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In general it is not a choice, but a question of numbers. Software businesses tend to benefit from having many customers, which requires growth and capital. A consultancy that develops and uses software tools might go the bootstrap route. Do the numbers and then decide. What does it cost to add and maintain a customer? Would you get more customers with a better feature set? How smooth is the API, interface, and documentation?

I have a nice consultancy that developed many unique software products. Over the years I have not been able to maintain them. If I had taken outside money I could have taken those tools to market and probably grown beyond my current stagnation point.




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