Starting organically with your legs is essential. But, after all, how long should the startup stay in the bootstrap?
* Amur pine is founder of Investors.vc
Basically, every startup starts its market journey in bootstrap mode and needs to grow and develop on its own legs, after all there are no external investments.
In the beginning, for those who are already used to the startup model, going this route makes perfect sense, as it is the best time to learn how to sell and, above all, solve the customer’s pain, so there is no need for angel investors capital, for example. That is, for new entrepreneurs in the world of startups, capital may initially seem like the solution to everything, basically it helps to build the MVP and, consequently, to realize what one has in mind for the solution, but this that’s a big mistake!
Starting organically with your legs is essential. But, after all, how long should the startup remain as bootstrap? There is no fixed rule or deadline, it has to go as far as possible, i.e. as long as possible. And I say more – this is not only my opinion, but most of the accelerators in the world, such as Y combiner.
The longer the startup follows as a bootstrap, the better prepared it will be, as this period is crucial to understanding the customer and their pain points. This will grow the business, as well as make it more structured and mature for investors.
The main problem is that many times when a startup bootstraps, it ends up losing momentum, as it does not have the necessary capital to exploit the opportunities that present themselves. Without money, what can the owner do? Apply for a bank loan? Wage bled to take advantage of this opportunity? The truth is, at a time when opportunities are becoming a reality, it’s time to look for investors for the business.
Otherwise, if you can still grow more than 10% a month as a bootstrap, keep it up! When the investor analyzes the startup, he will notice significant growth, as well as learn about the best paths taken. Remembering that it’s natural while traveling, a bootstrap to stop your monthly growth. In these cases, the most important thing is to evaluate whether it was possible to maintain the average evolution over the last six months and, if the answer is no, devise new strategies to catch up with the business.
When the startup has more than R $ 30,000 in recurring revenue and knows which channels to exploit, it’s time to look for an investor to hire more people, expand into other regions and even develop, for example, a cell in the developer team to create a ‘mobile application.
Bottom line, here’s a message to entrepreneurs: the more you go it alone, the more you own your business, and as a result, the more and better your validation will be when it comes time to cash the check from investors!
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
