goodpreneurs

goodpreneurs

goodpreneurs is a source of inspiration and feedback for entrepreneurs who change the world for the better

Transcript

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00:00:00: Music.

00:00:12: Welcome to episode 1 of goodpreneurs where it is our mission to help you to be and become a better found.

00:00:20: So what we have currently seeing is that during the ongoing Corona situation Investments are going down.

00:00:26: Both business angels and PCs will most likely keep their money tight.

00:00:31: Of course everyone says that they are open for business but our hypothesis is that deals will be at least postponed.

00:00:38: Especially if you're early stage startup or if you were just looking to raise your next round this can be a stressful situation.

00:00:45: This episode we want to give you an alternative bootstrapping

00:00:48: oh expert is founder and serial entrepreneur cost of being pissed off bootstrap can't Maharaj become Europe's leading e-commerce player for personalized stationery.

00:00:58: Has built a better Ventures Group which invests in young and upcoming startups Kristoff yet you are here.

00:01:05: You're well connected in the business Angel seen what is the Coon moot.

00:01:11: Thank you for having me I guess every sickness you get is like like most feces investors necessarily business angels but like rather larger investors they.

00:01:24: Most of our Focus now on portfolio restructuring let's say or they have their eyes all on the companies in the portfolio and not on New Deals

00:01:32: um obviously they all say though

00:01:34: just just good but I think we're in a situation where it's where it's unclear you know what how the future will look like is there any recession is coming or like

00:01:45: brother like how deep will the recession be that's probably the right question which sectors will profit and which will lose which is

00:01:54: it's pretty hard to see because there's so many so many influence on different sectors and then cross influence and that it's no one really can forecast is.

00:02:03: So what you see in the situation and that's like.

00:02:05: Almost everyone is telling us that and Yuri doesn't know how to articulate a lot of DC Twitter chats and so on you see exactly that people say hey we just wait.

00:02:14: We just weighed we don't do the deals we wait for the situation to calm down you know there's some clarity about the right price level and yeah I guess that's the right situation or that's that's that's how

00:02:28: Fields now and I think what we would you get from the founders I we talked a lot of Founders and what you see there there's you know on the one hand

00:02:37: they just don't get the response anymore than the others get

00:02:41: response like a there was that the word that weren't between a dad say raising around and some term sheets moved away let's say or Price Tag went down so it all got more complicated right or there's more restrictions into the DS are not like terms

00:02:59: worsened at least during the last days it's probably not the best way best time to do to go out and then try to get money from investors.

00:03:08: And I think there's no big difference in between business angels and we see species of really look more into the portfolio but like business angels I guess have the same guy

00:03:19: wait wait for it like

00:03:21: there's no pressure this is Angel don't have the pressure to invent like they don't have a fun do they only have their own money Nest normally and so there's no pressure so in this situation you would just you know you wouldn't risk it right because it's the only money that's like what a lot of business angels too.

00:03:37: Okay so let's assume - startup it's hard to raise money what can I do instead what are my options.

00:03:46: Well I mean if you don't if you're not able to raise money at the moment which is like will be very tough to in the next weeks and months

00:03:55: the one thing that's obvious is like easy to get along with what you have right you need to strip down the cost reduce your burn if you have fun

00:04:04: Conrad like and I think you know

00:04:07: I would I would propose to do bootstrapping I mean I've done bootstrapping for the last 10 years and a lot of a lot of pros and cons to bootstrapping but in the situation.

00:04:17: Almost like the only way to actually do it right it's the only feasible way and that's actually something that you hear also from investors right it's a funny thing because they normally wouldn't like to pose for you to go post wrapping

00:04:29: but like especially business angels I've read articles on that one where they actually tell hey consider bootstrapping right so.

00:04:37: I think that's that's the thing to look in otherwise you just stop it or weight or but I mean if you have an idea if you're working on it I think the situation to found a business to start a business you know

00:04:48: it's pretty cool because that a lot of new problems arising as a lot of Dynamics into new technology and two new new things that you know.

00:04:56: Head of the royal age of really picking up during the last months and years and you to Corona That's think the positive side as an opportunity now

00:05:05: right and so don't miss out on the opportunity but consider like other ways like that have been maybe not as

00:05:14: not as prominent during the last months and years due to a lot of capital in the market rate.

