Originally the point of this blog was to pass along tips and tricks about bootstrapping your way to a “proper” company. Let me list a couple of pros about this method. I will save the cons for another time. Here are the three biggest reasons to opt to build up slowly.
1. No Debt
I really hate debt. That’s because it steals your paycheck every month. If every dollar you have coming in, has to go out immediately, you lose your freedom. You can’t afford to risk anything because you have to make $X first. Debt means you start every month in the red, and work towards black. It’s easier to stay in the black if you start in the black!
2. No Debt
I don’t know if you hate debt as much as I do, but I hate debt. Corporate debt seems to be taken for granted. But you don’t have to go into debt to fulfill your dreams. And then, when you make it big, you don’t have to share any of the Benjamin’s either. If Venture Capital pays most of your expenses going in, it’s going to take most of your profits coming out.
3. No Debt
Part of getting an infusion of cash means giving up control. I like control. I like to make the decisions that I think are good ones. I want to ask my team, whose boots are on the ground, their opinion. They have the most information possible, so the decisions should come bottom up, not top down.
Some companies do not have the luxury of fully funding themselves. But for Zimmdot, we have taken no debt and I breathe easier because of it.