DISQUS

Rob Safuto · 2 years ago

I was thinking just last night that I would rather pay a service to host my podcast media files than completely rely on a free service for this exact reason. What happens if they can't pay the bills and have to turn out the lights? And as we saw less than 10 years ago that can happen.

At times during the process with RawVoice I've felt like we were less fortunate not to have the VC money. Of late I have reversed that belief. We don't have the pressure from a board. And we don't have to worry about being liquidated when investors want their money back. We also can build this thing right. Might even be a good idea to change our logo from a carrot to a tortoise.

Greg C · 2 years ago

I always tell other entrepreneurs, always bootstrap if and when you can. If you ever want to raise money, then do it when you are in a stronger position. Its much easier to raise money when you have a business thats proven, is cash flow positive and ideally profitable.

If you can pull that off on your own, you've already told the investment community you are on the right track. Generally, at this stage you would only be taking money on to advance or speed your growth.

Great post - and yes, watch that bubble and bootstrap it!

Carlie Flossberg · 2 years ago

Chris I hate to say but I terribly disagree. Being a displaced real estate agent from the Boston housing market decline I don't feel the signs are at all close to a bubble bursting. Now selling advertising for SLNN - you wouldn't believe the diversity of interest we're getting from companies to advertise with us.

Yes I agree there is an influx of activity in the New Media commercialism, but that happens with anything new and trendy. There may soon be a slight correction to weed out the men from the boys from the quality service angle. But this is merely natural selection.

The age of radio, tv, and print media is coming to an end - New Media isn't a bubble but more evolution. Compared to the assets still being poured into those past traditional methods we are very far from the bloat the housing and stock market hit.
Just my two cents.
~Carlie

Jennifer Iannolo · 2 years ago

I've always been of the mindset that bootstrapping is the way to go. We've done so from day one with our new media company, and don't want VC because (a) we don't want someone else telling us how to do things; and (b) we don't owe anyone anything, aside from our small credit card debt. In fact, we will be in the black and completely cash flow positive in about a month. The beginning is harder this way, but it is much easier to sustain financial and/or market shocks. Fast easy money always comes with a lot of strings.

Mr. Matthew Ebel · 2 years ago

I'm always advocating one thing above all else: Actually create something worth talking about. Economic tides will rise and fall, but if your product is of superior quality, you'll rise to the top when the competition is stiffer.

At least, that's what I'm hoping.

B. Rene Williams · 1 year ago

This is great advice. A business must focus first on producing value to society, and only then on its credit raising prospects.

Without that focus, many companies lose sight of the reason they got into business in the first place. They had an idea, and then let it get diluted by other voices - VC's who have an exit strategy and ideas of their own, and bankers who focus on financials instead of how well the business is doing in its chosen niche.

Maybe the cash crunch is a blessing in disguise -- it makes us get back to basics.

Nick Inglis · 1 year ago

It's sad to say, but you have a valuable point here. As someone who is launching a project right now I'm focusing on making things run as smoothly as possible and controlling the flow of traffic into the project. If I'm too positive on the growth side and don't control it, I could easily exceed budget and not have cash accessible... I suppose control will have to be the key word until the market rebounds.