With less than 1% startups getting VC funded, it is important for you to open your mindset to the world of bootstrapping as well.
Having bootstrapped Flexiple to $2mn in revenues, here are the 7 hard lessons I learned. 🧵
Having bootstrapped Flexiple to $2mn in revenues, here are the 7 hard lessons I learned. 🧵
1/ Stop fantasizing about scale
The biggest driver of stupid decisions in an early-stage startup is to plan for scale before making a single-dollar.
You know nothing about your industry and can't identify what your scaling bottlenecks will be.
So, what should you do? (contd.)
The biggest driver of stupid decisions in an early-stage startup is to plan for scale before making a single-dollar.
You know nothing about your industry and can't identify what your scaling bottlenecks will be.
So, what should you do? (contd.)
1/ Stop fantasizing about scale (contd.)
Keep goals simple - start making money.
This will keep you in check. As you build your startup, you'll get better at deciding when to invest for the next level of scale.
Here's how we goofed up at Flexiple:
Keep goals simple - start making money.
This will keep you in check. As you build your startup, you'll get better at deciding when to invest for the next level of scale.
Here's how we goofed up at Flexiple:
https://twitter.com/KarthikS2206/status/1363753880849317888
2/ Think execution not strategy
Early on in a startup, "strategy" is but a series of small decisions.
It might be tempting to read Musk or Jobs' quotes and to try to act like them. However, their advice is likely not contextual to your pre-revenue startup.
Ermm, what? (contd.)
Early on in a startup, "strategy" is but a series of small decisions.
It might be tempting to read Musk or Jobs' quotes and to try to act like them. However, their advice is likely not contextual to your pre-revenue startup.
Ermm, what? (contd.)
2/ Think execution not strategy (contd.)
It sounds nice to say your startup is "disrupting" this and "democratizing" that. But that doesn't pay the bills.
Focus on clean execution that gets you through the next 3 months. As you grow, this time horizon can grow with you too.
It sounds nice to say your startup is "disrupting" this and "democratizing" that. But that doesn't pay the bills.
Focus on clean execution that gets you through the next 3 months. As you grow, this time horizon can grow with you too.
3/ Upskill yourself consistently
A major growth driver and cost saver in an early-stage startup is being a "jack of all trades". Just keep learning new things and executing them.
But why? (contd.)
A major growth driver and cost saver in an early-stage startup is being a "jack of all trades". Just keep learning new things and executing them.
But why? (contd.)
3/ Why (contd.)
As a bootstrapped startup, you don't have the luxury to hire your way through every function.
Instead, your ability to learn new things & execute becomes your edge in the market.
The beauty is that this also improves your quality of overall decision-making.
As a bootstrapped startup, you don't have the luxury to hire your way through every function.
Instead, your ability to learn new things & execute becomes your edge in the market.
The beauty is that this also improves your quality of overall decision-making.
4/ Customers are your VCs
Your funding comes from your customers not VCs, so your actions need to align with that fact.
Focus tirelessly on things that solve their problems and not aspects that just sound fancy.
Ya, examples please? (contd.)
Your funding comes from your customers not VCs, so your actions need to align with that fact.
Focus tirelessly on things that solve their problems and not aspects that just sound fancy.
Ya, examples please? (contd.)
4/ Customers are your VCs (contd.)
For e.g. Don't choose a tech stack just because it sounds fancy. Go or PHP or Rails - your customer doesn't care as long as their problems are solved.
Use AI/ML or manual processes, start your thinking from keeping your customers happy.
For e.g. Don't choose a tech stack just because it sounds fancy. Go or PHP or Rails - your customer doesn't care as long as their problems are solved.
Use AI/ML or manual processes, start your thinking from keeping your customers happy.
5/ Leverage NoCode
Typically, the heaviest investment in a startup goes into building tech.
Now, as a bootstrapped startup, it is tough to pump in money to continuously iterate a product.
Instead, try NoCode tools like Bubble and get your startup off the ground.
(contd.)
Typically, the heaviest investment in a startup goes into building tech.
Now, as a bootstrapped startup, it is tough to pump in money to continuously iterate a product.
Instead, try NoCode tools like Bubble and get your startup off the ground.
(contd.)
5/ But, does NoCode scale? (contd.)
Back to step 1: STOP fantasizing about scale before you achieve it. Start making money first.
If you get to a place where NoCode is affecting you ability to scale, great! You would have made a ton of money too - invest it in a tech team.
Back to step 1: STOP fantasizing about scale before you achieve it. Start making money first.
If you get to a place where NoCode is affecting you ability to scale, great! You would have made a ton of money too - invest it in a tech team.
6/ Be your own PR
Unlike VC-funded startups, you don't get "easy" PR and articles about your startup don't show up in TechCrunch by themselves.
Be your own PR - share your story, publicly and consistently.
But, how? (contd.)
Unlike VC-funded startups, you don't get "easy" PR and articles about your startup don't show up in TechCrunch by themselves.
Be your own PR - share your story, publicly and consistently.
But, how? (contd.)
6/ Be your own PR (contd.)
The advantage of being bootstrapped is that people in general root for you more than they would do for a VC-funded startup.
Your role is to give them more reasons to do so - share your experiences, successes, failures and just be helpful.
The advantage of being bootstrapped is that people in general root for you more than they would do for a VC-funded startup.
Your role is to give them more reasons to do so - share your experiences, successes, failures and just be helpful.
7/ It is a game of patience
Now comes the last hard truth. Success doesn't come overnight and will take time.
So, you need to keep plugging away and celebrate small milestones, achievements & not lose patience.
What does that entail? (contd.)
Now comes the last hard truth. Success doesn't come overnight and will take time.
So, you need to keep plugging away and celebrate small milestones, achievements & not lose patience.
What does that entail? (contd.)
7/ It is a game of patience (contd.)
Make your first $100 - celebrate. Make that $200, $400 and so on.
Your edge over VC startups is that you aren't in this for a quick 3-5 years. Use that edge.
Sure, easier said than done. But this journey wasn't meant to be easy :)
Make your first $100 - celebrate. Make that $200, $400 and so on.
Your edge over VC startups is that you aren't in this for a quick 3-5 years. Use that edge.
Sure, easier said than done. But this journey wasn't meant to be easy :)
In case you are interested/curious, my bootstrapped startup is Flexiple (Flexiple.com).
That's it for this thread - get going on building great bootstrapped startups!
Also, I regularly write on startups, so, if you would like more such threads, consider retweeting the first tweet & following me :)
Also, I regularly write on startups, so, if you would like more such threads, consider retweeting the first tweet & following me :)
https://twitter.com/KarthikS2206/status/1410093178275860481?s=20
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