GTM Live RV239 - The Bootstrap Advantage (My CEO Consulting Call)
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Mar 4, 2025 Explore the unfiltered insights from a consulting call with a savvy entrepreneur. Discover why bootstrapping a SaaS company can lead to better financial outcomes and how a SaaS plus services model enhances product development. Learn the risks of rapid scaling that can regress revenue and the importance of building customer success directly into your operations. Chris shares real figures from his own business journey, illustrating the value of ownership versus equity when aiming for successful exits.
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Bootstrapping vs. Raising Capital
- If you need to raise money, rethink your business model or be more patient.
- Bootstrapping to $5-10M ARR can lead to better financial outcomes and full ownership.
The Illusion of Fast Growth
- Institutional capital often pushes unsustainable growth and long-term financial downsides.
- Owning a smaller, profitable company outright often beats partial ownership of a larger one.
Competitor's Downfall
- Chris observed a competitor who raised $20M and rapidly scaled, only to struggle later.
- This reinforced Chris's belief in slow, sustainable growth and the pitfalls of rapid scaling.