And in 90 days, you will be served with divorce papers.
My Startup has 30 Days to Live
91–100 of 239 posts
Re: My Startup has 30 Days to Live
#92Earlier quoted context omitted.
That's a tough spot and I've been there, as the employee that's on the fence as the management nail-bites over accounts receivable and wondering if they can make payroll. I've since learned that you keep your ears to the ground at all times , in ANY company you work for. You don't sit in your cube with your Dr Beat Headphones on, you listen to office talk. You overhear that phone call from a vendor asking where their…
This is just no way to live. If you find yourself doing this, you're either needlessly paranoid and worrying yourself into an early grave, or you're justifiably paranoid, and you should reconsider the choices you're making regarding employment. Obviously we don't all have the option to bail at any time and find other work, but if this is the kind of culture you're seeing as normal, I feel very sorry for you. Anyone i…
I'm not advocating sneaking around and spying on your co-workers. I'm not suggesting paranoia.
What I'm saying is that it's not a bad idea to understand the health of your employer (commercially, competitively, and financially) and recognize when that health changes for better or worse. If I get up and ask 10 co-workers who our biggest competitors are, I can guarantee 5 of them couldn't answer that question. If I asked the winning 5 which ones were growing and could possibly eat our lunch, 4 of them would fail that test.
Have you ever been let go from a job after being told for months/years that everything was fine and the company was doing great? I have. Luckily, at the time, I had no substantial obligations such as raising a family. Now I do.
I learned from that point on to never be blindsided again. And it's worked well for me so far. And I'm not a paranoid person at all. I sleep pretty well, actually.
Re: My Startup has 30 Days to Live
#93I'm going to say this knowing that I may get down voted to heck. And I don't mean it as a "told you so" to the OP, but rather hopefully some cautionary advice for would-be founders. I have come to the opinion that if you are bootstrapping, you have no business calling your company a startup. You are building a small business. And there is nothing shameful about this. You are among solid companions with your local plu…
I would call any new business a startup, but call the VC-driven, exponential-growth-seeking model "growth startup". I think you make a great point, but out of curiosity, what do you suggest are the best avenues for funding a tech business in the more traditional revenue-driven-growth model, if you're not bringing enough seed capital to get off the ground on your own? It seems like what's missing is an accessible happ…
>I think you make a great point, but out of curiosity, what do you suggest are the best avenues for funding a tech business in the more traditional revenue-driven-growth model, if you're not bringing enough seed capital to get off the ground on your own?
Traditionally, you start the business after you have some experience in the field, and either have some skill you can use to drive some revenue, or some capital.
This idea that you start a product business (rather than a business selling your labor directly) right out of school seems like a new one.
Re: My Startup has 30 Days to Live
#94Earlier quoted context omitted.
That's your definition of a startup. Most people (myself included) think of a startup simply as a new, fledgling business. Every business starts with nothing. Your aspirations, whether they are to become billion-dollar or just side income are irrelevant. They can lead to some bone-headed decisions along the way though.
A barber shop is a new, fledgling business, but it is not a startup. PG wrote an essay on this - you should read it.
I'd like to second this, and provide a helpful link.
Re: My Startup has 30 Days to Live
#95Maybe I missed it, but WHY does your startup have 30 days to live? You ran out of money and have no raise potential? How could your employee and cofounder not know this already?
Founders are all very well aware, employees still in the dark. No raise potential as metrics are nowhere near where they should be. Solid IP and team that might make for a good acquisition, provided investors will OK it (they've rejected one some time ago)
Pretty sure your employees know. Did you cut the free sodas and company paid lunches?
Re: My Startup has 30 Days to Live
#96Earlier quoted context omitted.
That's your definition of a startup. Most people (myself included) think of a startup simply as a new, fledgling business. Every business starts with nothing. Your aspirations, whether they are to become billion-dollar or just side income are irrelevant. They can lead to some bone-headed decisions along the way though.
A barber shop is a new, fledgling business, but it is not a startup. PG wrote an essay on this - you should read it.
Oh come on. Just because Paul wrote something does not suddenly make it fact.
