Stage 1: Self & circle
Savings & bootstrapping
Quick answer
Funding the business from your own savings and early sales keeps full ownership and control, but growth is limited by what you can afford to put in.
Best suited for
Idea-stage and very early businesses testing demand.
Pros
- Keep 100% ownership and control
- No repayments, no investors to report to
- Shows future funders you have skin in the game
Cons
- Personal financial risk
- Slow growth if cash is tight
- Mixing personal and business money can blur your books
Watch out for
Keep personal and business accounts separate from day one so you can show clean records later.
Real-world examples
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Not sure which fits you?
Related options
Family & friends (the “FaMa bank”)Money from parents, relatives and friends is often the first outside capital, and it is fast and flexible,…Grants & matching grantsGrants from agencies such as Cradle, MDEC, MATRADE, SME Corp, MIDA and MTDC do not have to be repaid, but…Government-backed loans & guaranteesDevelopment financial institutions and guarantee bodies such as SME Bank, TEKUN, BSN, Agrobank, CGC and SJPP…
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