WORKPLACE COMMUNICATION

(CSS2651)

Rahul Lohar
B. Tech (ANE)
 Semester – VIII
BANE1703
A719104917010
Amity Institute of Technology (AIT)

Acknowledgement

I would like to express my special thanks of gratitude to

my Workplace Communication teacher “Mrs. Susan
Shibu” for their able guideless and support in completing
my project.

I would like to extent my gratitude to my team for

providing me all the help and support that was required.
 Bootstrapping vs. Raising Capital

A good company can be built in a variety of ways. Despite the fact that venture capital
funding dominates the SaaS community, it is not appropriate for every company. Beyond
equity financing, there are a variety of options for raising money, including bank loans and
crowdfunding. However, there is also the choice of not collecting any equity or taking on any
debt at all, which is known as bootstrapping.
The decision to bootstrap or raise equity is based on the type of business you want to start and
how you want to start it.

When to Raise Equity

The process of raising capital through the selling of shares is known as raising equity.
Companies collect money for a variety of reasons, including a pressing need to pay bills or a
long-term target that necessitates funds to invest in their expansion.

Raising equity gives you the ability to expand rapidly and aggressively. You can make major,
bold moves, and pursue goals that will propel the company forward. You will have the funds
to hire the marketing and sales staff you will need to expand and solidify your audience.

Raising equity allows you to hand over a portion of your company's ownership to your
investors, often a large portion. As a result, it comes at a high price, both in terms of money
lost upon departure and a loss of influence over the business.

Once the investors own a share of your business, they will advise and/or determine how you
run it, ensuring that your business decisions are likely to maximize profits. Although your
company will have more money to work with and will be able to expand more quickly, you
must account for your creditors' personal stake in how your company performs, with an eye
on the exit.

The need for an exit is a function of equity financing: Your investors will need a way to get
their money out of the company, which may necessitate selling it or going public. If you do
not want your business to follow this route, think twice about raising capital.
When to Bootstrap
Bootstrapping is the process of starting a business from the ground up with just personal
savings and the proceeds from the first sales. Bootstrapping helps you to have complete
leverage, interest, and ownership of your business as it develops organically at your own rate.
You can make decisions knowing that you and your team are the only ones involved,
reducing the stress of starting a company.

Since you are not borrowing money to bootstrap, you do not need to set aside a portion of
your earnings to pay off loans or ensure that your return on investment is high enough to
satisfy your investors. You can reinvest all your profits in your business, capitalizing on
every dollar you earn to grow it organically.

Naturally, not taking equity means you have less money to work with, limiting the types of
projects you can take on at any given time. As a result, bootstrapping restricts your
company's future growth, and keeping your company afloat as it reaches new milestones
would necessitate significant sacrifice. You are likely to invest a lot of your own money in
the project and work very long hours, especially a first.

However, when the bootstrapped business gains momentum after the initial startup process,
maintaining and growing it will become easier and easier. You can focus on your business
and be sponsored by it for as long as you want because you do not have any investors that
require an exit.

Equity vs. Bootstrapping: The Decision Is Yours

But, in the end, it is all about what you want. What kind of company do you want to start?
What do you want your startup experience to be like? How long do you plan to run the
company? Do you want to work, or do you want to make money?

Only you can find the best solution for your company.