In a few weeks I’m giving a talk to a group of entrepreneurs that have decided to eschew raising outside capital and focus on bootstrapping. With so much focus on TechCrunch and other publications about fundraising and venture rounds, it’s easy to get caught up in the belief that raising large amounts of capital is the only route. It’s not. Here are several benefits of not raising outside capital:

  • Flexibility – Businesses change. Trends change. Being independent provides infinite flexibility to change course and pursue the best new opportunities. With no board of directors there’s maximum flexibility.
  • Timeline – Without outside investors there’s no timeline on the business to sell after 5-7 years. Sometimes it doesn’t make sense to ever sell or there’s a desire to have a great cash flow business indefinitely.
  • Quality of Life – Being an entrepreneur is already stressful enough. Once the business is working, there’s the option to focus on quality of life and less on the company.
  • Expectations – With no investors there’s no expectation of building a large company at all costs. Expectations can be as high or low as personally chosen.

Overall, the biggest benefit of not raising outside capital is the ability to control your own destiny across every dimension. Control is what many entrepreneurs are seeking and not raising capital is the best route for that.

What else? What are some more benefits of not raising capital?