BT#4: Bootstrapping – A situation where in a promoter funds his/her business through personal savings, assets and/or operating revenues of the newly formed company. Advantage – Independence to promoter for managing business discretely. Disadvantage – Continuous financial constraint tampering business growth, higher risk as there is no equity sharing. Promoter may end up spending higher amounts towards interests by using personal loans or credit cards.
Posted on: Wed, 05 Jun 2013 07:16:06 +0000