Money is like gasoline during a road trip. You don’t want to run out of gas on your trip, but you’re not doing a tour of gas stations.
The first few years of a startup are critical. Period! The SBA (Small Business Administration) states that over 50% of businesses fail in the first five years of their inception.
Bootstrapping a business can be defined as the process of funding the business with internal cash and being cautious about the expenses to avoid taking external money or resources.
Millennial entrepreneurs should bootstrap their business initially to avoid unnecessary debts, limiting risks and circumventing venture capital. Due to the exponential growth in the startup sphere across the world, the venture capital possibilities are reducing severely. Similarly, due to the high-interest rates on student loans and mortgages, it is advisable to bootstrap your business to limit such expenses.
The following are the pros and cons of bootstrapping your business: