Getting Started

No venture capital: Why every entrepreneur should try bootstrapping their business

Building a business is difficult, but not taking venture capital actually gives you some surprising benefits

I did public speaking and attended conferences to sell the business

I was also busy figuring out how we could excel with the little we had. We needed money to grow. I went out into the community to speak with fellow entrepreneurs about what they were doing and how they were growing. I networked at conferences and trade shows. At one of the events, someone mentioned their success with government grants and loans.

We submitted applications and experienced early success. We still apply for grants and loans instead of venture capital, because we learned their value early – an important lesson from bootstrapping.

No outside funding keeps you focused on revenue growth, not venture capital

Without the cushion of venture capital, you need to focus on revenue
Without the cushion of venture capital, you need to focus on revenue

Bootstrapping our business ensured we focused on revenue and, of course, profitability. If we wanted to spend more and invest in our company we knew it meant we had to grow our revenue.

We looked for every possible revenue stream

After years of building a business aggregating mortgage rates in Canada, we began to run out of large scale brokerages that could service all of our leads. We then started thinking about building an in-house sales team and began to explore the idea of having our own mortgage brokerage.

If we launched our own brokerage, we’d run the risk of upsetting or losing the customers we’d worked so hard to get. We could lose all our revenue and collapse our business.

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