4 ms·
Left my job to do (current) startup. Spent 14 months w/o salary before we got funding. The total sounds like a lot but if I had to do it again I would. I'm a b
by jmathai 13y ago
Left my job to do (current) startup. Spent 14 months w/o salary before we got funding. The total sounds like a lot but if I had to do it again I would.
I'm a big proponent of being open about finances and the financial struggle of doing startups - especially when you have kids and one stay at home parent in my case.
Loss of salary for 1 year, 2 months
Does not include loss of 401k match or ESPP
-$140,000
Successful Kickstarter @ $25k
+$20,000
8 week contracting project @ 20hrs / week
+$16,000
Living expenses for 14 months (savings/stocks)
-$70,000
Post funding difference in salary from market rate
-$50,000 (year 1)
-$40,000 (year 2)
Total ≈ -$264,000
My wife randomly reminds me what started off as a 3 month experiment has turned into a 3 year "adventure". She's not adventurous though :).
- S4M 13y agoThank you for sharing. One thing I would question though: why do you count your living expenses as a loss, since you would have still spent that money if you had your job. In fact, I would say that you are most likely saving on living expense, since you must be trying to spend less since you are earning less. Good luck with your startup!
- jmathai 13y agoThat's a good point. I guess I counted it because it visually drained my savings. It felt different to see my savings account dwindle than it did to simply spend $ from paychecks. But I think you're right that it's money which would have been spent.