Figuring out how to finance a company is easier for some founders than others. One situation that can make picking the right financing strategy very difficult is when founders have a business that could potentially make a great lifestyle business or a great venture-scale business. To clarify, this is a somewhat unique situation, as many startups are either not viable as small lifestyle businesses or do not have the potential to achieve venture scale. I call companies that could become either a viable lifestyle business or a viable venture scale business fringe companies.
To clarify, by lifestyle business I’m referring to smaller businesses (typically less than $10 million in annual sales at peak) that the founders don’t intend to sell; rather, they intend to extract profits from the business in perpetuity. A venture-scale business is one that grows to much more than $10 million in annual revenue and has real potential to ramp to $100 million or more.
To read the full, original article click on this link: Should You Pursue Venture Capital Or Bootstrap Your Fringe Company?
Author: Mark Peter Davis