Why Bootstrapping SucksSeptember 29, 2006
This story over at Tabblo illustrates why it sucks to be a startup, or, worse, to be a bootstrapping startup. (I don’t know if Tabblo bootstraps or not, just saying it’s worse if you do.)
A broken sprinkler head started shooting water into their offices and soon enough they has three inches of water on the floors, not to mention that everything got soaked since the water came from above.
Tabblo’s probably got some venture capital, everyone seems to these days, but if you’re a company trying to bootstrap, an incident like this can be a killer. Not only do you have damages to deal with but you also have to deal with the fact of not being able to do anything for a few days while you get your office up and running again. This is a huge money and time waster.
Insurance might cover your damages, but it won’t cover the value of things you may have created that are ruined, whether it’s important papers, drenched computers with lost data (yes you should back it up, but does everyone really back up?), or some other piece of work that took a long time and will have to be recreated from scratch.
And if you have clients who have deadlines that you’re now going to miss, that’s just one more thing that’s not going to win you any love.
That’s why bootstrapping sucks. One false move and all your efforts are down the drain.