Startup Professionals Musings

FEBRUARY 29, 2020

They don’t realize that according to many experts , more than 90 percent of satisfied entrepreneurs use bootstrapping, since other people’s money always comes with strings, most of them negative. Most entrepreneurs never forget for a moment that having investors means owing money, even if they can legally argue that equity is not debt.

Bootstrapping 310

Bootstrapping Advisory Board Venture Capital Startup 310

Startup Professionals Musings

JUNE 30, 2019

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. After bootstrapping, friends and family are the most common funding sources for early-stage startups.

Intellectual Property 219

Intellectual Property Technical Review Startup Incubator 219

ReadWriteStart

JUNE 1, 2020

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. Any custom manufactured IoT device would require software development as well as hardware customization. Forms of funding. ? Equity investment.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

JULY 14, 2014

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. After bootstrapping, friends and family are the most common funding sources for early-stage startups.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

Startup Professionals Musings

JULY 1, 2017

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. After bootstrapping, friends and family are the most common funding sources for early-stage startups.

Product Development 177

Product Development Cost Developer Product 177

Startup Professionals Musings

FEBRUARY 19, 2013

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. After bootstrapping, friends and family are the most common funding sources for early-stage startups.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

Startup Professionals Musings

JANUARY 12, 2018

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Commit to a major customer.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

Startup Professionals Musings

MAY 18, 2020

It’s more possible to bootstrap today than a few years ago, as the cost of entry continues to go down. With one of the many new tools , and a dose of sweat equity, you can create a website for almost nothing -- and you are on your way to success with ecommerce, your latest invention or personal services.

Hockey Stick 423

Hockey Stick Bootstrapping Sweat Equity Intellectual Property 423

Startup Professionals Musings

NOVEMBER 3, 2014

When someone asks me for the best way to fund a startup, I always say bootstrap it, meaning fund it yourself and grow organically. Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Act big, behave small. Do it yourself.

Bootstrapping 278

Bootstrapping Startup Merger Salary 278

Startup Professionals Musings

JUNE 25, 2012

For example, with any outside investment, you give up some ownership and control, and with bootstrapping your growth curve will likely be longer and more organic. Following is my prioritized larger list of sources, with some “rules of thumb” which may save you a lot of time and energy: Bootstrapping. Bartering services for equity.

Technical Review 257

Technical Review Bootstrapping Venture Capital Incubator 257

Startup Professionals Musings

NOVEMBER 13, 2012

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. You need a prototype.

Sweat Equity 239

Sweat Equity Technical Review Bootstrapping Equity 239

Startup Professionals Musings

JULY 8, 2015

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Commit to a major customer.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

ReadWriteStart

FEBRUARY 18, 2020

Instead, knowing how to bootstrap your startup might be a better option. How to Bootstrap Your Startup. When you bootstrap your startup, you retain full control of the new business. If bootstrapping is right for your small business, the following tips can help you through the process. Focus on Your Customers.

Bootstrapping 145

Bootstrapping Startup Cofounder Angel Investor 145

Startup Professionals Musings

MAY 21, 2023

For example, professional investors put great priority on your previous experience in building a business, and they expect to own a portion of the business equity and control for the funds they do provide. Trade equity or services for startup help. Another common example is exchanging equity for legal and accounting support.

Equity 266

Equity Startup Small Business Administration SBA 266

Startup Professionals Musings

SEPTEMBER 25, 2023

Many first-time entrepreneurs find themselves unable to bootstrap their startups, and also unable to find early funding at the venture capital level or even with angel investors. The average amount per startup has been $23,000, usually in the form of a convertible loan, rather than an equity investment.

Sweat Equity 274

Sweat Equity Elevator Pitch Startup Equity 274

Startup Professionals Musings

DECEMBER 15, 2014

Based on the Startup Environment Index from the Kauffman Foundation and LegalZoom a while back, personal money, or bootstrapping, continues to be the primary startup funding source. Even a small investor in the early days will take a large equity percentage, due to that pesky valuation challenge. Marty Zwilling.

Bootstrapping 276

Bootstrapping Entrepreneur Startup Burn Rate 276

Startup Professionals Musings

MARCH 16, 2011

For example, with any outside investment, you give up some ownership and control, and with bootstrapping your growth curve will likely be longer and more organic. Following is my prioritized larger list of sources, with some “rules of thumb” which may save you a lot of time and energy: Bootstrapping. Bartering services for equity.

Technical Review 233

Technical Review Bootstrapping Startup Venture Capital 233

Startup Professionals Musings

SEPTEMBER 22, 2011

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. You need a prototype.

Sweat Equity 255

Sweat Equity Technical Review Entrepreneur Bootstrapping 255

Startup Professionals Musings

APRIL 6, 2016

It’s more possible to bootstrap today than a few years ago, as the cost of entry continues to go down. With one of the new free tools and a dose of sweat equity, you can create a website for almost nothing -- and you are on your way to success with ecommerce, your latest invention or personal services.

Bootstrapping 120

Bootstrapping Hockey Stick Sweat Equity Intellectual Property 120

www.entrepreneur.com

SEPTEMBER 22, 2011

Human Resources Play Video Shark Tanks Barbara Corcoran on Bootstrapping a Growing a Business (Video). Marketing Sales & Marketing Home Marketing Basics Sales Online Marketing Finding Customers Social Media Branding Social Media Does Your Companys Social Personality Need a Makeover? What is Sweat Equity Worth? July 31, 2007 |.

