Bootstrap vs. Funded
This is a fundamental decision when launching a startup. My partners and I saw a problem we wanted to solve using a software solution.
We determined that this was a low cost effort and I decided to fund it from my own savings rather than seek investors. After learning more about the whole investment process, I realized that it takes so much time and effort to seek funding that it just didn’t make sense for us at the time. So, what have I learned after one year?
- Spending your own money makes you very careful. You look at each dollar and say, “is it worth it?”.
- Controlling your company feels good. We truly work for ourselves. If we fail, it will be ours alone.
- We spend our time building a product. We work with users to find out what they want next.
- It is scary to rack up expenses. This makes the first revenue so sweet.
- Partners are the key. We would not be this far without each other’s contributions.
If you are thinking about which way to go, think about what it is going to take to bring your idea to fruition. If you are creating the next wind turbine to power the world, you are probably going to need investors since that kind of solution ain’t cheap. If your idea is not so capital-intensive, consider building out a proof of concept first on your own dime and then think about the investor track. This will save you much time and effort.
Have other ideas or comments about bootstrapping vs. funding? I’d love to hear your perspective.
My First Post
Well, I finally made it to the blogosphere. I have been very happy communicating via Facebook and Twitter for the last few years but have never blogged. Here we go …
I worked in product development for Fortune 200 companies for 18 years and had a tremendous experience that I wouldn’t trade for anything. However, I decided to make a big change and am now a first time entrepreneur. I want to share this experience with you in this blog. It will include the the good, the bad, and the ugly of my journey with the hope that I can help other ‘would be’ or ‘might be’ entrepreneurs do the same. I look forward to learning too since I will be asking questions along the way.
