Quick intro
What’s the problem?
Isn't it contradictory? So many successful people stress the importance of consistency when growing a company. They say you need to play the long-term game. But at the same time, startups need to move fast, especially when investors are demanding rapid results. You need to hit milestones, show traction, and justify those valuations. It's like you're being pulled in two opposite directions.
Investors provide the funding needed to launch a business. Their support helps companies grow rapidly, leading to a strong potential return on investment. But what if you want to go at your own pace? What if you want to live as an entrepreneur, independently and with the complete freedom to choose the next steps without having to involve other shareholders for big decisions?
Own background
What’s my context/experience?
I thought about this a lot: should I go try to get investors for my business? It’s a tough question, especially in times when I have doubts about the growth of my business towards profitability. When funding is involved, I could go all-in: quit my job, work on my company every day and hire talent. But on the other hand, I feel like I would lose my own pace, autonomy and, probably most importantly, my values. One of my deep desires is to build up a lifestyle business, which means that it should not fully distract me from the other important things in life. From having children. Being a good father and partner. Spending time with my family & friends. And experiencing nice stuff. I want a business that enables a wealthy life without sacrificing on the things that really matter to me, besides work. And I feel like the whole game of VCs, funding etc. is built on the idea of pure pace and betting. I may be wrong, but at least I think that there is another way to grow a sustainable and profitable startup, without having to rely on investors.
My approach
How do I tackle it?
Saying no to investors (assuming there are investors out there that are interested in funding my business) means playing your own game. Startups can usually hire after their first investment round, while you probably cannot. What I noticed is that it is key to understand why you would need money. Are you missing money to get your first customers? Do you really need to hire someone? Is marketing as expensive as you thought? Does your product need that feature from the beginning? I would assume most of the time the answer to those questions is 'probably not'. Having limited funds forces you to become more creative. Creative in finding cheaper solutions, exploring new approaches, and developing win-win collaborations that move your business forward. It's the same with time. Having no funding probably means that you would need to start your business as a side hustle. In the best case you will become more efficient and effective with your time.
I have no idea if my approach will pay off in the future. My business is neither profitable, nor does it create my wealth yet. And I started the game of developing a purpose-driven lifestyle business four and a half years ago. But, the privilege of exploring the entrepreneurial world at my own pace, following my curiosity and interests, doing stupid mistakes, getting hands-on with many things I hadn't had a clue before and connecting with like-minded people along the way, was 100% worth it so far. Also, the skills I got from this journey, highly contributed to getting a high-paid job at Google (without being a top-performer in college or having exceptional job experience). And I'm very optimistic that the path will soon also pay off in my current side-hustle and transform it into my profitable and wealth-generating lifestyle business.
The following table tackles fundamental questions I regularly ask myself. They help me understand better which game I'd like to play - the unicorn (backed with Venture Capital) or the bootstrapping game.
I don't want to convince people that they must choose the bootstrapping way. It's simply what feels right for me at this stage in my journey. Ultimately, the choice needs to align with your own values, goals, and vision.
If I'm looking to create a fulfilling and balanced life as an entrepreneur, I remember that it's a marathon, not a sprint. I embrace the journey, learn from my experiences, and grow a business that reflects my passions and values, so far without investors.
Community Space
Your comments, ideas, feedback
- What are your thoughts on bootstrapping vs. seeking funding? Which approach resonates most with you and why?
- Have you ever felt the pressure to "move fast and break things" in your business? How did you handle that pressure?
- How do you maintain a balance between your entrepreneurial pursuits and your personal life?
- What are some creative solutions you've found to overcome challenges with limited resources?
- What role has consistency played in your entrepreneurial journey?
- ...
Join the discussion below. Or write me an email to fabiano@40hourentrepreneur.com