Or it's one-two months of consulting income post-tax for a single developer. Bootstrapping is incredibly easy nowadays.
Consulting on the side is a time sink that takes resources away from your enterprise. That's all but incompatible with growing fast.
There are plenty of other kinds of businesses you can bootstrap. But startups are particularly hard, which is why so many of them rely on venture funding.
Given, YC might not like it, but I bet they like the business going under a lot less.
But it's not a startup.
> I bet they like the business going under a lot less.
You would be wrong. They would much rather see you shut down a company that fails to find traction and come up with a new idea and new team and get fresh funding than they would you tying yourself up for 10+ years in what they would term a lifestyle business. They didn't give you that money to sit on, they gave it to you to change the world.
While helping customers solve problems in their industry, you are effectively paid to do market research to find the gaps and find a product need that the existing customers are willing to start paying for immediately.
The challenge can be is maintaining some sort of balance, but there is plenty to learn from in terms of market and product needs from consulting. I am a better product developer because of it.
I'd argue lessened time sink, not none. Still requires management, communication, etc. depending on the setup.
Why not find 10,000 consultants, make them manage each other, become rich like Zuckerberg instantly? With no "time sink"!
"How to draw an owl? Draw two circles; draw the rest of the damn owl" http://sethgodin.typepad.com/seths_blog/2014/01/how-to-draw-...
- you are only as good as the people you find. Or, you are as weak as your weakest person.
- hiring in any specialized field, including consulting can be difficult to scale into a large product, because 10x consultants seem to know what they're worth (and make it) a lot more than 10x developers.
- the overhead in managing 5 other people to do things also can add up.
The positive? If you do find a few of these people, all at the same time in life, and all available and interested, you can have some pretty remarkable progress and profit, where part time consultants get more done than full time folks.
So I'd argue that consulting on the side is bootstrapping for many founders; it's just one of the many ways to weather those first few months of product development and sales. Another way is to be independently wealthy enough to keep the lights on until the product starts selling.
Others - like YC applicants - spend time looking for outside money. There is no universally right answer for every business.
Do whatever you can to survive: ie. bootstrapping.
> In the end, the pair remarkably sold more than $30,000 worth of themed cereal, nearly pulling themselves entirely out of debt. Chesky had to convince his mom at the time that he was still in the short-term rental business, and not running a cereal startup.
Full read - https://pando.com/2013/01/10/brian-chesky-i-lived-on-capn-mc...
In the early stages of bootstrapping the only goal is to nail down what customers will pay for. Spending as little as possible to reach such a lightbulb is bootstrapping in my experience.
It's easy to get distracted with too much free time and funding on one's hands, especially in the hands of an inexperienced founder with little to no business experience.
Bootstrapping also necessarily doesn't need to grow fast. YC itself also says to start small and get the business down before focusing on growth.
Lots of businesses are self-funded and start as a freelance -> part time -> full time.
Here's an article about how 98% of Canadians fund their startups. It's pretty funny considering how we think it's 98% not this way based on the marketing of the 2%.
http://www.techvibes.com/blog/how-canadian-entrepreneurs-fin...
Also, I don't know if there are any geographic restrictions to this program, but 20K could keep a 3-4 people company alive for a year or more in many parts of the world. And saving that much would be non-trivial in those places.