Stock Market Detachment for Bootstrapped Startups

Recently I have noticed an uptick in predictions pointing towards another potential decline in the stock market. Having started our business in 2007, we have already seen what it is like to be a startup in a stock market decline.

Here are some thoughts:

Seeking financing when the market is down is horrendous. I’m glad we didn’t care to raise money. I’m glad we stayed detached by bootstrapping our business.
Since startups are not typically publicly traded, they do not have to worry about the direct ramifications of public market declines.
In a market decline, BigCos will slim down. If your startup is selling vitamins, you will lose. If your startup is selling pain killers, you’ll be fine. People still buy painkillers even when money is tight.
In a market decline, it is better to be a job creator than a job seeker. There are opportunities to hire some really phenomenal people in downturns. There are fewer openings for college graduates at BigCos creating more competition for available startup jobs.

Stock market declines stink and create pessimism everywhere. No one knows for sure what will actually happen in the coming few years. But bootstrapped startups can remain detached and even accelerate their ability to win in a downturn. And people will say, “Wow, you even built your startup in a recession,” when really you’ll know that your startup’s stock market detachment was a great place to weather the chaos.

What are your thoughts on stock market detachment for bootstrapped startups?

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