Bootstrap side project or full-time funded?

AaronSAaronS subscriber Posts: 1
edited July 2008 in Startup Funding
I`m thinking about starting my own business in a couple of years; I have a sound business concept with a reliable revenue model, but I`m not sure how I will go about starting my business when it comes time to pull the trigger.
I`ve broken down my possible startup entry strategy into two options:Bootstrap the project over a couple of years while I work full-time as a means of supporting myself orIn two years time, secure funding and work on my startup project full-time.
Which option would you pick and why?

Comments

  • robertjrobertj Tampa Bay, Floridasubscriber Posts: 0 Member
    Aaron,
    Selecting an appropriate capital direction starts with determining what options are available.
    Bootstrapping may be an "available" option if you plan to create a lifestyle business. On the other hand, if your vision is to build an international enterprise - the business will probably need external capital at some point, so it`s best to plan for that in the beginning.
  • robertjrobertj Tampa Bay, Floridasubscriber Posts: 0 Member
    Craig,
    Thanks for the nice words.
    In some situations, bootstrapping can ultimately be quite "expensive" - although it may be hard to identify the final "cost".
     
  • ObsidianLaunchObsidianLaunch subscriber Posts: 7
    Absolutely bootstrap it!
     
    You need to determine how the business will be structured, determine actual demand, and get all the kinks out.  Once you have a model that works, is generating re-occuring revenue, and is scalable... then consider funding.  Or you may find yourself in a postion where you have enough cash flow to fund it internally (and retain 100% equity), and as Martha says "That`s a good thing."
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