When it comes to financing a business, the temptation to call on external investors is often great. However, bootstrapping , i.e. financing a business independently without resorting to external fundraising , is an approach that deserves serious consideration.
Here are 7 good reasons to prefer bootstrapping to fundraising.
1. Maintain full control
By choosing bootstrapping , you maintain complete control over your business.
Unlike a fundraising round, there are no external investors to convince, which allows you to stay true to your vision without compromise. You are the only decision maker .
2. Preserve fairness
When you raise money, you sacrifice some of your capital in exchange for cash.
With bootstrapping, you keep all of your shares , which means that all of the value generated remains in your hands. This maximizes your future earnings, without dilution.
3. Develop entrepreneurial agility
Bootstrapping forces entrepreneurs to find innovative solutions to manage limited resources.
You learn how to optimize every euro spent, which promotes agility and creativity . This type of learning is valuable and prepares you to manage difficult times with more flexibility.
4. Accelerate decisions and projects
Raising funds can be a long and demanding process. By bootstrapping, you avoid delays related to negotiations and waiting for funding.
This way you can move forward more quickly with your projects, following your own schedule.
5. Focus on sustainable growth
With bootstrapping, you are naturally pushed to generate revenue quickly to support the business.
However, this profitability must be part of a sustainable approach. Rather than depending on external investments, you create a business model based on solid cash management.
6. Reduce the pressure of results
By avoiding external investors, you free yourself from the pressure of expecting rapid profitability.
Bootstrapping allows you to focus on long-term growth and make decisions more calmly, without the urgency of immediate results.
7. Build relationships based on trust
A business that builds on its own resources naturally develops stronger relationships with its customers and partners.
In the absence of investors, the company focuses more on customer experience and creating real value, which builds long-term loyalty and trust.
How Blendy can help you in your bootstrapping journey
At Blendy, English-speaking French accountant based in Paris, we support our clients in setting up rigorous accounting and optimizing financial processes to maximize profitability, while minimizing risks.
And, the choice between internal financing ( bootstrapping ) or external financing ( fundraising ) is a frequent question that our clients ask us about.
Our approach consists first of identifying internal financial optimizations, by analyzing your costs, cash flow and margins to maximize your self-financing capacity. If this path reaches its limits, we support you in preparing a well-thought-out fundraising.
Our goal: to enable you to choose the best strategy to sustainably support the growth of your business.
Contact us to discuss your project and the best financing strategy to adopt.
With Blendy, English-speaking French accountant based in Paris take advantage of digital accounting to accelerate your financial process and develop your business.
Pennylane, Dext, QuickBooks and Stripe certified, we support digital, IT, e-Commerce, SaaS companies in France and internationally.