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

Gust

DECEMBER 15, 2013

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. Need expensive resources up front.

Bootstrapping 183

Bootstrapping Sweat Equity Entrepreneur Technical Review 183

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

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

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. Join a startup incubator.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

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

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

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. Join a startup incubator.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

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 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. Do it yourself. Marty Zwilling.

Bootstrapping 278

Bootstrapping Startup Merger Salary 278

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. Need expensive resources up front.

Sweat Equity 239

Sweat Equity Technical Review Bootstrapping Equity 239

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

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. Quantify overhead costs.

Forecast 290

Forecast Burn Rate Widget Business Plan 290

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 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

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

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. Need expensive resources up front.

Sweat Equity 255

Sweat Equity Technical Review Entrepreneur Bootstrapping 255

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.

Bootstrapping 276

Bootstrapping Entrepreneur Startup Burn Rate 276

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

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

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. Do it yourself. Marty Zwilling.

Equity 241

Equity Bootstrapping Startup Merger 241

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. Here is where projections of cost, pricing, volumes and cash flow are critical.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

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

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. Do it yourself.

Bootstrapping 176

Bootstrapping Startup Merger Salary 176

Startup Professionals Musings

APRIL 12, 2021

In my experience as a business advisor and occasional investor, many of you won’t make it that far, succumbing to the high costs of getting those first customers, funding an initial inventory, and building an operational support process. Use “white label” or custom contract for extra income.

Dilution 404

Dilution Incubator Bootstrapping Government 404

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

FEBRUARY 5, 2021

External investors will demand a financial forecast, but it’s equally valuable to you, even if bootstrapping. Per-unit cost less cost of goods sold is your gross profit or margin. Quantify overhead costs. It’s amazing how fasts costs escalate as you grow. That’s no fun for you, your investors or your customers.

Forecast 369

Forecast Burn Rate Startup Widget 369

Startup Professionals Musings

DECEMBER 9, 2019

Crowdfunding, on the other hand, opens the investment door online to almost anyone who is willing to bet on a new product or service with an investment, typically for a chance to be first in line for the offering, and willing to forgo any equity or management position in the company. Compare the time frames and costs of alternatives.

Non-disclosure Agreement 299

Non-disclosure Agreement Angel Investor Bootstrapping SEC 299

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

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

Startup Professionals Musings

OCTOBER 19, 2015

In fact, an entrepreneur friend of mine, who made millions on her marketing expertise, asserted recently that most inventors fail in business because they refuse to believe that any business expertise or experience is worth more than 5 percent in partner equity. Most founders bootstrap product development.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120

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. There are unwritten rules in every business, and your lack of insider’s knowledge will cost you dearly.

Bootstrapping 120

Bootstrapping Social Media Equity eCommerce 120

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

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. Do it yourself. Marty Zwilling.

Bootstrapping 240

Bootstrapping Merger Salary .Net 240