EQUITY FINANCING VS. BOOTSTRAPPING: MAKING THE RIGHT CHOICE

There are several financing options for businesses, equity financing and bootstrapping being the leading ones. Equity financing will provide capital which need not be paid back, but equity and profit must be shared. Bootstrapping maintains full ownership and control but growth is likely to be limited because personal or internal funds have to be used. The right choice is quite a matter of the financial status, the stage of business growth, and their respective goals.
EQUITY FINANCING VS. BOOTSTRAPPING: MAKING THE RIGHT CHOICE

There are several financing options for businesses, equity financing and bootstrapping being the leading ones. Equity financing will provide capital which need not be paid back, but equity and profit must be shared. Bootstrapping maintains full ownership and control but growth is likely to be limited because personal or internal funds have to be used. The right choice is quite a matter of the financial status, the stage of business growth, and their respective goals.