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Best of Bootstrapping: Excess is NOT Required for Success

Posted on Friday, Feb 8th 2019

Let’s do a thought experiment.

List all the things you want to do with your life if you had additional resources.

How many of these require additional money?

How much additional money do you need to acquire to afford these things?

How many of these require additional time?


There are a few ways to acquire additional money through entrepreneurship:

  1. You build a company to a point and sell it
  2. You build a company and take it public
  3. You build a company and neither sell it, nor take it public, but just keep paying yourself more

And variations thereof.

Through recent media coverage, you may have come to believe that Entrepreneurship Success = Unicorn Exit, Unicorn = Billion Dollar Valuation in an acquisition or an IPO.

The truth, as I pointed out in my recent Bootstrapping to Exit article, is that most acquisitions happen in the sub $50 million exit price range.

In my book, an entrepreneur who builds a company for $5 million in capital and sells it for $50 million is a solid success.

In my book, an entrepreneur who builds a company that generates $10 million in revenue a year and pays himself a million a year is ALSO a success.

My point is that the definition of success is personal.

I suggest you read French Existentialist Albert Camus’ The Myth of Sisyphus, where the author explores what constitutes the ‘meaning of life’.

If you give the subject some deep deliberation, you will soon come to the conclusion that chasing Unicorns does not necessarily equate with a meaningful life.

Define for yourself what does.

Balance all the components of what your personal definition of success constitutes.

For me, having delicious home cooked meals on a regular basis with family and friends is a big factor in the success equation.

But cooking requires time.

Building a close-knit family requires time.

Developing and sustaining close friendships requires time.

I have a deep interest in Art and Culture, which requires time.

I have a profound commitment to making a fundamental impact on the entrepreneurship ecosystem of the world, which requires time.

If I am willing to trade all those important factors off in the pursuit of Unicorns, will I end up with a meaningful life at the end of the day?

I don’t think so.

Thus, I have firmly and decisively concluded that Excess is NOT a Requirement for Success.

 

This segment is a part in the series : Best of Bootstrapping


. Bootstrapping to an Exit
. Why is Bootstrapping Important?
. How Can You Play this Low-Probability Game Intelligently?
. Do NOT Go to VCs as Beggars - Go as Kings
. Excess is NOT Required for Success
. Bootstrap First and Raise Money Later
. Some Bootstrapping to Exit Case Studies
. The Buy Side of Bootstrapping to an Exit
. Blitzscaling vs. Bootstrapping
. Bootstrapping to Unicorns
. Cinedigm Acquires Bootstrapped 1Mby1M Company Future Today for $60 Million
. Mailchimp Bootstraps to $600M Revenue
. Bootstrapping from Arizona to $10 Million
. Bootstrapped Basecamp Executes a No Nonsense Strategy
. How Under30Experiences Bootstrapped to $5 Million
. Bootstrapping with a Paycheck
. How Algo.ai CEO Amjad Hussain Bootstrapped using Services from Michigan
. Seed Investors Who Like Bootstrapped Businesses
. How iHeartRaves CEO Bootstrapped a Niche e-Commerce Company to $20 Million
. Bootstrapping with Services
. How The Intern Group CEO David Lloyd Bootstrapped to $13 Million
. How Passageways CEO Paroon Chadha Bootstrapped from Indiana
. How SmartBuyGlasses CEO David Menning Bootstrapped to $50 Million
. Death by Overfunding
. How RainmakerForce CEO Mack Sundaram Bootstrapped Decisively to $5 Million+
. How FormAssembly CEO Bootstrapped a Virtual Company with a Paycheck
. TimeSlips CEO Mitch Russo Bootstrapped to Exit with Sage
. The VC-Entrepreneur Compensation Disbalance
. BioConnect CEO Bootstraps with Sophisticated Strategic Maneuvering
. Tremend CEO Marius Hanganu Bootstraps from Romania
. Gesture CEO Jim Alvarez Bootstraps to $10 Million
. SproutLoud CEO Bootstraps to $30 Million from Florida
. Tuft & Needle CEO Bootstraps to Over $100 Million
. Co-founders Bootstrap Linguamatics to Over $10M from the UK

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