Venture Capital vs. Bootstrapping: Austin Austin Mac Nab of VizyPay On How To Determine If Fundraising Or Bootstrapping Is The Right Choice For Your Startup
If you’re not willing to risk everything to start a company, you shouldn’t do it. When you start a company, everything gets reinvested into that company, leaving the entrepreneur without profit in the beginning (most likely the first 16–18 months). There is a level of risk involved to becoming successful, and if you want to be safe and cautious, you shouldn’t start your own business as these feelings will detour you from the ability to take needed risks associated with success.
Founders are often faced with the nagging question of whether Fundraising or Bootstrapping is the best choice for them. What is better, having access to capital or maintaining full control over your vision and profits? What is preferred, to have the seasoned oversight of an experienced investor, or to plow forward with a disruptive and pioneering ‘can do’ attitude? Of course, every situation is different, but what standards can be used to help a founder decide? As a part of this series called “Venture Capital vs. Bootstrapping: How To Determine If Fundraising Or Bootstrapping Is The Right Choice For Your Startup”, I had the pleasure of interviewing Austin Mac Nab.
Austin Mac Nab is CEO, co-founder and executive leader of VizyPay, a Waukee, Iowa-based provider of payment technology solutions for businesses across the U.S. Mac Nab has been in this role since April 2017 when he co-founded the company. Mac Nab, an expert in the payment processing, bank card and retail industries, is responsible for overseeing the company’s strategy and running the day-to-day business operations.
Thank you so much for doing this with us! Before we dive in, our readers would love to learn a bit more about you. Can you tell us a story about what brought you to this specific career path?
I am the co-founder and CEO of VizyPay — a leading payment processing company for small-to-medium sized businesses across the U.S. — I have been in this industry for 18 years, I eat, sleep and breathe payment processing, and truly feel like I’ve seen it all when it comes to this industry. I’ve always been in the tech field but since my first job in payments, I knew this is where I belong. I believe in this industry and what it can do for merchants, and through VizyPay I want to ensure I’m doing my part in the advancement of the field as well as continuing to make an impact where it matters most.
Can you share a story with us about the most humorous mistake you made when you were first starting? What lesson or takeaway did you learn from that?
When VizyPay first started, we were on an extremely tight budget, as most companies are within the first 1–2 years of business. At this time, we hired a handful of W2 sales agents — one agent in particular was an amazing sales agent off the bat, but a couple months later hit a lull, leading to me having to let him go, in order to get more ROI elsewhere. After bringing him into the office I had a gut instinct that there was something special about this man and that I needed to give him a second chance and keep him on board. I offered him a small salary, to keep him around and employed, to which the agent accepted as he believed in the company’s mission and growth, as well as his own ability to grow with us. This agent is now VizyPay’s Director of Business Development. Moral of the story — always go with your gut instinct and trust in your decisions, don’t be afraid of taking chances.
You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?
1. Consistency
- VizyPay has proven time and time again that we’re disrupting the industry. We’ve kept the company mission consistent over the course of the last four+ years, from our overall culture to our main goal of helping overlooked, small-to-medium sized business owners. This consistency has dramatically paid off over time allowing us to gain awareness and a positive perception nationally, regionally and within the industry
2. Discipline
- Remain disciplined as a company and specifically with your cash flow and how you manage it to create ROI. There will be tough times and how you pull out of these times is your ability to manage the situation, don’t penny pinch, this will keep you from taking risks, but be aware of where you spend, and the value it creates for your company
3. Hard Work
- Hard work outweighs industry talent. At VizyPay, work ethic and hard work go much further than past experience and what’s on someone’s resume. The overall work ethic of the company is instilled from everyone down to the janitor and up to me, the CEO. Leading by example, the harder I work the more driven are those around me. This piece of the company culture serves as gas on the fire to drive company success
- Now don’t get me wrong, hard work doesn’t mean you work 24/7, but during the hours myself and my employees do work, we work extremely hard to prove our abilities, drive for the company + clients as well as career
Are you able to identify a “tipping point” in your career when you started to see success? Did you start doing anything different? Are there takeaways or lessons that others can learn from that?
While there is not an identifiable tipping point for me, I think a lot of VizyPay’s success comes from our ability to pivot, which is crucial when starting and running a company. The COVID-19 pandemic is a specific example that comes to mind, during this time while individuals were being laid off and furloughed, we doubled down on our recruiting efforts, especially for individuals outside of the payment industry. We recognized so many people across a variety of industries were out of a job and realized the value these people could bring to VizyPay.
