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Why Not To Do A Startup

mattmaroon.com

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Re: Why Not To Do A Startup

#21

Post by Tichy »

It takes really long to make 2 millions as a regular employee, though. Even freelancing, making much more than my employed friends, it would probably take me >= 15 years to make one million EUR (bloody taxes get in the way). And that estimate is without a family. One million really is not a lot of money, if I consider having to live off savings for maybe 30 years or more, in a future time by which money will probably have been devaluated a lot, too (though now I can't imagine life without work, maybe eventually due to aging one has no other choice?).

OK, so maybe betting on a startup to succeed is a dumb plan, some hedging might be in order (occasional consulting gigs to ensure a minimum income - any other ideas?).

Btw., I wonder what is the average savings rate for employees? I am 35 now, and I recently realised that I am probably way behind on my savings compared to my peers... I think maybe to save about 10000€ per year is realistic?

Still, in my first year of work after getting my degree, according to some statistics I was already in the top 10% of earners of my country. Nevertheless I felt that without inheriting some money from parents (which I won't), I would never have been able to even afford to buy a flat. That is kind of sick, I think. Maybe life as an employee is not so easy, after all. A friend of mine is also an I worker in the top 10% range, and he said he couldn't support his family without help from his parents.

Re: Why Not To Do A Startup

#22

Post by fendale »

Tichy wrote: post #21

It takes really long to make 2 millions as a regular employee, though. Even freelancing, making much more than my employed friends, it would probably take me >= 15 years to make one million EUR (bloody taxes get in the way). And that estimate is without a family. One million really is not a lot of money, if I consider having to live off savings for maybe 30 years or more, in a future time by which money will probably…

The price of houses in the UK for one has gotten ridiculous in the last couple of years - I was lucky and got a place a few years back, but if I hadn't, I wouldn't be able to afford it now - I think its becoming more and more common. The only way around it is to:

* buy a place with one of your mates and share it * Meet a girlfriend/wife that earns a similar amount to yourself

The important thing seems to be to get onto the property ladder as quickly as possible.

As for savings, save as much as you can afford - I probably save 10 - 15% of my salary at the moment (no family to worry about) and it leaves me with enough beer money too!

Re: Why Not To Do A Startup

#27

Post by pmjordan »

fendale wrote: post #22
Tichy wrote: post #21

It takes really long to make 2 millions as a regular employee, though. Even freelancing, making much more than my employed friends, it would probably take me >= 15 years to make one million EUR (bloody taxes get in the way). And that estimate is without a family. One million really is not a lot of money, if I consider having to live off savings for maybe 30 years or more, in a future time by which money will probably…

The price of houses in the UK for one has gotten ridiculous in the last couple of years - I was lucky and got a place a few years back, but if I hadn't, I wouldn't be able to afford it now - I think its becoming more and more common. The only way around it is to: * buy a place with one of your mates and share it * Meet a girlfriend/wife that earns a similar amount to yourself The important thing seems to be to get on…

The UK situation is extreme, particularly in London. My girlfriend and I got jobs straight out of university, and we could forget buying a place, and even renting was using up so much of our income that it was just a treadmill.

We left, basically. We've moved to Vienna (Austria) and living relatively cheaply in my late grandmother's place. I'm trying to get a startup off the ground, she's slowly figuring out what she wants to do.

And yeah, we're super-lucky to even have that opportunity.

I honestly don't know how London is staying as populous as it is. As far as I can see you're completely stuck with graduate salaries. (except in banking)

Re: Why Not To Do A Startup

#28

Post by iamelgringo »

Good article, Matt. Thanks. I like the way you think.

I think that part of the confusion of people when they get into the startup scene, is that they loose sight of what a successful exit does for you: solves the money problem. That's it. Nothing else. Nada.

A successful exit will not buy you love. It will not make you instantly happy. An exit will not provide you with meaning and purpose in life. It will not make you immortal. It will not fix all the other problems in your life. It solves one and only one problem: the money problem.

If you talk to people in the valley who were sudden millionaires in the first dot.com gold rush, I think that you'll find that sudden wealth brings its own set of problems which you touched on in your article. I actually remember reading a number of articles about the struggles of the nouveau-rich after their dot com went public.

These things are worth keeping in mind when you're thinking about that startup, or in dealing with relationships while you're in a startup. Be careful burning bridges with family and friends when you're working 100 hours a week with your startup. They might not be there when you find your exit.

Re: Why Not To Do A Startup

#29

Post by eusman »

jauco wrote: post #24
eusman wrote: post #23

startup (a) do, to not (ask)why (did not)!

?

by changing the order of the words from the title, and creating a new phrase to remind you that you should do a startup because you may regret of not doing so.

this also shows that the startup world is so fluid as much a title can be. everything has a different intepretation by different people.

a startup is a personal experience and the reasons for someone who choses not to pursue a startup should not be the excuse or affect anyone's choice to make their attempt.

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