Guwahati: One could be left scratching their heads if asked to decipher the commonality between US behemoths Amazon, Meta, and Apple and Northeast Indian start-ups like QuickGhy, RC Hobbytech Solutions Private Limited, Little Box, and Maestro Assam. However, the answer is simple: bootstrapping.

What is bootstrapping?

According to the Corporate Finance Institute, it is “the process of starting a business from scratch without attracting investment or external capital." Bootstrapping involves financing small businesses by purchasing and using resources at the owner's expense, without sharing equity or borrowing large amounts from banks. 

Bootstrapping businesses are characterized by high dependence on internal sources of financing, such as credit cards, mortgages, and loans. Successful growth requires a competent development strategy, accounting for all risks, and allocating funds to the most vital segments of the business mode”.

Bootstrapping is typically the preferred choice for beginnings. It allows them to create a company without experience and attract an investor or investors. The choice reasons for taking bootstrapping as a business model are different.

Usually, entrepreneurs retain full ownership of their business in bootstrapping, allowing them to develop a successful business model in exchange for investors' support.

This model also provides a sense of accomplishment and keeps control over direction in the owner's hands. However, bootstrapping can be risky, as it can lead to rapid funding shortages and difficulty scaling. 

Moreover, while traditional financing methods offer higher capital and networking opportunities, bootstrapping limits these opportunities. Entrepreneurs must be meticulous about keeping their books to avoid issues or opportunities later. Additionally, bootstrapping requires significant organization, as entrepreneurs must be meticulous about keeping their books organized. Despite the challenges, some entrepreneurs prefer this method as it allows them to maintain full artistic direction and control over decisions.

Despite the financing method, entrepreneurs will eventually have to crack the key ingredients - product, idea, marketing, research etc - to launch a successful brand. As Biswajit Dey, one of the founders of RC Hobbytech Solutions told Business North East, "When an idea is designed one should not just think; they should implement what they think."

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