Fund your startup yourself

So you've got a great idea for a business. Maybe you've even taken the time to put together a business plan and a prototype of your product. Conventional wisdom would tell you to start the long and arduous process of searching for funding. I'm here to tell you that conventional wisdom sucks.

Venture capital is hard to come by...at least for now

Think you're going to pitch your business to a venture capitalist or an angel investor and they're instantly going to throw you a million dollars? Think again. Venture capitalists and angel investors that I've met have painted a different picture - they are so bombarded with ideas that they don't read most of the plans that cross their desk and they rarely invest in companies that don't have some sort of proven track record.

Oh, and even if you're hell bent on getting backing from a venture capitalist, it can take years and in the end you've lost control of your business. If they've invested in you, things are going to be run their way, regardless of what you think. Think long and hard if that's what you really want.

Find a way to get started on your own...NOW

In the June issue of Entrepreneur Magazine, 69% of their "Hot 100 Companies" were financed by savings and personal funds. That doesn't include loans from friends and family, or bank loans, or credit cards. In short - most up-and-coming companies found a way to do it on their own.

Give me an example Adam

Two companies both have killer product ideas and just completed their business plan and a prototype. Company A begins beefing up their biz plan and approaching venture capitalists. Company B self-funds their first production run, throws up a website, and begins selling. Meanwhile Company A is still looking for an investor. Company B has sold a few products and despite their struggles, are starting to get noticed....and Company A is still looking for venture capital.

By the time Company A has found money and started moving forward, Company B has been around for a few years. No doubt it has been hard, but they are a battle tested business and ironically, a company that an investor would love to invest in. They have learned to bootstrap because to conserve cash and in doing so have become profitable. Their operating expenses are low and their margins are high.

Which company would you rather be?

So what are you getting at?

Just f*cking do something. Start something. You don't need all the answers and it doesn't have to be perfect. Every day you spend chasing cash is a day someone else spends chasing your customers.