My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Decide whether to raise venture capital or bootstrap a profitable business
Early-stage entrepreneurs with functioning business models showing initial traction
6-12 months for initial decision, revisited at major growth milestonesWhat Success Looks Like
Making optimal funding decision that aligns with business potential and founder goals, avoiding premature scaling or missed opportunities.
Steps to Execute
Honestly assess total addressable market size and competitive dynamics
Calculate current unit economics and path to profitability
Evaluate whether competitive moats require scale to defend
Consider personal financial situation and risk tolerance
Model bootstrap vs. VC scenarios over 5-10 year timeline
Checklist
Inputs Needed
- Current revenue and growth metrics
- Market size analysis and competitive landscape
- Unit economics and contribution margins
- Cash flow projections under different scenarios
- Personal financial requirements and risk tolerance
Outputs
- Funding strategy recommendation with rationale
- Financial projections for chosen path
- Risk assessment and mitigation strategies
- Timeline for decision checkpoints
Example
“University enrollment software company has $600K revenue, clear path to $50M, but limited competitive threats. Better to bootstrap for sustainable growth rather than raise for unnecessary scaling.”
Related Knowledge
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overselling_experience
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