“How to raise money from investors?” This could easily be one of most frequently asked questions in startup world.
But, do you have to?
Jason Fried, Founder & CEO at Basecamp, encourage you to “consider the alternative”, which is to bootstrap and practice making money.
“Making money takes practice, just like playing the piano takes practice.”
“On day one, a bootstrapped company sets out to make money. They have no choice, really. On day one a funded company sets out to spend money. They hire, they buy, they invest, they spend. Making money isn’t important yet. They practice spending, not making.”
But don’t take me wrong. I’m not suggesting you should go the way Basecamp goes. When it comes to comparing the pros and cons of bootstrapping a company versus taking venture funding, everyone seems to have an opinion. There is no definite answer.
What I’m saying is: Put aside the debate between bootstrapping and raising outside money, practice making money ASAP.
Jason Fried wrote an eloquent piece about this topic. Go CheckItOut!