I'm inspired by [obsidian.md](https://obsidian.md/) as a business -- I think it would be great for the world if more companies could be small businesses with highly aligned values and a stronger decoupling from capitalism. # What makes bootstrapped businesses work? ## My (working) hypotheses: ### Product / Market Fit You have to find something that is intentionally small so that you can't be out-competed by scaling. This means finding an intentionally niche customer segment that can't sustain a $1B business. VC funded companies will bounce off in search of bigger markets. ### Positioning / Dividing Lines / Values Sometimes you can segment a larger market by having clear values that segment the market. This means that you can focus on one half and build a superior product than one that tried to cater to both. If you want to build a bootstrapped business, you need to [[be opinionated]] and [[exercise taste]].