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Selling My Bootstrapped SaaS Business

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Re: Selling My Bootstrapped SaaS Business

#11

Post by nathan_f77 »

joosters wrote: post #2

...the cash, from selling the business has built momentum for other projects like [...] angel investing, I just knew that would be in there. Why do so many tech people seem to think that VC investment is what they want to be doing once they have spare cash? This isn't a personal critique of the OP, but it just seems so very common in general. I don't understand it.

I think it's just a lot of fun to meet other entrepreneurs, and be involved in what they're building. Definitely more fun than putting your money into some index funds.

Re: Selling My Bootstrapped SaaS Business

#12

Post by charlesdm »

nathan_f77 wrote: post #10

> Purposefully under-optimize > For example, I really do not understand paid search advertising (Google Adwords, Facebook, etc) so I purposefully put almost no effort into it as a customer acquisition channel for Storemapper. This article is awesome and super helpful, but that particular point seems like terrible advice. Surely it would be much better to hire a marketing/adwords contractor, and increase the value of…

Maybe he just preferred having a healthy amount of money in the bank, and the multiple was worth it?

Having $500k - 1m brings decent peace of mind, even if it was a nice business.

Re: Selling My Bootstrapped SaaS Business

#13

Post by asmithmd1 »

charlesdm wrote: post #7
asmithmd1 wrote: post #6

Earlier quoted context omitted.

How else would you invest your money? Index funds in a stock market whose price is going hockey stick? With banks out of the business of loaning people money there are genuine opportunities out there where people can put money to work. I imagine he is not going to be gambling on ICOs but investing in profitable companies.

10% a year on a million is still (way) better than throwing 4x $25k at a random startup through angel investing. Hell, with current interest rates, you might as well use some portfolio margin and borrow an extra million.

Are you saying you can expect 10%/year with your money in the stock market? No stockbroker will tell you that, it is more like 6%-8% over a 10 year time frame. And you have to have the courage to watch your balance drop 50% over a 1-2 year time span and still stay in.

Re: Selling My Bootstrapped SaaS Business

#15

Post by danieltillett »

joosters wrote: post #2

...the cash, from selling the business has built momentum for other projects like [...] angel investing, I just knew that would be in there. Why do so many tech people seem to think that VC investment is what they want to be doing once they have spare cash? This isn't a personal critique of the OP, but it just seems so very common in general. I don't understand it.

I "invest" in new startups because I want to help the next generation. I put invest in quotation marks because I don't expect to make any money (I will be happy if I break even), but I do want to give back and create the environment that I never had access to. I know others feel the same.

Re: Selling My Bootstrapped SaaS Business

#16

Post by danieltillett »

hahla wrote: post #4

I buy bootstrapped businesses. Email in profile. Shoot me a message would be happy to discuss even if its just to chat. I don't ask a lot of questions, have numerous references, and I have been buying for the last 10 years.

... and what revenue multiple do you pay?

Re: Selling My Bootstrapped SaaS Business

#17

Post by cultvoid »

nathan_f77 wrote: post #10

> Purposefully under-optimize > For example, I really do not understand paid search advertising (Google Adwords, Facebook, etc) so I purposefully put almost no effort into it as a customer acquisition channel for Storemapper. This article is awesome and super helpful, but that particular point seems like terrible advice. Surely it would be much better to hire a marketing/adwords contractor, and increase the value of…

In my experience, hiring a marketing/adwords contractor is the very easiest way to transfer cash out of your business and into somebody else's business, with no discernible value gained.

I'm sure there are some hotshot marketing/adwords contractors out there...and unicorns probably exist also.

Re: Selling My Bootstrapped SaaS Business

#18

Post by duggan »

joosters wrote: post #8
soneca wrote: post #5

Earlier quoted context omitted.

I believe this a great feature that create "tech hubs". It is the "give back to the community" of tech entrepreneurs. It is not just a financial decision.

But there's plenty of ways to 'give back to the community' without being the one waving the chequebook. In particular, if you've got the spare time to work on other projects, you can do plenty to help out.

Some folks have more spare money than spare time.

If you've got the spare time, cool, if you've got the spare money, cool. What's the issue here?

Re: Selling My Bootstrapped SaaS Business

#19

Post by alien_at_work »

asmithmd1 wrote: post #13
charlesdm wrote: post #7

Earlier quoted context omitted.

10% a year on a million is still (way) better than throwing 4x $25k at a random startup through angel investing. Hell, with current interest rates, you might as well use some portfolio margin and borrow an extra million.

Are you saying you can expect 10%/year with your money in the stock market? No stockbroker will tell you that, it is more like 6%-8% over a 10 year time frame. And you have to have the courage to watch your balance drop 50% over a 1-2 year time span and still stay in.

> it is more like 6%-8% over a 10 year time frame

Uh, it's 6-8% compounded over what ever time frame. Which is actually still quite good and probably handily beats most angel investment returns.

Re: Selling My Bootstrapped SaaS Business

#20

Post by erikbye »

asmithmd1 wrote: post #13
charlesdm wrote: post #7

Earlier quoted context omitted.

10% a year on a million is still (way) better than throwing 4x $25k at a random startup through angel investing. Hell, with current interest rates, you might as well use some portfolio margin and borrow an extra million.

Are you saying you can expect 10%/year with your money in the stock market? No stockbroker will tell you that, it is more like 6%-8% over a 10 year time frame. And you have to have the courage to watch your balance drop 50% over a 1-2 year time span and still stay in.

S&P 500 ETF Trust gained 63.42%, last 10 years.

Vanguard 500 Index Fund, 130.56% since 2010.

And neither look like hockey sticks.

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