As you start your own business, there are a lot of decisions you have to make. Although small business owners make many decisions every day, one of the most important decisions you can make at the beginning of your small business journey is whether to use your own money (bootstrap) or take out a small business loan to get things rolling.
There are pros and cons to each, and in this article, we will discuss what bootstrapping is, what it means to bootstrap a business, and whether bootstrapping or taking out a traditional bank loan is right for you.
In terms of small businesses, "bootstrapping" a company means you begin operations with minimal investment or financial help. As a small business owner, bootstrapping often requires using your own personal money as the source of venture capital.
There are many reasons business owners decide to bootstrap their small business instead of applying for a...