Most founders think you need $500K and 2-3 co-founders to start a SaaS. I built SimpleDirect to $103K MRR with $0 funding and 0 co-founders. Here's exactly how.
I've bootstrapped 3 companies to profitability. Spent 18 months consulting first, built SimpleDirect with AI tools, and scaled using geographic arbitrage. Total dilution: 0%. Current team: 1 (me) + 2 contractors in India.
Here's what you'll learn:
- The AI-first development stack that replaced a $200K engineer
- Geographic arbitrage strategies that cut costs 80%
- 0% APR funding methods that beat VC money
- The exact timeline from $0 → $100K MRR
Why Everything Changed in 2024
The Old Playbook (2010-2023):
- Raise $2M seed round
- Hire 10-person team
- Build for 18 months
- Burn $300K/month until Series A
The New Playbook (2024+):
- Start with consulting/services
- Build with AI + 1-2 contractors
- Launch in 3-6 months
- Bootstrap to profitability
What Changed:
AI Made Development 10x Cheaper
- Cursor + Claude replace senior developer ($200K/year → $50/month)
- GitHub Copilot handles boilerplate
- ChatGPT debugs complex problems
Geographic Arbitrage Became Mainstream
- Top talent in India costs 1/5th of SF
- Remote-first tools matured
- Currency arbitrage = instant cost advantage
Interest Rates Killed Easy VC Money
- Fed funds rate: 0% → 5%+
- VCs became risk-averse
- Bootstrap became default
The Math That Matters:
| Old Way | New Way |
|---|---|
| $2M funding | $0 funding |
| 10 employees | 1 + 2 contractors |
| $300K/month burn | $8K/month costs |
| 15% equity retained | 100% equity retained |
Key Insight: You don't need $2M when $20K gets you to $20K MRR.
The Consulting-First Model
Most founders jump straight to building product. I spent 18 months consulting first. Here's why that mattered:
The Problem: You think you know what customers want. You don't.
The Solution: Get paid to learn what they actually need.
How I Did It:
- Month 1-6: Home services consulting ($150K revenue)
- Month 7-12: Patterns emerged (contractors hated existing tools)
- Month 13-18: Built SimpleDirect while still consulting
- Month 19: Launched with 5 pilot customers (who already paid me)
The Numbers:
- Consulting revenue: $300K (funded development)
- Product revenue Year 1: $103K MRR
- Dilution: 0%
The Consulting → SaaS Playbook
Phase 1: Find Your Niche (Months 1-3)
- Pick an industry you understand
- Solve one specific problem repeatedly
- Charge $150-300/hour
- Document every process
Phase 2: Pattern Recognition (Months 4-9)
- Notice which problems repeat
- Identify manual processes you're automating
- Find the 80/20 solution most clients need
Phase 3: Tool Building (Months 10-15)
- Build internal tools for your consulting
- Use them on client projects
- Refine based on real usage
Phase 4: Product Transition (Months 16-18)
- Package tools as standalone product
- Convert consulting clients to product beta
- Set recurring pricing
Why This Works:
- Immediate revenue (consulting pays bills)
- Real market research (customers pay for your time)
- Built-in distribution (existing client relationships)
- Proven problem (you've solved it multiple times)
Common Mistake: Consulting forever without productizing.
Pro Tip: Set a date 12-18 months out to transition. Stick to it.
AI-First Development: $200K Engineer for $50/Month
I replaced what would've been a $200K/year senior developer with AI tools costing $50/month. Here's the exact stack:
The AI Development Stack
Primary Tools:
- Cursor Pro ($20/month) - AI-powered code editor
- Claude Pro ($20/month) - Technical architecture
- GitHub Copilot ($10/month) - Code completion
Total Cost: $50/month vs $200K/year + equity
How I Use Each Tool
Cursor: The Code Generator
Cursor writes 70% of my code. I prompt with requirements, it generates entire functions.
Example prompt: "Create a React subscription billing component with Stripe integration, upgrade/downgrade options, and loading states."
Result: 200+ lines of production-ready code in 2 minutes.
Claude: The Technical Architect
Claude designs system architecture and debugs complex problems.
Example: "Need to handle 10K+ concurrent users. Current Node.js app struggling." Result: Detailed optimization roadmap I can implement immediately.
GitHub Copilot: The Boilerplate Handler
Copilot writes repetitive code while I focus on business logic.
The Reality Check
What AI Can Do:
- Write CRUD operations
- Handle API integrations
- Create UI components
- Debug syntax errors
- Generate test cases
What AI Can't Do:
- Make product decisions
- Understand user needs
- Design business logic
- Replace domain expertise
Time Saved Examples:
| Task | Traditional | AI-First | Savings |
|---|---|---|---|
| User auth system | 40 hours | 8 hours | 32 hours |
| Payment integration | 24 hours | 6 hours | 18 hours |
| Admin dashboard | 60 hours | 15 hours | 45 hours |
Total for SimpleDirect: 400+ hours saved = $80K in development costs.
