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"When logic clouds reason" Lets take this up a notch. If a open a startup today, statistically my chances of a $500K exit in two years (like his) are pretty s

by Murkin 15y ago

"When logic clouds reason" Lets take this up a notch. If a open a startup today, statistically my chances of a $500K exit in two years (like his) are pretty slim. Lets say 20% ? So, if I go for it I have a projected $50K/year for next two years. Or, I can go work somewhere and get $100K/year. Ergo, starting a startup is foolish. Anyone hiring ?

darasen 15y ago
He's only using the 500k in his examples. Given the size of SVM, LP who bought giftzip.com I am certain he made much more than 500k.
brousky 15y ago
Is doing a startup foolish? If you're doing it as a way to earn a better living, it certainly is! It's all about thresholds. With anything between a decent and really good salary (say 75k to 200k), your life is pretty much the same except for the level of luxury in what you own. You still have a mortgage to pay and if you lose your job, you need to find a new one very soon or you'll be draining your savings and defaulting on debt payments within a few months. If someone offers to buy your startup and that would get you over a major threshold (eg. clear the mortgage and debts, enough cash left to carry on current rate of spending for a couple years), it would be foolish not to take it, especially if you have kids. Get a bit of rest and aim for the higher thresholds on your next startup.
todojunkie 15y ago
You're looking at it purely from a money perspective. There is more to it than just that. Yes, you can make $100k/year at a "job" but you may be living a miserable life delegated as a gear in a gear box with no freedom of creativity. On the other hand, yes, your chances of having a $500/k exit are slim, but how is your quality of life effected? Are you happier? Are you able to spend quality time with the people in your life instead of bitching about your shit head manager? IMHO I believe your view is a bit narrow minded.

by Murkin 15y ago

darasen 15y ago

He's only using the 500k in his examples. Given the size of SVM, LP who bought giftzip.com I am certain he made much more than 500k.

brousky 15y ago

Is doing a startup foolish? If you're doing it as a way to earn a better living, it certainly is! It's all about thresholds. With anything between a decent and really good salary (say 75k to 200k), your life is pretty much the same except for the level of luxury in what you own. You still have a mortgage to pay and if you lose your job, you need to find a new one very soon or you'll be draining your savings and defaulting on debt payments within a few months. If someone offers to buy your startup and that would get you over a major threshold (eg. clear the mortgage and debts, enough cash left to carry on current rate of spending for a couple years), it would be foolish not to take it, especially if you have kids. Get a bit of rest and aim for the higher thresholds on your next startup.

todojunkie 15y ago

You're looking at it purely from a money perspective. There is more to it than just that. Yes, you can make $100k/year at a "job" but you may be living a miserable life delegated as a gear in a gear box with no freedom of creativity. On the other hand, yes, your chances of having a $500/k exit are slim, but how is your quality of life effected? Are you happier? Are you able to spend quality time with the people in your life instead of bitching about your shit head manager? IMHO I believe your view is a bit narrow minded.