Bootstrapping your business
Haven’t had much time to post lately. We’ve been so focused on building up BetterWorks these last few weeks but Jason reminded me about this interview we did a few weeks back around Bootstrapping Your Business. I barely have time to have a life these days but wanted to share a few pearls of wisdom around bootstrapping – but with a twist. Generally you hear people tell you how to boot strap: use your credit cards, get friend & fools to invest; give talented folks equity & no salary; work out of your home; etc.
But I want to talk about WHY we as investors care about Boot Strapping. Or at least WHY I care. Bootstrapping is an indicator that you’re the type of self-sufficient, bold, confident, passionate entrepreneur that we want to invest in. It’s painful – it takes months & years of sacrifice and it will drain your energy. You’ll give up girlfriends (or boyfriends); you’ll give up evenings that could be spent with friends – you’ll toil away in your miserable little efficiency condo cranking out code or convincing people to use your early product. You’ll beg & borrow your way to success and MOST of you will eventually give up. Nothing wrong with that at all – if you can’t handle the sacrifice we don’t want to invest in you because you have to invest in yourself first. We want people who can make short term sacrifices for long term gains – we want leaders who are willing to sacrifice their personal comfort to bring a dream to life.
Simply put, boot strapping is just a really good indicator that you’ll be a good founder.
Lot’s more to say but I’m out of time and I’ll leave you with this video of our last discussion on bootstrapping