You’d be surprised how many businesses can successfully operate and grow by bootstrapping. Defined as funding a business through its own operating revenues, boostrapping is the inherent opposite of raising capital from angel investors and venture capital. If your business doesn’t require startup capital, you can use revenue generated from existing clients to efficiently start and grow.
While outside investment can be helpful, some businesses may benefit from bootstrapping, which ensures they own the company outright and helps increase overall valuation. In the video below, John Trefry, founder and CEO of 4WT Media, explains how he bootstrapped his thriving media company to success.
Although bootstrapping worked for 4WT Media, some businesses have no choice but to seek equity financing. Friends and family are often the first source of capital that gets your business off the ground. After that, angel investors help turn your early venture into a viable moneymaking entity. And once you’re ready, venture capital takes your business to the next level by providing multimillion-dollar investments.