Very few product companies make it big without taking external funding. The stories that are shared in the industry are all about companies that have targeted large markets, hit a phase of extremely high growth and have taken external capital to fund that growth. There are very few large (in terms of size / impact) companies that have bootstrapped their way to a product company. This is because...
You will find many of the articles on bootstrapping on the web. But today I would like to share with you how we developed our two products Shimbi CMS Budo and ShimBi MyBilling through Bootstrapping. “The basics of bootstrapping is simple – Earn money, spend less” Jofin Joseph. When we started ShimBi Labs in 2005; we had a clear vision that we will develop 4 best products for SMBs (Small...
“The best way to do something ‘lean’ is to gather a tight group of people, give them very little money, and very little time.” – Bob Klein, chief engineer of the Grumman F-14 program. I first came upon this quote on Paul Graham’s website, and it always intrigued me, the small detail about the money – it could be little or a lot, but money is a factor, and a...
A product company can begin earning revenue only after the product is built. Significant upfront investment is required in engineering and sales. As revenue picks up, expenses continue to mount for ongoing development and sales, and for establishing a new support team. It may take years before the company’s monthly receipts exceed the outflow. This is known as becoming cash flow positive...
I came across this rather misleading article by a New Investor in town, that India has a Series A drought. I think its a bit sensationalist and misleading and drinks a bit of his own coolaid and shifts blames on others, but I’d agree with the article on one count – Yes there is a drought. I am going to start this off on the right foot. This whole venture funding phenomenon is about at the best 15...
