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The Truth about a Failing Startup

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Re: The Truth about a Failing Startup

#91
post #88

Hey, fellow failed entrepreneur here. My startup failed about 6-9 months ago. It was a very difficult time, our business partners went back on their promises and with that 3+ years of my life went down the drain. It was a terrible couple of months, lots of lost sleep, high blood pressure, I'm still dealing with it. I was unemployed for a couple of months, then finally took a job at a great company, where I feel great…

>Don't lie to your parents.

This. During a bad period, I moved in to live with my family for a couple of weeks. It helps to eat and talk together, and if you had a happy childhood, you'll feel safe and refreshed.

Re: The Truth about a Failing Startup

#92
post #21
post #13

Earlier quoted context omitted.

OOC, Have either of you built and lost others money from investors as well as lost your own?

When I was 25 I lost more than $20,000 of my own and FFF money investing in my own project only to have it fail. At the time I was obviously, really upset. Fast forward to today -- looking back it was one of the greatest investments in my life so far as all the stuff I learned both emotionally, psychologically and professionally has really helped with current work and life. I used to think losing money was a big deal…

I remember the first $10,000 I lost on a business. It was my own money (well, a loan I ended up paying for years afterwards). Losing that much money when you make minimum wage is huge disastrous. But it taught me a lot about businesses, money, and myself. I do not regret what happened.

Re: The Truth about a Failing Startup

#93
post #63

Once your startup actually fails and is behind you, here's the surprise: You will feel an immense sense of freedom and lightness. It's pretty obvious why: a weight is about to be lifted from your shoulder. Where your path was a narrow funnel leading to one specific destination, you will now have the infinity of all possible and reachable paths ahead of you. You couldn't do anything but worry about the startup - now y…

Another point to add is the worst case scenario is hardly ever as bad as you think its going to be. Its very easy to over-estimate the amount of work it will take to recover from a setback.

Sometimes it takes experiencing a setback before you learn this. The confidence you gain from the experience can sometimes be worth more than the gain from everything going as planned.

Re: The Truth about a Failing Startup

#94
The reactions to an emotional post from one of our colleagues are interesting in that they too contain a large amount of emotional references. Some random examples:

Fuck ‘m all You failed Having lost touch You just got lucky Being average It is ok to be xyz You aren’t alone Own it It sucks Things may not be as bad Disappointing Frustrating Don’t give up The first time is the worst It can be hard to keep our head Freaked out Taking other people’s money is a big one On the brink of bankruptcy Staring death in the eye Going down with the ship Don’t worry Poems and questions from social heroes

Emotional generalizations, value-based references, hero-based metaphors are stomach (feeling) based expressions. Probably posted in the hope to change our colleague’s feelings. I hope it works.

An additional approach is to move our focus & energy away from the stomach and into to the head (thinking). As such, a non-emotional metaphor would be something like: A startup = an analysis + a set of assumptions/decisions + certain actions, resulting in specific projected results. The original analysis includes the resource constraints assumptions (yup, if xyz happens, we will run out of $ by this month). Then the standard actions start: Regular review the of obtained results + if not as projected, revisit the analysis, decisions and actions. Keep doing these steps till the projected results are realized or till the resources run out. Whatever comes first. Period. Feelings not required.

Re: The Truth about a Failing Startup

#95
post #88

Hey, fellow failed entrepreneur here. My startup failed about 6-9 months ago. It was a very difficult time, our business partners went back on their promises and with that 3+ years of my life went down the drain. It was a terrible couple of months, lots of lost sleep, high blood pressure, I'm still dealing with it. I was unemployed for a couple of months, then finally took a job at a great company, where I feel great…

>Don't lie to your parents. This. During a bad period, I moved in to live with my family for a couple of weeks. It helps to eat and talk together, and if you had a happy childhood, you'll feel safe and refreshed.

>This.

Samefag detected.

Re: The Truth about a Failing Startup

#97
post #88

Hey, fellow failed entrepreneur here. My startup failed about 6-9 months ago. It was a very difficult time, our business partners went back on their promises and with that 3+ years of my life went down the drain. It was a terrible couple of months, lots of lost sleep, high blood pressure, I'm still dealing with it. I was unemployed for a couple of months, then finally took a job at a great company, where I feel great…

Man alive. That sounds like no fun.

Also an entrepreneur here, and admittedly no (major) failures as yet, but I envy you at least having parents to fall back on.

All alone in the world here. Nothing like the absence of any safety net to make you consider your decisions carefully.

Re: The Truth about a Failing Startup

#98
post #51

Thanks for sharing the reality instead of writing articles like "How I started X and made Y in Z days". This is really painful to read. This is one reason why I will never take money from an external investor. There are some scenarios when you definitely need an investor's help. But right now, the trend is almost like "it's a cool factor to seek investment for your startup". The problem with taking money from someone…

> This is one reason why I will never take money from an external investor.

You could use the same logic to convince yourself never to convince anyone to quit their job and come work with you. Or to move their family across the country. Or to convince their boss that using your startup as a vendor rather than SAP is the right thing to do.

Making something work is going to require convincing others to bet on you - with money, with time and with credibility. Betting involves risk. It's unavoidable. But doing it "on your own" is largely a fiction.

Re: The Truth about a Failing Startup

#99
Ok, here's my 2 cents

1 - If you are so sure you're failing in a couple of months, shut down now and return the money that's left. Simple as that.

2 - Startups fail. Investors know that. They don't talk to you because they know already (rude of them, but I understand).

2a - Don't worry about this. It's part of the business. Priced, accounted, etc. It's nothing personal, just business.

In university I had this Economics teacher. First class: "Why are you going to build a business with your money? Don't be stupid, do it with someone else's money". Very true words.

Re: The Truth about a Failing Startup

#100
Don't feel bad about your investors. They went into it with their eyes open, knowing that they were taking a punt. Taking lots of punts is in fact their business model. They knew there was a good chance they would lose that investment. As long as you dealt with them honestly then you have nothing to be ashamed of. Better luck next time.
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