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Entrepreneurs anonymous

economist.com

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Re: Entrepreneurs anonymous

#41

Post by rdlecler1 »

We suffer from strong survivor bias. Each day CrunchBase sends me a list of companies, most that I've never heard of and many that I can't understand how they're being backed, and it reinforces the idea that you can go out and build a great product and VCs will rain money down on you on your path to success. However these are the exceptions that prove the rule.

Some advice from someone in the trenches.

First, assume that you will never raise a dollar of outside Angel or VC money. Smart, great board, great product, it won't matter. An investor's null hypothesis is that you will fail and it is incredibly difficult to convince them otherwise. If you're the CEO and you don't have Brad Pitt like charisma and you're not a sociopath then it will be very very hard to raise capital.

Second, be prepared for the dreads. The worst part about it is that once these wounds are opened they will be there for life. You're going to wake up at 4:00 and won't be able to sleep because your mind is churning, trying to find some solution to your problem. This usually boils down to insipid growth rates and lack of capital to properly execute.

Third, there will always be 100 things to do and you get to pick 3. What you have will be imperfect. You won't have the metrics you need, and you'll be apologizing for everyhing. It also makes it that much harder to get others to see your vision.

Fourth, the longer it takes you to raise capital the more your team will doubt your competence.

Fifth, you will be rejected every day. VCs, customers, partners, potential employees. This takes a massive psychological toll even as you're get back up to put on that brave face. Unless you are a sociopath it is bound to chip away at your confidence and it may be that split second of doubt that hurts you in your next meeting.

Re: Entrepreneurs anonymous

#42

Post by pyre »

thegenius wrote: post #21

The hardest thing about entrepreneurial success for me personally is the envy it has generated. I wasn't prepared for it. When I first started seeing results in my business, I quit my job and was able to spend a lot of time doing whatever I wanted. My wife would post pictures of us constantly going on day trips and vacations. It pissed some important people in my life off, and they became very passive aggressive towa…

> they can end up feeling extremely violated

That is their own personal issue if being proven wrong makes someone feel 'violated'.

Re: Entrepreneurs anonymous

#43

Post by wickedOne »

richardjordan wrote: post #19
wuliwong wrote: post #15

The implication that this gentlemen became an alcoholic because he quit his corporate job and became an entrepreneur seems pretty far fetched. The guy was probably either already an alcoholic or didn't actually become one. There's a huge difference between drinking to cope with stress and drinking because you are an alcoholic. The latter needs no stress to cause him/her to drink.

I don't think you're correct here. The stresses of being an entrepreneur take a tremendous toll and given the risk-taking nature of the condition (entrepreneurialism) I absolutely see those stresses lead to dangerous and addictive behaviors in those who follow an entrepreneurial path - whether it's drugs, drink, sex or gambling I have seen all behaviors triggered in individuals. The absolutism of your position on wha…

i think what he's trying to say is that becoming an alcoholic over a stupid decision and the resulting stress is a bit far fetched…

i second that; you might increase the amount you're drinking on a dailly basis for a bit of relief, but that has absolutely nothing to do with being an alcoholic.

Re: Entrepreneurs anonymous

#44

Post by sumedh »

throwaway8137 wrote: post #37
maaku wrote: post #32

Earlier quoted context omitted.

And switch jobs or get external offers often, and use it to ratchet up your salary to the higher end of market rate. Work for big corporations (they pay better), or be employee #1 or #2 of startup (stock >= 5% or it ain't worth it). Only do projects that have a high probability of success and which will make your resume more valuable. Live frugally and put it all into savings and passive investments. Not what I do, b…

I shouldn't have mentioned this. I was trying to be as honest as possible with myself, and that is one of the images that comes up. But what I really meant was financial independence (working only when I want to). I have a family, so I can't save every penny, I am already payed at the higher end of market rate and I could never ever work in corporate job.

> I have a family

Its going to be 10x harder for you, if you have a family.

Why dont you start working on weekends/spare time on your idea, if you get some traction then you can think about quitting your job.

Re: Entrepreneurs anonymous

#45

Post by maaku »

throwaway8137 wrote: post #37
maaku wrote: post #32

Earlier quoted context omitted.