Geographic Arbitrage: Build Global, Live Cheap
Geographic arbitrage isn't just about saving money. It's about building a global-first company from day one.
The Toronto Advantage
Why I chose Toronto over Silicon Valley:
Cost Comparison:
- SF apartment: $4,500/month
- Toronto apartment: $2,200/month
- Savings: $2,300/month
Talent Arbitrage:
- SF senior dev: $200K USD
- India senior dev: $30K USD
- My contractors: $1,600 USD/month each
Government Support:
- SR&ED tax credits: 35% of development costs
- Total grants/credits: $47K first year
Building Your Global Team
My Current Setup:
- Me (Toronto): Product, strategy, sales
- Dev 1 (Bangalore): Frontend specialist - $1,800/month
- Dev 2 (Mumbai): Backend, DevOps - $1,400/month
Communication Strategy:
- Daily standup: 9 AM EST (7:30 PM IST)
- Async updates via Slack
- Weekly video review: Friday afternoons
- Shared Notion workspace
Cost Breakdown:
- Total team cost: $3,700/month
- Compare to SF team: $600K/year vs $44K/year
Geographic Arbitrage Strategy
Phase 1: Validate Locally
- Build MVP with AI tools
- Get first 10 customers in home market
- Prove product-market fit
Phase 2: Hire Globally
- Start with 1 contractor, 20 hours/week
- Clear specs and daily check-ins
- Scale hours before adding people
Phase 3: Build Systems
- Document everything in Notion
- Create video walkthroughs
- Build async-first communication
The Contrarian Take: Geographic arbitrage isn't about exploiting cheap labor. It's about accessing global talent while building location-independent business.
0% APR Capital Strategy
VCs want 20-40% of your company for $500K. I raised $300K at 0% interest without giving up equity. Here's how:
The 0% APR Playbook
Credit Cards (Short-term Bridge):
- 12-18 month 0% APR offers
- Use for equipment, software, initial hiring
- My usage: $45K across 3 cards
Business Line of Credit:
- $50K at prime + 1% (currently ~6%)
- Only pay interest on amount used
- My setup: $75K available, $15K average usage
Government Grants/Credits:
- SR&ED tax credits (Canada): 35% of dev costs
- Small business innovation grants
- My total: $47K first year
The Credit Card Strategy (Use Carefully)
My Cards:
- Chase Ink Business: $25K limit, 15 months 0% APR
- Capital One Spark: $15K limit, 12 months 0% APR
- American Express Business: $20K limit, 18 months 0% APR
Critical Rules:
- Never miss a payment (kills the 0% rate)
- Pay off 100% before promo ends
- Track everything obsessively
What I Bought:
- MacBook Pro + development setup: $8K
- First 6 months contractor payments: $18K
- Software licenses and tools: $4K
- Legal and accounting setup: $3K
- Marketing and design: $6K
- Emergency buffer: $6K
The ROI Calculation
If SimpleDirect sells for $5M:
- VC route: I keep $3.75M (75%)
- Bootstrap route: I keep $5M (100%)
- Difference: $1.25M
The Catch: Requires discipline and cash flow management. One missed payment kills everything.
SimpleDirect's Journey: Real Numbers
Here's the full story with real numbers and timeline:
Background (Pre-Launch)
My Situation (January 2024):
- 15 years in tech, $180K salary
- $50K savings
- Burned out, wanted freedom
The Catalyst:
- Consulting project with home services company
- Built custom solution in 3 weeks
- They said "we'd pay $500/month for this"
Phase 1: Validation Through Consulting (Months 1-6)
Consulting Projects:
- HVAC company CRM: $12K
- Plumbing contractor tools: $8K
- Landscaping workflow: $15K
- General contractor management: $18K
Month 6 Status:
- Consulting revenue: $53K
- Product development: 60% complete
- Runway: 18 months
Phase 2: Product Launch (Months 7-12)
Launch (September 2024):
- Soft launch with 5 consulting clients
- $97/month pricing (introductory)
Growth Trajectory:
- Month 7: $485 MRR (5 customers)
- Month 9: $2,328 MRR (24 customers)
- Month 12: $7,760 MRR (80 customers)
What Worked:
- Consulting client conversions (5/5 converted)
- Word-of-mouth in home services community
- Content marketing (started podcast Month 8)
Phase 3: Scale & Optimize (Months 13-24)
Product Development:
- Added mobile app (Month 13)
- QuickBooks integration (Month 14)
- Project management module (Month 16)
Team Building:
- Hired India developer (Month 14): $1,600/month
- Customer success contractor (Month 17): $800/month
Pricing Evolution:
- Increased new customer price to $147/month (Month 15)
- Added premium plan at $247/month (Month 17)
Growth Metrics:
- Month 18: $31,440 MRR (156 customers)
- Month 24: $78,500 MRR (267 customers)
Current Status (Month 30: November 2025)
Revenue Breakdown:
- Core CRM: $68K MRR
- Project management: $22K MRR
- API/integrations: $13K MRR
- Total: $103K MRR
