Crowdfunding is the process of pulling resources from various investors or stakeholders to finance a business project. This is done by encouraging investors to contribute a small amount of money which in the long run adds up to a substantial amount due to several number of stakeholders contributing. Bootstrapping on the other hand is building the business right from scratch without commissioning outside resources or help and these gives the business founders the ultimate control.
Crowdfunding is beneficial to the business as it will encourage raising a large amount of money in a short time and therefore makes the business expand rapidly. It is easier and takes little time to kick off a crowdfunding campaign and the outcome is always amazing. In bootstrapping the shareholders have full control of the business with no need for a ready-made product. This will encourage stakeholders to grow their business at their own comfortable pace without being driven or swayed by investors. Bootstrapping is relatively important especially when the project is targeting other businesses.
Bootstrapping encourages good relationship with other businesses as it demand building business from own sweat and requires countless hours of commitment in achieving the goal, Unlike crowdfunding which relies on financial support from investors. Freedom of decision making and planning in business is key, making bootstrapping the best choice.