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

Startup Professionals Musings

APRIL 23, 2013

When someone asks me for the best way to fund a startup, I always say bootstrap it, meaning fund it yourself and grow organically. Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Act big, behave small. Do it yourself.

Equity 241

Equity Bootstrapping Startup Merger 241

Startup Professionals Musings

JUNE 8, 2016

They don’t realize that according to statistics , more than 90 percent of satisfied entrepreneurs use bootstrapping, since other people’s money always comes with strings, most of them negative. Most entrepreneurs never forget for a moment that having investors means owing money, even if they can legally argue that equity is not debt.

Bootstrapping 120

Bootstrapping Advisory Board Startup Venture Capital 120

Startup Professionals Musings

OCTOBER 7, 2022

Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count. How much equity ownership are you willing to offer? How much do you really need for the next 12 to 18 months?

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

Startup Professionals Musings

APRIL 17, 2023

On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue). If you want to avoid all these stage and investment considerations, you can always bootstrap the business (fund it yourself, and grow organically).

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Gust

OCTOBER 26, 2014

When someone asks me for the best way to fund a startup, I always say bootstrap it, meaning fund it yourself and grow organically. Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Act big, behave small. Do it yourself.

Bootstrapping 176

Bootstrapping Startup Merger Salary 176

Startup Professionals Musings

OCTOBER 16, 2023

External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping. Projecting financials is a natural extension of the homework every entrepreneur needs to do on customer opportunity size, product costs, pricing, competition and customer value. Marty Zwilling

Forecast 290

Forecast Burn Rate Widget Business Plan 290

Gust

JUNE 17, 2012

For example, with any outside investment, you give up some ownership and control, and with bootstrapping your growth curve will likely be longer and more organic. Following is my prioritized larger list of sources, with some “rules of thumb” which may save you a lot of time and energy: Bootstrapping. Bartering services for equity.

Technical Review 164

Technical Review Bootstrapping Venture Capital Incubator 164

Startup Professionals Musings

AUGUST 29, 2020

For example, professional investors put great priority on your previous experience in building a business, and they expect to own a portion of the business equity and control for the funds they do provide. Trade equity or services for startup help. Another common example is exchanging equity for legal and accounting support.

Equity 436

Equity Small Business Administration SBA Syndicate 436

Startup Professionals Musings

AUGUST 5, 2023

Identify customer executives who need your solution. Many savvy entrepreneurs are able to convince high-potential customers that investing early in a high-value solution, perhaps through an advance on royalties, is in their best interest. Reach out to your biggest fans for investor leads.

Angel Investor 246

Angel Investor Stealth Bootstrapping Early Stage 246

Startup Professionals Musings

JANUARY 4, 2016

Starting a new business on a limited budget without investor involvement is called bootstrapping, and it’s the only way to go if you don’t want to spend months on the investment pitch preparation and delivery circuit. Find team members to work for equity rather than cash. Equity is your best assurance of commitment and focus.

Bootstrapping 120

Bootstrapping Social Media Equity eCommerce 120

Startup Professionals Musings

JANUARY 11, 2021

Many first-time entrepreneurs find themselves unable to bootstrap their startups, and also unable to find early funding at the venture capital level or even with angel investors. The average amount per startup has been $23,000, usually in the form of a convertible loan, rather than an equity investment.

Sweat Equity 346

Sweat Equity Elevator Pitch Equity Venture Capital 346

Startup Professionals Musings

SEPTEMBER 22, 2021

Unfortunately, most of us don’t have enough resources to bootstrap our own startups, so we are completely dependent on investors to help turn great ideas into great businesses. As you may have seen on the Shark Tank TV show, offering a tiny equity amount for a large investment will not endear you to investors.

Intellectual Property 352

Intellectual Property Equity Bootstrapping Valuation 352

Startup Professionals Musings

SEPTEMBER 26, 2010

When someone asks me for the best way to fund a startup, I always say bootstrap it, meaning fund it yourself and grow organically. Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Act big, behave small. Do it yourself.

Bootstrapping 240

Bootstrapping Merger Salary .Net 240

YoungUpstarts

SEPTEMBER 23, 2017

Deciding whether to increase money or trade equity in the business for much needed assistance, could be a tough call. I raised money and traded equity, but with my venture, I had to make one of the toughest decisions, to build it with some assistance of co-founders. Both the choices tend to take away a few options. Plan, Plan and Plan.

Cofounder 124

Cofounder Sweat Equity Equity Dilution 124

Hunter Walker

JUNE 10, 2016

HW: All of the social platforms claim to help small businesses and brands amplify their voice, find their customers. We’re convinced all amazing images coming from the studio generate customers and impact to bottom line. We’ve bootstrapped since we launching. We boost posts occasionally on Facebook.

Technical Review 50

Technical Review Equity SBA Software Review 50

Startup Professionals Musings

MARCH 1, 2010

For example, with any outside investment, you give up some ownership and control, and with bootstrapping you growth curve will likely be longer and more organic. Following is my prioritized larger list of sources, with some “rules of thumb” which may save you a lot of time and energy: Bootstrapping. Bartering services for equity.

Technical Review 149

Technical Review Bootstrapping Startup Venture Capital 149

Startup Professionals Musings

NOVEMBER 22, 2020

Identify customer executives who need your solution. Many savvy entrepreneurs are able to convince high-potential customers that investing early in a high-value solution, perhaps through an advance on royalties, is in their best interest. Reach out to your biggest fans for investor leads.

Stealth 434

Stealth Startup Angel Investor Bootstrapping 434