00:05:21: Yeah I think still a lot of opportunities for found us to go out and get started.

00:05:28: Let's go back to the experience you just said you've built the company completely bootstrapped for the last 10 years.

00:05:34: Could you run us through your bootstrapping experience what that you do one work but didn't work.

00:05:40: Um can you just briefly run us through the success story of cotton Highway.

00:05:46: So I can just I mean maybe one senses beforehand to give that like to frame it a little bit.

00:05:55: Is always want to talk about bootstrapping is you know this one perception and I think that's true bootstrapping is just not glamorous right so.

00:06:03: You're not going to get into any article because you do financing router right so there's no one talking about you there's no BC acting you there's no someone as no one knew clapping you.

00:06:13: On your shoulder and saying hey did you tell really great despite maybe some customers and that's it that's a good thing but it's just not clever Australian and then I run to you through my thoughts on bootstrapping which is probably not hand percent of what you can do for bootstrapping

00:06:27: and I think the first

00:06:31: most important thing is doing bootstrapping if you're short on money just don't spend money right and then don't spending money means don't build like a huge software

00:06:42: but try to prototype it I go lean and symbol that's how I call it meaning read The Lean Startup book and then try to really and that's another book from Ash Mara running in a salon of

00:06:53: material that you have to buy the book he's got cost a lot of money as well but you know get the material read through really try to run.

00:07:01: Malin start-up mode and you know the most people will tell you now yeah but I can prototype everything a lot of there's a lot of you know there's people out there prototype everything so I even Google Glasses a prototype

00:07:11: so

00:07:12: that's no excuse when a prototyping is obviously you don't get like a hundred percent version was a prototype of but you get close and you get customer feedback and and I think that's the most important thing get close to the customer

00:07:23: all right do the manly way and then consider like really really doing it simple so put more effort into getting a simple product simple solution to a problem you want to solve right really try to figure out a prop and then really try to figure out a solution and we do that in a very simple way right and really close to the customer.

00:07:42: And then you know

00:07:43: the thing is the moment you add complexity it's getting more and more expensive and you need more people that's getting more and more expensive than you lose track to right so all these things

00:07:52: really really start lead and simple in the first place which

00:07:55: obviously from my perspective is any health should be the default case to start and lots of people actually do that so lots of people say yeah that's what I do anyhow so that's cool and you in the right way at least from my perspective.

00:08:07: Okay so one aspect lean staying close to the customer and trying to be really creative on how to build a solution

00:08:16: any other advice some examples you you did during your journey at Cutler Hawaii for example for going you.

00:08:26: What would I when I started caught my eye 10 years ago obviously lean wasn't like did really exist as a concept like this and I think it came out a year later there was a lot of I think talks on it on from Steve blank and everything that all the Lean Startup culture you know

00:08:41: oh came from the from like around Steve blank and then Eric Ries so I'd say I went para likely but not I would have would have called it lean and no one caught a lead at that time

00:08:53: so when I go back so we talked to a lot of customers obviously right get to your customer we had a problem ourselves and we try to solve this figure out if everyone else is like having the problem as well but you know.

00:09:06: What we did is we didn't really solve a new problem that I like

00:09:09: we didn't solve the problem that exists has and hasn't happened been solved before and we went into an existing marketing and did it better that's something that I would propose if you consider like where you start right think about.

00:09:22: Business model you want to do obviously you might have now a problem and a solution and you really want to build that idea and consider how you can do that maybe in a different way or a way where you can start differently.

00:09:32: If you have the time to consider the business model think about something

00:09:36: where you actually you know can improve something but there's already a market right obviously you have to do then your improvement has to be a lot too you know

00:09:48: we can share at least the market is a six this thing when I think about doing things simple I give you one

00:09:58: one story from from from when I started so when I started cutting my Hawaiian it's all about designing Carla customers design their cards online we have templates

00:10:08: and then they put their personal details like names the weight of the child for example if it's a Personnel announcement right and some pictures and so on

00:10:15: and I came from a consulting company like a painting company and I was used to work with PowerPoint so when I wanted in the first place I wanted to have like an online PowerPoint like lots of different functions features and so I would say it was

00:10:27: press up 100 features and but I had a budget constraint I had a couple of thousand Euros for building that true it was a freelance developer

00:10:35: and so I pushed all the requirements over to the developer and he said like hey that's cool but you told me like you got 10K.