Additionally, I would be remiss to not let future entrepreneurs know, anything you think you know when starting a business, you don’t. You’re going to be wrong about things, which is ok, but you need to be flexible and pivot where necessary to create success.
None of us are able to achieve success without some help along the way. Is there a particular person or mentor to whom you are grateful who helped get you to where you are? Can you share a story about that?
This is not a mentor per say, but I am grateful for what my stepfather taught me, he was a lazy man who lived off my mom, didn’t work, and was verbally and emotionally abusive. Well, being around him drove me, drove me to be a better father, husband and business professional — in the end allowing me to be the entrepreneur I am today. Being around him made me want to be a better example for the people around me, personally and professionally. Additionally, by making the decision to not be the victim, but to use his, and my experiences with him, as drivers of motivation, I wouldn’t be where I am and there would be no VizyPay
You have been blessed with great success in a career path that many have attempted, but eventually gave up on. Do you have any words of advice for others who may want to embark on this career path but are afraid of the prospect of failure?
If you’re not willing to risk everything to start a company, you shouldn’t do it. When you start a company, everything gets reinvested into that company, leaving the entrepreneur without profit in the beginning (most likely the first 16–18 months). There is a level of risk involved to becoming successful, and if you want to be safe and cautious, you shouldn’t start your own business as these feelings will detour you from the ability to take needed risks associated with success.
Ok, thank you for that. Let’s now jump to the main part of our discussion. Can you share a story with us about your most successful Angel or VC investment? Or an investment that you are most proud of? What was its lesson?
VizyPay was bootstrapped, there was no Angel or VC investment — no story to be told. Though I can say what we’re most proud of is the fact we did it ourselves, and how that allowed us to never compromise the mission we set fourth and the culture we knew we wanted as a company.
Can you share a story of an Angel or VC funding failure of yours? What was its lesson?
VizyPay was bootstrapped without any outside investment, thus no associated funding failures.
Is there a company that you turned down, but now regret? Can you share the story? What lesson did you learn from that story?
VizyPay was bootstrapped without any outside investment, thus no associated funding failures or company turn downs to regret.
Super. Here is the main question of this interview. Let’s imagine that a young founder comes to you and asks your advice about whether Venture Capital or Bootstrapping is best for them? What would you advise them? Can you kindly share “5 things a founder should look at to determine if fundraising or bootstrapping is the right choice”? If you can, please share a story or example for each.
Again, entrepreneurs should be willing to risk it all for their company. When looking at the two options, the first thing I advise is if you’re looking at VC money, don’t compromise for a check. Up and coming entrepreneurs often put their beliefs and values aside for VC investments. With VizyPay we wanted to create and maintain a specific culture and business style without reporting to investors, so we chose the bootstrapping route. If you’re thinking of taking VC funding, I suggest very thoroughly vetting the VC before taking the money, to ensure you are aligned. Set your own standards, values, and framework, then proceed to look for investors that align with these standards. For VizyPay, our focus was around company culture and letting people bring their creativity without suppression. Entrepreneurs should stand their ground and hold to their standards when taking investments, if you’re not comfortable, don’t take the investment — don’t sacrifice your values and how you want your company to be run / managed for the investment.
You are a person of enormous influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)
Look Local First (LLF), this is an initiative we’ve already implemented through VizyPay but I would encourage everyone to Look Local First, when shopping, dining, etc. Most employees in the US are employed by a small business, giving them a need for a voice. LLF is focused on small and medium businesses that are in need of strong support — use your business, employees and connections to amplify those around you, specifically the mom and pop shops that need it most.
We are very blessed that a lot of amazing founders and social impact organizations read this column. Is there a person in the world with whom you’d like to have a private breakfast or lunch, and why? He or she might just see this. :-)
Now I know this isn’t just one, but a handful. I’d love to grab a drink with Mark Cuban, Gary Vaynerchuk, Bill Gates and/or Warren Buffet. Learning from people that have been through the hustle and some of the most successful entrepreneurs within the tech world. I would love to have a candid conversation with these men that have “made it” and have no biased opinion, without any sort of selling or benefit trying to be achieved — the sole purpose being connected and learning from one and other.
How can our readers further follow your work online?
- VizyPay Website
- VizyPay Facebook
- VizyPay Twitter
- VizyPay LinkedIn
- VizyPay YouTube
- Look Local First Website
- Austin’s Linkedin
Thank you so much for this. This was very inspirational, and we wish you only continued success and good health!
