3 ms·

The point here (which seemed to be muddled in the post) is that you can’t assume that your startup succeeds and not save with that expectation. Its not that st

The point here (which seemed to be muddled in the post) is that you can’t assume that your startup succeeds and not save with that expectation. Its not that startups are financial suicide - the suicide is not saving and not keeping the personal burn rate low. A clearer way of saying the same point - keep on saving like a regular employee would - you will protect yourself in case startup fails. Do not assume that the startup succeeds and have no safety net. That sets up for a disaster.

ramen-san 8y ago
To put a finer point on that, it’s important to remember not all startups succeed. We never hear the TechCrunch stories about the startup that quietly shuts down, or was sold to make the investors whole, leaving founders and employees holding the bag. Reality is starting your own startup is a very risky proposition. Huge upside potential (serious generational wealth), but tons of downside scenarios. If financial security is important to you, then pursuing a more measured approach to reaching some basic level of financial independence is probably a good idea before going that route - I write a lot about this here: https://ramenretirement.com/ https://ramenretirement.com/ On the other hand, starting or joining a startup can be a huge accelerator to career and skills growth. You’ll get opportunities you’d have to wait years for at a larger company. That’s (arguably) the best reason to join someone else’s startup.
- collyw 8y ago
  Interestingly the startup I joined had work very similar to the big established company I work for now - cleaning up someone else mess and trying to keep it running.
  - ramen-san 8y ago
    Ha! No doubt. No shortage of schleps and ‘tech debt’ at startups too. But if the company is doubling every year it will hard to not be swept up by that rising tide in terms of seniority and responsibility.

ramen-san 8y ago

To put a finer point on that, it’s important to remember not all startups succeed. We never hear the TechCrunch stories about the startup that quietly shuts down, or was sold to make the investors whole, leaving founders and employees holding the bag. Reality is starting your own startup is a very risky proposition. Huge upside potential (serious generational wealth), but tons of downside scenarios. If financial security is important to you, then pursuing a more measured approach to reaching some basic level of financial independence is probably a good idea before going that route - I write a lot about this here: https://ramenretirement.com/ https://ramenretirement.com/ On the other hand, starting or joining a startup can be a huge accelerator to career and skills growth. You’ll get opportunities you’d have to wait years for at a larger company. That’s (arguably) the best reason to join someone else’s startup.

collyw 8y ago
Interestingly the startup I joined had work very similar to the big established company I work for now - cleaning up someone else mess and trying to keep it running.
- ramen-san 8y ago
  Ha! No doubt. No shortage of schleps and ‘tech debt’ at startups too. But if the company is doubling every year it will hard to not be swept up by that rising tide in terms of seniority and responsibility.