Re:WooMe: TechCrunch40 Finalist, $20 Million In Funding – An...
by arethuza on Thursday February 03, 2011 @07:26AM
(#2174469)
"Nobody breaks even on day one"
When I co-founded a company we boostrapped by finding a contracting client who we managed to negotiate with so that they would pay us immediately in cash before the end of the month. So for the first few months we still managed to pay our salaries, make a profit and we had no overheads as we were working on the client site.
After we had some cash in the bank we got an office and purchased our own kit so we could work off site (the client wasn't bothered as long as the work got done). Eventually we got to the point where we decided to focus on product development and we got VC money and moved to only having product related revenue.
When I co-founded a company we boostrapped by finding a contracting client who we managed to negotiate with so that they would pay us immediately in cash before the end of the month. So for the first few months we still managed to pay our salaries, make a profit and we had no overheads as we were working on the client site.
After we had some cash in the bank we got an office and purchased our own kit so we could work off site (the client wasn't bothered as long as the work got done). Eventually we got to the point where we decided to focus on product development and we got VC money and moved to only having product related revenue.
So yes, I think we did break even on day one.