

I want to be Bootstrapped, Profitable, & Proud - Tawheed
http://www.tawheedkader.com/2010/06/i-want-to-be-bootstrapped-profitable-proud/

======
apowell
I would be cautious about airing these concerns in front of the same audience
that you want to spend money on your products:

    
    
      1. Are Braintrust and Tout the right products? Will it make money for me?
      2. Do I need to focus on one product to succeed? Is now the right time to focus?
    

It's hard to get too excited about using either of your products knowing that
you're likely to kill one of them in six months.

~~~
Tawheed
Thanks. I now clarify in the post what I actually think about these products
and that is unlikely I will kill them (not because its what I should say, but
its what I truly believe)

~~~
jeffepp
Please don't kill Tout - I'm a big fan! Good Luck TK.

~~~
Tawheed
I wouldn't be leaving my six-figure day job if I didn't believe in Braintrust
and Tout. They're not getting killed ;)

------
webwright
"I realized that I was getting very fixated on the financial questions, and
even worse was jumping to common solutions like “oh.. Just go look for
funding.”"

I get so tired of people saying this. Looking for funding is a crapshoot. It's
hard. It's grueling. It takes 2-3 months to even take a shot at it, and most
people walk away empty handed. And no offense to the OP, but his businesses
(on the surface) ARE NOT FUNDABLE. They aren't obviously huge opportunities.
Given what he's posted about them, they don't have great traction. He's a
single founder.

It makes me grumpy when people triumphantly declare that they aren't going to
"choose" to get funded. Great companies fail to raise money all the time (if
you want to read a truly outstanding post on the topic from a great company
who did fail to raise money: <http://www.seomoz.org/blog/seomozs-venture-
capital-process> ).

The other gem in the post: "Of course I don’t want funding. Of course I should
work on my ideas freely. I don’t want to take on any masters."

What the HECK makes you think that early stage investors won't let you work on
your ideas freely? Or want to be your masters? At most, the OP's businesses
MIGHT have a ghost's chance at angel funding. Angels don't sit on your board.
Most of them have very full lives and a large portfolio of investments that
they generally ignore. There are very few contractual protections for angels.
Yeah, you might have to drop them an update every quarter or two.

Bootstrapping is a fine "choice" here, to be sure. It's a great way to build a
business (and it's how I built my first one). But, this whole post doesn't
really convey a good understanding of early stage financing (either getting
funding or the realities of post-angel funding).

~~~
Tawheed
1\. Whether I can get funding is a second order question. Who cares if I can
actually get funding? The first thing to figure out is whether I _NEED_
funding and whether I _WANT_ funding and all the things that come along with
it -- and that is all this post focuses on.

1a. Regardless of how hard it may be to get funding, the value equation has
changed. I don't _NEED_ funding to build a web startup, I don't _NEED_ the
VC... I value it. And that is a difference you are missing.

2\. On me not wanting another MASTER: Why would someone give me money without
putting in place some sort of accountability? Some sort of plan? I wouldn't
even want to take on funding from someone without being sure that I can
deliver on what I am promising, and even more importantly, I wouldn't want to
take on an investor that throws money at me and just forgets about me.

~~~
webwright
"2. On me not wanting another MASTER: Why would someone give me money without
putting in place some sort of accountability?"

Most angels don't. I'm not making this up. Sure, there are contractual
protections to make sure you don't sell the company for $1 to your Aunt Linda.
And yeah, they want an interesting vision (most know that deep planning makes
you too rigid, so don't encourage it).

The best balance is an angel that gives money, gives great advice and help
when you ask for it, keeps you a little disciplined by asking hard questions,
but largely stays out of your way and lets you run the company. Most angels
know this-- and that's how most of them behave (I've raised money from half a
dozen angels and pitched 15 or so).

It seems like you agree-- you don't want a master and you don't want an angel
who "just forgets about you". 90% of them are neither-- so an angel looks like
a good fit if these businesses (or future ideas) reach a fundable place.

My contention (which stands) is that your concerns with early stage investment
are wrong (i.e. fear of loss of freedom/control)-- unless you're talking about
the freedom to build an unfundable business... which is fine. A LOT of really
freakin' awesome businesses aren't right for equity investment.

~~~
Tawheed
I think you are fooling yourself by thinking that you do not give up any
freedom/control by taking someone else's money.

