Founder Fuck-ups: Quitting my job at idea stage and pouring all my savings
Founder Fuck-ups #03: Quitting my job at idea stage and pouring all my savings
After finishing grad school at the University of Alberta, I worked in the field for three years. I landed a great job in my 20s that paid well and let me save a lot. These savings really helped lift my family back in India. But, I've always wanted to run my own business and didn't like working for someone else, so I decided to quit my job and start my own company, LoginRadius. It was just an idea back then. I also put all my savings into it over the next 12 months, without earning a salary, until I had no money left.That was probably my first big founder fuck-up. I call it a af-up because there are smarter ways to start than taking huge risks like that. For someone from a poor family in a small village in India, this was a massive risk. I could have saved so much money, time, and effort and had a better shot at success. I'll talk more about this later in the article.You might call me bold, passionate, and courageous, or say I have strong conviction. That's probably why I'm here today, but looking back, it was foolish. And the craziest part? The original idea didn't even work out, and had to pivot the company after 4 years.Luckily, this mistake ended up working out for me, but I DO NOT recommend anyone to make the same foolish decision I did.Looking back, I see three main reasons:#1 Deeply passionate about starting a business. I was always passionate about starting a business and hated working for others. This hatred pushed me to quit, and my passion made me start something.#2 Highly optimistic and confident. Entrepreneurs are optimistic people, but I was foolishly optimistic about the idea and overly confident in my ability to build a successful company.  #3 I was a novice (aka naïve). Haha, yes, I wasn't thinking rationally at that time, and as a first-time founder, I had little to no idea of the mountain of challenges I would be facing in building a company. Additionally, in those days, I didn't have any friends or family who had any knowledge about tech startups. So, no one really helped me understand the consequences or advised me on a better approach.Build Part-Time While Working Full-TimeThere's no longer a need to quit your job to develop an application. Nor do you need a hefty budget or numerous tools. Why not work on your idea part-time while maintaining your full-time job? This approach significantly reduces the risk.Get Traction to Validate Your IdeaYou don't have to assemble a team or spend a lot of money to attract some early customers to validate your idea. Engage closely with your early adopters, listen attentively, and seek advice from founders who have navigated this journey. Strive for as much validation as possible before taking any major risks.Never Invest All Your SavingsBy now, it should be clear. Regardless of your skills or confidence, the harsh reality is that 98% of startups fail, and we all have bills to pay 🙂. The scenario might be different if you come from a wealthy background.Opt for Raising CapitalYou will need money to build the company, but instead of pouring all your savings into it, consider raising capital from friends, family, or 'friendly fools,' as well as angel investors or seed venture capitalists. This will not only validate your competency but also your business idea. Moreover, if you cannot raise this capital, it is a good indication that you should not proceed with building the company.Please subscribe to my newsletter Founder Fuck-ups on Linkedin or on Substack. 😉