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Yes—but only if you define what control actually means. A founder I know raised ₹5 crore at seed. Six months in, he wanted to pivot. His lead investor disagreed. “This isn’t the idea I funded.” The board blocked the pivot. The founder stepped down 18 months later—from the company he created.

It’s not about raising more. It’s about running tighter. A founder I spoke with said this at the 30-month mark: “We didn’t die from lack of funding. We almost died from misreading our cash.” Another told me: “Revenue was up. But our account was empty. That’s when I realized—growth can hide a lot of financial stupidity.” Here’s the unspoken truth about early-stage startups:

Safe isn’t always smart—especially when it locks up liquidity and limits growth. A business owner I consulted shared this: “We had ₹1.5 crore in fixed deposits across our accounts—felt like a cushion. But when a vendor discount opportunity came up, we couldn’t access the money without penalty.” Another had ₹80 lakhs locked in FDs while taking a working capital loan at 12%.

Because the right capital at the right time can make all the difference. Starting or growing a business often means needing money—before the revenue arrives. Whether it’s to buy equipment, hire staff, manage working capital, or scale operations, the right business loan can act as a springboard, not a shackle. But not all business loans are created equal.

Debt isn’t dangerous. Poor debt timing is. A founder once shared this after taking a ₹50 lakh working capital loan: “We used it to push growth, but by month three, EMIs started hurting more than helping.” Another founder used a ₹20 lakh line of credit to fund inventory cycles and scaled profitably without ever touching venture capital. Same instrument. Different intent. Wildly different outcomes.

Two tools. Same goal. Very different consequences. A founder I advised once said: “I chose SAFE notes because they were faster. Later, I realized I gave away more than I planned—without knowing it.” Another founder used convertible debentures. “The paperwork felt like a loan. But it bought me time, and leverage.” If you’re a startup raising pre-seed or seed capital, you’ve likely heard both terms: SAFE notes and convertible debentures.

It’s not just about doing more with less—it’s about doing the right things first. A founder I met ran a profitable SaaS company for four years without raising a rupee. When asked why he bootstrapped, he said: “I didn’t want to spend the first 12 months pitching. I wanted to spend them building.” Another founder bootstrapped for two years—then raised a clean, oversubscribed round on their terms. “We had revenue, product, customers—and zero desperation.” Bootstrapping isn’

You’re not just raising funds. You’re choosing your future boardroom. A founder once told me after his second funding round: “I didn’t realise I wasn’t just pitching for money—I was inviting someone into my business marriage.” Raising capital sounds like a milestone.

Not all loans come from banks. And not all capital needs equity. A mid-sized manufacturing business owner once asked me: “We’ve been profitable for 7 years. Can we raise capital like big companies—through bonds?” Another founder of a B2B services firm said: “We don’t want equity dilution, but banks are slow. Can we issue NCDs?” The answer is yes—but only if you meet a few non-negotiable conditions.

Good advice isn’t just strategic—it’s structural. A manufacturing business owner once said: “We’ve grown steadily over 12 years. But now, I feel like everything depends on me—and that’s risky.” Another added: “We don’t have a board. Just me, my cousin, and our CA. We manage decisions informally.” This is where many small and medium businesses get stuck. They grow operationally, but governance stays informal. The result?

This is the grey zone of owner withdrawals vs company expenses—a space where governance often slips, not because of fraud, but because of informality. In small and mid-sized businesses, the owner often is the business. But for financial health and stakeholder trust, the two must be separated in practice. Let’s break down where the confusion starts, why it matters, and how to fix it without overcomplicating your operations.