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Ask HN: How and when did you decide and start your startup?

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Ask HN: How and when did you decide and start your startup?

#1
I've been thinking quite some time now about making the move of quitting my fulltime job as a software engineer, and pursue my dream of founding a startup.

I'm 23 y/o and don't have much to lose really (except rent), and yet I'm still STRUGGLING to just make that move and start.

I'd love to hear your stories about when and how did you decide to do it? How did you start? How was it going to sleep knowing that you probably not going to have an income in the next upcoming weeks/months?

Re: Ask HN: How and when did you decide and start your startup?

#4
I'm 41 and just started working on my thing a couple of months ago. I'm married but we don't have kids nor a mortgage because we've been digital nomads for the most part of the last 10 years. My wife is doing well economically so we decided together it was a good time to start working on something that will not generate income in at least 2 years.

After 20+ years in dev I got tired of making projects for others and finally decided on an idea that could work financially. Not to grow to millions of users, but to at least support myself.

Re: Ask HN: How and when did you decide and start your startup?

#5
I couldn't start anything from scratch so I bought the damn thing. That was my MBA. If I failed, I would consider it a sunk cost of education. People spend 100K on a good MBA. I spent less than that on the business I bought. Happily running it for 6+ years now with a bootstrapped team of 15 of us. Ok, some advice now:

There are 3 ways:

1. Join a startup and go from there. Learn how things work in the startup world. You are only 23. It wouldn't hurt to work for a startup for 2-3 years and you may get somewhere after that.

2. If you strongly believe in a specific idea, then try to execute on it now. Like you said, you don't have much to lose. What an awesome position to be in. However, you will most likely fail based on statistics and the fact that you don't know what you don't know yet. You are 23. You have to learn a lot of things in the world.

3. Buy an existing business like I did. This obviously requires capital but you could buy a small say 1K MRR SAAS product/side project. You will have some things already setup at a small scale and you can go from there. Very hard though for someone who has never run a business BUT frankly, this is one way to force yourself into it.Think of the capital/investment as the cost of an MBA.

I would say 1 is the easiest, 3 is easier relatively but needs capital and 2 is the hardest.

Also, don't beat yourself up for not being able to start. Instead, find out what you can do TODAY to get to that destination of doing your own thing. If that thing today means joining an existing startup, do it. If that thing today means hanging out with similar minded folks who are already doing this, do it. If that things today means learning how to code, do it. Do something TODAY. How do you eat an elephant ? One bite at a time. Surround yourself with people who are doing what you want to do. It is hard to find them but try. Good luck!!

Re: Ask HN: How and when did you decide and start your startup?

#6
I started a dog treat company very recently (a couple of months ago), and it was definitely a combination of circumstance and everything I'd learned that made me decide I was ready to go for it.

On the circumstance side, I had actually left the tech industry to start a dog boarding business, but Covid hit right as I was about to close my SBA loan and start construction, so I cut bait rather than take a very large, personally guaranteed loan to start a business driven by people traveling and going into the office. I had decided to go the franchise route for that, largely to give myself the confidence that I would be able to get through all the unknowns with the backing of folks who had done this many times before.

After I called that off, I decided to strike out on my own and sell a frozen dog treat mix that I had been making for my dog. The pandemic circumstances (being at home, collecting unemployment) definitely helped, but the big obstacle for me was honestly less about time/money and more about a lack of confidence (which is weird because most people who know me would probably describe me as confident to the point of vanity). Honestly though, going through the initial part of getting the dog boarding business set up really helped - I had to deal with a bunch of stuff I'd never dealt with before (architect, permits, finding a contractor, leasing a space, getting all the various HR stuff set up to hire someone), and it just wasn't that difficult to deal with each thing as it came up. I think it helps that my background is in product management at early-stage companies, so that entailed a lot of generalist problem solving.

The other thing that helped, quite honestly, was seeing the other people in the franchise. They were, to be charitable, generally somewhat less sharp than the type of people I had become accustomed to working with in Silicon Valley, and most of them were running their businesses reasonably profitably. If they could run businesses, then clearly I ought to be able to.

I guess one last thing I'll add is that I own a few apartments in the Bay Area along with a couple of other folks, and that's been helpful both because they generate income and because that's a very small scale example of running a business (I have a full time property manager, so I don't have to do much), which is, again, a confidence builder. If you're able to start any kind of small scale business while working just to help build your confidence, that might be a good intermediate step even if you're not ready to fully quit and go out on your own.

Re: Ask HN: How and when did you decide and start your startup?

#7
post #5

I couldn't start anything from scratch so I bought the damn thing. That was my MBA. If I failed, I would consider it a sunk cost of education. People spend 100K on a good MBA. I spent less than that on the business I bought. Happily running it for 6+ years now with a bootstrapped team of 15 of us. Ok, some advice now: There are 3 ways: 1. Join a startup and go from there. Learn how things work in the startup world. Y…

What kind of business did you buy? I've been looking into that, but it's tough for me to pull the trigger just due to fear of the unknown (e.g. if I buy an ecommerce business and the supplier immediately goes out of business, will I be able to find a new one?).

Re: Ask HN: How and when did you decide and start your startup?

#9
post #5

I couldn't start anything from scratch so I bought the damn thing. That was my MBA. If I failed, I would consider it a sunk cost of education. People spend 100K on a good MBA. I spent less than that on the business I bought. Happily running it for 6+ years now with a bootstrapped team of 15 of us. Ok, some advice now: There are 3 ways: 1. Join a startup and go from there. Learn how things work in the startup world. Y…

Out of interest, how much capital would one roughly need to buy a 1K MRR? I'd assume the valuation would be some multiple of the revenue with some combination of growth rate?

Re: Ask HN: How and when did you decide and start your startup?

#10
I was doing some consulting work in an education-adjacent field for about 3 years. Was happy with the 2k MRR it was bringing in (albeit inconsistent at times during holidays etc).

A friend reached out if I could do some work for high schoolers. Kind of kismet with the move to remote education, as I started the program, significant demand for this type of work.

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