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Some thoughts about @earnestcapital from some conversations I& #39;ve had recently -
When I went full-time on @hostifi_net in January 2019 ($24K ARR) there was an opportunity cost
I stepped away from a career that was just getting started as a Security Analyst, a $95k/year salary
When I went full-time on @hostifi_net in January 2019 ($24K ARR) there was an opportunity cost
I stepped away from a career that was just getting started as a Security Analyst, a $95k/year salary
I sold my house, cut all of my personal expenses to be able to make the income transition.
Raising capital made that move a lot less stressful.
Money in the bank allowed me to think long term about the business and make better decisions early-on.
Raising capital made that move a lot less stressful.
Money in the bank allowed me to think long term about the business and make better decisions early-on.
But back to that opportunity cost. At the end of 2019 HostiFi could have been at $24K ARR still (or less) and I would have decided to try to find a new job. I would have lost $71K+ of income that I could have made as a Security Analyst in 2019, and added a 1-year gap on my resume
The opportunity cost of potential lost income and a career left turn is real. As it turns out, of course, it was the right choice for me and I& #39;m making more money and enjoy my work even more now. But I had no certainty then how long it would take or if it would work out at all.
Hindsight is 20/20. People ask why didn& #39;t I just bootstrap or get some debt instead of raising from @earnestcapital? "It would have been cheaper"
The mentorship itself is worth every dollar (I consider it my @earnestcapital School of Software & Business tuition), but I also think it was a good financial decision to raise
If I had debt instead of EC, and at the end of 2019 the business outlook was bad, and I decided to go back to a job, I would have lost both the income of ~$71K plus the debt owed, which would most likely be personal debt because the business wouldn& #39;t have qualified for a loan.
It& #39;s not impossible to just take on that risk, @tylertringas himself did it before, but it could have set my life/financial progress back a couple of years. That& #39;s not insignificant especially if you have other people in your life that you have to ask to take that path with you
@earnestcapital took that risk for me so I didn& #39;t have to worry about it. If at the end of 2019, HostiFi failed for some reason, instead of $186K ARR it was at $24K or $0 and I went back to a job in IT security, I hadn& #39;t lost any income potential and owed nothing
Those are my thoughts on why I think it was the best financial choice, and least risky especially at the early stage when the future is hard to see and so many things are uncertain
