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Bootstrapping 101
Bootstrapping 101 with your host Mike Jones
S




      Michael Jones                          S




•   Founded 3 Companies, Sold 3
•   Raised $3M, Lost most of it f...
You

•   First Time Entrepreneurs?
•   Second Time Entrepreneurs?
•   Current Company Funded?
    •   Angel?
    •   VC?
Getting Started
•   Sole CEO
    •   How Democracy often fails in Capitalism
•   Partners & Founders & Roles
•   Key Staff...
Founder Lessons


•   Demise of PBJ & Lack of Buy/Sell Agreement
•   Exiting Founder in Userplane with Buy/Sell
    Agreem...
Consulting your way to
           Product
•   Consulting & Development
    Services
    •   Flickr, Blogger, Userplane &
 ...
Userplane, Early Years

•   3 Founders (Tech, Product, Business)
•   Consulting Jobs to Pay Bills
•   Clients: Studios, Re...
Pros / Cons
           PRO                         CON
          Pay Bills             Massive Distraction
               ...
Getting $$

•   Friends & Family
•   Angel
•   Formalized Angel Group
•   VC
•   Strategic Investor (?)
Breakdown On Raise

 Amount         Option
  <200k     Friends & Family
 200<500k        Angel
            Formalized Ange...
Raising Friends & Family
• Chances are you will lose their money, will
  you lose their friendship?
• Your responsibility ...
Spend Management
Always question where you and your team are
spending their time, don’t be ridiculously cheap
(Don’t build...
Recommended Startup
     Vendors
  Service           Vendor
    Legal         Greg Gilman
 Accounting      David Chaskis
 ...
The Board
•   The Role of your Board
•   Difference between Advisors and Directors
•   Who goes on the board and why?
    ...
Questions?
Bootstrapping 101 - Mike Jones - Startonomics LA 2009
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Bootstrapping 101 - Mike Jones - Startonomics LA 2009

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Transcript of "Bootstrapping 101 - Mike Jones - Startonomics LA 2009"

  1. 1. Bootstrapping 101 Bootstrapping 101 with your host Mike Jones
  2. 2. S Michael Jones S • Founded 3 Companies, Sold 3 • Raised $3M, Lost most of it for my S investors. • Sit on 3 Startup Boards, 3 Mature Company Boards (30M+) • Sold 3, Assisted 2, Bought 3 • Invested in 4 Startups • CEO of Tsavo
  3. 3. You • First Time Entrepreneurs? • Second Time Entrepreneurs? • Current Company Funded? • Angel? • VC?
  4. 4. Getting Started • Sole CEO • How Democracy often fails in Capitalism • Partners & Founders & Roles • Key Staff • Buy/Sell Agreements & General Legal Setup • Aim for success, prepare for failure
  5. 5. Founder Lessons • Demise of PBJ & Lack of Buy/Sell Agreement • Exiting Founder in Userplane with Buy/Sell Agreement
  6. 6. Consulting your way to Product • Consulting & Development Services • Flickr, Blogger, Userplane & Many Others
  7. 7. Userplane, Early Years • 3 Founders (Tech, Product, Business) • Consulting Jobs to Pay Bills • Clients: Studios, Red Bull, etc. • Introduction of AmIHot & Development of Product • 6 Months of Market/Sales Before Traction
  8. 8. Pros / Cons PRO CON Pay Bills Massive Distraction Takes forever to launch Learn new industries internal project Can leverage consulting Doing crappy websites, engagement to build license draining your creativity and of software (presell) burning your staff Might be your only option : )
  9. 9. Getting $$ • Friends & Family • Angel • Formalized Angel Group • VC • Strategic Investor (?)
  10. 10. Breakdown On Raise Amount Option <200k Friends & Family 200<500k Angel Formalized Angel 500<1M (TCA) 1M+ VC
  11. 11. Raising Friends & Family • Chances are you will lose their money, will you lose their friendship? • Your responsibility to your seed investors. • How much do they get? • Lesson: Investing.com and Alan!
  12. 12. Spend Management Always question where you and your team are spending their time, don’t be ridiculously cheap (Don’t build your own PC’s) Item Option Staff How to pay? Servers Trade/Branding Legal Firm Selection Contractors Design/Tech Rent Shared Spaces
  13. 13. Recommended Startup Vendors Service Vendor Legal Greg Gilman Accounting David Chaskis PR Edge Communications Hosting Media Temple Payroll Paychex
  14. 14. The Board • The Role of your Board • Difference between Advisors and Directors • Who goes on the board and why? • All Founders, CEO? CTO? • What is the board good for? • How much do I give / pay to my board? • How do I communicate to my Board?
  15. 15. Questions?
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