00:10:43: And that's called Outcast like at least 5 to 10 times as much as I can okay that's like I work so what we're going to do and we do it in a different way said love the only thing that works by the way here's a book right don't make me think maybe read that one so that's interesting input

00:10:59: and you know the idea is I mean

00:11:01: reduce the requirements yeah that's good okay I think about it so I had to prioritize the funny thing is like so I went down from like a hundred 220 requirements we built that thing and due to the very small amount of requirements it was a super simple to use for the customer.

00:11:15: Right but it took me a lot of effort obviously to figure out which.

00:11:20: Which features I wanted to have and I wanted then at least have these features super crazy simple and really good working that's what we built

00:11:28: so we built a very simple design tool and to be honest even until today like 10 years later we don't even have the hundred features that I wanted to have in the first place there was something like what actually became part of our success and part of our DNA to be very simple that's just one example on being symbol right.

00:11:47: That's fantastic that's really interesting.

00:11:52: Would you say that coming from the Consulting background where.

00:11:57: Let's put it gently money was often probably not the not the issue how was the transition into being a bootstrap founder.

00:12:08: Well the first of all I mean.

00:12:10: I took a couple of fans in front of students right and I said like a it's best time to go off to University because you used to not to spend a lot of money right once I was like five and a half years at bein so I was kind of like used to spend.

00:12:24: Not a lot but more money than like a student like after University was I mean obviously I learned a lot of money I worked a lot but I also learned a lot of money.

00:12:33: The good thing that I did is I saved a couple of counts out and Euros from my bonus and I put that on the bank account.

00:12:41: Before I started my own business and I took that money not everyone has the chance like we actually do that but that's what I did right so

00:12:49: but on the other hand what I did is what I kept had to cut down on all the costs that are typically would use to I didn't go to a Discounter like for three years at least after like when I started in pain

00:13:02: and well we decided to do that again we didn't do any vacation for like I think I think it was like four years all right

00:13:10: we didn't do I didn't buy trousers for two years so maybe I bought enough beforehand but at least I mean two years before and I would have bought like

00:13:17: Mana to trousers and a half years so I didn't do that and it's just some very practical examples and you know sometimes you really have to look into your

00:13:25: personal p&l to figure out way actually spending and in one thing that I always see is like people short on money they order a lot of food and a delivery service right I guess if you go to the restaurant and even if they deliver it to you it's just like

00:13:39: probably like

00:13:40: four to five times as expensive as we would do it on your own and just buy the components and you cook something obviously cooking something takes time and Sonia but maybe that's something you should consider that's something

00:13:51: it probably even a student can consider right so really cut down your expenses because that's

00:13:56: way spend it on right reader rather spend it or absolutely spend it on anything else but this you know prolong the time you have with it with the amount of money that you have at the moment or that you

00:14:05: burn on side jobs that say.

00:14:08: Just mention an interesting point you said okay do the cooking by own it costs time but it saves you money.

00:14:16: Would you say that this is a root of punk you could also apply to you and to your business when you're bootstrapping.

00:14:23: Absolutely so I guess when I think about bootstrapping I think the most important thing is like.

00:14:31: The more things you do yourself or like within the founder team you don't have to do it on your own so I didn't understand a single founder had a little back up by my wife obviously but so mostly I spent the time on carbon with a guy

00:14:46: and the so if you like single founder or the found a team like use your time wisely because

00:14:55: that's the money actually write anything you can learn a lot of things in a short timeframe especially when you're on the pressure and you're starting a business and being dependent on that business if you're fond of mentality

00:15:08: you will feel that pressure and you will that's a lot of intrinsic motivation and

00:15:12: use that right you said pressure and you said skin in the game because that actually helps you and then you can learn a lot of things in a much faster way you.

