> 1) Stay a one man band
> 2) Try to grow without funding
> 3) Take the funding and hire staff
>
> What would you guys do if you were faced with this scenario?

I was in a similar situation without the opportunity (I never
searched) for funding.  Personally what I found was that hiring
employees decreased my personal productivity exponentially.  I was
responsible for what I did as well as for what they did (or did not)
do.  Drove me nuts.

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