Today’s guest went from running his own agency to running Crew.co and then selling the company to Dribbble. You will discover the basic questions you should ask yourself before developing your app. Also, he shares the key differences between a bootstrapped company and a VC funded one, how his podcast led to this new opportunity and why marinating on an idea and actually help you execute on it quickly.
What to Ask Yourself Before Developing Your App
Ask yourself first if you are indeed solving a problem or if people really do have this problem. Talk to people to find out or if it’s a personal problem, talk to 2 or 3 more people to find out if they share your sentiment. If you can get them into that aha moment, you are probably on to something.
Second, ask yourself how much this is going to cost as it is not just about development. You make an app but you also going to need to market it as you need to make sure it has visibility. Make sure that you are in the position where, you have time and resources to dedicate to this project and that you have enough money to make it through. Decide if this is an idea that you want to spend the next years of your life and your resources on.
Bootstrap or VC?
The difference between bootstrapping and going for VC funding depends on what company you want to have and what control you want to have for your company. Once you raise money, you have to figure out how to return that money xx times. What we take for granted is that when we take that money, there is an expectation and the pressure to figure out how to return it. If you don’t raise money and you bootstrap, you do own your destiny more but you are going to grow slower. With VC money, you can hire people; when you bootstrap, you might have to do things yourself because your revenue needs to match salaries. They are two different games and it is a hard decision to make. There are more resources now though that makes it possible to boot strap and grow faster than you think.