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Ask HN: Who is currently broke due to being in a startup?

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Re: Ask HN: Who is currently broke due to being in a startup?

#41

Post by exit »

spotted_at wrote: post #30
mgkimsal wrote: post #17

Earlier quoted context omitted.

Can I assume you meant 150k per year? Obviously money going out with no income depletes cash on hand. However, it would seem making 150k for a year or so should buy you a pretty big runway. I'm guessing you have a lot of outgoing if it feels like it's disappearing 'fast'.

Yea, 150k. I thought I had enough savings to last about 2 years; I was wrong so I am seriously cutting back. If mainly feels like its going fast because I was accustomed spending what I want and not seeing my bank account drop. Now that I don't have anything coming in thats not the case. The impact of what I spend is much more visible now.

what kind of consulting do you do?

how much of 150k were you saving annually?

Re: Ask HN: Who is currently broke due to being in a startup?

#42

Post by rooshdi »

ezl wrote: post #14

I am broke. Sep 1 will be the 1 year anniversary of my decision to go out on my own. In the last 10 weeks I have missed rent payments, missed insurance and had it cancelled, sweated 2 dollar bus rides, not eaten sometimes because I didn't want to spend money on food. At times, I have regretted my decision to leave a comfortable life, doubted, cried, bargained, been depressed and thought things the former me could hav…

Yes, I sympathize with your struggle, as bootstrapped startups hold an especially difficult financial burden. Personally, whenever I'm feeling down, I try to focus on what exactly am I doing with my current startup that is innovative and going to push the world forward. I think with purpose also comes peace, so I think it's always important to get back to that.

Re: Ask HN: Who is currently broke due to being in a startup?

#43

Post by delano »

ezl wrote: post #14

I am broke. Sep 1 will be the 1 year anniversary of my decision to go out on my own. In the last 10 weeks I have missed rent payments, missed insurance and had it cancelled, sweated 2 dollar bus rides, not eaten sometimes because I didn't want to spend money on food. At times, I have regretted my decision to leave a comfortable life, doubted, cried, bargained, been depressed and thought things the former me could hav…

"It's better to be at the bottom of a ladder you want to climb, than halfway up one you don't."

Re: Ask HN: Who is currently broke due to being in a startup?

#44

Post by jasonkester »

spotted_at wrote: post #12

I am. I usually pull about 150 - 175 a year contracting and now I am making 0 because I am working on my startup. Money starts to disappear fast when none is coming in.

Funny how pulling in $150k/yr can actually be a downside. Reading between the lines, it sounds like you managed to adjust your lifestyle to match the income.

Most people can live comfortably in the US for under $2k/month all in. So in theory you should be able to save something like 4 years worth of runway with a single year's contracting.

In practice, you just convince yourself that it takes $10k/month to survive and as a result burn yourself into the ground 5x faster than everybody else.

Re: Ask HN: Who is currently broke due to being in a startup?

#45

Post by jasiek »

spotted_at wrote: post #30
mgkimsal wrote: post #17

Earlier quoted context omitted.

Can I assume you meant 150k per year? Obviously money going out with no income depletes cash on hand. However, it would seem making 150k for a year or so should buy you a pretty big runway. I'm guessing you have a lot of outgoing if it feels like it's disappearing 'fast'.

Yea, 150k. I thought I had enough savings to last about 2 years; I was wrong so I am seriously cutting back. If mainly feels like its going fast because I was accustomed spending what I want and not seeing my bank account drop. Now that I don't have anything coming in thats not the case. The impact of what I spend is much more visible now.

Same thing here, except I found out I was burning too much about halfway through my savings. Since then I realized I have to pay more attention to how I spend money. I'm glad this happened - it is unbelievable how much gets thrown away on stuff I don't really need.

Re: Ask HN: Who is currently broke due to being in a startup?

#47

Post by HouseMan »

The good news is that you are at the bottom and things can only get better...if you're focus is tight, your execution even tighter, and you zero-out the emotion of not wanting to fail and look at where you are as dispassionately as you can.