Team:
- Me: CEO, product strategy
- Developer (India): $1,800/month
- Customer success: $1,200/month
- Salesperson: $4,500/month
Financials:
- Monthly revenue: $103K
- Monthly costs: $18K
- Net margin: 82%
- Annual run rate: $1.24M
Key Lessons Learned
What I'd Do Differently:
- Start content creation in Month 3
- Raise prices faster (left $200K+ on table)
- Hire sales person sooner
- Focus on one market first
What Worked Perfectly:
- Consulting → Product strategy (de-risked everything)
- AI-first development (kept costs low)
- Geographic arbitrage (team costs 80% less)
- Bootstrap mentality (every dollar counts)
The Numbers That Matter:
- Total invested: $47K (savings + 0% APR credit)
- Current valuation: $5-8M (5-8x revenue)
- Time to positive cash flow: Month 11
- Dilution: 0%
Your 12-Month Action Plan
Months 1-3: Foundation
Month 1: Market Research
- Pick one industry you understand
- Research existing solutions
- Join industry communities
Month 2: First Consulting Client
- Define your offering
- Create simple landing page
- Close first $5-10K project
Month 3: Pattern Recognition
- Complete 2-3 more projects
- Identify common problems
- Start sketching product features
Months 4-6: Product Development
Month 4: MVP Planning
- Define core features (max 5)
- Create wireframes
- Choose tech stack
Month 5: MVP Development
- Build with AI tools
- Create core user flows
- Add payment processing
Month 6: Testing
- Get 5 beta users from consulting clients
- Gather feedback weekly
- Fix major bugs
Months 7-9: Launch & Growth
Month 7: Soft Launch
- Launch with beta customers
- Set initial pricing ($50-150/month)
- Create onboarding process
Month 8: Content & SEO
- Start weekly blog posts
- Begin podcast or video content
- Optimize for key SEO terms
Month 9: Growth Acceleration
- Implement referral program
- Run first paid ads experiment
- Add key integrations
Months 10-12: Scale
Month 10: Process Building
- Document all processes
- Create sales playbook
- Set up automated onboarding
Month 11: Team & Systems
- Hire customer support person
- Add advanced features
- Optimize pricing strategy
Month 12: $10K MRR Push
- Launch major feature update
- Run acquisition campaign
- Celebrate hitting $10K MRR!
Success Milestones
Month 3: $10K in consulting revenue Month 6: MVP ready for beta Month 8: First $1K MRR Month 10: First $5K MRR Month 12: First $10K MRR
Budget: $45K total investment over 12 months Expected ROI: 167% in first year
Essential Tools & Resources
AI Development Stack
- Cursor - $20/month
- Claude Pro - $20/month
- GitHub Copilot - $10/month
Team Building
0% APR Funding
- Chase Ink Business Unlimited
- Capital One Spark Cash
- American Express Business Gold
Learning Resources
Books:
- Zero to One by Peter Thiel
- The Lean Startup by Eric Ries
Communities:
FAQ
Q: Do I need to be technical? A: Helpful but not required. AI tools make non-technical building possible, but you'll need basic tech comfort.
Q: How much money do I need to start? A: Minimum $10K, optimal $25-50K for 6 months runway. Consulting helps generate revenue while building.
Q: When should I quit my job? A: When you have 6+ months expenses saved AND $2K+ MRR from side project. Don't quit to start building.
Q: Is geographic arbitrage ethical? A: Yes, when done fairly. Pay market rates for remote talent and focus on value exchange, not exploitation.
Conclusion
Building a SaaS to $100K MRR without co-founders isn't just possible in 2025—it's becoming the default path for smart founders.
The key insights:
- AI replaced technical co-founders - $50/month does what $200K/year developers did
- Geographic arbitrage is competitive advantage - Build global teams at local costs
- 0% APR funding beats VC money - Keep 100% equity while scaling
- Consulting de-risks product development - Get paid to learn customer needs
Your next steps:
- Pick your industry based on expertise
- Start consulting to generate revenue while learning
- Set up AI tools (Cursor, Claude, GitHub Copilot)
- Follow the 12-month plan step by step
The contrarian truth: In 2025, the best companies will be built by solo founders using AI, not large teams burning VC money.
You don't need permission to start. You don't need co-founders to scale. You don't need millions to build.
You just need to begin.
Want to learn faster? Try the AI-assisted workflow above with your next book. Extract insights in minutes instead of hours.
Building something? Focus on project-based learning, not information consumption.
George Pu builds AI-powered businesses at SimpleDirect and ANC. Follow along for unfiltered founder insights at @TheGeorgePu.
