5 Advantages You Didn’t Know About Bootstrap Startup

3 min readApr 17, 2023

In my podcast, Figuring Out, I recently had a conversation with EaseMyTrip’s co-founder Prashant Pitti. EaseMyTrip started 14 years ago without any external funding, and today, it is the second-largest travel startup in India. The superstar entrepreneur shared his story of setting up a startup with his savings and how he didn’t have to look back except for a few hiccups. In fact, till now, they have not gone to any VC; instead, they opted for initial public offering (IPO) directly.

When starting a company, one question always haunts an entrepreneur: shall I invest my own money? Self-funding your startup is precisely that — to support your savings in your startup. Is it the best plan, or is it too risky? Then why do many entrepreneurs want to go for bootstrapping startups? Let’s find out the advantages of a bootstrap startup.

1. Holding onto the maximum share

When you go for any external investors, the share of your company automatically gets divided. It no longer remains just your company; many people get involved. You own 100 percent of the equity when you have a bootstrapping startup. Even if there are co-founders, all of you get a large chunk, and you have complete control.

2. Sole decision maker

When you find investors, you have to run every decision through them. You might have had a different plan, but you are answerable to them since you have taken their funding. Consequently, it may become too much for you. You also need to achieve quick success to impress your investors. They often have a say about everything — from your employees to your office decoration.

3. More time in hand

When bootstrapping, you no longer have to run behind an investor, which saves a lot of time. You can focus that time on building your brand and sharpening every tool. A handful of talented people will be enough to get your company up and running. You can focus on creating value for customers instead of seeking approvals. Hence you can have consistent growth.

4. Being the underdog

It will initially not feel like the best idea, but being the underdog has its advantage. There will be hardly any media attention, so your mistakes and failures won’t be printed in newspapers every other day. There’s a quote: work hard in silence and let success make all the noise. This is appropriate for all bootstrap startups. When you do good work, you will be noticed. For most bootstrap startups, word of mouth is most fruitful.

5. No liability

When you begin a startup, it has a 50 percent chance of failing. There’s no sugarcoating it. Bootstrapping a startup means that you owe none. Even if you do not make it, it will be your savings. When there are investors, you must return their money, no matter the cost. No external investor equals no added debt. Since you can reserve the profit, you can free up cash flow and allow yourself to reinvest profits back into your business.

When you are an entrepreneur, you have to be more curious than cautious. You cannot always play safe and should keep going to investors as a last resort. In case you have the capability of investing your savings, always rely on the same.

For more such insights, tune into the full episode here.