These days everyone is talking about startups and entrepreneurship. It is quite cool to start a company, build a product and get funded. I am writing this blog based on my own experiences that how I am able to run a company successfully for several years and why you too don't need a funding.
So you have decided that you want to start a company, it is a topic of another discussion and I will write more about it but you should always think twice, thrice and ten time before starting a company and you should have solid reasons for that. Now coming back to the topic why you should not take any funding and why you don't even need it in first place. One thing I feel is very important for all the wannabee entrepreneurs is to answer whether they are starting a company to gain something for themselves or to give back something to the community and society as a whole. In my case I had very strong reasons to start something on my own. I never got satisfaction (technical) in any company work wise. Except my last company my managers and colleagues in previous companies were not technically sound as I am and I never really enjoyed working in company of non intelligent/smart people. May be I am little harsh here but this is just the fact for me and I always wanted to do something cutting edge or at least do something were I have control over my work so eventually I know where my effort is going and the money that you earn working for someone is good and decent but there is always a saturation after few years. More than anything else I always wanted to do something on my own. May it is the way you are brought up. Money was never really the concern for me. I was earning decent salary and but I could never give my 101% on my job. For me starting a company was always about myself and personal gains. I never really wanted to do something for the world. I have always been quite selfish person. I do everything for myself. I could not imagine even now how people can spend 12 hours in traveling and working for years and they don't get much in return. They miss out time with their family and they sacrifice major part of their lives. I knew from the very beginning that I will eventually do everything for myself only.
So before you even think about getting funded you should have the reason to start a company very clear because getting funded depends on that reason.
Now why people seek funding. This is my opinion.
1. It is cool to get funded.
2. You will get respect from other after getting funded.
3. You need money to sustain your company.
4. You want to hire more people to work in your company.
5. You will get rich after getting funded.
6. You and your company will get famous
Technically all these seem like valid reason to seek funds but you should keep in mind that someone will give you money in return of control/stake of your company. You will not be free to do whatever you want. You will loose authority over your company.
For a moment lets go back to the reason why you want to start a company and for whom you want to do it and think again about these points above. Getting funded is sometimes really need because you may want to scale up your already running successful business but these days I see people think that will build something after getting funded. I think it is stupid to jump in the funding process with just an idea or prototype. Recently I also came across people who want to be like serial entrepreneurs, they want to start with an idea, develop prototype, launch and seek funding all within a span of few months and if that doesn't work, do everything again with a new idea. I think this is again very stupid. One should spent sometime in the market, at least few years. Nothing really happens in few months. When I met these people I ask them again the reason why they want to start the company in first place and they could not convince myself or even themselves. They just want to look cool.
I realised this a little late in my career that earning money is probably the easiest thing that one can do. If you have the skill then you will find a market for it. I think everyone who is working for someone as an employee and frustrated in life can do something outside their job to earn money and which is again starting a business only but you need a good reason to start a company. It is not like you wake up one day and start a business. Your reason to do something on your own should be very solid. In case you are not happy with your job then you probably need another job.
There is no shortcut
Do you know that I have worked in 10 companies in my career? I changed many jobs until I found the one that was somehow not bad for me and I stayed their for my last 6.5 years. I have been freelancing since my college days. I started taking small projects back in 2002, so when I started my company in 2010, I had already worked in the market for 8 years. I started with Visual Basic projects then Linux consultation and training and then I started doing Excel VBA work before moving to web development. I started working in 2003 and did job for almost 12 years. Starting from 2002 till 2015 for almost 13 years I was working almost 7 days a week, After my job hours, I would work on my projects and I got married, had kid and also managed to live a normal life but it required lot of discipline and extreme hard work. I had very strong reason to work hard continuously for 12 years. I sacrificed a lot, I hardly took family vacations and spent time with my friends but it was all worth it now. I did all this because I just wanted to reach a point where I can easily leave my job. May be in your case you need to give at least 5 years but I do not understand why people expect magic to happen in few months. There are no shortcuts. If you do not have the determination to work hard then you are probably better with your job. I did all this and gained a lot now. At this point of time I am of course generating more revenue, I have regular clients, big clients and we are the best in what we do. It took us 12+ years, so what. If I include my freelancing time then I am in the market for 14 years now. That is a lot of time.
Seeking funds in the very beginning is for losers who don't know what they want in life and they just want to follow others. You should first start a business, start generating revenues and seek funding only when you want to scale up. By the time you are running a company successfully you will probably not worry about getting funds. You will find ways to scale up yourself without external inflow of money. I am by no means highly successful business but being a 6 people company we are making quite an impact in the market, we are one of the most sought after Atlassian consultants in India and whole Asia pacific for that matter. We have been into Drupal development since the beginning and have developed expertise for Non Profit Organizations. All this is done by just 6 people. We do not have a fancy turnover to showcase to other but we are quite content and happy about our work. We are growing steadily revenue wise, client wise and we hire more people only when we really need to, not for the sake of it.
In the past I did have low time and thought of winding up everything and going back to comfortable job but I never could do that, not because I am emotionally attached to the company but because I am used to earning a lot more money in less time now. No job could pay me the money that I am earning now. I worked hard for it and I want to grow more from here now. I live a pretty humble life but I enjoy earning money. It gives me high and I feel good and happy. I may have become greedy but we have developed a skill set and people need us. So why not get the most out of it.
So coming back to the topic that you should think first about the reason to start a company and for whom you are doing it - yourself or for the society. One should take funds only after you are running a successful company but not in the beginning. You will loose the focus right in the very beginning. One should start with the ambition to learn something, one should focus on earning money from the very first year and stay in the market for few years then decide that do you really need more money or not. May be someone will give you money based on just an idea and a stupid prototype but it is like begging someone to support you. Why should you take money from someone when you don't exist anywhere in the market. I think one should stay in the market and run the company for at least 3-5 years before even thinking about getting funds. In Sparxsys we are primarily into services and we have had few successful products in the market, we will probably build more products this year too and based on my experience I don't think I will ever think about seeking funds. There is no fun in it for me. I find it shameful asking someone to give me money and finally one should learn about running a company. You run a company for 5 years and you will learn far more than any graduate from A grad business school.
If you want to get in touch with me to share your experiences then you can write to me at ravi [at] sparxsys [dot] com. May be we can learn from each other.