Bootstrapping

The most difficult aspect about entrepreneurship is organizing the initial funding to try and do the initial pilot and proof of concept, and finally build the go-to-market strategy. Cost of marketing, which could include endless travelling, not just for oneself but also for colleagues and employees, can be an open-ended activity in terms of cost.

The early stage of a business also happens to be the one that bears the highest risk. Hence, it is important that the entrepreneur does not create debt or raise capital that comes with high cost attached to it, whether it is through interest or equity dilution. Therefore, only self-owned capital must be deployed at the beginning. Once an entrepreneur gets invested into or raises debt, the ability to control finances and remain frugal is most critical for growth. Investors detest high-flying entrepreneurs who do not value money entrusted to them for building their business.

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