Last week, I shared the first mistake I made in my startup journey—relying too much on other people's opinions and failing to trust my own intuition. I described this as being like a flag in the wind, constantly swayed by external forces.
This lack of self-assurance led to a second mistake, which I want to talk about today: focusing too much on raising money before having a clear vision of what I wanted to build.
Lacking Self-Assurance: A Costly Error
One of the biggest lessons I learned early on was that I didn’t trust myself enough. I believed that everyone else was more equipped, more knowledgeable, and more capable of running a startup than I was. This belief fueled the idea that I needed to hire people, and to hire them, I needed money—lots of it. That was mistake number two.
I thought, "If only I had the funds, I could pay these experts to develop my idea into something great." But the reality is, hardly any investor will give you money if your company is just smoke and mirrors—if there’s no tangible product, no clear direction, and no proof of concept. And honestly, if an investor does offer money under those circumstances, it’s a red flag. They're either clueless and won't be much help to your business, or they’re trying to take advantage of you.
The Temptation of Government Grants
So, what did I do instead of chasing investors?
I applied for a government grant from the European Union. Sounds like a smart move, right? I mean, it's "free" money that doesn’t require giving up equity. But here’s the catch: government grants come with a mountain of paperwork and tons of strings attached.
Let me break it down for you. When you apply for a grant, you have to explain in excruciating detail what you plan to do with the money.
The problem? At that stage, you don’t even know what your product is! You’re working with just a rough idea, a hypothesis of what might work.
But to get the grant, you have to lock yourself into a rigid plan. If you want to make any changes, it has to be approved, which takes weeks, sometimes even months.
This bureaucratic nightmare stifles innovation because everything revolves around meeting pre-set indicators, not creating something new and groundbreaking.
Now, I’m not saying that applying for grants is inherently bad. Of course, a governmental institution won’t just hand you money without accountability (unless, of course, you have friends in high places!). But I realized there’s a more sustainable, agile way to move forward—one that doesn’t involve being shackled to a slow-moving system.
Shifting Focus: What Can You Do Without Big Money?
Here’s the better approach: stop obsessing over how to get money, and start focusing on what you can do with the resources you already have. It’s not glamorous, but it’s a lot more practical and sustainable in the long run.
It is what smart founders do. Here are some examples:
Basecamp (formerly 37signals) - Started with just $16,000 in initial investment money, they built project management software that grew to millions in annual revenue before taking any outside funding. Co-founder Jason Fried is now a vocal advocate for bootstrapping, having written books like "It Doesn't Have to Be Crazy at Work" and "Rework" about this approach.
Calendly - Founded by Tope Awotona who invested his life savings of $200,000 instead of seeking venture capital. The scheduling platform reached profitability within 2-3 years and eventually grew to a $3+ billion valuation before taking any significant funding.
Atlassian - The Australian software company behind Jira and Confluence bootstrapped for eight years before accepting $60 million in funding. By that point, they already had $59 million in annual revenue. They're now valued at over $40 billion.
So as you can see, you can do it without an investor. Honestly rising funds takes time and investors like traction which actually means that you have to show them that you build something without their help. So before you even think about creating a pitchdeck and going to startup events ask yourself those question.
What can I do now, with the tools and skills I already possess?
Here’s a step-by-step guide to get you started:
Start Building an Online Presence:
Begin with something as simple as starting an Instagram account. Yes, it takes time and effort to grow a significant following, but you can do it during your downtime—whether it's after work or between classes. Focus on sharing content that resonates with the audience you want to build around your startup.
According to a Startup Genome report, startups that validate their ideas through social media engagement before seeking funding have a 30% higher success rate in reaching product-market fit.
This is something that Buffer did in its early days. It acquired their first 100,000 users primarily through Twitter, growing from 0 to $1 million ARR without traditional marketing. Their founder, Joel Gascoigne, documented how just 1,000 engaged followers helped validate their initial product.
According to LinkedIn's own research, startup founders who share their building process publicly receive 53% more feedback and 7x more potential collaborators than those who wait until launch.
This is actually what I am doing now, sharing my own journey on LinkedIn. I am showing people what I am building and sharing some painful lessons from what I've learnt the first time around. I don't have Buffer traction but I am slowly moving into the direction I want to go.
Use No-Code Tools to Build a Prototype:
After gathering enough feedback, you’ll have a clearer vision of what your product could be. The next step is to create a basic prototype using no-code tools like Webflow, Bubble or my favourite Flutterflow.
Yes, there’s a learning curve, but trust me, it’s manageable. These platforms allow you to bring your idea to life without hiring an expensive development team.
Gartner research projects that by 2025, the no-code development platform market will grow by over 65%, reaching $45.5 billion globally. This rapid growth demonstrates the increasing viability of building products without traditional coding.
According to Forrester, 84% of enterprises have begun using low-code/no-code tools to reduce strain on IT departments and accelerate digital transformation. Furthermore, a study by Nacho Analytics found that no-code development reduces initial startup costs by an average of 56% compared to traditional software development.
You can have an ugly MVP in days and you don't have to spend a dollar on it. It is quick and flexible. Trust me, using a traditional software team is not. I've done that and the product was comparable with my own prototype I have tinkered on my own.
Validate Before You Spend Big:
With a prototype in hand and a growing social media following, you now have something tangible. If at any point you decide the idea isn’t feasible, you can move on with minimal financial loss. But if it seems promising, you’ll be in a much better position to pitch to investors—or even bring others on board.
You can focus on improving what you've built, marketing it and sharing your lessons, succeses and failures on LinkedIn. Who knows maybe at some point, investors will come on their own.
The Real Lesson: Don’t Wait for Money to Build Something
In the end, this second mistake taught me a crucial lesson: you don’t need to wait for big funding to get started. Sure, money can help accelerate growth, but if your startup is just an idea with no real substance, no amount of money will save it.
The key is to build something real, even if it’s small. Take advantage of the tools at your disposal, whether it’s social media, no-code platforms, or your own network of friends and colleagues. Prove to yourself (and potential investors) that your idea has legs. When you’ve done that, the money will come naturally—and on much better terms.
Moving Forward: A Smarter Way to Startup
If you’re at the beginning of your startup journey, here’s my advice: trust yourself more. You don’t need to hire an army of experts right away, and you definitely don’t need to raise millions to get started. You have more resources at your disposal than you think. Use them wisely, build small wins, and validate your idea step by step.
If you’re strategic and resourceful, you’ll find that you can achieve a lot more with less. And once you’ve got a product, a following, and proof of concept, that’s when the right investors will be lining up to work with you—not the other way around.
Comments