# The Beginners Guide to Raising Money for Your Startup: Crowdfunding vs Bootstrapping
As a startup entrepreneur, raising money is one of the most significant challenges you can face in launching and growing your business. There are multiple ways to raise funds, but two have proven to be more popular: Crowdfunding and Bootstrapping. And while both methods have their advantages, this post argues that Bootstrapping is a better option in the long run.
## Why Bootstrapping is a Better Option
### It is a Personal Approach
In most cases, crowdfunding can feel impersonal. You have to rely on the masses to donate to your cause without knowing or understanding your business idea. On the other hand, bootstrapping lets you take charge of your fundraising efforts. You can reach out to people and groups that you know have a personal connection to your idea. It is a more targeted and more personal approach.
### A Higher Likelihood of Success
Crowdfunding is no guarantee of reaching your funding goals. Most crowdfunding campaigns never reach their targets, which can be as high as $20,000 for creating a promotional campaign. By contrast, bootstrapping is a riskier yet more rewarding approach. It works by building a community of people who are as passionate about your concept as you are. The personal connection helps you to sell your idea better, leading to a higher likelihood of success.
### Lower Cost
Crowdfunding can be expensive. Before starting, you need to create a video and a social media campaign that hooks potential supporters. That costs thousands of dollars and might not result in enough funds to meet your objectives. Bootstrapping, on the other hand, is more affordable. You’ll probably incur fewer costs when reaching out to targeted partners and clients that share your vision.
### More Control
When you go the crowdfunding route, you have to relinquish some control. You have to be willing to accept contributions from anyone who is interested regardless of whether their interests align with yours. With bootstrapping, you retain complete control of your business and fundraising. You get to dictate the terms without any unnecessary input.
## Conclusion
When it comes to raising funds, crowdfunding and bootstrapping are both valid strategies, but bootstrapping has more significant advantages. It’s a more targeted, personal approach that allows for more control, lower cost, and a higher likelihood of success. However, be ready to take a risk.
Authored by: Marty Schultz, Co-founder of ObjectiveEd, and Founder and President of Blindfold Games. His mission is to maximize educational outcomes for children with disabilities by building accessible games for the visually impaired community.
