Why getting an investor might not be the smartest idea for your venture

In the present day, plenty of people have brilliant ideas regarding startup, and hence desire to begin their own startups. But the mere desire is not enough. Proper planning is a primary requirement for beginners. For example, a foolproof plan is required to avail resources for the startup. Nowadays, easily available loans are funds may appear to be a good solution to this problem. Yet, this easy method is not always the best one. In certain cases, self-funding may prove to be more beneficial for startups. So let us take a look at why funding can sometimes be a pain in your company’s life and why self-funding (bootstrapping) is the best.

You are self-efficient

self sufficient startup say no to investors

The very first notable advantage of self-funding is the progress of the startup that occurs due to the owner’s ambitions and attempts to earn faster. Due to the lack of availability of huge capital as a back-up, he has to rely entirely upon his petty amount of savings and earnings. As a result, the primary target is set to enhance the profits and income in the most efficient way.

Saves time

Having no investor saves a lot of time

A lot of time is saved as one does not have to spend hours in meeting and requesting investors, or in carrying out the formalities and procedures necessary for availing funds. Instead, the saved time can be employed in improving the services and satisfying the customers and users, for the betterment of the startup.

One does not have to answer to anyone

be your own boss

The best part, perhaps, is the fact that the owner does not have to provide any clarifications to anyone regarding the start-up policies which he adopts. Whenever a loan is obtained from any source, the investors seem to get totally involved in the startup matters, and the owner stands answerable to them regarding all measures taken up for the startup. Thus, funding can really be a huge problem.

Also read: 4 StartUp Niches That Need More Encouragement

Your goals do not change

focus on your goal

A normal entrepreneur may have simple goals regarding his startup, and be content with a certain level of profit that is enough to meet his requirements. But, whenever the investors get involved, they always want and coax growth in the start-up, and increase in profits, without caring whether the excess growth will prove beneficial or harmful.

Also read: 7 Useful Startup Advice from Experienced Entrepreneurs

Play by your own rules

What you Want, Like and Need

Whenever one begins a self-funded startup, he works with the motive to grow more and also learns to value money. In addition to that, he gets the opportunity to carry out experiments with his startup. As a result, he is able to explore his interests and enhance his skills all the more. But investors do not encourage any sort of experiment, due to the risks involved, which they do not want to pay for. They want the entrepreneur to be absorbed entirely in profit and money-making, rather than trying new techniques and technologies.

Bottom line:

Thus, it is evident that one should avoid involving investors in the beginner’s level. Anyway, one may not always feel prepared to take up the entire starting of the startup all by himself. Such attempts should only be made when one is ready for the startup technically, physically, mentally, as well as economically. Investors may be involved at a later stage in the start-up when the owner is in a position to take an upper hand over them, and run the deal as per his own desire so that their interference does not prove to be a reason of botheration for him or his start-up.

If you still thing you need an investor for your startup

Do read: Angel Investors- Here’s All That You Wanted To Know

Got any other thoughts? Feel free to leave in comments

Varun Choudhary

Diligent Listener | Conceptual Writer | Hard Core Performer And i make things 🙂

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Varun Choudhary

Diligent Listener | Conceptual Writer | Hard Core Performer And i make things :)