but at the day’s end might be worth it.
