The Art of the Start/Kawasaki 74-82

80 Bootstrappable business model:
1) low up-front capital requirements
2) short (under a month) sales cycles
3) short (under a month) payment terms
4) recurring revenue
5) word-of-mouth advertising

81 Managing for cash flow, not profitability, isn’t a long-term practice, but until you are sitting on a pile of cash, it’s the way to go for a bootstrapper.

82 Bootstrappers don’t build top-down models. For them, top down = belly up! Instead, they build bottom-up models, starting with real-world variables.