Not all entrepreneurs are lucky enough to snag an investor or the right loan right off the bat — but fortunately, those aren’t the only options available.
Small business owners are famous for pulling themselves up by their own bootstraps, self-funding their business to get it off the ground, and proving that their business has staying power. As the saying goes: when the going gets tough, the tough get going.
For example, Yogibo’s beginnings were anything but glamorous. Eyal worked out of his basement in New Hampshire, and used his personal savings to get his plush bean bag business off the ground.
“For the first couple years, I didn’t take a paycheck,” Eyal admits. “We hit profitability every year, but I chose to reinvest everything back into my business to grow it faster.”
Self-funding your business out of your own pocket can be incredibly rewarding, but also incredibly nerve-wracking.
In this chapter, you’ll learn the fundamentals of bootstrapping, so you can decide for yourself whether it’s the right choice for your business.
Now that you have an overview of equity financing, debt financing, and self-funding, you’re ready to make a financing decision.
We hope this series has been helpful! Thanks for joining us. Be sure to check out our Resource Center for more information and advice about running your business. If you have any questions or feedback, don’t hesitate to reach out on Facebook or Twitter.