The Pros and Cons of Bootstrapping and External Investment: Building Your Business on Your Terms

It's not as easy as it may at first appear

Starting a business is an exciting journey, but one of the biggest challenges is securing the funds to get started - especially if your business requires prototypes, a sophisticated website, or other upfront investments. Navigating this financial hurdle can feel overwhelming and sometimes paralysing, particularly for first-time entrepreneurs.

The Trap of Overthinking and Procrastination

Many new entrepreneurs fall into the trap of thinking five steps ahead, imagining thousands of customers and perfecting every detail in their minds. While this perfectionism stems from a desire to succeed, it often leads to massive procrastination. The fear of making mistakes or getting things wrong can stop you from taking the critical first steps.

Sometimes, however, there are unavoidable initial costs, which means you’ll need to evaluate how to raise the money. Let’s explore two main approaches: bootstrapping and seeking external funding, looking at the pluses and minuses of each.