In typical 37signals fashion, the wisdom in these pages is edgy yet

Raising money is incredibly distracting. Seeking funding is difficult
and draining. It takes months of pitch meetings, legal maneuvering,

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contracts, etc. That's an enormous distraction when you should really be
focused on building something great.
It's just not worth it. We hear over and over from business owners who
have gone down this road and regret it. They usually give a variation on the
investment-hangover story: First, you get that quick investment buzz. But
then you start having meetings with your investors and/or board of
directors, and you're like, "Oh man, what have I gotten myself into?" Now
someone else is calling the shots.
Before you stick your head in that noose, look for another way.

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You need less than you think
Do you really need ten people or will two or three do for now?
Do you really need $500,000 or is $50,000 (or $5,000) enough for now?
Do you really need six months or can you make something in two?
Do you really need a big office or can you share office space (or work from
home) for a while?
Do you really need a warehouse or can you rent a small storage space (or
use your garage or basement) or outsource it completely?
Do you really need to buy advertising and hire a PR firm or are there other
ways to get noticed?
Do you really need to build a factory or can you hire someone else to
manufacture your products?
Do you really need an accountant or can you use Quicken and do it
yourself?
Do you really need an IT department or can you outsource it?
Do you really need a full-time support person or can you handle inquiries
on your own?

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Do you really need to open a retail store or can you sell your product
online?
Do you really need fancy business cards, letterhead, and brochures or can
you forego that stuff?
You get the point. Maybe eventually you'll need to go the bigger, more
expensive route, but not right now.
There's nothing wrong with being frugal. When we launched our first
product, we did it on the cheap. We didn't get our own office; we shared
space with another company. We didn't get a bank of servers; we had only
one. We didn't advertise; we promoted by sharing our experiences online.
We didn't hire someone to answer customer e-mails; the company founder
answered them himself. And everything worked out just fine.
Great companies start in garages all the time. Yours can too.

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