entrepreneurship

name	entrepreneurship
description	Startup and business building principles. Use when: - Deciding between bootstrapping vs VC funding - Building a small, profitable business - Thinking about team size and growth path - Evaluating if an idea is "venture-scale"

Entrepreneurship Principles

Bootstrapping vs Venture Capital

Both paths are valid — choose what fits your situation.

Factor	Bootstrapping	Venture Capital
Control	Full	Shared with investors
Speed	Slower, organic	Faster, fueled by capital
Risk	Personal only	Shared
Exit	Profit, lifestyle	Scale or bust
Example	37signals	Uber, Airbnb

Small Team Advantage

Small is not a stepping stone — small is a destination.

• 37signals: 75 employees, profitable for 24 years
• Asana: 1,600+ employees, still pursuing growth
• Key insight: Profit > revenue metrics

Constraints as Advantage

• Limits bring clarity and focus
• Two-person teams for features
• Max 6-week delivery cycles
• No salespeople, no complex pricing

Success Metrics

The ultimate question: "Would you want to do this again?"

• If "Yes, that was fun, let's do it again" = Success
• Profit is fuel for the next thing
• Not everything needs to be measured

When to Raise Capital

You probably don't need VC if:

• Software business with healthy margins
• No hardware/factory requirements
• Can acquire customers organically

You might need capital if:

• Hardware products
• Heavy infrastructure needs
• Regulatory hurdles requiring war chest

Venture-Scale Check

Ask yourself:

1. Can this be a $1B+ company?
2. Is there a path to dominate a market?
3. Are you willing to sacrifice control for speed?

If no to most, bootstrapping may be your path.

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Sources

• Jason Fried (37signals)
• Lenny's Podcast interviews