00:15:19: Thunder at University most likely because you didn't have the pressure there will you didn't have any skin in the game there was no you know there was not really a requirement but now you actually depend on that

00:15:29: so if you learn a lot of things so I for myself I kind of like learn to do designs and I haven't been a designer I did you know that you said Adobe software in design the first time

00:15:38: but after a couple of weeks I was like kind of pro really designing cards and exporting all the cars that are designers we have some external designers send to us right and I think that's something

00:15:51: that I was I was like

00:15:53: doing a lot of manual stuff until late in the night was a lot of red wine obviously with a lot of shortcuts like things that the team's not doing at the today anymore which is automated I did by myself I hand-write a lot of time I spend on this one

00:16:08: so in the beginning I might just try to do a lot of things by myself and also helps you to learn a lot right the more things you do by yourself you better understand how it works and you can actually try to automate it and you can actually

00:16:19: then headed over to someone else specialize on a specific job and you can explain it to them better

00:16:25: right if you never did that before pretty hard to tell someone how to do it right at least as a starting point so I would always go for a try to do it yourself right

00:16:35: I think that's really really important and never underestimate you know the power of you children under pressure.

00:16:43: Yeah that's that's some practical advice I would say and in the long term I would assume that I am.

00:16:49: Benefit as a Founder from it because as you said I understand my business model way better than without getting this practical experience.

00:16:58: But sound advice I would say do you think any points to add to how to bootstrap say anything else you would like to.

00:17:06: To pass on his first of all just be creative I think that's the most important that don't give up right I mean it might feel now in a situation where like Corona really came into the into the world when you just wanted to you you just you just

00:17:20: good

00:17:20: took the step to really you know found your own business you might have you might have left your job or you left University just convince your parents your wife your husband to actually start something right

00:17:32: and then Corona cans like fuck it I mean honestly now I just want to start I just put everything I put all my trust in myself and I went on the street and I did it and

00:17:42: and Corona came and I just you know I just look tell you that just

00:17:45: don't stop right it's got to be the I mean if you're worried but I would become an entrepreneur even a successful entrepreneur and you're going to have a lot of these situations might be a little more creative than the average situation and interfaces but it will be a lot of situations where you think it's over right it's not going to happen it's not kind of Lies I've got to work I will lose money I have to stop at everything.

00:18:03: But I think that's really really one important step aside resilience right really

00:18:08: don't stop in the first place is that will be a lot of hurdles that you have to jump over and especially in that situation and see that as a chance here is a chance because a lot of things lot of opportunities arising even though your business model at the moment might might look like completely deteriorated but I mean there's a lot of

00:18:25: a lot of opportunities to Pivot now right and you as a small start-up you much more flexible than a big company so really consider that one and then really try to do.

00:18:34: There is more you know interviews with potential customers and figure out like new problems new Solutions right and then the last thing I would say is.

00:18:44: I'm not saying that you don't need money to survive right I mean bootstrapping doesn't mean that you don't need money at all so you need some money especially for you to survive you know for flat maybe not a big office maybe not first employees you can do that on your own the first place but.

00:18:57: You want to think about like maybe not asking friends and family having looking for a job on the side or maybe not just not canceling your job on the side to save some money in to earn some money is obviously a

00:19:10: it's might stress you out but yeah my becoming interpreters just study Z let's be honest so if you don't know if you're not kind of present in it.

00:19:19: It's going to be tough for you to become really successful that at least as my my point of view so consider so when I started I asked my dad and my grandfather to give me a small loan and.

00:19:33: While pet needed some time to convince them but then in the end they gave the money to me was like 30k it's not a lot of money but you know

00:19:41: for starting a business that's a lot of money like in the end to me today it's not a lot of money but at that point of time that meant to me hey I could survive a couple of more months or I could pee external developer to build my whole shop

00:19:54: all right so let's let's cool I think a lot of people that we know might give us a couple of money and a lot because to earn some money in the first place but rather you not be that beautiful you.

00:20:03: So people would I mean that's something that I think this is very important trade group of successful entrepreneurs you need to you need to have some persuasion.

00:20:11: You need to persuade you know partners

00:20:15: banks sometimes or even family and friends and first customers and employees to follow you root because you have an idea you have a solution in mind and you have to push that through somewhat right so yeah trust yourself

00:20:28: brisket and don't give up too early.

00:20:32: I'd like to touch upon the point of persuasion because I think one very important step which comes before persuading others is to persuade yourself.

00:20:41: And to have the confidence to say okay I got now and I asked my.

00:20:46: Family asked my friends following for 30,000 euros you don't just do that all of.

00:20:53: Fun you don't wake up in the morning I guess and say okay I'm going to build an online shop for personalized stationery before wedding cards or both cards.

00:21:03: Can you recall the point when you knew okay this is legit I am all in I commit to this and now I go out and.

