Published on July 3rd, 2018 | by Jose Vasquez0
Can You Build a Startup Tech Company Without Funding?
Is it possible to build a startup tech company from scratch, without any outside funding?
It’s easy to be intimidated by the thought of getting funding from an angel investor or venture capitalist. What if you can’t find any interested parties? Is your startup tech company dead in the water?
Fortunately, the simple answer is no. You can usually build a startup tech company without funding, depending on the nature of the business and how much work you’re willing to put in, though you might be at a few disadvantages. For example, you might not be able to grow as quickly, and your infrastructure might be lacking at first.
So why would you want to do this, and how can you get started?
There are some advantages to this approach:
- If you accept money from a VC or angel investor, they’re going to take a stake in your company, and that means your decisions are going to be diluted. Funding the business on your own gives you more autonomy.
- When you don’t have to worry about the next round of funding, you can focus on more important things, like how to improve profitability and get your product to market.
- Future options. Starting out with minimal funding may give you a slow growth curve, but you’ll ultimately have more long-term options—including funding down the road, should you change your mind.
You’ll still need capital if you want to start a business, but you can get it without seeking formal funding in the following ways:
- Personal savings. Tap your personal savings, but try not to break into your retirement funds if you can help it.
- Friends and family. Ask your friends and family members for contributions if they believe in your idea, in exchange for a share of the profit.
- If you have a product to make, consider crowdfunding your business.
- You can also get a personal loan, assuming you’re able to secure favorable terms.
Once you have some capital to work with, your next goal should be to start making money as soon as possible, with a minimum viable product. As long as you have a revenue stream running, you can continue to bootstrap the company for further growth.
If you’re interested in learning more about building a startup with no funding, contact me today!