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Ask HN: My startup has failed. What comes next?

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Re: Ask HN: My startup has failed. What comes next?

#41
post #32

Just some suggestions through the tough times: - Talk to friends and family who understand - See if there are ways that the work done can be absorbed into another company - Drop a note to mentors/ advisors when you are professionally ready - Do some small projects for companies in your network who can pay on time, and hopefully also let you slowly ease into a different team and environment - Cut down on expenses - Pl…

Great suggestions.

Last year, I went through the same thing. We had a great idea. We had a solid client. We build a platform that worked, and produced products that were high quality, that the end user loved.

Due to miscalculations on our behalf, and due to the client's company disintegrating, we were left in the horrible situation of having to kill the company.

We were worked to the bone. I was emotionally and mentally drained. We felt we'd let ourselves down, and let our staff down. It hit both myself and my partner very hard. But, we paid our bills, and paid our staff out of personal savings, and gracefully closed the company.

I 'forced' myself to take the time off required to get mentally and emotionally stable. For me, this involved riding my motorbike solo from Europe to Iraq (You will have other ways to decompress).

The final step in getting closure was to watch the delight of a friend's kid playing with one of our products. We had succeeded.

- Be gentle to yourself. This is really important.

- Don't force yourself into new projects.

- Take time to look at your startup, and highlight what you achieved. You probably paid your staff. Your code was probably solid. Your servers maybe never went down. Your final product made people happy. These are all successes - and it's very important that you congratulate yourself/yourselves for these successes.

- If you can afford it, take some time off and travel. Change your physical and mental environment. - Spend time reconnecting with your family, friends and contacts. The relationships have probably suffered during your crunch periods. These people will help you back onto your feet, so reach out to them.

- If you need to get a job to pay the bills, contemplate taking a job in a totally different domain. Flip burgers (or whatever your personal equivalent might be). This will allow you to mentally build yourself up again to get back on the horse.

- When you do try again, be aware of the warning signs you probably ignored the first times (especially the 'oh no what am I committing myself to' feeling)

You'll find that over time, and only time, the points of what you did well, and what you did less well, will percolate down into clear, future actionable forms.

Incidentally, I'm back in the saddle. On my time off, I picked up a hobby to tinker with a device, learned two new languages (Python + Qt) and a few new frameworks, and circuit design - and now have my new startup, which is hitting the market in a few weeks.

Just be gentle to yourself :)

Re: Ask HN: My startup has failed. What comes next?

#42
Id take a few weeks for yourself, then find a 6 month contract. That'll get you back on your feet again professionally and financially. Depending on how the contract rates are in your area, you should then have a small runway again to think about your options. Id avoid committing to anything too big too early.

I don't know the details of your startup, but if possible can you reduce costs / reduce scope of services to the point its self sustainable? If so, go for it. I've regretted shutting down past projects, sometimes a bit of time off can give you new perspectives on things, and you've presumably built some value even if its not realised yet. YMMV but something to think about rather than outright closing it all down.

Re: Ask HN: My startup has failed. What comes next?

#43
post #4

1. Pay the bills, save some money. 2. Take a vacation: "Me and my friends have been too busy sunbathing off the southern coast of St. Bart's with spider monkeys for the past two weeks, tripping on acid. Changed our whole perspective on shit." 3. Tinker: https://www.physics.ohio-state.edu/~kilcup/262/feynman.html

"Surely you're joking, Mr. Feynman" is an awesome book. I've read it first when I was 12-13 years old, and my it has been a motivational source for me ever since.

Re: Ask HN: My startup has failed. What comes next?

#44
The first I would recommend you do is talk to your investors connect with them on a human level and explain why the business tanked. I did this in my case and one of the investors went on to land me very good contract.

Second I would recommend analyzing really well what caused the situation. Rarely is the answer running out of money the real reason. In my case the best way I found to deal with this is to give talks in my ecosystem on why my startup failed. This way it gave me a better chance to figure things properly because I had to explain them.

