Founders use venture capital funding for scaling a company. Founders who don’t have experience scaling or need specific advice and contacts in a new industry to scale can benefit from venture capital funding. Also, if the startup requires multiple funding rounds in the millions of dollars for growth or is in an untapped growing market, venture capital can be a great source of funding.

Some of you do not realize, but we are proud to call itself a self-financed venture. Unlike others of our peers, this ensures that we have never drawn money out of investment capital firms or foreign partners. We admire what venture capitalists have to do, and without any hesitation, several world-class ideas and startups will not operate without their help today. However, this path often has benefits and drawbacks.

So Astro Strategist™ cum Business Astrologer™ Hirav Shah looks at the eight benefits of not becoming a risk-based business and how you can also create a productive and efficient company with Business Plan Consultancy, with a priority on building value for the clients and developing a lean startup team.

Self-Financing is not so Risky

Self-financing is not that bad. This may now, of course, be discussed in both directions. We should both accept, though, that the field of business people and traders is relentless, hard-working, and intensely productive. On the other hand, few businesses are successful, and therefore every owner should carefully consider whether or not to use venture capital. Many of you already know Silicon Valley show from HBO, and even though it’s a sitcom, Neil Patel has written a great post on 10 Digital Marketers’ Lessons. Much of what they talk about is overcrowded, but some wisdom can be squeezed away from this series.

You can more easily say NO

We all know that with any business, there are good and bad customers. You’ve probably all had a good laugh with the Clients From Hell site at one point or another. And while this parody is meant to be a parody, it is closer to the real thing than many realize. There is always that customer who will take 90% of your time, while you will never hear from others. In such situations, it may be wise for your business to say no. And in some cases, in part. When you start, you can more easily select your clients and say no whenever it makes sense to help your team and your mission move forward.

Loyalty and priority for customers

When you self-finance a business, all of your income comes from your customers, so they instantly become your number one priority, not investors. This is a victory for both customers and the company. We always try to go above and beyond for our clients, and while there are things we don’t take care of, like development work, we’ll always try to help. Much of our growth over the years has come from word of mouth and customer referrals. We love our customers, we have built a great relationship with them, and we wouldn’t be here without them!

Self-financing forces fast, unconventional thinking

The shortage of resources to solve challenges pushes you to consider cost-effective and innovative approaches to such issues. We have to look outside the window. Self-funded companies don’t necessarily have a $15,000 budget to invest in Google AdWords per month. This pushes you to consider less traditional alternatives to specific issues. Over time, that would help you to address challenges and also focus on the sales cost (CPA) and the expected lifetime value of a consumer.

One goal: to earn money

When you self-finance a business, the main and only goal is to make money rather than spend it. Many venture-backed businesses are built or structured to grow their user base or the number of installations as quickly as humanly possible. Even if they are not paying customers, as they are just looking to be acquired or withdrawn quickly. There is certainly value in users, but if your plan fails, those users could be worthless overnight.

Keep more control

One of the most obvious benefits of not being a venture-backed company is, of course, that you have more control. Chances are, one of the reasons you start a business is primarily to have some autonomy. If you have a good idea and you can make it come true, why entrust some of it to outside investors who probably don’t like your product or service as much as you do? The sooner you sell stocks, the more it will cost you, as you will suddenly lose leverage for later, as well as dilution.

New employees are properly assessed.

It goes without saying that new contracts are really necessary if you’re a self-funded or risk capital-backed business. Nevertheless, a recruit is much more important to your survival as you have minimal funds. When you are granted $10 million by a venture capitalist, the first thing you would possibly do is to immediately hire the majority of the team and continue scaling up.

One of the benefits of self-support is that the whole cycle is streamlined simply by hiring more workers while the business expands and receives more. The employer will then quickly assess each employee and his or her abilities and ensure that they are in total alignment with business success.

Stronger if you survive

You will have a solid, lean, effective, customer-oriented, and forward-looking company if you survive self-financing. You know what works and what does not, where your advertisement, growth and service activities and app engagement platforms should be centered.

Hirav Shah wraps it up by saying, “As you can see, when determining whether or not to pursue the risk capital path, a lot must be weighed. We’re honored to be a business-funded enterprise herein, and we know we’ve built a better squad. Our development is really fast, and from the beginning, we were productive. We are not resistant to venture capital funding, so we will seek to locate the right investors if necessary, but we firmly feel that self-financing is better for ourselves and our clients. Without Venture Capital funding, you can create a profitable company, so do not let anyone push you. Self-financing will take you longer to go, but it could be the greatest decision you have ever made.