Interesting piece by Danny Sullivan on bootstrapping a media business in lieu of venture capital:
Third Door Media started in late 2006. It never took investment.
We grew our staff as our revenue grew, according to our business
plans. In 2008, when the world economy crashed, we hunkered down
and came through without losing people. In part, this was because
we’d been careful not to over-extend, not to build a large
operation beyond what it could support with native revenue.
It’s what I once called the “SimCity” model of growing. I used
to often play the game years ago. I would take two approaches. One
was to use the “FUNDS” cheat to get all the money I needed to
build everything at once. But in doing this, I often found my
cities built that way didn’t thrive. Instead, naturally growing my
city slowly over time allowed it to stabilize and do well.