Third I would not recommend things such as Elance or Odesk, but rather direct consulting with people. I have done this personally and the financial payback from direct consulting is incomparably better then online marketplaces of services. The bottom line is that in direct consulting people are looking for your expertise while on Elance they are looking for code and we as software engineers produce code but what we sell is the expertise (ie the code is only the means to the end). Fourth for your motivation levels I would recommend forming a sporting habit. Personally I run long distances and I find it helps me stay "earthed". On the really off days I find reading science fiction is quite helpful but that is just me. Finally I would like to point our that your startup has only failed if you do not see the rewards at the end of the journey and only focus on that you missed your goal. As an example Columbus failed to reach India by a new route. If he had only focused on that he would have never gone back with the fact that he had discovered the Americas.

Re: Ask HN: My startup has failed. What comes next?

#45
post #15

I did my startup for almost 4 years. It was this: https://github.com/scalien/scaliendb After the startup, I was "unemployed" for about 1-2 month. Then I took a chance and went to work for Prezi as an engineer. It was a really good choice. During the startup it was 2 of us coding along, not much social interaction. At Prezi there's tons of people, diversity, it was a nice break. Also, good challenges, lots of learning…

did you end move to budapest? Last time I spoke to people there, they were only hiring people who were local/willing to move.

I'm Hungarian, I live in Budapest.

Re: Ask HN: My startup has failed. What comes next?

#46
From experience, I can say that it's stressful and unsatisfying to do approximately "nothing." I recommend taking a hard look at your finances and setting up some kind of concrete goal(s). Take that class, build that joke app, polish your resume -- Whatever it is, just have your goal clearly defined and at the right difficulty level. You've basically just been transported forward in time 2 years and you're sure to have a lot of culture to catch up on, friends, family and acquaintances with whom to reconnect, and reflective thoughts to ponder. Don't be too hard on yourself as you build a new foundation from which you'll make your next move. As for money, my advice is to be wary of stringing along odd jobs for income. I think that kind of instability does more to harm your environment of freedom than to extend your runway of cocoon-mode.

Re: Ask HN: My startup has failed. What comes next?

#47
post #11

This happened to me. I worked on a side project in high school that grew into a company after about eight years of work. Three years and a pivot later we gave up due to decreasing traction, and returned whatever funds were left to the investors. I moved back to my parents for about a year to work on other side projects, but ended up looking for a job and found an awesome small company that I'm very happy working for.…

> we would've had to achieve an insane growth to be worth anything to my co-founder and me due to the dilution of our shares.

Seems like that's the bigger lesson in this situation. Never give up so much equity that you cease to care about the outcome of the company.

Re: Ask HN: My startup has failed. What comes next?

#48
maybe the best thing is just to find someone to talk to in person. Someone outside looking in whose mind isn't as bogged down by the startup and can offer a more uplifting 3rd party view

I'd find someone like that to talk to in person over a beer, before jumping into what's next

Re: Ask HN: My startup has failed. What comes next?

#49

Hey man, Elon Musk's rocket blew up today. Even the best of us don't succeed every time. Just think carefully about your possible courses of action and try planning out different routes in your head ("If I worked in city X for a year doing Y, I could save Z, and then in my free time I could...", "If I went straight on to this startup then I could...", "If I went to work at this cool startup I know in a field I'm inte…

"Hey man, Elon Musk's rocket blew up today. Even the best of us don't succeed every time." This is a fantastic quote. A (literal) moonshot failed, and that's not stopping anybody. Cheers for the perspective. I think it's easy to get trapped in our own little bubbles and forget the bigger picture.

" I think it's easy to get trapped in our own little bubbles and forget the bigger picture. " - A major modern epidemic

Re: Ask HN: My startup has failed. What comes next?

#50
post #44

The first I would recommend you do is talk to your investors connect with them on a human level and explain why the business tanked. I did this in my case and one of the investors went on to land me very good contract. Second I would recommend analyzing really well what caused the situation. Rarely is the answer running out of money the real reason. In my case the best way I found to deal with this is to give talks i…

Thank you for this advice. We've already planned to sit down with our investor next month to do a proper post mortem. I've also been penning down my thoughts about what went wrong and what went right.
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