More capital isn't always better. An excess of funding can lead to a lack of focus, wasteful spending, and a reluctance to make tough choices—a form of moral hazard. It's crucial to match the amount of capital to a founder's ability to deploy it effectively without losing discipline.

Successful bootstrapping isn't just about saving money; it's a deliberate capital accumulation strategy. By consciously avoiding status-driven purchases for an extended period, entrepreneurs can build a war chest to invest in assets that generate real wealth, like a business, giving them a significant long-term advantage.

After nearly failing, OpenGov adopted a frugal culture and discovered it grew faster. Less spending reduces system noise and inefficiency. A leaner, more focused sales team, for instance, can become more motivated and effective, leading to better results.

Founders like James Dyson and Yvon Chouinard represent the "anti-business billionaire." They are obsessed with product quality and retaining control, often making decisions that seem financially sub-optimal in the short term. This relentless focus on creating the best product ultimately leads to massive financial success.

Founders often start scrappy out of necessity and dream of lavish resources. However, once successful, many realize that small, lean, and scrappy teams are more effective. This creates a paradox where the most successful entrepreneurs intentionally revert to the resource-constrained mindset they once tried to escape.

Daniel Lubetzky built his company by being resourceful, like using free furniture. Now a billionaire, he still avoids waste not because he has to, but as a core principle. This mindset trains the "muscle" for making deliberate choices, a skill he believes is critical for business and life.

David Cohen observes that founders who are inherently frugal or "stingy" with capital—spending only when absolutely necessary—often achieve better outcomes. This mindset, focused on capital preservation and efficiency, is a more powerful indicator of success than simply raising large rounds to fuel growth, a trait he has seen in his own entrepreneurial career.

Despite a $50 million exit from their previous company, the Everflow founders intentionally limited their initial investment to a few hundred thousand dollars and didn't take salaries for two years. They believed capital scarcity forces focus and efficiency, preventing wasteful spending while they were still figuring out the product.

Chet Pipkin advises that a lack of cash is not always a bad thing for a new venture. Financial constraints force founders to focus on the essential aspects of their business and identify a genuine, pressing customer problem, which is more critical for success than having abundant capital.