Capital! No business can kick start without a proper plan to finance its projects. While most entrepreneurs choose to borrow money from banks and other donors, others choose to use their own pocket money to fund their businesses. Personal funding could include savings, friends, and family.
This is why you should use your personal funds to run your business.
1.Total ownership
When you have funded your business with your own money, you get all profits and you retain full ownership unlike with borrowed money which requires you to share profits with the donors as interests for the loans.
2.Discipline
Knowing that it is your own money, you will need to put extra effort in investments and other business operations. When buying equipment and advertise your business, you will be forced to only buy what you can afford. It leads you to live within your means.
3.Effective planning
Since you are certain of the amount of money at your disposal, it will be easy to plan adequately without estimation of costs. The fact that you will not need to write business plans, a lot of time will be saved since you can start anytime. No time is wasted trying to convince donors about the potentiality of your business.
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4.You understand your limitations.
How much money are you willing to invest? When you understand what amount of money you are willing to risk, you will be able to plan where the business will start at.
5.Total control
You have complete control and say in the business. No one is looking over your shoulder and asking questions about the decision you make. Since you are not answerable to anyone, decisions are made fast and actions taken.
Bootstrapping is a good especially in the early stages of a business since it will save you from the hustle of convincing donors about the potential of the business idea.It will be much easier for them to invest in your business when it is already up and making profits.