I've had to shut-down two start-up's--the lead developer lost his mind on the first (1996) and the money ran dry on the other (2003). In each case, I went and got a job. It sucked working for some numb-nuts with a limp handshake, but needed the money. And I had two puppies and a girlfriend trying to get out of college on the first blow-up, which was no fun. Luck of the draw. I'm launching my third literally this week.

Unlike the previous occasions, I'm better educated. And I'm a lot less emotional. This is business. I have a standard that stipulates the following--if v 1.0 is over 1/3 late, you're probably throwing good money after bad, so time to ask where the execution bottle necks are. At 2/3 late, time to "come to Jesus" on your start-up and start asking some very tough questions, like how did this get so borked and how can it be rescued. And at 100% over-run, don't think about it, just bail because you've screwed something up so bad that no amount of talk or analysis is going to rescue you. Get a job, build back up your finances and your marriage, and look for another opportunity.

And reflect on why you are in a start-up. Are you trying to change the world or have a cool work-place?

Start-up's are not for everyone, and certainly should be pursued carefully by those married and with financial obligations.

If you're putting your family through hell, you have to ask yourself how long is reasonable to do that. Ruining the finances of your family, or worst case getting turfed out of your home, is unacceptable. And when you have kids, it's no longer about your dreams and desires--it's about providing. You had your chance, it's gone, so suck it up and get ready to do what our own Fathers did--work for the Man and hope for the next generation.

I know that sounds harsh. But I've been on the other other side and watching your home get yanked away is not something your children should ever, ever experience.

Re: Ask HN: Who is currently broke due to being in a startup?

#48

Post by lionhearted »

garrettgillas wrote: post #23

This post actually makes me feel kind of grateful. I have kept my day job while working on my startup and am still single. I'm 27 & I work from home. The upside is that I have a place to live and work comfortably, I'm not broke and I can support my "startup habit". The downside is that I never get much sleep, my girlfriend hates it, almost everyone I know says that I should quit my startup and get married like a norm…

> The downside is that I never get much sleep, my girlfriend hates it, almost everyone I know says that I should quit my startup and get married like a normal person

Be careful in your long term thinking with your girlfriend. I've seen a lot of guys work like crazy while their girlfriend doesn't like it, and the guy thinks, "Well, if this pays off she'll understand." In my experience - not true.

People have different temperaments, and if she dislikes risk or wants a more regular amount of time and affection, that's unlikely to change and money doesn't fix the problems there. The best couples for entrepreneurship are ones where both guy and girl are excited by the process of working hard, striving for the impossible, putting in long hours, and can handle the emotional burden and strife that comes with that. If your girlfriend doesn't have the temperament and you do, money likely won't solve that later.

Re: Ask HN: Who is currently broke due to being in a startup?

#49

Post by spotted_at »

exit wrote: post #41
spotted_at wrote: post #30

Earlier quoted context omitted.

Yea, 150k. I thought I had enough savings to last about 2 years; I was wrong so I am seriously cutting back. If mainly feels like its going fast because I was accustomed spending what I want and not seeing my bank account drop. Now that I don't have anything coming in thats not the case. The impact of what I spend is much more visible now.

what kind of consulting do you do? how much of 150k were you saving annually?

I mostly work for banks and sometimes do military contracts. My last contract was with northrop grumman in SD and before that BOFA in charlotte. I saved appox. 36k a year.

Re: Ask HN: Who is currently broke due to being in a startup?

#50

Post by adrianwaj »

twidlit wrote: post #9
adrianwaj wrote: post #3

Maybe you should just quit for the sake of your family. I am not being defeatist, or else just work out some milestones that you'll obtain from here onward. If you don't meet them, then quit.

Quitting is not an option and even ridiculous to me. I dunno if its the founder optimism at work but I am sure this is gonna play out great after launch. We are just 6 months into the startup and have yet to release our v1.0 with the iphone / android app. (ETA 2 months). Its tough but not impossible.

You've replied to 3 people in this thread. Telling one person to "Dude, drop the puppy" and me that quitting is ridiculous. Why'd you ask the question Dude? Are you just interested in publicity, or do you need serious advice or discussion? Too scared to ask your wife?

Your profile: "http://____.com to be notified of our launch in the next month or so"

I'll pass.

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