Forums: Discussions for entrepreneurs and small business.

This is a great article in BusinessWeek. So many business think that they need lots of capital to even get started. They want fast results and so do the VC`s.

We bootstrapped our business and have watched it slowly grow to the point now that we get steady orders. We have control of how fast it grows where as the pressure is high if you bring in outside investors.

Why Less Is More for Startups

Worth the read:)

Kathy


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great read, Kathy.

You can do a LOT with very little. It all comes down to being resourceful and putting yourself in the right places at the right times. When you don`t have that cash in the coffer you learn to be very creative.

We`ve been bootstrapping too for quite a while now and for us it`s the only way to go. We have more control. We don`t have to justify our every move. It`s a lot easier to run with our big ideas without all that "red tape" that comes with entering into agreement with a VC. Having that type of flexibility is priceless.

Thanks for sharing that article!

Several major problems come along with having outside investors. One of the worst is the devaluation of quality. The other, as the article points out, is the pressure on profits and performance.

The way I see it, entrepreneurs categorize into two basic groups. Their business is a boutique, offering inexpensive products or only a very few products. The other category is a technical or industrial product that requires a substantial amount of money to even get off the ground.

From what I`ve seen, too many of the boutique entrepreneurs believe they need lots of outside investment money. And as the article points out, they use that money as a crutch. They never develop their skills to adapt to changing needs, and don`t really develop their ability to read the market.

On the other hand, a lot of inventors and people developing complex industrial products end up losing their business because the VCs don`t really care that much about the product itself, only wanting profits.

Great article, Kathy. Thanks for posting it.

Thanks MiteyMite, Craig and Pammygb,

MieteyMite,
I agree that you do have more control  by starting it slow and watching it grow. Once you have a great foundation you can build on that and know that it is strong.

Craig wrote: From what I`ve seen, too many of the boutique entrepreneurs believe they need lots of outside investment money. And as the article points out, they use that money as a crutch. They never develop their skills to adapt to changing needs, and don`t really develop their ability to read the market.

This is so true and ultimately those will fail because of it.

Glad you liked it Pam

Kathy




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Good post - thanks for sharing. As always, Craig also shares some very important points.


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Glad to share it, besthealth  

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