Uberflip’s Randy Frisch explains in his blog post how he adopted 5 key strategies which have allowed him to avoid institutional funding.
1. Recurring revenue
Creating a stream of recurring revenue allow you to structure your business growth. Monetize your business with a scalable price structure.
- Do you need to be profitable and/or paying corporate income tax to get up to a 42% SRED refund? NO
- Do you have to pay back the government when you are profitable? NO
- Does the Canadian government get any equity in my business? NO
3. Government Grants
There are a multitude of Canadian business grants available to startup companies, and many will reimburse you as quickly as a month after the expense was incurred.
4. Sacrifice and Confidence
Sacrificing some salary now will allow you, as an entrepreneur, to grow your company faster, and allow you to add additional members to your team.
Build a scalable business model. Without a plan that breaks even in a reasonable time span, you will never be able to find a VC who is willing to listen to your story.