In this episode of the Startup Therapy Podcast, hosts Ryan Rutan and Wil Schroter discuss the evolution of startups from the emphasis on scaling and headcount to prioritizing efficiency and output, largely due to advancements in AI. The challenges of the past, such as massive payrolls, investor dependency, and expensive infrastructures highlighting the opportunities AI technologies present for startups. 

The conversation covers the changing landscape where small operations can achieve significant impact without the traditional costs, through examples like remote work, AI-driven efficiencies, and low-cost internet companies. They advocate for a shift in mindset where success isn't measured by headcount or office size, but by the value created with minimal resources. 

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Resources:Startup Therapy Podcast https://www.startups.com/community/startup-therapyWebsitehttps://www.startups.com/beginLinkedIn https://www.linkedin.com/company/startups-co/

Join our Network of Top Founders Wil Schroterhttps://www.linkedin.com/in/wilschroter/Ryan Rutanhttps://www.linkedin.com/in/ryan-rutan/

What to Listen For00:00 The Evolution of Startups: From Headcount to Efficiency01:29 AI and the Future of Work: A New Paradigm05:14 The Unprecedented Scale and Speed of AI Adoption07:14 AI's Impact on Staffing and Efficiency09:39 The Ethical Debate: AI and Job Creation vs. Job Displacement13:17 AI's Role in Democratizing Entrepreneurship16:00 Historical Shifts in Startup Dynamics: From Match.com to AI18:41 The Evolution of Startup Funding19:33 The Dramatic Shift in Startup Economics20:42 The Rise of Bootstrapping and Ownership Retention21:24 Case Study: Plenty of Fish's Revolutionary Approach24:32 The Future of Startup Costs and Ownership31:55 Embracing Efficiency and Impact in Startups33:48 A New Era of Startup Valuation and Efficiency

In this episode of the startup therapy podcast, Ryan Rutan and Wil Schroter delve into bootstrapping a startup. They address common misconceptions about funding, emphasizing the importance of making do with what you have and prioritizing what's truly necessary for business growth. The conversation covers practical ways to manage expenses without external funding, including strategies for hiring, marketing, and managing operational costs through discipline and creative solutions. 

The hosts share personal experience on how to navigate the challenges of bootstrapping, highlighting the importance of being resourceful, making money to spend money, and avoiding typical startup traps. 

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Resources:

• Startup Therapy Podcast 
• https://groups.startups.com/
• Join our Network of Top Founders 
• Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

00:00 Welcome to Startup Therapy

00:08 The Realities of Bootstrapping

01:35 Navigating the Bootstrapping Journey

04:50 Mastering the Art of Compensation in Bootstrapping

22:00 Innovative Marketing on a Shoestring Budget

26:50 Leveraging Vendor Terms and Historical Examples

28:18 The Power of Deferred Payments in Business Growth

33:20 Strategic Use of Credit Cards for Business Expenses

42:20 The Path to Efficient Startup Growth

In this episode of the Startup Therapy Podcast, Ryan Rutan and Wil Schroter discuss the complexities of handling feedback from investors, emphasizing the critical need for founders to properly qualify and assess the advice they receive. They highlight the dangers of acting on feedback without considering its relevance, potential bias, and the investor's qualifications. The discussion covers the spectrum of investor types, from well-meaning but inexperienced individuals to top-tier venture capitalists, and the importance of understanding the context and motivation behind their advice. 

You will find how to advocate for a balanced approach that involves questioning, verifying, and thoughtfully considering advice before taking action.

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Resources:

• Startup Therapy Podcast 
• https://groups.startups.com/
• Join our Network of Top Founders 
• Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

In today's Startup Therapy Podcast, Wil and Ryan talks about why earning atleast $10,000 per month is one of the most important milestones in your startup career. They stress the need to do whatever it takes to keep your business alive. Hitting this milestone gives you room to handle setbacks and shows that you're making real progress. Tune in for tips on managing startup finances and staying resilient in the ever-changing business world.

Sign up for the Startups Newsletter

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Resources:

• Startup Therapy Podcast 
• https://www.startups.com/begin
• Join our Network of Top Founders 
• Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

• 00:00 Intro
• 01:08 The most important milestones in your business
• 06:20 Everybody’s number is different
• 10:27 The existential costs of both a business and its founders
• 12:28 Do whatever it takes to reach the basic milestone
• 16:12 Your startups should survive restarts
• 19:50 The importance of having a backstop
• 24:45 Maybe it’s not your year
• 26:05 Finding value in small milestones

In today's Startup Therapy Podcast, Wil and Ryan talks about why investors choose to invest on “failed” founders. They debunk the myth that failure marks the end of a founder's journey and shows why giving people a second chance is the best investment. Tune in as they explore the investor mindset, focusing on why they prefer to invest in founders who have shown they can bounce back and learn from failure, ultimately changing how we think about startup success.

