Today, we would like to break the biggest myth prevalent in the startup world.

The myth is that every startup needs an external funding to function and become successful. By reading several news reports on the various funding rounds happening throughout the year, we start believing that in order to start a business, we would be required to have external funding but this in fact is not the fact.

There are many startups in the business that are doing exceptionally well without having any investors. In fact, if you decide to bootstrap and build your business without any external funding, you might be able to enjoy some of the following points.

  1. You are the king- You will enjoy the full ownership of your startup without any external nose pocking. You will remain the king of your kingdom.

  2. Self-reliance- You learn the important lesson of being self-reliant in life. You start learning new things, new ways to handle tough decisions as that's the only way out available to you.

  3. More time - You will have more time to spend on ideating your startup rather than selling the idea to every other investor available to your access. Finding investors and funding can prove to be a long and gruesome process and this sometimes gets in the way of the startup's growth.

  4. Finance guru - Being on your own, you learn to manage what amount needs to be spent on which thing. You learn the way to manage with whatever little capital you have as you don't have any other option to fall back on.

  5. Good relations - You will be able to maintain good internal relations without any outside intervention.

Instead of all the above reasons, some startups still might decide to enter the funding world. Some of the advantages of having an investor aside the obvious money inflow, is as follows:-

  1. Contacts - Along with money, they also come loaded with lots and lots of business contacts which can help take your business from Kanyakumari to Kashmir.

  2. Experience- The experience and the knowledge that they come with is something which can't be measured in terms of money. They can provide some very insightful words of wisdom on the functioning of the big world of startup.

Now that we have discussed the advantages of being on your own and the advantages of having an external investor, I'm also obligated to discuss the reasons that one might choose to go for funding. Well, according to me, there can be only one good reason for go for that funding and that is, if you really need that large amount of money to grow your business and carry out your startup's daily functioning.

So, if you have been contemplating over a startup idea for quite a long time but didn't know where to fetch that external investor from, I hope that we have helped in breaking that myth bubble and we would soon get to witness the launch of your dream startup.

[Top Image Credits - Justin Scott @Flickr]

Post a Comment

Previous Post Next Post
Like this content? Sign up for our daily newsletter to get latest updates.