Getting investors or bootstrapping? That’s one of the hardest decisions founders have to make. On one hand, raising capital has many benefits - you have a longer runway, more resources, and more cash to hire people and pay them well. It provides enough cash to get through the competitive hurdles to bring your product to market. 

But outside capital comes with strings attached and having to please others and conform your business to the expectations of investors. That’s why many founders choose not to go down the path of raising money and deliberately decide to bootstrap instead. 

While it means you’re operating in a resource-constrained environment, you get to retain more control and flexibility in the long-run. Bootstrapping your business means you have to be scrappy and do things a little differently, but it can work. 

What are the things you need to stay on top of when you’re bootstrapping? Why is product validation so important? How do you determine which funding model works for you? 

In this episode, I’m joined by speaker, angel investor and founder of Product Plan, Jim Semick. He shares why he chose to bootstrap instead of taking the venture capital route and how to self-fund successfully. 

Topics Covered;

• How to stay on top of your finances in a bootstrapped business

• Why it’s critical to validate your product first 

• How to hire and pay developers as a bootstrapped business 

• Low-cost marketing strategies that don’t need a lot of capital

• The value of having co-founder with complementary skills

• The right time to bring on an outside CEO

 

Guest Bio

Jim Semick is a Product Management Expert, speaker, leader, angel investor and founder of Product Plan. He has over 20 years of experience turning ideas into real products that customers love. Jim’s passion is identifying and launching successful SaaS products using a proven market validation process. The products he has helped launch continue to generate over $1 billion of revenue annually. Today Jim writes, lectures, and coaches on entrepreneurship, product management, and career decisions. To learn more visit https://www.jimsemick.com/ and connect with him on LinkedIn.

 

About Your Host

Jayla Siciliano, Shark Tank entrepreneur turned real estate investor, excels in building brands, teams, and products. CEO of a bi-coastal luxury short-term rental company, she also hosts the Seed Money Podcast where she’s on a mission to help early-stage entrepreneurs turn their ideas into reality! 

Connect:

Website: seedmoneypodcast.com

Instagram: @jaylasiciliano

Subscribe and watch on YouTube @seedmoneypodcast

 

Please rate, follow and review the podcast on Apple Podcasts and Spotify! Hearing your comments and questions helps me come up with the best topics for the show!

 

The information in this podcast is educational and general in nature and does not take into consideration the listener's personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice.