What is Bootstrap in Startup?

In the context of startup, Bootstrap refers to starting and growing a business without external funding or investment. It means building and scaling a business using one's own resources, such as personal savings, revenue generated from the business, or small loans from family and friends, instead of seeking funding from external investors or venture capitalists. 

Bootstrap in startup is also often called "bootstrapping" and it involves developing a lean business model, focusing on generating revenue and controlling costs, and reinvesting profits to fuel growth and expansion. It requires entrepreneurs to be resourceful, innovative, and quick to adapt to changes in the market, as well as to be willing to take calculated risks and learn from their mistakes. 

Bootstrap in startup is an attractive option for entrepreneurs who prefer to maintain full control of their business and avoid external pressures or demands from investors. While it may require more time and effort to achieve growth, bootstrapped startups often have greater flexibility and are more resilient in challenging economic conditions.

Bootstrapping is a term used in business to refer to the process of using only existing resources, such as personal savings, personal computing equipment, and garage space, to start and grow a company[1]. This approach is in contrast to bringing on investors to provide capital or taking on debt to fund a business' expansion. Bootstrapping enables startup owners to retain their share of the equity, and it forces business owners to create a model that really works[2]. Bootstrapping a company occurs when a business owner starts a company with little to no assets, relying on personal savings, sweat equity, lean operations, and income from initial sales[3]. Here are some pros and cons of bootstrapping:

Pros:

- It allows entrepreneurs to retain full ownership of their business[2].

- It forces business owners to create a model that really works[1].

- It enables startup owners to retain their share of the equity[2].

- It challenges entrepreneurs to focus extensively on business plans and generate revenue as soon as possible[4].

Cons:

- It can be difficult to get a business off the ground with limited resources[1].

- It can be challenging to grow a business without outside investment[3].

- It can be difficult to scale a business without outside investment[5].

Successful bootstrapped companies have a business plan that generates cash as quickly as possible[4]. To run a successful bootstrapped company, an entrepreneur must execute a big idea, focus on profits, develop skills, and become a better business person[6].