Self Funding

Jon Oringer, CEO of Shutterstock shares his view about self-funding. If I would to summarise the whole article, the gist is Simply because you are using your own money, you will be more careful with what you do with it. Each dollar must bring in significant amount of ROI.

Working with limited resources is an excellent way to hone skills that will serve you well for the rest of your career. You will prioritize profitability from the start. All businesses need to create value at some point to survive, and while some companies have had successful exits without profits, they are few and far between. By building profitability into your model, you’ll be able to start scaling. Self-funding will force this thinking at every stage. When it’s your own money on the line, you will be motivated to focus only on the essentials needed to move to the next phase, and you’ll keep yourself lean for efficiency. via Link