Starting a business is inherently a catch-22.  The majority of internet marketers start a business in order to growth their personal wealth, but they typically don’t have the finances to bootstrap their business in the very beginning of its growth.  Not every business needs outside investment – many freelancers and small internet entrepreneurs will never talk to a single investor during their entire product cycle – but more ambitious startups and application developers normally go through one or more investment phases where they seek outside financing for their ventures.  

Before you look for investors

The vast majority of internet businesses, nearly 99.9%, will never seek investment from venture capitalists or equity sharing.  In fact, because of the low startup cost of internet businesses as compared to their brick and mortar counterparts, internet marketing is the most fertile ground for bootstrapping a business.  Bootstrapping, or paying for a business startup through one’s own personal funds, is a common way to start a small business while retaining 100% of the equity.  While you may face some tough times, and life might be a little less comfortable while you get your business on its feet, bootstrapping a successful business leaves the most room for future success.

Potential Downsides of Bootstrapping

I strongly believe that bootstrapping an internet business is the way to go for a first time business owner, but there are a few limitations that you must keep in mind.