EP #87 – Dennis Just: Bootstrapping Your Company To Scale

The Episode in 60 seconds

Considerations when deciding whether to bootstrap:

• Bootstrapping is a long term project which needs time and dedication.
• Once you decide to get on the VC train, you can’t go back.
• External funding rounds also mean valuation rounds, which you have to keep driving up. A downround can be detrimental.
• If you cannot get a top tier international investor, it may not be worth the trouble.

Bootstrapping a user base:

• Brand: building trust and recognition is a long term game that will pay off.
• SEO / organic search: quality content and a product that truly meets the user needs will go a long way. Of course, this makes you dependent on the search engine algorithm.
• Community: know your target audience and build a community around your product.

Running experiments:

• Once you have a user base, experiment everything and optimize whatever you can.
• Always test on a subset of users to minimize overall impact of negative test results.
• Monitor all KPIs, not just conversion (e.g. customer retention, customer lifetime value, satisfaction, etc.).