And switch jobs or get external offers often, and use it to ratchet up your salary to the higher end of market rate. Work for big corporations (they pay better), or be employee #1 or #2 of startup (stock >= 5% or it ain't worth it). Only do projects that have a high probability of success and which will make your resume more valuable. Live frugally and put it all into savings and passive investments. Not what I do, b…

I shouldn't have mentioned this. I was trying to be as honest as possible with myself, and that is one of the images that comes up. But what I really meant was financial independence (working only when I want to). I have a family, so I can't save every penny, I am already payed at the higher end of market rate and I could never ever work in corporate job.

Hrm that's trickier, although the specifics depends on your family situation (does your significant other work?). I have a family myself, wife and two kids. I can say from experience that what would have helped was having a large rainy day fund - e.g. 1/2 your annual salary. I had a much smaller amount set aside, which was only barely enough to make it to a comfortable job as a higher up in a startup (see my edit above). And to be honest the stress and uncertainty almost destroyed my marriage, even though she was very, very supportive of my choice.

Having a much larger savings would have helped. Having a plan B is also good. With a family you need a safety net.

I'll be honest that your options are more limited, but I'm proof that it is possible.

But is it what you really want? Whether you go this route depends on what is driving you, and how strongly.

Are you local? Feel free to reach out to me if you want more advice from a parent entrepreneur. My email is in my profile.

Re: Entrepreneurs anonymous

#46

Post by maaku »

sumedh wrote: post #44
throwaway8137 wrote: post #37

Earlier quoted context omitted.

I shouldn't have mentioned this. I was trying to be as honest as possible with myself, and that is one of the images that comes up. But what I really meant was financial independence (working only when I want to). I have a family, so I can't save every penny, I am already payed at the higher end of market rate and I could never ever work in corporate job.

> I have a family Its going to be 10x harder for you, if you have a family. Why dont you start working on weekends/spare time on your idea, if you get some traction then you can think about quitting your job.

> Why dont you start working on weekends/spare time on your idea

I suspect you don't have a family ;)

If you have a family it is better to start moving on your idea within normal business hours, where legally possible (some creativity may be required).

Re: Entrepreneurs anonymous

#47

Post by [deleted] »

sumedh wrote: post #44
throwaway8137 wrote: post #37

Earlier quoted context omitted.

I shouldn't have mentioned this. I was trying to be as honest as possible with myself, and that is one of the images that comes up. But what I really meant was financial independence (working only when I want to). I have a family, so I can't save every penny, I am already payed at the higher end of market rate and I could never ever work in corporate job.

> I have a family Its going to be 10x harder for you, if you have a family. Why dont you start working on weekends/spare time on your idea, if you get some traction then you can think about quitting your job.

[deleted]

Re: Entrepreneurs anonymous

#48

Post by maaku »

cageface wrote: post #20
porter wrote: post #10

Earlier quoted context omitted.

I quit a good banking job after making it through the recession and several rounds of layoffs. My friends thought I was nuts. I had friends take me out to lunch and tell me most people were looking for jobs, not quitting them. But I didn't quit just because I was dissatisfied. At the heart of it, I just felt like a caged animal and I knew I had to break free.

The thing I've learned from trying to be independent for four years is that you always have to answer to someone. Whether it's a boss or customers or business partners or the platform provider you depend on you are never truly "free".

I don't buy this. As CEO you have the right to say "You know what Big Important Customer? You're a dick and I don't want to do business with you."

That is a strategically stupid thing to do. You may not ever actually do it. But being able to do that without having to answer to anyone but yourself is enough. There's a very real psychological difference.

Re: Entrepreneurs anonymous

#49

Post by jcavin »

I really like the part of the article that talks about taking breaks. Entrepreneurs = work hard. I am a big believer in working on nights when others are having a good time, but you got to take care of yourself. Burning out only slows you down ultimately.

I like to surround myself with family and activities I love to recharge my battery. Often when I come back to working on my project the creative ideas come flowing out.

Re: Entrepreneurs anonymous

#50

Post by thallukrish »

It is a game of survival. You have to try several tricks to keep yourself afloat until you reach what you call as success. Being lean (in my case I am a single founder), fit physically and mentally (I did not do this so aggressively when I was employed:-), keeping track of your expenses (some sort of cash flow), going for little money once in a while in a consulting mode, having sufficient capital to not disturb your family all and more are needed till you think you have reached the point where you have exhausted all options - research, market, positioning, customer demos , partnering and so on.
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