40 harsh truths about startups and business
It took me 7 years to learn these 40 harsh truths about startups and business.
1. It’s a hike not a sprint
We all want to rush to the finish line - whatever that represents. But in reality, your business will dictate the pace. It's a game of patience and persistence that takes a long long time. And the road is mostly uphill.
2. It gets very lonely
Launching a business is a solitary journey. You’re in our head all the time, and the weight of responsibility rests squarely on your shoulders. Having a support group of fellow founders can be a significant help.
3. Everything takes much longer
From product development to closing the next customer, and achieving the new milestone. Accepting this prolonged timeline has helped me manage my expectations and reduce my frustration.
4. The goalpost will keep moving
As I approach one goal, the next quickly takes its place. This journey is a series of evolving objectives. Be comfortable with that.
5. Everyone wants you to stop
The ones who love you, and the ones who don’t. This stems from either their concern for your well-being, or their own fears and discomfort with your pursuit.
6. You haven't failed until you give up
I’ve faced way more setbacks than wins. Setbacks are the opportunities to grow. True failure will come when I stop trying.
7. Anyone can do it, but most shouldn’t try
Everyone has ideas. The challenge lies in turning those ideas into reality. Few possess these qualities.
8. Small wins are fuel
They say that you endure 10 lows to experience one small high, and that’s true. That small achievement is what keeps the motivation high. It reminds us that progress is being made, even when the ultimate goal still appears distant.
9. It’s not a zero-sum game
Another founder's success doesn't diminish my potential. And collaboration is a powerful force on this journey. Remember, it’ll get lonely up there.
10. Every founder is fighting a battle we know nothing about
Behind the facade lies a battlefield of challenges, sacrifices and insecurities that we rarely get to see.
11. You are not your company
I've often found myself caught up in the ups and downs of this roller coaster journey. And it took some time to realize that my self-worth isn't dependent on my company's success or failure.
12. Don’t wait to start a family
In my head, the journey sounded like this:
Step 1: Launch a company,
Step 2: Achieve success, then
Step 3: Start a family.
I’m glad I was convinced otherwise, early on. The journey is very long, and deferring family could lead to regrets. My family has been be a vital source of support and motivation.
13. Your life partner is your first investor, trusted advisor and biggest fan
She’s my greatest asset. She provides me with unconditional support. And I still need her advice on major business decisions. She’s never wrong.
14. Mixing business and family is possible
I know what they say, but mixing family and business does work. I've experienced it firsthand. Clear boundaries, effective communication, and shared values are the essential ingredients.
15. Your gut feeling is right
Ignoring my gut feeling has led to some of my worst decisions. Trusting my instincts as a founder has been a valuable asset ever since.
16. Everything is a presentation
Life in general is a giant one. Each interaction is an opportunity to share your story and build a personal connection. Always be prepared.
17. You don’t belong in Silicon Valley
And life isn’t a TV show. Get back to work.
18. Startups are a giant beauty pageant
The optics have fooled me for a long time. Then I’ve come to realize that a shiny exterior doesn't always mean there's substance within.
19. Pitch battles are a waste of time
They drained my energy and distracted me from the core work of building my business.
20. 99% of startup advice is rubbish
At first, I took it all in. Now I take every advice with a grain of salt.
21. Startup playbooks don’t work
I’ve tried them all. Nothing worked. I’ve been writing my own playbook as I go.
22. Traditional business skills > Startup growth hacks
Learning basic business skills has been more valuable in building a sustainable business than any startup growth hack.
23. Accelerators are just a rodeo show
And a waste of time. It took time to realize that accelerators are playing their own game too. The main act in the show is the accelerator itself, and their promises far exceed their results.
24. Everyone wants to be a mentor
And everyone has an advice to give, even when they know nothing about my industry or business. Being a mentor is nothing more than a status symbol for most. Very few have guided me effectively.
25. You probably shouldn’t be raising money
My company wasn’t suitable for venture capital, and it took me a while to accept the fact. Looking back, I should’ve avoided chasing unrealistic dreams and instead concentrate on building my business.
26. Most investors are full of sh*t
Some are good partners to have, but most have never sat in the founder's seat. They talk the talk, but their advice often falls short. It took me time to realize that many are simply fishing for information.
27. Fundraising ≠ Success
Securing investment is not an indicator of success. It can turn into a leash that slowly, then suddenly, tightens around the founder’s neck.
28. Acquisition headlines are more fiction than fact
Take the news with a grain of salt since they rarely tell the real story. A lot of founders end up with $0 or less.
29. Debt ≠ Investment
While debt may seem like easy cash, it is far from that. Not only is it unsustainable for growth, but it also takes a significant toll on our personal lives.
30. Press ≠ Revenue
I’ve first confused visibility with viability. Until I realized that press is nothing more than an ego booster that won't pay my bills.
31. Founder-led sales is non-negotiable
Outsourcing sales early on can be a costly mistake, and I learned this the hard way. There was simply no substitute for personally diving into sales.
32. Your customers won’t show up
The 'build it and they'll come' mentality is a hoax. Customers wouldn't magically appear; I had to acquire the essential skills to draw them in.
33. Firing customers is good sometimes
In our early stages, we wanted to convert every customer we could find. However, some turned out to be unprofitable and exceedingly demanding. As challenging as it was, parting ways with them ultimately saved us time and enabled us to focus on more promising opportunities.
34. Competition is overrated
Our competitors are trying to figure it out too. Many of our early rivals have either given up, pivoted their business or became irrelevant.
35. Shipping fast is not for everyone
It didn’t work for us. In fact, it led us to lose some key accounts that took us years to recover. Not every business thrives on speed. Some are better off prioritizing quality. Slow wins sometimes.
36. Headcount is a vanity metric
The size of the team doesn't necessarily correlate with the quality of the business. In reality, a small team with high revenue per employee is the true indicator of success.
37. Staying lean is a lifeboat
Maintaining lean operations has saved our company on numerous occasions. It helped us navigate challenges and significantly increased our chances of survival.
38. Profitability = Success
“Growth at all cost” is the prevailing mantra in Startup Land. Anyone can burn through cash in pursuit of growth when conditions are favorable, but it’s the healthy and sustainable businesses that can withstand any challenge and achieve long-term success.
39. Being ‘Default Alive’ is the ultimate playbook
Prioritizing profitability over endless pursuit of funding helps mitigate the financial risks commonly associated with startups.
40. Everyone writes their own story, eventually
It took me some time to grasp this realization. But every success story has been carefully curated. Comparing our journey to others can be misleading. One day, we'll have the chance to craft our own narrative.
So there you have it, 40 hard-earned lessons that have shaped my journey.
You can take them today and leapfrog 7 years of trial and error.