Bootstrapping (Self-funding)

Bootstrapping is when a business is funded by the owner’s personal savings or internal earnings instead of taking money from investors or banks.

In this method, the founder keeps full control of the business but also takes full financial responsibility.

Key points:

No need to give ownership to investors

No loan or repayment pressure

Limited funds can slow growth

Higher personal financial risk

Example:

If a person starts an online business using ₹2 lakh from their own savings without taking any outside investment, it is called bootstrapping.