If you could create your own fantasy board of directors, who would be on it? CO— connects you with thought leaders from across the business spectrum and asks them to help solve your biggest business challenges. In this edition, we ask a successful entrepreneur how to grow a startup through bootstrapping.
In this edition of "Ask the Board," we feature Aaron Davidson, Chief Executive Officer of Cronometer, a comprehensive nutrition tracking app on earth. Davidson built his business from the ground up without support from outside investors. He explains how you can jump on the bootstrap bandwagon and do the same.
Contrary to popular belief, you don't need external investors to succeed with your startup. My business, Cronometer, is living proof. No matter your industry or business model, these tips can allow you to thrive and grow without relying on others.
Focus on sustainable growth
If you choose bootstrapping versus raising capital from outside investors, you need to be prepared to go slow and steady. Your growth will be fueled by continually reinvesting profits, which can take much longer than with an outside cash injection. You must focus on building a sound, robust business that makes more than it spends from Day 1.
Solve a real problem
You must deliver tangible value by solving a real problem that people are willing to pay a sustainable amount for. Obesity and unhealthy eating are massive problems across the Western world. At Cronometer, we are democratizing access to personalized nutritional information to allow people to make good, science-based decisions for themselves.
If you choose bootstrapping versus raising capital from outside investors, you need to be prepared to go slow and steady. Your growth will be fueled by continually reinvesting profits, which can take much longer than with an outside cash injection.
Aaron Davidson, Chief Executive Officer of Cronometer
Don't ignore adequacy
A bit of a cliché, but if you want to get things done, move mountains, etc., perfect is the enemy of good. It's great to strive for excellence, but don't let that stop you. Cronometer was a great example of a minimum viable product. When it launched it was ugly, there were bugs, and very limited functionality. Frankly, it was embarrassing, but the key is, it existed. It was now a thing. A thing in the world with customers and feedback. Start small and iterate, iterate, and iterate.
Be optimistic
It's very hard to be successful without being an optimist. In the long run, it-will-never-work people lose to we-can-do-this people. Optimists push the envelope, take risks, and solve open problems. They will collectively out-innovate the pessimists. I think it's a fundamental requirement for an entrepreneur. Keep at it, persevere, iterate, grind through it.
Hire people smarter than you but who believe in your values and culture
There's no point hiring someone to fill a role who is not at least as good as you at it. Take your time, focus on the culture, and grow sustainably. When starting a business, you will have many tough decisions and awkward conversations.
Make sure you trust the people you start it with, because if you don't, you won't have the hard, honest conversations, your business will suffer, and most likely fail. At Cronometer, we don't do anything that makes us feel slimy. This ensures that whilst compromise is sometimes required, we have certain things we will not consider, even if it means slower growth.
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
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