BOOTSTRAPPING ★ 56 upvotes 2012

Who is living off their (bootstrapped) startup fulltime?

The Founder's Submission

Direct narrative and submission text authored by @jarcoal on Hacker News:

This is a spiritual successor to this thread: http://news.ycombinator.com/item?id=1924909. However, I am hoping to just hear from bootstrappers today.

Show us what is paying your bills. Inspiration for those that are not there yet.

Retrospective Overview & Key Insights

Distilled analysis of the business dynamics, operational challenges, and strategic takeaways:

Published in 2012, this chronicle by @jarcoal details the mechanics of building a profitable, self-funded business without venture backing.

Core Principles for Independent Builders:
1
Charging customers from day one acts as the ultimate filter for building software that solves genuine, high-urgency problems.
2
Keeping fixed overhead low and leveraging lean infrastructure allows founders to stay alive until market tailwinds kick in.
3
Small, repetitive improvements in customer retention and conversion rates yield massive returns over multi-year horizons.
Community Debate Themes:

The community focused on B2B customer acquisition channels, cold email vs SEO distribution, and balancing full-time employment with side-project development.

Community Discussions & Critical Reviews

High-signal perspectives, counter-arguments, and peer founder insights debated on Hacker News (20 total discussions):

JO @joshkaufman Peer Contributor

I started Personal MBA (http://personalmba.com) a few years ago as a side project. It's now a six-figure publishing business that's growing rapidly. Offers include trade published books, self-published books, online courses, live training, and consulting. (Recently, I've been moving to less consulting and more products.) I quit my job at a big corporation a few years ago to work on the business full-time.

I don't have employees, have very low overhead, have zero consumer/business debt, and we're in the process of building a house. I choose new projects primarily based on what I find most interesting, and I have no need to chase financing to grow.

My wife also runs a bootstrapped six-figure publishing business in a different market. That business was built in a lot less time, and she was able to recoup production expenses for three high-priced professional training courses that sell very well to an addressable market.

We also spend a lot of time with our daughter, which is why we both chose to build bootstrapped businesses.

Building a great bootstrapped business is definitely possible. Keep at it.

HE @HerraBRE Peer Contributor

I am living (frugally) off http://pagekite.net/ at the moment.

TBH I am not sure it counts as we managed to secure a government grant for building our initial product. We've got a year left of "runway" before we need to either become cash-flow positive or bite the bullet and seek outside investment.

As I said, I realize this may not really count as bootstrapping, but I mention it as I think it may be an interesting (and oft overlooked) way to fund the early stages of a tech start-up, at least in places where local governments have programs in place to encourage economic development.

(For those who don't know what PageKite is, its main use is as a tool for web developers to demo and test sites on localhost against the public Internet - but we have ambitions to grow and become an alternative to traditional hosting and help make desktop apps and embedded devices integrate better with the web.)

DA @dangrossman Peer Contributor

I started my business in earnest freshman year of college, 2003/2004, with virtually no money. I developed a handful of SaaS webapps with a couple tens of thousands of users I support on my own. It's a lifestyle business, with no employees and no grand ambitions... just enough work for a comfortable schedule and good enough pay that I'd never trade it in for regular employment.

http://www.dangrossman.info/category/portfolio/

RU @RudySF Peer Contributor

Launched a vertical ad network a few years ago with 2 friends.

Took no salary for 6 months, then a small salary to pay the bills for the next 9 months.

Then... business started to grow to yearly low seven figures in revenue and we're now paying ourselves a reasonable salary, contributing to retirement, and building up our company's cash reserves for future investments.

JU @justinchen Peer Contributor

My business partner and I have been running Menuism (http://www.menuism.com) since 2006. It's bootstrapped and profitable. We also run The Wedding Lens (http://www.theweddinglens.com) and PickFu (http://pickfu.com).

HISTORICAL ERA Web 2.0 Genesis (2007–2013)
COMMUNITY SCORE ★ 56 points
TOTAL DISCUSSIONS 20 comments
TOPICS & TECH STACK: