What is noted to be a common strategy for securing initial business funding?

Bootstrapping through savings and early cash flow is recognized as a common strategy for securing initial business funding because it allows entrepreneurs to utilize their personal finances and revenue generated from the business to support its growth and operations. This method provides several advantages, including maintaining full control over the business without diluting ownership through external investments or loans. It also encourages fiscal discipline, as individuals must be mindful of their spending and plan for sustainable growth.

Bootstrapping is often particularly appealing for startups that may not yet qualify for traditional lending or venture capital, as it enables them to grow organically and validate their business model before seeking additional funding sources. This approach can lead to more stable and sustainable business development, as the reliance on external funding can introduce pressures that may not align with a startup's long-term vision.