Every startup starts with a vision. But to make this vision a reality, aspiring entrepreneurs and leaders need more than a dream – they need money. This usually leads to a pursuit of what many consider the holy grail: funding. However, with venture capital financing (VC). hitting a decade low in 2023, funding has become scarcer and especially difficult to secure for those companies in their early stages.

Many new companies do not understand this FInanCInG it is not the only path to success. In fact, lack of funds can be a company's secret weapon.

In the early stages of building a company from the ground upa sudden influx of cash can create a false sense of security and influence riskier decisions, some of which may not be sustainable in the long term. But without a financial cushion, companies are forced to scrutinize every decision they make. This ensures that they don't take on too much risk, especially in the beginning, and bring in enough revenue to keep the business growing.

Here are three ways entrepreneurs can use the lack of VC funding to their advantage to create a successful, revenue-generating business.

1. Learn from every mistake

Companies flush with VC dollars tend to throw money at problems that need to be solved rather than funded. Without financial backing, companies must develop the discipline to find the root of problems and strengthen the foundations to ensure longevity.

Mistakes will be made—they're inevitable—but it's important for entrepreneurs to learn from them to avoid repeating the same mistake. A series of mistakes can be detrimental to a company, especially in its early stages. To turn mistakes into a learning experience, companies need to examine every part behind what went wrong.

When mistakes can be addressed with money, it can be easy to brush them off and move on without ever realizing what went wrong.

Doing the mistakes — and understanding the why behind each one — can also serve as fuel for future success. Adopting a “less is more” mindset allows entrepreneurs to reap the rewards of persistence and grit and can instill confidence in them as they find success on their own.

Related: How to turn your mistakes into opportunities

2. Generate revenue first and bring big ideas to life later

Entrepreneurs are eager to bring their visions to life, and with the money to do so, it's easy to get anything done—and fast. But investing in big ideas before finding market fit or demand can be advantageous for a company.

An innovative idea becomes a successful product or service only if there is an audience for it. And this is where many companies can go wrong – they have a great product, but it doesn't solve a problem in the market. This can be a struggle for companies with and without funding, but with money in the bank it can be easier for companies to dive right into development by first understanding the needs of the market.

When companies must rely on themselves for funding, they must generate income quickly. This means they will spend every penny making sure their product or service is something that addresses a market need and will be bought by their target audience. By prioritizing profitability with practical applications from the start, companies can build a solid foundation and create a confident company that can innovate with care. There's always room for big ideas, but it's important not to rush into them – no matter how tempting they are.

Related: 6 Practical tips for dealing with mistakes at work

3. Build for the future

New startups are popping up every day across the industry. In such a fast-paced and highly competitive industry, there is no guarantee that a company will still be a company six months down the line. It is this permanent mindset that can lead entrepreneurs to prioritize construction for the short term.

While it is impossible to predict the future, you can prepare for it. I built the global technology company Infragistics to weather nearly four decades of the ever-evolving technology industry, from the dot-com tech bubble of the 1990s to the Internet boom to the recession of 2008. This was not because of luck or because we were in the right place at the right time.

We never took a cent from investors, which helped us build a strong foundation for our future successes. We gave it priority making decisions it would drive revenue and not because “we wanted to”, and we learned from every mistake. It's not the way for every company, but it's the right way for us.

Any decision can seem like the most important decision made without the support of funding. This is an advantage. Every carefully curated decision builds a foundation that supports a successful company. With a strong foundation, companies can be more adaptable to industry changes and overcome challenges in the long run.