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We're Shutting Down and I'm Scared

388 点作者 danaseverson超过 11 年前

55 条评论

tptacek超过 11 年前
Been there.<p>* If your payables and debts are all in the company&#x27;s name, nobody is coming for your house. The likelihood that your business was going to die before you could pay all your debts was priced into your contracts. If you have employees, pay them and get them off your books first; employee wages are, depending on the state you&#x27;re in, the one likely exception to that rule.<p>* If they were in your name, well, that sucks, but still nobody is coming for your house. Your credit rating will probably absorb all the damage. I&#x27;ve had shitty credit all my life, so much so that it used to make it hard to get checking accounts (I&#x27;m not a deadbeat, I just don&#x27;t have revolving credit, and do have billing disputes that I don&#x27;t have time to resolve). Shitty credit is not that big of a deal. Just don&#x27;t use credit.<p>* It sounds like your wife is right. The existence of startups isn&#x27;t a guarantee that you&#x27;ll never need to work for someone else again. The normal life cycle of a startup founder is, (1) work for someone else, (2) start company, (3) run company into ground, (4) goto 1. Think of it this way: had your company been successful, it almost certainly would have left you in a state where you&#x27;d be working for someone else for a couple years during your earnout. &quot;Not working for someone else&quot; was never really on the table.<p>* Getting a company funded and then running it is a resume plus. You won&#x27;t have more trouble getting another job than you did getting the one you left to start this company.<p>* Your investors expected you to fail. The odds were always overwhelmingly that you would. The whole startup investment model is, put money into 10 companies, hope 1 succeeds. Your investors are professionals. Let their problems remain their problems.<p>* Are you going to get ridiculed for failing? Obviously, you&#x27;re not an HN reader. You&#x27;d have gotten ridiculed for succeeding. Ridicule is the air we breathe. Why do you care?<p>* Most small companies start from nothing. That&#x27;s good news, because &quot;nothing&quot; is an easy state to achieve. Give yourself a couple years, and then try again.
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laureny超过 11 年前
&gt; But, I can’t imagine working for somebody else. I wish my wife understood that.<p>She&#x27;s understood it long enough to let you pursue the dream of your life at great costs for her, maybe now it&#x27;s time for you to do some sacrifice for her and go work for someone?<p>You&#x27;re not the first one to have to do that and, you know, survive.<p>Seriously.
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GuiA超过 11 年前
Hi!<p>As your post seems to indicate, you&#x27;re scared shitless right now and it seems like the entire world is coming to an end. Trust me, even if it really seems that way, it&#x27;s not.<p>For now, grit your teeth and go through the bad stuff. Tell your wife. Be honest with her. No matter what, she&#x27;s your wife for a reason- she&#x27;ll support you through all of this. If you neglected your relationship with her a bit because of the startup thing, then she comes first now. Then tell your investors. Tell your employees. Tell whoever else you need to tell. Be honest, genuine and straightforward. The next few weeks are going to suck big time, but you&#x27;ll get through them.<p>Once the big stuff is behind you, take a few weeks to breathe, if possible financially. You&#x27;re coming to the end of a long, arduous journey, and that&#x27;s always something hard to process. Try to find joy in the little things that you didn&#x27;t have the time for during your founder mode. Have brunch with your wife. Go take a walk alone in the forest. Read a book. Take time to recover.<p>You will find another job. You don&#x27;t realize this right now, but having run a startup for 2 years gives you more skills and experience than others have developed in a lifetime. If you have to take a job right away because of financial hardships, take something low stress (consulting&#x2F;freelance could be a good choice, for the flexibility, although it can be hard to get started with no leads). Now is probably a bad time to do another startup. Also, you probably want to use this as a lesson to remember that you should always have ~6 months of expenditures in the bank that you NEVER touch precisely for situations like this one.<p>Don&#x27;t worry about the investors. It&#x27;s part of their job - you&#x27;re not the first startup that they funded that failed, and you&#x27;re not the last either. Be professional with them- if you want to do a startup again in the future they will remember your honesty and ethics more than the fact that your startup failed.<p>You ran a startup for 2 years. Solely by doing that, you&#x27;ve gone further on the path of entrepreneurship than 99.999% of people who call themselves &quot;entrepreneurs&quot; have. Take time to grieve, but also take time to see all that you have accomplished.<p>If you still feel depressed after a month or two, go talk to a professional therapist&#x2F;psychiatrist. Sometimes we need a little external help.<p>It&#x27;s going to be OK. :)
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dsr_超过 11 年前
Reminder for people who are running startups and are in serious relationships: nothing should be a secret from your spouse&#x2F;partner. Especially money.<p>Maybe they&#x27;re supporting you so you can recycle every dollar of revenue back into the business. Maybe you&#x27;re gambling your shared savings on the success of your venture. Maybe you&#x27;ve got a good financial position and your family will be safe no matter what.<p>It doesn&#x27;t matter. Tell your spouse. Get their advice. You don&#x27;t have to take it, but they are a valuable resource to you, someone you can trust to listen to you, keep your secrets and have a different perspective.<p>It should not come as a surprise to him&#x2F;her that the shutdown is likely; the shock of &quot;no, it&#x27;s definitely over&quot; should only be a small bump.<p>Then you can both live through it, and go on to the next thing you have to do.
