Are you planning to play League of Legends during your next investor pitch? If so, this newsletter probably isn’t a good use of your time.
For founders who are interested in building on their own, maintaining control and staying off the fundraising treadmill for as long as possible, investor/entrepreneur Marjorie Radlo-Zandi sets out five basic principles for bootstrapped founders in her latest TC+ article.
It’s not for everyone: self-funded companies will ask more from their employees than larger operations that offer free lunches and other perks. At one bootstrapped startup where I worked, I was asked to defer part of my salary — after I was hired.
Radlo-Zandi covers the basics with regard to hiring, managing expenses and shaping company culture, but she also urges self-funders to tamp down expectations and take a measured approach:
“Don’t be tempted to hop on a plane at a moment’s notice to meet potential customers in glamorous locations or for meetings in far-flung locations,” she writes. “Your bootstrapped business likely will not survive such big, optional financial outlays.”
Bootstrapped founders face longer odds, but if they can drive growth and reach product-market fit, “fundraising will be that much easier.”
Thanks very much for reading,
Editorial Manager, TechCrunch+