A complete guide to bootstrapping for startups in 2025

Launching your own UK business? One of the first things you’ll need to get your new company up and running is capital. Every new business has initial overheads, whether it's the cost of business registration and insurance, hiring staff, renting office space or buying raw materials.

For many startups, finding funding isn’t easy. So there’s no other choice but to ‘pull yourself up by your bootstraps’ and provide the funding yourself. This is known as bootstrapping.

In this comprehensive guide, we’ll run through everything you need to know about how to bootstrap a startup. This includes info on what bootstrapping is and how it works, pros and cons, and tips to successfully launch a startup via the self-funding route.

And while you’re exploring financial options for your startup, make sure to check out the Wise Business account. It’s ideal for companies of all sizes, especially if you have big ambitions to one day go global.

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What is bootstrapping?

Bootstrapping refers to starting and growing a startup using personal savings or the revenue generated by the business itself. Founders get the business up and running without seeking external funding such as venture capital or bank loans.

To succeed, you’ll need to be resourceful, committed and willing to sacrifice your own time and money. From the business side of things, you’ll need to operate lean and rely on internal cash flow to drive growth.

Bootstrapping is often seen as a grassroots approach to entrepreneurship, where founders maintain full control and avoid diluting ownership.

Many successful businesses have been built this way, so it is definitely possible to scale without significant capital from elsewhere - but it can be a challenging route to follow.

Pros and cons of bootstrapping

Pros

• Full ownership and control - as the founder, you’ll retain complete equity and decision-making power, which allows for faster and more autonomous business decisions.
• Financial discipline- operating with limited funds can incentivise smart budgeting, where essential expenses are prioritised.
• A customer-first mindset - with no pressure from investors, bootstrapped startups are able to focus more closely on customer feedback and satisfaction.
• Greater flexibility - without board oversight, or targets and timelines imposed by investors, founders can pivot or experiment as needed.

Cons

• Limited capital- with little capital, growth may be painfully slow, and this can make it harder to scale quickly or compete with better funded or venture-backed rivals.
• Personal financial risk - founders may use their savings, personal credit cards or remortgage assets, which increases financial stress and personal liability.
• Constrained hiring and development - with a tighter budget, it can be difficult to attract the best talent or be able to invest in tech infrastructure.

💡 Read more on startup funding rounds

How to bootstrap a startup - top tips for 2025

Successfully bootstrapping a business can be tough, and you’ll need to be prepared for plenty of bumps in the road. But with the right strategic approach, you may be able to pull it off.

Here are some tried-and-tested tactics to start thinking about:

Start with an MVP

Build a minimum viable product to test your idea quickly and with minimal investment. Get early feedback before committing to full development.

Focus on creating revenue early

Even founders with significant personal savings will run out of money eventually, so you need your company to start paying its way. Prioritise monetisation at an early stage, whether it’s pre-orders or a freemium model to generate income from day one.

Use free and affordable tools

To cut development and operational costs, make smart use of free tools such as open-source software, cloud-based tools and no-code platforms.

Outsource wisely

Hire freelancers or contractors for non-core tasks to reduce full-time headcount and other staffing costs.

Negotiate payment terms

Cash flow will be tight to begin with, so you’ll need some headroom when it comes to outgoing expenses. Get in touch with suppliers and clients early on, to work out flexible payment terms where possible.

Reinvest profits

Rather than extracting income, reinvest any early profits into growth areas like marketing or product improvements.

Keep overheads low

To minimise initial overheads, you’ll need to keep costs as low as possible. Premises can be one of the biggest costs, so reduce or avoid this altogether by working from home, sharing co-working spaces or operating remotely.

Build a network

Surround yourself with mentors, advisors and peers. When capital is scarce, you’ll find that expert advice, introductions and referrals are all worth their weight in gold.

Use data for decision-making

You simply can’t afford to make the wrong decisions based on a gut feeling, so use data to guide you. Track performance closely, monitor burn rate and make evidence-based decisions to optimise growth and minimise waste.

Examples of successful bootstrap startups

Plenty of thriving companies started from humble beginnings, without any or much external investment. These demonstrate that, with the right mindset and discipline, bootstrapping can be a viable path to success.

Here are a few well-known success stories to inspire you:

Mailchimp

Initially launched as a side project, Mailchimp became a global email marketing powerhouse while being entirely bootstrapped - until its $12 billion acquisition by Intuit.¹

Basecamp

Known for its project management software, Basecamp has been bootstrapped since inception and remains privately owned and profitable to this day.

Spanx

Sara Blakely started Spanx with just $5,000 of her own personal savings,² turning it into a billion-dollar fashion brand without taking a penny of outside investment.

GoPro

Founder Nick Woodman launched GoPro using $30,000 of his own money³, focusing on product innovation and marketing before eventually going public.

GitHub

Initially self-funded by its founders, GitHub became a staple for developers worldwide before being acquired by Microsoft for $7.5 billion.⁴

💡 See our guide: how to find investors for your startup

Bootstrapping pitfalls to avoid

While focusing on driving revenue, keeping overheads to a minimum and gradually growing your business - you also need to watch out for potential pitfalls.

Unfortunately, there are quite a few mistakes a self-funding startup founder can make. Here are just a few to avoid:

• Overextending your finances - don’t risk your essential personal savings or assets without a clear plan and realistic timeline to achieve revenue.
• Skipping market validation- launching without confirming product-market fit can waste time and resources. So, do your research and test demand first.
• Burnout - bootstrapping often involves long hours, with founders having to wear many hats. This can easily lead to burnout, which can be catastrophic not only for your health and wellbeing but also for a startup that relies solely on you.
• Scaling too soon - rapid growth without infrastructure or resources can backfire. You should aim to grow steadily and sustainably - making sure you can walk before you start running.
• Ignoring legal or financial essentials - register your company properly, get contracts in place and manage taxes and insurance from day one.

Are there alternatives to bootstrapping for UK startups?

Bootstrapping isn’t the only option for funding your business. Here are a few common alternatives for raising capital:

• Angel investors - these are high-net-worth individuals who invest their own money in early-stage startups in exchange for equity.
• Venture capital (VC) -investment firms that offer larger sums of money in return for equity and strategic influence in company decisions.
• Crowdfunding - platforms like Kickstarter and Seedrs allow you to raise money from the public in exchange for early access, rewards or equity.
• Bank loans and credit - traditional funding through loans or overdrafts, often requiring strong credit and a solid business plan.
• Grants and competitions - government or private-sector startup grants and startup competitions can offer non-dilutive funding with no equity loss.

These alternatives can provide faster access to funds but often come with strings attached - whether its equity, oversight or repayment obligations.

Grow your company and go global with Wise Business

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Sources used for this article:

1. Mailchimp - Intuit Completes Mailchimp Acquisition
2. Wilson Luna - Sara Blakely - Spanx Story
3. Shahnn.Medium - The GoPro Story: The Rise, Fall, and Reinvention of an Action Icon
4. Microsoft - Microsoft Acquires Github

Sources checked on 07-May-2025