How do you launch a successful high-tech business? If you ask the typical MBA, they’ll give the same answer. Write a comprehensive in-depth business plan, take it to investors to secure a healthy initial round of funding, recruit the heaviest heavyweights you can, and start the PR machine cranking.But, of course, they’d be completely wrong.
If you look at all start-ups, less than one percent get VC funding. Most are launched with less than $20,000. And some – including Dell – were created with less that $1,000. I personally started my first software company - which was acquired for $10 million by McAfee in 1994 - with a couple of friends and about $5,000 in cash. And I started RightNow Technologies - which went public August 4, 2004 and as of this writing has a market cap of $350 million - at my desk in Bozeman, Montana without any external funding whatsoever until the company was well-established with 400 customers.
That’s why the advice I’d give to anyone wanting to start a company today would be just the opposite of what they tell you in B-school. I’d tell you to “Bootstrap” it.
JP Morgenthal on March 31st, 2005 at 12:07 pm
Dang Boy! Nice job. I just started my second high-tech biz. Sold the first for $300K, started with $0. It was an industry analyst firm. Starting this one out of pocket as well with no specific amount…hoping it goes as well as RightNow. As they say in Australia…good on ya!
Dave on March 31st, 2005 at 12:22 pm
Wow !!! Your great !!