Bootstrapping Does Not Mean Being a Cheapskate!
Even in a bootstrap startup, it is important to spend some money – just in the right places and at the right times. Bootstrapping is not about being a cheapskate about everything, squeezing every last penny out of your vendors and partners and otherwise being the nightmare customer for every company you deal with. At some level, you will begin to realize that markets are somewhat “efficient� and unless you have some special connections or characteristics that cause you to convince people to give up their goods and services at a price well below market rates, you’re essentially going to get what you pay for (in a macro sense). Of course, there are definitely ways to find the best deal (in terms of value), but this can usually only be taken so far. And, of course, there are places that you should find the least expensive option, because it doesn’t matter all that much. More on that later.Further, I’d like to emphasize something that too many founders forget. Your Time Has Value! In fact, one of the scarcest resources (next to cash) in a startup is founder time. Don’t spend 2 hours to find the cheapest place to buy your computer monitor that costs $400.
via Ken Dyck.
Photo by owenbooth.
Dharmesh Shah on June 21st, 2006 5:02 am
Not sure if you agree with the article’s premise, or disagree with it.
Money MAtador on June 21st, 2006 4:02 pm
Because my natural tendency to being a cheapskate I have often reflected on the value of time. The $400 monitor thing got it spot on.
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