Interesting piece by Danny Sullivan on bootstrapping a media business in lieu of venture capital:
Third Door Media started in late 2006. It never took investment. We grew our staff as our revenue grew, according to our business plans. In 2008, when the world economy crashed, we hunkered down and came through without losing people. In part, this was because we’d been careful not to over-extend, not to build a large operation beyond what it could support with native revenue.
It’s what I once called the “SimCity” model of growing. I used to often play the game years ago. I would take two approaches. One was to use the “FUNDS” cheat to get all the money I needed to build everything at once. But in doing this, I often found my cities built that way didn’t thrive. Instead, naturally growing my city slowly over time allowed it to stabilize and do well.