#QOTD - 190102

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The search for capital infusion should be an expansion strategy for a proven company rather than a startup strategy. Why? Chasing after capital is a distraction from a company’s core responsibility — reaching profitable customers by building the best product or service possible.

If you study world-class companies, you will find that their founders often bootstrapped it themselves until well on the way. They didn't pitch for capital. They focused on profits. Positive cash flow serves to remove the need for heavy infusions of capital and allows a company founder to pay overhead and staff. They use proven marketing techniques to build a network of loyal customers who love the product or service, and can be called upon to provide testimonials and referrals to later clients, thereby accelerating growth.