7.2.2 Explore your Financial Options

Small business entrepreneurs frequently bootstrap their operations, which means that their only or primary source of funding is personal savings. It makes sense to invest money back into the company: Bootstrapping enables you to expand your firm gradually and naturally while guaranteeing that the model is profitable.

On the downside, you’re not well-diversified.

Depending on how capital-intensive your business is, using savings or credit cards for beginning financing can put you at serious risk.

It is wise to investigate one or more other funding sources in order to reduce some of that risk.