Greg Isenberg

People who start VC-backed companies will spend $1.8M on a domain without launching a product and not even flinch.

Challenge them on it, and they’ll say, “You think small.”

It goes against what's natural. Maybe it works, and maybe that business becomes a billion dollar business. I don't know.

But I can think of way more efficient ways to use $1.8M for a pre-traction startup. Investing in the product. Investing in the distribution.

I gotta say, building cash-flowing businesses feels so much more natural. And I say this having built and sold 3 VC backed businesses.

How most bootstrapped businesses start:

You come up with a startup idea (probably after a couple drinks). You buy a $10 domain . You build an internet audience. People start following it.

You build a product. People want it. You make your margin. Do some profit sharing. And keep compounding for as long as you possible can.

Unlike VC-land where you can buy a $1.8M domain and its totally normal, cash-flow startups you scale as you go. The bigger bets come later.

You think small first, big later. And it usually pays off.

If you don't interrupt the compounding, you'll have no issues retiring with millions. And hey, you can even pass over your business to your children.

I don't hear many founders of venture-backed startups turning them into family businesses. They’re too busy chasing exits and IPOs.

So, next time you hear about someone spending millions on a domain, there’s another way to do this.

Build something people want. Keep it lean. Keep it profitable.

And watch it grow.

It's a beautiful thing.

Btw, I put together 30+ of my favorite profitable startup ideas in this database. You can download it here (100% free) https://lnkd.in/dGt8Cch4