Fatima Zaidi is the CEO and Founder of Quill & CoHost. Quill is an award-winning content marketing agency, specializing in branded podcasts for leading global brands including Interac, McKinsey & Co., PWC, and Expedia. Quill also owns CoHost, a podcast growth and analytics tool used by customers like Blackrock, Boston Consulting Group, and Interac.
As a founder, you often face a key decision early on: Should you seek funding or can you rely on your own resources to build a business? In Canada, with interest rates easing up, many startups are still finding it tough to raise money, making bootstrapping an increasingly attractive route to funding – especially in the early stages.
Bootstrapping is the practice of building a company without external funding, and instead relying solely on personal savings and revenue generated by the business. While it can seem daunting, it offers a level of freedom and control that outside investors cannot provide. In today’s market, where raising capital is harder than ever, especially as a female entrepreneur, bootstrapping may be a more practical and rewarding option.
Why Bootstrapping Makes Sense
When I started Quill, I made the conscious decision to bootstrap rather than seek venture capital. It wasn’t an easy choice but in hindsight, it was definitely the right one. While raising capital can allow you to scale quickly, it also comes with financial obligations and pressures to meet aggressive growth targets. Bootstrapping allowed me to maintain full control over my business, including the pace of its growth trajectory.
In times of financial uncertainty, bootstrapped businesses often have an advantage. You’re forced to become profitable quickly, which is critical for any business but especially when you have no investors to fall back on. This creates resiliency and grit, keeping you focused on cash flow and sustainable growth.
Focus on Profitability
One of the biggest lessons I’ve learned from bootstrapping is the importance of defining a clear path to profitability from the get-go. Bootstrapped businesses don’t have the luxury of waiting years to become cash-flow positive. From day one, you need a game plan for how you’re going to make money and refine your product to meet market needs. This means the pressure is on to understand exactly what your customers want, and then build something they’ll pay you for.
Autonomy and Control
Bootstrapping allows you to maintain full creative control over your business. You get to shape the company culture, set the pace of growth, and make key decisions without having to align them with anyone else.
At Quill, this autonomy allows us to stay focused on our clients and build solutions we want and our customers want. We don’t have to pivot to meet investor demands, instead, we make decisions based on what is best for the long-term success of the business. This freedom is, in my opinion, the biggest advantage of bootstrapping, and it has kept us aligned with our own vision versus someone else’s.
What’s The Right Path?
Bootstrapping isn’t for everyone. It’s difficult, and a slow path to growth. You’re responsible for every decision and that means making mistakes without a financial cushion. But for many entrepreneurs, that trade-off is well worth it.
If you’re deciding between bootstrapping and seeking venture capital, I’d advise you to think about the kind of business you want to build. Do you want to retain control, or are you comfortable giving up equity and answering to someone else in exchange for faster growth?
In the end, bootstrapping doesn’t mean you can never take outside investment, it’s about when and how you decide to bring in funding that matters. And for some businesses, raising capital might make sense once you’re more established and have a proven revenue stream. For others, staying independent and bootstrapping for the long haul might be the right path. When considering both options, however, it’s important to weigh your pros and cons and be fully informed before making that decision.
At Quill, building our company from the ground up has been the most rewarding experience. Although tough at times, it’s also allowed us to create an amazing company culture and provide the level of service we do.