The word 'startup' is at least a few hundreds years old, most likely from the word 'upstart' - the action of starting up.
Startup as defined in the Merriam Webster dictionary: A fledgling business enterprise.
Startup as defined in the Oxford dictionary: A newly established business.
Re: My Startup has 30 Days to Live
#97So, it sucks, but it happens, and it won't matter nearly as much in June 2014 as it seems to right now.
Your co-founder will, hopefully, not find out about this through guessing "Is this my company?" on Twitter, but rather in hearing it from you. You may be heartbroken about it, you may cry a bit (totally OK). Then, you will put on your Responsible Adult pants, call your employee into the office, and tell them the situation. You will emphasize that it is in no way their fault. You will tell them the status of your future payments to them (you can make them -- good), and instruct them that they have no job now other than lining up their next gig, and that you are totally at their disposal for making that happen. First among all things you take care of your employees -- they have the worst risk situation of anyone involved.
You will then tell your investors that you're failing and will be proceeding to wind up the business in an orderly fashion. They probably already know this. None of the ones who you care about will hold it against you -- "this is the nature of the business we have chosen." Some of them may likely attempt to invest in your endeavors in the future, if you decide to go down that route.
You will then draw up and execute on a plan to wind down the business in an orderly fashion. Give your customers a window on their apps going dark, if appropriate. Turn off new signups now. Turn off ability to take money now, unless it is absolutely required to continue paying your employees. There likely a small mountain of very boring administrative work here -- your lawyer and accountant can help you through it.
After this is over, you'll probably be very stressed. That is fine and natural. You're in the hottest market ever in terms of hiring right now. If you want a job immediately, you will have many offers for it. "Built a company with real revenues from nothing. Got into an accelerator. Took funding. It didn't work." is enough of a resume to get you an interview at any number of places. If you need introductions, you are probably well-networked enough to get them, but if for some reason you want more drop me an email. Your designer co-founder will have, similarly, no shortage of offers.
Like tptacek says below, this will not meaningfully hurt your chances of creating a business later. You've likely learned plenty through the experience.
It sucks. It will be better, very soon. You don't have to be scared: this is routine and, while it doesn't feel like it, you're actually in very good position, both absolutely and relative to many other people.
Re: My Startup has 30 Days to Live
#98Is it legit? I saw a few 30 days left to live stories here, now 30 days for startup to live. Is it PR shit or real deal? If you fire employee you must pay compensation, so how can you not able to pay his payroll of week? If you fire him it will be more expensive then one weeks payroll.
In most states of the US (at will employment), you do not have to pay that much severance. So you can either pay an employee their salary every 2 weeks (and their vacation is paid), or pay then 2 weeks severance.
The amounts might not be that different. $2k paycheck versus $3k severance.
Re: My Startup has 30 Days to Live
#99Earlier quoted context omitted.
That's a tough spot and I've been there, as the employee that's on the fence as the management nail-bites over accounts receivable and wondering if they can make payroll. I've since learned that you keep your ears to the ground at all times , in ANY company you work for. You don't sit in your cube with your Dr Beat Headphones on, you listen to office talk. You overhear that phone call from a vendor asking where their…
This is just no way to live. If you find yourself doing this, you're either needlessly paranoid and worrying yourself into an early grave, or you're justifiably paranoid, and you should reconsider the choices you're making regarding employment. Obviously we don't all have the option to bail at any time and find other work, but if this is the kind of culture you're seeing as normal, I feel very sorry for you. Anyone i…
No, it's situational awareness. "Is this company doing well? Or is it not?"
That's a very reasonable and business-minded way to approach your employment. You have a very direct interest in the company's success: your paycheck, reputation, friends, etc. Being aware if the company is exploding is simple sanity.
Re: My Startup has 30 Days to Live
#100I'm going to say this knowing that I may get down voted to heck. And I don't mean it as a "told you so" to the OP, but rather hopefully some cautionary advice for would-be founders. I have come to the opinion that if you are bootstrapping, you have no business calling your company a startup. You are building a small business. And there is nothing shameful about this. You are among solid companions with your local plu…
The word "startup" is the least important part of the whole story.