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]]> By: Deep Patel http://mixergy.com/screw-funding/comment-page-1/#comment-2319 Deep Patel Tue, 03 Feb 2009 18:51:11 +0000 http://mixergy.com/?p=1192#comment-2319 More than often, lifestyle companies or companies that are bootstrapping are categorized as companies that can never "hit it big", but I have realized that type of thinking is just a myth. In fact, the majority of publicly traded companies on the exchanges today have made it by bootstrapping and letting their sales revenue and debt to finance their growth. I think venture capitalist are overrated, they typically have a poor success rate in their career of investing, can be demanding and lead you off course and loose sight of the customer and may bring in politics into your business, as stated by the Founder of The Funded on a previous Mixergy Podcast. So why do majority of start up entrepreneurs spend so much time chasing VC money rather then customers? It's quite easy, people want to get rich quick, they want to build a business fast. Bootstrapping can help you build a very strong business that exceptionally meets customers needs and over time you can even "hit it big" by bootstrapping, but the business is going to grow over time consistently. I like how Amit mentioned that bootstrapping the company has given him a chance to control his own destiny and VC money can take away from being in control of the future destination of the company. Isn't it ironic that a majority of Entrepreneurs are ready to give up control for a few bucks? More than often, lifestyle companies or companies that are bootstrapping are categorized as companies that can never “hit it big”, but I have realized that type of thinking is just a myth. In fact, the majority of publicly traded companies on the exchanges today have made it by bootstrapping and letting their sales revenue and debt to finance their growth.

I think venture capitalist are overrated, they typically have a poor success rate in their career of investing, can be demanding and lead you off course and loose sight of the customer and may bring in politics into your business, as stated by the Founder of The Funded on a previous Mixergy Podcast.

So why do majority of start up entrepreneurs spend so much time chasing VC money rather then customers? It’s quite easy, people want to get rich quick, they want to build a business fast. Bootstrapping can help you build a very strong business that exceptionally meets customers needs and over time you can even “hit it big” by bootstrapping, but the business is going to grow over time consistently.

I like how Amit mentioned that bootstrapping the company has given him a chance to control his own destiny and VC money can take away from being in control of the future destination of the company. Isn’t it ironic that a majority of Entrepreneurs are ready to give up control for a few bucks?

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