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MultiFireFox
Code contortionist is home to the MultiFireFox utility for Mac OSX!
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MultiFirefox on TUAW!! http://moourl.com/mff_tuaw
Posted in Cool Things
by David on June 18th 2008 at 22:13
Sent to Twitter
Announcing my new project, "sVersioN": http://moourl.com/tvtik
Posted in Cool Things
by David on April 30th 2008 at 21:12
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Code contortionist website finally has RSS feeds! Ain't that lovely. http://moourl.com/wcb06
Posted in Website
by David on April 23rd 2008 at 11:52
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5k run with @indyhallfitclub and friends ruled! http://moourl.com/m1197
Posted in Life
by David on April 19th 2008 at 19:39
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Today is "GOOD PEOPLE DAY" and I know plenty! http://moourl.com/snt3e
Posted in Life
by David on April 3rd 2008 at 08:33
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Venice is awesome! Second home, absolutely. Miss Philly, love Italy!
Posted in Cool Things
by David on March 26th 2008 at 17:29
Sent to Twitter
MultiFireFox hits the home page of download.com!!
Posted in Cool Things
by David on March 21st 2008 at 00:48
Two Guys On Beer launches! http://twoguysonbeer.com
Posted in Cool Things
by David on March 21st 2008 at 00:47
Thursday release of a new project of mine (and Johnny Nines). Can't wait to release it!
Posted in Cool Things
by David on March 19th 2008 at 01:28
Sent to Twitter
Back at Indy Hall - so long SXSW, see you next year!
Posted in SXSW
by David on March 14th 2008 at 17:30
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No Money Down
I've always tried to avoid searching for or accepting outside start-up capital when starting a company.
(In this post, I'm hypothetically referring to "we" as a couple of guys starting a web business.)
By starting a business on the web, we can hope to realize the business through our own sweat and tears, so that when it comes down to it, the business is owned - in its entirety - by us.
It’s quite easy to start thinking of taking money from VC firms or other outside investors. It’s an easy way to get going and to pay ourselves a salary during the formative months of the business.
But there’s something to be said for having started with nothing, and creating something without any help. Accepting money is the easy way out, but you immediately sell off the ability to make unfettered decisions regarding the direction and well-being of the company. Even giving up 10-15% stake in a company is more than I can bare when there isn't even a company yet.
It’s actually relatively amazing to me that people are willing to sell their ideas so quickly. I suppose that if money, riches, and success are the sole drivers, then money is money, no matter where it comes from and who ponies it up. For me, my next venture is slightly more than just a business. It is several years of trying, learning, and soul searching. To so quickly give away any of it is against my best judgment.
Of course, everyone has their price. I suppose if someone came along with $20M I’d be willing to at least have lunch with that person. I’m somewhat ashamed to admit that I have a price, but this is business, and I prefer not end up in any sort of hypocritical situation a year or two down the line.
But for now, we can take our measly savings, and get this thing running with no more than that. Of course, one must realize that although we retain full ownership and control, without accepting start-up capital of any fashion, we face future roadblocks.
The Bad, The Ugly
So the approach is all good until we actually look at what it means. Retention of ownership is paramount, but it does mean a lot more late nights, a lot more weekend hours. It forces us to start much slower, and yes requires us to get to a point where our company is successful enough to support both of us on a full-time basis. With a million or two behind the company, it’s easy to pay yourself over the course of a year or two - to know that at least that part of the start-up is covered. However, without that, paying yourselves becomes a very time-consuming and thought-consuming thing. There is potential to stop making business decisions based on what is best for the growth or longevity of the company, and to start making them based on what will make the next payroll checks available.
There are other pitfalls as well. Setting up an office, buying equipment - all of these things make starting a business much easier. It’s harder to work for the tools you need than to just have them from the jump.
But I suppose therein lies some of the fun and the charm. Keeping this in the family keeps it that much more personal. Full ownership drives the owners. Motivation doesn’t wane in the face of opposition opinions - those backed by real life money investment.
In terms of what’s necessary, money up front also isn’t that necessary. The little we have in the bank is enough to keep our sites hosted for well over 2 years, the cost of development is only time, and the speed at which the company grows can be solely dictated by the two of us.
So for now, time marches on. Finally, we have no one to answer to but ourselves - and money or not, we may be our toughest bosses.
Categories: Business
Tagged: money, VCs, startup
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