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Love the calculator, it’s very useful. In my view it has never been easier to build a technology business than today. The public cloud makes it so you can start

by lbacaj 8y ago

Love the calculator, it’s very useful. In my view it has never been easier to build a technology business than today. The public cloud makes it so you can start small or free and scale as needed and almost everything has been open sourced. All you need is the idea and the will power. My only beef with the calculator is that I’d like to recommend another approach, that is you don’t actually need to quit your job to make, that is the end goal shouldn’t just be to quit. The costs of starting tech business have never been so low to get a an idea off the ground you can benefit from both a job and the other thing your working on. Steph Smith has a great post on this https://blog.stephsmith.io/you-dont-need-to-quit-your-job-to-make/ https://blog.stephsmith.io/you-dont-need-to-quit-your-job-to...

DVassallo 8y ago
Yes, quitting your job is not the only way - or the best way for many people. However, it's not always possible to start something on the side with a full-time job. In my case, my employment contract prevented me from doing that. And even if it didn't, it would have been hard to find the time between work and family. If I didn't have enough savings, I might have taken a different approach - maybe start consulting or freelancing while boostrapping. But in my situation, I preferred to just focus on my business. I still have the option of doing freelancing/consulting if the circumstances require it. And obviously, I also have to option of going back on the job market if I don't manage to pull this off.
- lbacaj 8y ago
  Highly recommend Steph’s blog post, she puts it much better than I ever could. Totally agree that could kill the idea of doing both. At times employers have made folks sign very strict contracts, most though would not stand up in courts as long as you never use their equipment and never do it on work time.
dahart 8y ago
I quit my job to start a startup while having a family and kids and I consider it a mistake. I’m not sure it would have changed the outcome (successful exit) but it caused a lot of extra stress, and I can safely say that I didn’t quite know what I was doing and it would have been better to have a stronger plan (especially marketing), a longer runway, a more complete prototype, and more evidence of a market, before I took the leap and quit my job. All those things can be done on the side while holding down a job, even with a family. (As long as the job is closer to 40 hours a week than 60 or 70...) $1M is a nice runway, but most people don’t have that, and even with it, the more you have locked down before you quit your job, the better.
- lbacaj 8y ago
  Amen. I think your story is important and why I think we should be pushing people more to this sort of arrangement. Even VCs will never give you a penny without first quitting your job, but honestly some of the seed stuff I don’t see why one couldn’t do both if there is promise.
  - dahart 8y ago
    Speaking of VCs, part of not knowing what I was doing before I quit my job was not understanding how VCs worked, and how much evidence they need before investing. They spend a lot more money on companies that have $1M/month income than on seeding unknown first timers, even seed funds. There are too many misleading stories of cash being thrown at startups with nothing more than an idea. Maybe it happens once or twice in a blue moon, but the reality is that they prefer a sure thing and don’t often fund companies with no traction. It took a lot longer to raise money than we expected, even after we had what we thought seemed like good traction. And when it takes longer to raise, it means you need a longer runway. It took longer to build than we thought too. I was very lucky to have a couple years’ runway, and it still wasn’t nearly enough, I should have planned on 3 or 4 times as long.
- puranjay 8y ago
  I think more than just money, you have to account for your "mistakes runway". You WILL make mistakes - a lot of them if its your first business. When you are 25, you just have a lot longer runway to make those mistakes. At 35 with a wife and kid, you have limited time to make mistakes and learn from them
  - dahart 8y ago
    Absolutely true. I heard that before starting and (of course) didn’t understand what it meant. And we were optimistic, so we discounted it, assuming we were starter than the average Joe, so we wouldn’t make as many mistakes. Nope, we made mistakes that could be counted in units of years and hundreds of thousands of dollars. And broadly speaking, yeah, nearly everyone does when building companies. The thing that never occurred to me that you put nicely is that you have a finite mistake budget, and you don’t know what it is.

by lbacaj 8y ago

DVassallo 8y ago

Yes, quitting your job is not the only way - or the best way for many people. However, it's not always possible to start something on the side with a full-time job. In my case, my employment contract prevented me from doing that. And even if it didn't, it would have been hard to find the time between work and family. If I didn't have enough savings, I might have taken a different approach - maybe start consulting or freelancing while boostrapping. But in my situation, I preferred to just focus on my business. I still have the option of doing freelancing/consulting if the circumstances require it. And obviously, I also have to option of going back on the job market if I don't manage to pull this off.

lbacaj 8y ago
Highly recommend Steph’s blog post, she puts it much better than I ever could. Totally agree that could kill the idea of doing both. At times employers have made folks sign very strict contracts, most though would not stand up in courts as long as you never use their equipment and never do it on work time.

dahart 8y ago

I quit my job to start a startup while having a family and kids and I consider it a mistake. I’m not sure it would have changed the outcome (successful exit) but it caused a lot of extra stress, and I can safely say that I didn’t quite know what I was doing and it would have been better to have a stronger plan (especially marketing), a longer runway, a more complete prototype, and more evidence of a market, before I took the leap and quit my job. All those things can be done on the side while holding down a job, even with a family. (As long as the job is closer to 40 hours a week than 60 or 70...) $1M is a nice runway, but most people don’t have that, and even with it, the more you have locked down before you quit your job, the better.

lbacaj 8y ago
Amen. I think your story is important and why I think we should be pushing people more to this sort of arrangement. Even VCs will never give you a penny without first quitting your job, but honestly some of the seed stuff I don’t see why one couldn’t do both if there is promise.
- dahart 8y ago
  Speaking of VCs, part of not knowing what I was doing before I quit my job was not understanding how VCs worked, and how much evidence they need before investing. They spend a lot more money on companies that have $1M/month income than on seeding unknown first timers, even seed funds. There are too many misleading stories of cash being thrown at startups with nothing more than an idea. Maybe it happens once or twice in a blue moon, but the reality is that they prefer a sure thing and don’t often fund companies with no traction. It took a lot longer to raise money than we expected, even after we had what we thought seemed like good traction. And when it takes longer to raise, it means you need a longer runway. It took longer to build than we thought too. I was very lucky to have a couple years’ runway, and it still wasn’t nearly enough, I should have planned on 3 or 4 times as long.
puranjay 8y ago
I think more than just money, you have to account for your "mistakes runway". You WILL make mistakes - a lot of them if its your first business. When you are 25, you just have a lot longer runway to make those mistakes. At 35 with a wife and kid, you have limited time to make mistakes and learn from them
- dahart 8y ago
  Absolutely true. I heard that before starting and (of course) didn’t understand what it meant. And we were optimistic, so we discounted it, assuming we were starter than the average Joe, so we wouldn’t make as many mistakes. Nope, we made mistakes that could be counted in units of years and hundreds of thousands of dollars. And broadly speaking, yeah, nearly everyone does when building companies. The thing that never occurred to me that you put nicely is that you have a finite mistake budget, and you don’t know what it is.