After working for this large company for some years now, you are now feeling bored. It is not as exciting as it used to be, and you just hate the hierarchy.
Now, you want to startup on your own. You have thought of this great idea, which has been on your mind for some time. You can see the huge unmet demand in the market. The solution that you propose is going to be lapped up before it even hits the market. It’s the next multi-million dollar business. The press will be talking about it and your fellow peers will be going gaga (actually jealous).
I am sorry to break the bad news. That’s how the story starts in your mind. But that’s not how it moves forward.
It takes more than an idea to be an entrepreneur and to build a startup. The big question that you should be asking yourself is “Am I financially ready to startup?”
Having done 1 startup, moving into another and lived an almost a startup like career, let me share with you my personal experience. A startup is not just all about fun. It is also a great struggle.
The idea of creating something that you believe in and taking it to the customers in the market is the fun part. However, a startup also tests you at every level – physical, mental, emotional and financial. It can be a great, perhaps the greatest struggle of your life.
I speak about this from personal experience of living an entrepreneur’s life and having gone through the grind.
The one thing that haunts you the most is money. And if you happen to be a family person – not being able to provide food on the kitchen table is the single biggest factor that can drive you to kill your startup dreams. Ask me!
Money, Money, Money
The fact is that you can handle a lot of pressures when you get your financials in place.
Hence, it is very important that before you startup, you have enough money to take care of at least the next 3 years of your personal expenses plus any expenses that you might need for your startup.
As you go through the initial and the most difficult phase of building your startup, it may involve multiple pivots to arrive at the right product-market fit. You will need enough financial backing to ride through this very demanding period.
Now, in all probability, you would say that you would get venture funding. You are right. You may.
Here’s the truth for you to consider. More than 95% of startup pitches are rejected. Mine was too!
While you hear a lot about startup funding and millions of dollars being offered even at idea stages, it does not mean that you too will find some God-sent Angels or Venture Capitalists to fund your startup dream. They may but only when they see that it makes profitable sense to do so.
The lesson is – Be prepared to do the journey yourself.
How much you may need will depend upon various factors? But I am going to make you a proposition. Here it is. You can save upto Rs. 83 lacs or over US Dollars 140,000 for your startup fund.
All this is your money. No VCs, no borrowings or no support from parents, friends, family. And here is the other better part. You can save all this money in less than 5 years.
Want to? Then, let’s go for it!
From - Vipin Sharma
Udaipur, India
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