Startup CEOs – The Panhandlers of the Internet
So you want to start a startup. You’ve got a burning idea, the market is fresh for it, you’re ready to go chase it. You after all are an entrepreneur and ready to take the glorified leap!
Well, before you take the leap, here’s my check list of what you need to have going on in your personal life before you are ready to go take the startup plunge.
1. Ability to go 6-12 months without income. You either need the requisite lifestyle (e.g. new grad living at home with ma and pa), or you’ve saved up a nice hefty chunk of emergency funds. Time is the ultimate pre-requisite for a startup. You will eventually get customers and make money if you just keep pushing, but it will take time! You need the personal financial backdrop to allow you to do it. Raising money is to risky/slow, you need to be able to self-fund at first.
2. I really suggest you have a very low cost of living. You should have re-engineered your life so your bills are as minimal as they come. Forget about your fancy CEO/President/Founder title and the BMW that should come with it (in fact if you have allusions of driving a BMW you should give up on your startup dream now). You, Mr. Fancy Startup Guy, are effectively a panhandler of the interwebs, you are begging people who browse by to give you a few bucks. Beggars don’t drive BMWs. They walk and steal bicycles. Thats what you need to do.
When you First Launch, You Mr. Startup CEO Are Basically a Glorified Panhandler of the Internet Sidewalks

3. This likely precludes having any personal debt. Especially not high-interest debt like credit cards. You see another useful skill for starting a startup is financial education. You need enough of it to not do stupid stuff when your company makes money. Carrying credit card debt, re-financing your home to pay off credit card debt, etc are all examples of not having the baseline financial education to run a business. Debt will kill your early stage company and fast. This kind of scenario is very common – year 3 rolls along, you have hired a few folks, and then “NewCo” launches its big new thing that is disruptive to you. Uh-oh. Suddenly folks are flocking away from your product. You need to do the following two things – “restructure your costs for less money” and “make your product even better”. But you have $5k of high-interest debt payments per month… and they will call your ass and bankrupt you if you miss a payment. So now you have to fire people and you can’t make the product better. You have to then go raise money on a debt-ridden business that is laying off and getting attacked, and is unable to counter-attack. This vicious cycle continues until your business is dead.
4. You should have the skills to make whatever it is you are starting up. You shouldn’t need to hire people to build the initial launch product. If you don’t have the skills, then all the time you freed up with your draconian, cave-dwelling lifestyle will be spent raising money on crappy terms, or convincing engineers to build it for you. Learning how to program is probably a faster way to get your startup going.
5. You’ve failed in some really embarassing way that gives you humility, and then you’ve had the mental fortitude to get past it. Failing a course in university would be a good example of this… but only one course.. not something like a full semester…. and still having good marks when its all said and done because you care. Something like that… experience handling trials and tribulations is key.
6. Your support system isn’t going to knife you in the back on every mistake/failure, especially your partners/co-founders in startup-land and especially your significant other. You are going to f-up soooooo much its not even funny. My favourite business quote is this “if you want to bat 1000 play in the minor leagues.” Startup land is major league baseball, but you are facing Nolan Ryan’s 107mph fastball every swing. And if you get frustrated and charge the mound ala Robin Ventura he puts you in a headlock and feeds you what you deserve. If you hit .300 in your startup you will end up in the startup hall of fame with Zuck, Billy Gates, Jobs, etc.. you will be a god. You will probably only hit .200 or .100, its that loaded against your getting even a base hit, let alone a home run. So yes, you will need emotional support.
What It Feels Like On Most Days In a Startup

I guess ultimately, my big thesis is that time & determination are the two biggest factors to getting your super early stage startup off the ground and launched. Once launched “the market”/”your ability to adapt to the market” is the next big factor to add to time/determination. And then later on your ability to recruit stars & wisely raise capital for growth come into the fold… congrats if you get to that stage (don’t worry about it now).








