Bootstrapping your startup sucks. I tripled revenues in 2015, but this week I have to pay off 15 thousand in taxes and debt. My startup apps are about to launch soon, but I wonder if it is worth it. I’ve aged like 10 years in the last 3.
6 answers from the community
If you can't stand the heat, get outta the kitchen.
If you think Bootstrapping is hard, try taking $10m in VC money. The money makes life easy for about 6 months, then it's your ass if you don't grow 10x per quarter. Then think about having multiple bosses (Board members) for the next 5-8 years who all have different agendas. And, if you don't IPO or sell at the peak of the market, then think about how fun it is to layoff 75% of your staff after the market tanks.
Eventually have to either pay all the VC money back (plus interest) with cashflow or sell at a loss and pay the them back whatever you can leaving you with next to nothing (other than your past salary & 401k).
Building a sustainable business is tough. Building something and flipping it for huge cash is like winning the lottery -- it can be done and you read about it, but it's the exception, not the rule.
So enjoy bootstrapping, especially if you're growing revenue and paying taxes -- that's a good problem to have. Enjoy it because you are your own boss and you call the shots. It's how America was built and small lifestyle businesses are still the largest source of employment for most Americans -- you are living the American Dream.
Great to read this. I'm sitting here in the same position as OP. Just hit 1MM Run Rate, will be CFBE this quarter.
Talking to lots of investors and VCs for a first round of funding. The more honest ones said what you said.
I still might take the money since we could grow a lot faster. Not sure.
In the same position and been considering it as well. Still on the fence - but gut tells me to keep going as-is - see how you feel after CFBE - a little grease could change the growth curve. - then debt is easy to get.
No. It's not worth it.
Great responses. Bootstrapping but not having any revenue yet but really needed to hear this.
It's easy to forget how VC money doesn't really make things easier. Thanks for that comment!