Asked by Sarah Searls on Feb 18, 2024

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Which of the following is an advantage of bootstrapping?

A) You can expand your business faster.
B) You will avoid risk.
C) Outside investors are more likely to fund you if you have bootstrapped.
D) You have tapped into a lucrative source of advice and connections.

Bootstrapping

The process of building or starting a business with no outside investment, funding, or support.

  • Understanding the benefits of bootstrapping for business growth.
  • Recognizing the potential risk avoidance associated with bootstrapping.
  • Understanding the impact of bootstrapping on attracting outside investors.
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DM
Derek Marrufo

Feb 18, 2024

Final Answer :
C
Explanation :
Bootstrapping shows that you have skin in the game and have managed to grow your business with limited resources, which can make your business more attractive to outside investors. They may see it as a sign of commitment, resourcefulness, and the potential for sustainable growth, making them more likely to invest.