Sign up for the Startups Newsletter

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Resources:

• Startup Therapy Podcast 
• https://www.startups.com/begin
• Join our Network of Top Founders 
• Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

• 00:00 Intro
• 01:03 Why giving people a second chance is the best investment
• 02:29 Redefining failure
• 04:59 “One failure doesn’t make the person a failure…”
• 09:30 If you’re making mistakes, you’re also learning
• 10:05 Spotlight on failure
• 13:59 The value of experience
• 16:49 Before the failure, there was a success
• 20:33 Trust and familiarity in investor-founder relationships
• 23:21 Challenge of investor decision-making
• 27:14 Focusing on building relationships
• 30:42 Investing in the founder’s mindset rather than ideas

In today's Startup Therapy Podcast, Wil and Ryan talks about the importance of generating revenue and being willing to do whatever it takes to move a startup forward. They discuss why it's crucial for entrepreneurs to prioritize generating income and share insights on how to overcome challenges in achieving financial sustainability. 

Sign up for the Startups Newsletter

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Resources:

• Startup Therapy Podcast 
• https://www.startups.com/begin
• Join our Network of Top Founders 
• Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

• 00:00 Intro
• 00:18 Difference between good and bad revenue
• 01:34 Unexpected opportunities
• 05:22 Prioritizing cash flow in the startup journey
• 08:43 The importance of runway
• 11:43 Focusing on startup survival 
• 13:31 Reality of startup timelines
• 15:00 Why surviving matters more than speed
• 17:03 Overcoming self-imposed barriers
• 18:53 The value of paid product discovery
• 22:00 Learning through services
• 24:18 Building MVPs that truly deliver value
• 26:10 How side gigs can propel your startup forward
• 30:36 Sacrifice and success
• 35:13 Willingness x Hard Work = Cash

In today's Startup Therapy Podcast, Wil and Ryan talks about the hidden treasure of failed startups.  From redefining valuation to creative acquisition strategies, they share insights on salvaging value from adversity. Tune in as they uncover the secrets to success amidst startup wreckage.

Sign up for the Startups Newsletter

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Resources:

• Startup Therapy Podcast 
• https://www.startups.com/begin
• Join our Network of Top Founders 
• Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

• 00:00 Intro
• 01:42 What happens when venture-funded companies falter
• 06:11 Rethinking asset value
• 07:19 Recognizing when to pivot or let go
• 09:48 Business value vs. Venture value
• 10:52 True motivations behind exits
• 13:26 Disconnect between opex and value
• 15:57 Realities of startup valuation
• 18:59 Transforming nuisance assets into opportunity
• 21:08 Ownership and acquisition
• 22:27 Reclaiming startup assets
• 25:44 Startup value reset
• 29:56 Finding value in failed startups

In today's Startup Therapy Podcast, Wil and Ryan talks about what happens if your competitor got funded. Join as they discuss the common concern of competitors securing funds and share valuable perspectives on why this might not be a cause for panic. They highlight the importance of maintaining focus, strategic planning, and turning the situation into an opportunity for your startup's success.

Sign up for the Startups Newsletter

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Resources:

• Startup Therapy Podcast 
• https://www.startups.com/begin
• Join our Network of Top Founders 
• Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

• 00:00 Intro
• 02:20 What happens when your competitor gets funded
• 04:15 Is fundraising all glitz and glamor?
• 06:08 The pitfalls after getting funded
• 10:20 Crowdfunding: Hype vs. Reality
• 12:49 When Iivestors become your customer
• 14:56 You now need to raise more money
• 18:08 When focus shifts from profit to preferences
• 25:38 The hidden costs of funding
• 30:04 How founders see beyond competitor funding
• 32:11 How to stay focused

In today's Startup Therapy Podcast, Wil and Ryan explore whether lacking prior experience can be a game-changer for startup founders. Having zero experience means you're new to something, and surprisingly, that can be a good thing. It brings a fresh perspective and adaptability. But for startup founders, could a lack of experience help you succeed or fail? 

Sign up for the Startups Newsletter

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Resources:

• Startup Therapy Podcast 
• https://www.startups.com/begin
• Join our Network of Top Founders 
• Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

• 00:00 Intro
• 00:09 Is experience an asset?
• 03:19 The bias of experience
• 08:17 Balancing Experience and the Unknown
• 11:45 Why not?
• 12:50 Stop using someone else’s experience
• 19:11 Other people’s path is not yours
• 20:14 The best innovations are micro-innovations
• 21:47 Be too dumb to fail
• 26:09 Know what you know and don’t know
• 30:02 Just knowing the basics

In today's Startup Therapy Podcast, Wil and Ryan talks about whether a founder should focus on building a startup that just makes money. Ever thought about ditching the whole fundraising craze and simply building a startup that puts money in your pocket? Join Wil and Ryan as they navigate the path less traveled, exploring the freedom and sustainability that comes with creating a startup designed to consistently generate profits. It's not just about surviving in the business jungle, it's about thriving on your terms.

Sign up for the Startups Newsletter

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Resources:

• Startup Therapy Podcast 
• https://www.startups.com/begin
• Join our Network of Top Founders 
• Check in with us on LinkedIn | Wil Schroter | Ryan Rutan

What to Listen For

• 00:00 Intro
• 00:08 The end of the fundraising era
• 04:14 Building success without venture funding
• 07:09 Trading freedom for growth
• 09:05 True value of incremental business growth
• 10:14 How bootstrapped businesses create sustainable wealth
• 14:54 Returning to the fundamental principles of business
• 16:18 Always have a plan B
• 19:22 Small wins add up
• 23:32 Founders need to play defense
• 25:58 Profits over hype