Most entrepreneurs think of acquiring Venture Capital dollars to build their business as a be all and end all to its success – this is just not the case. Did you know that getting a VC deal is less likely for an entrepreneur than your chances of slipping and DIEING in the shower? Many successful businesses have been built by bootstrapping it from the get go and growing organically.Having received VC investment in a couple of different businesses I have owned has definitely been an experience. Here are some things I have learned:
1. 1. Signing a VC deal gets you a big ol’ boss, and if you decided to be an entrepreneur to get rid of having a boss, this may not be the way you want to forge ahead.
2. Over 90% of entrepreneurs who sign a VC deal are no longer the CEO within 2 years, many go down into the basement and work in R&D – now doesn’t that sound like fun?
3. If you think you have pressure to perform when you are risking your own money, think of the pressure when it is your boss’s money.
OK, you may think I am being a bit negative towards attaining VC investment to grow your company, and if you think that, you are right. If Hewlitt Packard can build its business by bootstrapping than SO CAN YOU.
This weekend, revisit your growth plans and envision never giving away shares, play with the idea of bootstrapping growth, and enjoy being able to do whatever the hell you want to.
If you still want to consider taking on VC dollars, then buy my book The Entrepreneurial Mom’s Guide To Running Your Own Business where you can learn about finding VC’s, signing a Unanimous Shareholder’s Agreement and managing your investors once they are on board.
MWAH – (translation – wet, sloppy kiss.)
