Bootstrap for funding vs. bootstrap for cash flow
Chicago VC Matt McCall writes this fascinating post about the preference for bootstrappers among venture capital firms nowadays.
The piece seems a sharp contrast to the bootstrap cash flow model recommended by software entrepreneur Bernard Lunn in a post at Write/Read Web urging against bootstrapping to funding (or even to monetization)
The issue raises some questions about my own bootstrap venture started with very little cost (about $150) on an existing social network (TypePad).
Some thoughts and questions:
• Limitations of the existing network include a function for e-mailed guest author invitations requiring a lot of effort (as many as ten e-mails just to get one sign up and then only a small percentage of those have actually posted)
• A better approach would almost definitely be a self serve sign up like those incorporated by MySpace, Facebook and other social networks but may require costly custom build. (I'm not a code monkey!)
• Definitely custom bio pages for guest blog authors would also be a plus but again most likely would need custom building to allow self-serve set-up by users
• All of this would probably require a custom built platform plus the issue of hosting space though I've got a better handle on that now that I've got some idea what my own existing network can hold.
• Revenue is problematic because my earlier intentions relied on more users signing on and creating content so immediate cash flow will be difficult.
Question #1: What to do now? I've gotten some great and very helpful feedback from the few users who've tried it out. (Like a blended feed for the main blog showing most recent posts from the other "streams").
Question#2: My instinct is to see what I can do to monetize what I've got with further posts until I can afford redesign and hosting. Or should I find a cheaper way to create immediate cash flow from what I have, sacrificing the social aspect for the present and building it to that ideal in the future?
Advice welcome, VC or otherwise. Send me e-mail or comment below.
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