The bank called again the other day. They keep trying to give us more credit.
When I went to the LAUNCH conference, the land of start-ups, all I heard was people angling for investment. Exhibitors would ask other exhibitors if they’d had any meetings, or wonder with frustration where all of the VC-money was. We were stopped by multiple investors about funding…and we let them know we weren’t interested in outside capital.
We live in a world that is eager to borrow, but slow to produce value. All I hear is how hard it is to get a business loan, but I haven’t experienced that. Instead of chasing piggy banks I was building stuff that people wanted. That creates value. So even in the credit collapse we were awash in offers.
The secret is to never have to spend other people’s money. Bootstrap until you have a nestegg. Then turn a nestegg into a war chest. Plan like the world is ending, because it may just end for you if you don’t.
Put even simpler:
Make a profit. Spend efficiently. Repeat.
If you do this you won’t need a loan or VC. You will always make a profit. And you will always be in control of your decisions.