00:21:12: I'm going to build it I actually remember the one point because I guess there wasn't one point so I think it was a period of half a year.

00:21:22: Colleague had to convince my wife because I wanted to give up a job that gave us a lot of money right and

00:21:28: I came I have my family has an enterpreneur background so my father has a business I was kind of used to the risk around having your own business and run your own company.

00:21:41: Let's say that I was like

00:21:42: that's pretty low right but then I could experience it with my father and directly to your next to me my wife didn't so like the first place I had convinced my wife to actually take that risk and we also had a small son

00:21:54: one of two years ago he was wanted to use an old the next through hit idea came from so the

00:22:01: it was pretty hard to convince her to take that risk in that situation my father was one of one of the person who you back me up right who sadly I talked to your wife as well he talked to him and he

00:22:13: d'Italia.

00:22:14: Make sure that like was alone and then with the support of mine that he trusted me to actually do that and I think that a lot of people out there that you might have got to know during studies or doing work the trust you and then.

00:22:26: Would actually maybe invest in you kind of right and so don't understand that that right and it might attack

00:22:33: couple of incidents like couple of people to talk to in the end try for try to try to convince some people

00:22:42: but I guess this you know this Moment of Truth we actually decide to do that that's not one moment right.

00:22:50: Every day you decide to get go more into that situation right

00:22:54: people will actually stop business in their mind before and I would do some interviews and so on I will start working on it and I will have a job or they will study will have not like you stop something and you start thinking about

00:23:06: found the young business I think very few people actually do that it started something that happens and you might have a deep in yourself you have a dream or a wish to actually be free so for me it was really important to be free really to I wanted to take my own decisions I want to

00:23:20: to change the world I wanted to change something I wanted to do for my own decision and you know.

00:23:28: Do that I mean trust yourself but

00:23:30: don't expect it to be easy and don't expect it to be only one point of time where you have to decide you have to decide every day every week again to put a lot of effort in it and

00:23:42: that's always a lot of downside as a lot of risk there's a lot of negative moments right that's really part of being an entrepreneur but there's a lot of upside as well and and

00:23:51: biggest upset in the first bite is freedom you know if you have the power to design your freedom your own Freedom if you really use that then go for it and try it out right I think.

00:24:01: No one really could try to be really an enterpreneur said afterwards I haven't actually talked to something to anyone we said like it wasn't worth trying so what it what do you have to lose actually right.

00:24:15: That's a good question are to ask so I know that.

00:24:22: Change the topic a little bit because in the beginning

00:24:25: you said okay one downside of bootstrapping is you don't get fans overnight you don't get these crazy press releases and.

00:24:33: That's on the shoulder so I think that a lot of companies out there which

00:24:38: actually bootstrap but which might not be known to the public so do you know any other companies which had a similar approach and we're successful.

00:24:49: I think that a lot of them out there so mostly read about you know.

00:24:53: Series a financing rounds maybe exits not so many obviously

00:25:00: IPOs and then you read a lot about obviously also failure right because that's part of the game

00:25:05: and then there's a lot of hidden Champions or even not so hidden anymore where you don't know that they actually bootstrapped and then what you

00:25:14: but most people don't know is like this covid-19 overnight successes

00:25:19: took a couple of years and mostly these years they put rep right so people did something and a lot of famous stories and it's time to me bootstrapping doesn't mean that your bootstrap like that you don't take heck external money forever

00:25:32: all right it means that they do that for a significant amount of time but it also depends on your business model so not

00:25:39: all the business models are feasible to bootstrap forever I so if you build a social network if you build a platform it's almost

00:25:46: it's impossible to do that without external money let's let's face it right so no Mark Zuckerberg wouldn't have built Facebook without external money.

00:25:54: Just impossible

00:25:57: they're couple of companies that surprised me in the first place that they were bootstrapped right so you might know Wayfarer which is a huge

00:26:08: furniture company and that's a couple of approaches that they I think different the first place so when they started they

00:26:15: they didn't the company that wasn't called Wayfarer and they started was a lot of SEO domains and out of that at some point of time right they build one you one big URL one platform

00:26:28: but that wasn't the thing in the first place so when you build the what you see a lot of times now as your people have a

00:26:36: big Vision right and then they do the pitch deck and in that pitch like they show a we build that vision and then they get an investor and then try to build a vision without knowing how to get there but if you build the vision the risk of getting to the vision is quite High

00:26:50: but you don't get that right so maybe it should start with a small problem in a small in a big Market but was a small first customization so some earlier that does like I mean that's pretty obvious that you should do that but most people actually don't do that right there

00:27:04: they want to build the right you know the big Vision in the first place and I think Wayfarer is a very great example to start with something learn from it

00:27:13: and then from there go step by step to something really huge I mean they made something like 6.8 billion euros in Revenue I think the last figure that was.

00:27:22: Made public right there I think 2018 or Seventeen floors so I mean that's huge right.

00:27:27: And you got someone like Go Pro I mean almost everyone knows GoPro at least the cameras like for diving and then for skiing and everything like these fun cameras.

00:27:36: And I didn't know that and I didn't expect it so that's how we I mean would you expect to be at your hardware company to go to go

00:27:43: bootstrap for a couple of years I think they know sold some Parkour they got an investor but I think they put Step at least for a couple of years as far as I understood

00:27:52: so let's that's super interesting and you find typically a lot of stuff there's service companies right so atlassian not known to everyone like everyone who's liked working in a tech company should know it at lation or at least Jireh which is the main product which is like a project management tool for Developers

00:28:07: um

00:28:08: really huge I think I guess they're from Australia if I remember right and that's mentioned that's like a lot of people get emails a lot of these limits are sent by a mutual thing that probably the biggest mailing company right

00:28:19: so I think a lot of companies out there and you obviously have to look in their business model but also like some of them just been creative

00:28:26: if I remember right then Wayfarers like mostly do Drop Shipping right so that means Drop Shipping compared to you if you build an e-commerce company you need a love of money for the furniture let's say that you put on your stock right that you have to spend money on

00:28:40: if you're good with some traction you might get a bank to actually finance that but not in the first place necessary right so you need an investor to build.

00:28:47: If you do Drop Shipping means you you find partners that you cooperate with and they're going to send it out

00:28:54: it might not be the best convenience of the first part but it saves you a lot of working capital right lot of money you have to invest less that's again it's a I think there's a lot of approaches that you can do if you be creative

00:29:04: right and spend some time on being creative and finding a way to spend less money that you can you do that a lot right which

00:29:12: normally would make sense in any case but if less a lot of money in the market right people are just not they don't have an incentive to actually do that right they just you know grow grow grow put

00:29:21: marketing out there and then you forget to be efficient right so I guess my point of view what all these companies have kind of like in common

00:29:29: they took that time right and they didn't rush into a big market and a big Vision they took the time to build the core product find a solution and then find customers who pay money and then scale from you know these paying money that they paying customers because that's actually the best case I once heard from a on a Lean Startup.

00:29:48: Meet up a case that really really was to me was surprising a that was a legal software for.

00:29:57: For lawyers and if the far as I remembered was colleague a database verse Ferrell very special type of lawyers right and the personal actually build that business he didn't have any money.

00:30:08: So for building the database you would have needed a lot of money right so what he did is he pitched the the solution to a lot of customers right

00:30:17: lawyers obviously and he got a lot of money just from pitching it before actually doing something and then he was that money he build the software

00:30:24: or the other companies out there who build a solution for the first for the first client really a customized solution out of that they build a system and with that system there are now Millions right so I think that's super interesting

00:30:40: when I tell that to people who are just in the middle of the process of doing that and I told tell them the opportunity to actually do that it's just not as sexy right it's not as it's not as glamorous

00:30:50: it's much more glamorous to follow the vision straightforward to build the platform right in the first place

00:30:55: but why yeah tell you takes a lot of time and I know there might be some other computers that's not us you know Express themself out because I might be a computer competitor with a lot more money around the corner and then they lost.

00:31:07: I'm not sure that that's going to be the case I think if you built the product on the right grade was the right economics like really efficient and it works

00:31:15: you much better prepared for growth than the other way around you put a lot of money into a grow and then realize oh my God I'm losing money everywhere in my Village.

00:31:24: Yeah sounds sounds reasonable.

00:31:28: This was a great examples I think you can all have to look at the business models I think that makes a lot of sense and.

00:31:37: There's so much research out there and content is probably a lot of the founding stories of the Wayfarers and the GoPros of this world.

00:31:46: So check out the yeah how that how they did it because that's the creative part has already been done you can maybe even apply some of these.

