Here's How You Can Build a Startup Without External Funding
It appears to be unthinkable but with the right vision and hardwork it is possible to build a startup without any funding from outside
It is never easy to start with something new, especially without a backup. Startups are like babies, we always seek guidance from experts and successful entrepreneurs, and we need to be extra careful while making decision. One of the vital stages of a startup is funding. Most people or the internet will advise us to go for venture funding or external funding. One of the most common and popular examples of venture funding is UBER. However, people tend to forget about the original startups like Microsoft, DELL and Virgin, that started without any external funding.
As an entrepreneur, an investor-free startup is beneficial in many ways, such as –
You are the boss – Most entrepreneurs are ex-employees of large corporate giants who wanted an independent environment to bloom their ideas. Such that, there is no one to hinder the decision making or growth
Budget and business plans – Since there is no external funding, entrepreneurs make all the decisions wisely. Ideas are creative and innovative but with precautions, since imperfections will quaff away money
Metamorphosis - Without any external investment, a firm can transform or evolve. New ideas will pop-up along with precautionary methods that will help the company to transform and dominate in many areas. There will be no external pressure or a veto to stop an entrepreneur from making changes.
More attention towards customers – With investors in a firm, one has to satisfy the customers as well as the investors. Thus, an investor-free firm will help a lot in focusing on the customers and their needs. New and unorthodox ideas will pop up to attract more customers.
The exit strategy – Once the firm obtains their target and increases their value, the investors will start insisting on a sale or public offering to get their money back. Thus, this will limit or put an end to the golden dream of every entrepreneur to change the world.
Whether a startup is externally funded or not, an entrepreneur must make sure that they focus on their goals and have a clear and well-planned business model. Having a healthy and a long-term relationship with customers and clients is one key way to survive in this competitive market. Focusing on repeat business is an acute way of marking one's presence.
With a startup without external funding, resources are limited, thus one must make sure that they optimize their resources and avoid spending money on luxuries in the initial years. Both personal as well professional life must be balanced. By fulfilling the demands of clients and satisfying the customers, the startup will get repeat business. Also, while hiring a team, an entrepreneur must make sure that they have a vision and understand the startup's goal very well.
It is possible to survive in a market of today without any external funding and dominate in the long run. There are many creative and innovative ways to generate income and make the necessary payments and make profit. For an entrepreneur, there is no finish line, and one must make sure that they enjoy the journey. The world is changing at an alarming pace and keeping up with the pace is the key to making an impact in this world as a successful businessman.