mitalitita.com

Bootstrapping / Self-financing

Bootstrapping / Self-Financing Support

Some founders don’t want to jump into fundraising right away. They want control, flexibility, and the freedom to build at their own pace. That’s where bootstrapping or self-financing comes in. It’s the cleanest, leanest way to start a business — as long as you have the right strategy, financial discipline, and compliance in place.

We help early-stage founders structure their bootstrapped journey so the company stays compliant, investment-ready, and financially healthy from day one.


What is Bootstrapping?

Bootstrapping means building and growing your business with your own funds, revenue, and internal resources — without outside investors. You keep full ownership but you also carry full responsibility.

It works best for founders who want control, privacy, and a long-term vision without dilution.


Why founders choose to self-fund

  • Full control over decisions and direction

  • No dilution of equity or pressure from investors

  • Faster decision-making and simple governance

  • Ability to experiment, pivot, and iterate

  • Builds strong financial discipline from the start

  • Keeps the business clean for future investment if needed


Challenges of Bootstrapping

  • Limited capital runway

  • Need for strong budgeting and cash-flow management

  • Slower scaling compared to funded competitors

  • Compliance and documentation often ignored early on

  • Difficulty attracting talent without ESOP or funding visibility

That’s where structured guidance makes a difference.


What we assist with

1. Business & Financial Setup

  • Choosing the right business structure (LLP, Pvt Ltd, OPC etc.)

  • Founders’ capital introduction and documentation

  • Bank accounts, PAN, GST, MSME registration

2. Compliance & Governance

  • ROC, GST, Income Tax and regulatory filings

  • Books of accounts, audit, agreements, and policies

  • Payroll, vendor contracts, and statutory registrations

3. Financial Planning & Cash-Flow Management

  • Budgeting, forecasting, burn-rate analysis

  • Profitability planning and internal financial controls

  • Revenue modelling and unit economics

4. Founder Capital Strategy

  • Capital introduction vs loan from director

  • Structuring reimbursements and business expenses

  • Ensuring future fund-raise readiness

5. Future Investment Readiness

  • Clean cap table and shareholding structuring

  • Building compliance trails for due diligence

  • ESOP planning for early team members

  • Converting from bootstrapped to funded smoothly


Documents usually required

  • Founders’ KYC and business incorporation documents

  • Bank statements, initial capital proof

  • GST and ROC filings, accounting records

  • Agreements, invoices, payroll records (as applicable)


Our Process

  1. Understand the founder’s business model, capital plan, and runway

  2. Create a customised compliance, finance, and governance roadmap

  3. Set up registration, documentation, and financial systems

  4. Provide ongoing support for filings, accounts, and cash-flow

  5. Keep the company investment-ready for future funding options

Frequently Asked Questions

It depends. If you want control and no dilution, yes. If you need quick scale, external capital may be necessary.

 

Yes. In fact, clean bootstrapped companies often attract better valuations.

 

Either as share capital, share premium, or as a loan from director — depends on long-term plans.

 

It must still be documented properly to avoid tax or compliance issues.

 

Absolutely. Bad compliance early on becomes a big headache during funding.