00:31:55: Things to yourself I think that's definitely important to put a don't forget what's in it for you.

00:32:02: Yep and don't forget what's in it for you right if you do a better job in the first place even though you need external money it will keep higher shares and that's I mean that's what every founder wants you they want to stay in control of the company

00:32:14: right we did a survey on that one and then like everyone mentioned yeah that's the most important thing for me is I want to stay in control of my own company obviously that's a that's

00:32:24: most I guess the biggest the most important reason for most Founders actually choose to build a company they have control of right to be free so if you got investors nothing against investors but you lose kind of control you lose your freedom where there's someone else who's going to tell you what to do at least in some aspects right

00:32:40: so

00:32:41: If you don't want to lose the freedom and it's a question of how many shares you have obviously and what type of investor you get it which which time which point of time so really go for bootstrapping for a while I think

00:32:52: that's the opportunity in this crisis right it will force a lot of startups to actually bootstrap and my assumption is that in

00:32:59: two or three years we will see a lot of starting with much more stable core product that works because I had to bootstrap because they didn't have the money to spend a lot of our marketing on a shitty product so now they have to build a great product first and iterate on it

00:33:11: before they actually can put a lot of marketing dollars and Euros on it right so I guess that's going to be if if I have I love optimistic scenarios but I think about an optimistic scenario I think we see a lot of.

00:33:21: Make better prepared startups in the first place with less money so less money is not necessarily bad at least in the first one or two years.

00:33:29: Yeah makes makes sense.

00:33:32: Read Because of I know you have a tight schedule and we're running behind time so I don't want to keep you any longer but Stanley

00:33:41: sort of last advice you would like to share with the farmers who were listening to the Past right now.

00:33:50: I think we almost always I think we always almost always almost touched everything I think in the in the in the last 40 minutes but

00:34:01: I think the core to bootstrapping is you don't

00:34:05: get an external appraisal I think is the right word right so no one's climbing on shoulders and I think.

00:34:12: You have to make yourself free from that right it's open everyone loves to get you know to be told that you did a great job.

00:34:19: If you bootstrap your more on your own you might be in the founders team but I think you just have to get along with you and your customers and the problem and the potential solution.

00:34:28: And I can just you know I can just emphasize on that one

00:34:32: it's a tough time right you feel a kind of like socially isolated around you people actually get a new child they get a raise in the salary people you studied with they will look at you in the sukkah they're going to tell you it's not going to work out

00:34:43: be strong right be resilient

00:34:45: don't give a shit about what people tell you you know what you should do you have to be close to yourself you have to be strong in yourself you have to trust yourself I think if you don't do that if you can't do that you might call me or Fabi but I'll give you a sentence a text and we're going to tell you that you're going to do that but that's I think that's the most important thing that you actually trust yourself and then you can handle the crisis and you see the opportunity within the crisis right and even bootstrapping is an opportunity it's an opportunity not get money from a from a VC too early so I still guess

00:35:15: trust yourself be resilient great these are some fantastic clothing works and if you're not excited to start your own company now and go out there

00:35:25: well maybe you should listen to the podcast again read just a bit like so much for your time.

00:35:36: Thanks for the great questions for me if you enjoyed this episode I'd like you to join our LinkedIn group the group is called goodpreneurs.

00:35:45: In this group we connect growing community of foreigners that understood that they are personal growth defines the boundaries of the company's potential.

00:35:55: We talk openly about failures and the hurdles we have to overcome as found us because building a company from scratch is an easy nor glamorous in the.

00:36:06: It's hard work long hours and stressful times with risky decision.

00:36:12: Goodpreneurs we provide Founders the source of inspiration and feedback to reflect better and grow as an entrepreneur.

00:36:20: And thus changing the world for the better.

About this podcast

goodpreneurs is a source of inspiration and feedback for entrepreneurs who change the world for the better

We connect a growing community of founders that understood that their personal growth defines the boundaries of their companies potential. We will talk open about failures and hurdles a founder needs to jump over when scaling her/his company. Building a company from scratch isn’t easy, nor glamorous in the first place. It is hard work, long hours and stressful times with risky decisions. We provide founders a source of inspiration and feedback to reflect better and grow as an entrepreneur, thus changing the world for the better.

by Christoph Behn & Fabian Rausch

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