Crowdfunding Or Bootstrapping
Crowdfunding Or Bootstrapping
In this blog we're going to cover the both the topics which help you to decide which type of funding is suitable for your startup
Crowdfunding -:
Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet.
Pros and cons of Crowdfunding -:
PROS: Reasons to Consider Crowdfunding
1. There’s not much financial risk
2. Your campaign could go viral
3. A successful campaign validates your business idea
4. You keep all of your equity
5. You can tap into an existing community—and build your own
CONS: Reasons to be Cautious With Crowdfunding
1. It takes time and money
2. Your campaign might not succeed
3. Someone could steal your idea
4. You have to pay several fees
5. It doesn’t work for all businesses
If crowdfunding isn’t right for your company, you’re not out of hope. There are other small business financing mechanisms to choose from. Use Startup India Scheme to get Funding at Early stage
Bootstrapping -:
Bootstrapping is building a company from the ground up with nothing but personal savings, and with luck, the cash coming in from the first sales. The term is also used as a noun: A bootstrap is a business an entrepreneur with little or no outside cash or other support launches
Pros and cons of Bootstrapping
Pros
When you choose to fund yourself, you'll reap the benefits of a mostly DIY approach. These benefits include:
1. Full ownership
2. Greater control
3. Limited debt
Cons
While bootstrapping is a great way to develop the company you want without incurring much debt, it can also be a stressful venture. These are three of the downsides of choosing this route for funding:
1. Financial risk
2. Less credibility
3. Slower growth
Difference between Crowdfunding and Bootstrapping
Bootstrapping is basically the opposite of crowdfunding. Bootstrap entrepreneurs build their businesses from the ground up with little or no additional capital. ... Unlike crowdfunding, bootstrapping comes with no need for a ready-made product.
Guys , We hope that the concept of Crowdfunding and Bootstrapping us clear to you and our blog helps you to decide which type of funding is suitable to your startup/business .
Thank You
