shurlburt

Always have backup plans when starting a business

Dec 17th, 2017
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  1. "I told my dad I wanted to start a business and he got so angry. How did your family react, and if it was negative how did you deal with it?"
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  3. On the value of being financially smart and always having backup options.
  4. AKA "Don't just quit your job to start a business."
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  6. ---
  7.  
  8. This is a really good question.
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  10. And the answer is kind of complicated
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  12. So, I don't have a good relationship with my parents, haven't really talked to them in many years. But it has nothing to do with the business at all, started way before that. So I didn't consult their opinion at all and they had no influence on what I did.
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  14. Now, that also meant that if I screwed up I couldn't rely on their help in any way (and hadn't relied on it for many years so I was used to it)
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  16. But I did have the opinions of friends of all stripes-- from people very close to me to distant friends to acquaintances to even old coworkers who heard about it and wanted to express their opinion :P
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  18. And I think the way I started the business factors into all of those opinions
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  20. So, if I ran of money I pretty much was homeless. The person closest to me at the time, my boyfriend, was disabled and depending on me. And I didn't know anyone else well enough to go live with them or anything. And at the same time, I was extremely burnt out. I was getting to the point where I couldn't even function in a job. All the stress I was under and the burnout made it so I basically wasn't producing code anymore and kind of left my last job before they could fire me
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  22. So working full time jobs was out of the question, and that was a huge swath of employment opportunities that were out of the question! So I kind of HAD to think about software contract work. I could work in another industry... or I could just do bursts of software work when I could.
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  24. Even with that, before I quit I talked to a LOT of people and did a lot of networking to make sure this kind of work was out there
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  26. And then I gave myself a time limit-- 2 months to find contract gigs or else I need to look for full time work again. Because that's all the savings I could afford to sit on my butt not working. After 6 weeks, I landed a great contract gig.
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  28. Having that time limit really helped comfort the people close to me, and they were actually extremely supportive. Wary, but given my health situation and how I was being extremely careful financially, understanding that this was pretty much the best path forward I could take.
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  30. The people not close to me thought I was out of my mind until I started making money and then they all wanted to be my best friend
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  32. As the business progressed, the people close to me had moments of doubt even after the "first paycheck" phase because they had a view into the ups and downs involved in getting a business going, which can be very stressful and unlike full time jobs.
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  34. But comforting them remained being about having solid backup plans in place and knowing that I had nowhere to go to if I ran out of cash so I HAD to have those backup options
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  36. So I always recommend people have these backup plans. Never launch a product without paying customers giving you money to do it. Never quit a job for consulting unless you 1) have savings like I did, and then set a time limit or 2) you have that consulting client already lined up
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  38. I know a guy working a full time job and successfully starting a business on the side because he's got a family to feed and no backup plans, just like me, but his full time job isn't stressful like mine was
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  40. Sorry for the long message-- I write all these details to convey all the nuance that went into this decision and to explain why I don't think it's good to start a business without backup plans and solid financial plans
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  42. (And that, in turn, is probably what concerns your family)
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