Have an internet fist-bump from a fellow successful bootstrapper; this is the way, and you're calling it out!
As soon as you take in money, the businesses at some level, ceases to be yours. The only flaw is that with bootstrapping and one step at a time, it is more difficult to reach the unicorn-level, but as long as you are fairly successful and don't have infinite cravings and desires in terms of the life you want to live, the bootstrapping way is _the_ way.
Aiming for the middle ground: reasonable growth, good financial strategies based on unit cost profitability and a very tight hand on the purse will get you a solid business that can serve as the jump off point for many other things on top of giving the founders a much better shot at financial independence. This is all a variation on the risk/reward theme.
https://www.startuphacks.vc/blog/founders-guide-to-secondary...
I know plenty of founders that gave it all and then some (including their health, their family relationships and in some cases their lives) and that ended up worse than the shape they were in when they started. So yes, you hear a lot of stories about secondary stock sales and so on but those are the exceptions and very much not the norm. That's just survivorship bias.
Most businesses of all sizes, shapes, and forms fail within 10 years.
I hear this all the time with variations to the number of years, which makes me suspect it isn’t true.
Starting and maintaining a functioning business is difficult; the default outcome is failure (the end of the business as an operating entity) and you have to work to prevent that from happening every day that you want to remain open.
And I've never seen a claim that the majority of businesses fail in a year. Most anecdotes say a majority fail within 5 years, which seems to be approximately correct based on US data.
This is why I trust software made by people who come from that industry or have some background. I’ve seen too many startups where the founders are fresh out of college and have never worked in that niche and have never been in the shoes of the people they are trying to sell to. To me, that just means they are trying to get big and get acquired, I’m just a means to that end.
We have three Directors and a slack handful of employees, that varies around 15 to 25 depending on customers, pandemics, Brexit and murderous Russians.
We incorporated in 2000. 25 years later, we are still trading, which is nice. We will never fiddle with unicorns or set the world on fire, we just want to get along comfortably and be able to sleep at night.
My top tip is to build up a current account balance that will cover the basics for your defined risk period. So, for us that period is six months. The basics are: Corporation tax, VAT and salaries. You'll note I don't mention director's remuneration - that's a nice to have (for me).
I have two customers at the moment that are dealing with going bankrupt, although one looks like they will be OK. I refuse to join them. Small business cash flow is hard, really hard. It's so easy to be tempted to do something daft or to ignore warning signs.
The world is a pretty hard place and not all tech companies get to spawn zillionares. You won't get to use my company as a poster child for funky ... whatever but we are still trading and I'm quite happy with that.
Napoleon disparagingly described Britain as a "nation of shop keepers" - I'll take that and wear it as a badge of honour 8)
> we have paid off the mortgage on our premises and are decidedly boring
We too like to call us boring :) This kind of boring is so good.
> We incorporated in 2000. 25 years later, we are still trading, which is nice. We will never fiddle with unicorns or set the world on fire, we just want to get along comfortably and be able to sleep at night.
On one hand 25 years in business is a mind-blowing achievement. But at the same time, just "nice" is the right way to see it. Being comfortable and sleep well at night is exactly what we all want. You don't need to set the world on fire to be proud of what you do!
In a solo-bootstrapped business you don't need a few million (USD or EUR) in revenue to run a successful business and live a really good life. In fact, depending on where you mostly live, much less than a single million might be plenty.
I'm looking for the other stories of small teams scaling big. I'm basically separating side-hustles and solopreneurs as freelancers from a more sustainable business. Revenue is a cutoff as a way to differentiate, but doesn't have to be the only one.
For sure however, a team of 5 doing $20M implies something significant is happening at scale versus a solopreneur making what would otherwise be salary-replacement level money. Nothing wrong with that, of course, I love solopreneurship. Just trying to find those other stories, which are much harder to find.
PS: This is not for lack of trying to raise VC, but the trying was not nearly on the level needed to actually raise it. Jeff Bezos and Reid Hoffman tried much harder to raise, with far, far less built. Part of me wishes I had done that. I'm open to advice as to how to raise properly, should it be a Seed round or Series A at this point, and how to get meetings with the VCs and herd the cats in a way that will actually be successful. For reference, I'm based in NYC.
PPS: I've had a lot more success and fun raising from angels (who make their own decisions about their own money) and remain open to it. Especially people who are aligned with what we're doing. I've found much of the VC signaling to be disingenuous (e.g. "we love funding startups who do X" actually means "we want dealflow and orbiters to get into rounds with large well-known VCs"). But maybe that's just my bias because I didn't pursue fundraising diligently enough.