This hybrid way to build startups will make you rich & free

Hey builders 👋

If you're like me when I first entered the startup world…

You probably think raising venture capital is the only way to build a successful tech company.

But then I discovered the bootstrap method - and it changed everything.

One book was the catalyst, and I want to share it with you today.

By famous indie-hacker & bootstrapper levels.io, who makes over $2M/year from his solo businesses.

It went over how to build a startup as a solo builder with no money.

Key points:

1. Think about solving your own problems, and niche down as much as you can.

2. Build a simple app as fast as possible to test how much people are willing to pay for it, and if it doesn’t stick, kill the project and start a new one.

3. Share what you’re doing in public so you build an audience at the same time = Two birds one stone.

But which one is better for me, you might ask? I have a feeling you will like the 3rd method.

The Bootstrap way

Bootstrapping focuses on solving a niche problem efficiently with a simple solution that doesn't require external capital. It tends to be a slower growth path with smaller yearly goals, but offers some major advantages:

• Speed: You can build, launch, and iterate much faster without relying on outside investors' timelines.

• Lean: You can operate very lean with a solo founder or small team.

• Independence: You have the flexibility to work remotely and travel while building your company.

Here’s a video from Pieter Levels that goes over into more details:

This method has exploded in popularity in recent years. More and more “Nomad builders” every year trying to reach that elusive 10k MRR (monthly recurring revenue).

Problem is? You need to focus on an unattractive problem and set less ambitious goals.

Not for everyone, but highly recommend if you’re just starting out.

The Vc way

While bootstrapping offers control and independence, VC funding also has major upsides if exponential growth is the goal:

• Capital: Massive amounts of capital to scale operations and marketing quickly.

• Expertise: Seasoned investors provide advice and networks.

• Prestige: Being VC-backed adds credibility and buzz.

Here’s an incredible playlist from Y Combinator that goes over how to build a startup the VC way:

When deciding how to build your startup, consider your end goal. Do you want to create the next Apple? Or do you want to build a lifestyle business that provides financial independence and location freedom as quickly as possible?

How about a chance for Both?

The new way to build startups

But what if you don't have to choose one path?

What if you start building your startup Bootstrap, focusing on solving the problem as simply as possible and see how far you can go?

But that does not mean you completely isolate yourself from the investment world.

You can still explore investment opportunities & apply to startup incubators.

Instead, you will be in a position of attraction vs necessity

That should invigorate you with a much more powerful mindset.

That’s exactly what I am doing with learniverse.xyz 

I am building Bootstrap, but applying to startup incubators.

And last week I received an interview invitation from a super competitive startup incubator in San Francisco:

Pretty cool! But I'll keep building learniverse.xyz either way.

With the freedom to create, why wait?

So build what matters most - solve problems you care about.

When opportunities arise, you'll hold all the cards to decide on investment.

Good luck, fellow builder! 🚀

I hope you enjoyed this one. 

If you want to see more of my content, feel free to check out my posts on X 👇

thezachhan

If you’re curious about what I’m working on at the moment. Check out learniverse.xyz to gamify your learning with AI-powered course creation.