I've been doing this for the last three years or so -- I wanted to launch a startup but realized it just wasn't the kind of startup you could bootstrap as a sid

I've been doing this for the last three years or so -- I wanted to launch a startup but realized it just wasn't the kind of startup you could bootstrap as a side project (i.e., without significant financing). I had already written almost all of the code needed for an initial launch. I started my consulting business to provide income that I could divert to the startups I wanted to do, but so far it hasn't provided enough excess to allow that. So, that's the potential downside: if you aren't careful, you can become a consulting company where consulting is your primary activity and there's no time or money left for starting up. I think PG has mentioned this too. I don't think it's an altogether bad way to run things, though. It eventually comes together in many cases and you don't have to worry about pitches, sneaky or uncouth investors, diminutive equity, etc. Investors can really be dangerous and I think a lot of people take investment without understanding the potential consequences. I knew a major local investor on a somewhat personal level and I've developed a deep distaste for him. I don't believe that he operates ethically and I want my businesses to stay as far away from him as possible. He is dangerous and sneaky, and I believe many investors are. Bootstrapping yourself as a consulting company first and using excess income to finance startups is a viable concept and I think more people would be wise to consider it. It provides a lot of good experience in the technical and business side of things, and you have to do what you can to stay afloat.