#760 - The 7 Most Common Money Mistakes for Bootstrappers

Dan and Ian discuss the biggest money problems they’ve seen in their own business and hundreds of other bootstrapped businesses. Learn how to craft a sustainable financial model, the importance of owner compensation, how to avoid being under-invested, and more. Dan & Ian’s Stuff: Our book: Before the Exit (https://www.amazon.com/Before-Exit-Thought-Experiments-Entrepreneurs/dp/1980628823/ref=sr_1_1?crid=3E5PMCCM0TDZ0&dib=eyJ2IjoiMSJ9.GnIb36rltn6NgcjHBCs8zg.waeKvE3zKoAbCt6Adoo5o5vv7M4PDyOj9pMXE7dM82A&dib_tag=se&keywords=before+the+exit+dan+andrews&qid=1711510466&s=books&sprefix=before+the+exit+dan+andrews%2Cstripbooks%2C101&sr=1-1) The Newsletter (https://tropicalmba.com/subscribe) “The DC” (https://dynamitecircle.com/join-dc/) DC Accelerator (https://dynamitecircle.com/dc-accelerator) DC Black (https://dynamitecircle.com/dc-black) Global events (https://dynamitecircle.com/events) Hire remote talent (https://remotefirstrecruiting.com/) Find a remote job (https://dynamitejobs.com/) Listen on YouTube (https://www.youtube.com/@OfficialTropicalMBA) Follow on Instagram (https://www.instagram.com/tropicalmba/) @TropicalMBA (https://twitter.com/TropicalMBA) @AnythingIan (https://twitter.com/AnythingIan) Chapters ● (00:00:45) Introduction and Setting the Stage ● (00:01:13) The Importance of Money Attitudes and Metaphors ● (00:16:08) The Startup Spending Mindset in Bootstrapped Businesses ● (00:29:39) Focusing on the Wrong Problems ● (00:31:25) Strategies for Affording to Start a Business ● (00:34:28) Starting Early and Investing in Yourself ● (00:38:18) The Importance of Owner Compensation ● (00:41:15) Setting a Salary Cap ● (00:45:12) Avoiding Being Under-Invested Links: - Derek Sivers article “Shed Your Money Taboos” (https://sive.rs/mn1) - Venkatesh Rao article “Ancient Rivers of Money” (https://www.ribbonfarm.com/2010/11/05/ancient-rivers-of-money/) Past guests on TMBA include Cal Newport, David Heinemeier Hannson, Seth Godin, Ricardo Semler, Noah Kagan, Rob Walling, Jay Clouse, Einar Vollset, Sam Dogan, Gino Wickam, James Clear, Jodie Cook, Mark Webster, Steph Smith, Taylor Pearson, Tommy Griffith, Justin Tan, Matt Gartland, Travis Jamison, Ayman Al-Abdullah, Tynan, Lucy Bella Simkins, Brian Balfour, Nick Huber, Mike Michalowicz, Greg Crabtree, Jordan Gal Additional episodes you might enjoy: Unlock Wealth Through Financial Fluency (https://tropicalmba.com/episodes/unlock-wealth-financial-fluency) The Secret Weapon for Pricing Power (https://tropicalmba.com/episodes/secret-weapon-pricing-power) How Healthy is Your Business? (https://tropicalmba.com/episodes/how-healthy-is-your-business)