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pbiggar超过 11 年前
I&#x27;ve been there. I shut down my YC startup about 3 1&#x2F;2 years ago. It was covered in the press more than my launch was! Shutting down was a huge weight off my mind - we weren&#x27;t successful and nothing was going to make it so.<p>You raised money and have employees. Worry about the employees. Get them new jobs in great startups by actively going through your network and making sure they get new jobs that they&#x27;ll love with teams they&#x27;ll enjoy.<p>Dont&#x27; worry about the investors. They&#x27;ve lost money before. If you raised from non-professionals, then you may have to apologize. Mean it.<p>Tell your wife, obviously. You probably don&#x27;t need to worry about money too much - now you can take a low-stress job at high pay and get back what you lost doing the startup.<p>Also, please feel free to reach out: paul@circleci.com
dchuk超过 11 年前
If you can run a startup, you&#x27;re employable as a consultant to at least enough people to make ends meet. Reach out to your personal networks and try and stem the tide a bit.<p>We&#x27;ve all been there at some point in our life, there&#x27;s nothing shameful about working for others to make ends meet. And even though most of us hate the idea of working for other people, at some points in life you have to put your ego and pride aside and just bite the bullet and do some damn work to pay the bills.<p>Life is long, failure is temporary. You didn&#x27;t crash an airplane with 300 people in it, you just didn&#x27;t succeed at business, an extremely common occurrence. Just keep truckin&#x27;.<p>(I realize OP is not the anonymous poster in question)
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smtddr超过 11 年前
There are all kinds of failed start-ups. As long as you know you didn&#x27;t scam anyone and you can explain to your investors what happened and show accounting-books detailing how it all unfolded, and you learned something during this whole experience, you&#x27;ll be alright in the long term. You can always try again. Maybe YCombinator(or GoogleVentures or whoever) should have a support-group for failed start-ups so people can share their experiences and know that they&#x27;re not alone. Assuming you&#x27;re in tech, investors know the gamble. I&#x27;m sure they know at least half the start-ups they invest in ultimately fail.<p>That said, one slightly harsh bit of advice:<p><i>&gt;&gt;But, I can’t imagine working for somebody else. I wish my wife understood that.</i><p>You need to get over that. Working for someone else(after a short break perhaps) is basically recharging your funds and your mind while you think about your next company. For all you know, you might run into your next co-founder in your new job. It&#x27;s hard to think about the distant future when you&#x27;re not even sure how to put food on the table tomorrow.
eoghan超过 11 年前
If you&#x27;re in SF, LMK if you want a sounding board and someone to talk to in confidence. I&#x27;ll buy you a beer. Help you get your head straight. eoghan@intercom.io
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paultannenbaum超过 11 年前
I sympathize with most of this post, but the one thing that I don&#x27;t get is this line:<p>&quot;I can’t go much longer without a paycheck. But, I can’t imagine working for somebody else. I wish my wife understood that.&quot;<p>If the author really is as down and out as he claims to be, I think somebody offering him good money to get his life back on track might be something that is welcome. He can always work for himself once things straighten out.
piratebroadcast超过 11 年前
Get over it and work for someone else, run a few side projects&#x2F;experiments on the weekend and after hours. Your wife is counting on you.
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panther2k超过 11 年前
I&#x27;m there right now (minus the high-profile accelerator and funded part so I had even less success). It sucks. I&#x27;m exhausted. But I&#x27;m broke so I need a job. I can hack stuff together but I&#x27;m more of a junior level dev so not sure how attractive I am to a Silicon Valley startup.<p>I thought I knew what it took to be successful, so I quit my wall street job and drove out to San Francisco to JFDI. I even lived in my car for nine months to save money. It would be worth it once the business took off. It never did. So I started another one, which failed too. When you work non-stop, every waking hour for almost two years and fail at everything, you realize you don&#x27;t have it all figured out. At all.<p>The scary part of failing is asking yourself, what the heck do I do now? And you don&#x27;t know the answer.<p>Probably should have made this a throwaway. Oh well.
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DanielBMarkham超过 11 年前
It&#x27;s not as bad as you think. You&#x27;re alive. You have your health (hopefully). Tomorrow you&#x27;ll most likely be alive and still have your health. This is the starting point.<p>Those that love you came along for the ride. If you tried as hard as you could, and you took this gamble with their blessing, you do not owe them an apology -- although it wouldn&#x27;t hurt to give one. They&#x27;ll still love you and you&#x27;ll still be making decisions together.<p>Debt is bad, but they don&#x27;t throw you in jail for being in debt, at least in the states. Do some studying on dealing with creditors. It&#x27;s a game like any other game, and it helps if you know the rules. Plenty of folks in debt who are living happy and fulfilled lives. It&#x27;s not the end of the world.<p>As to whether you&#x27;ll be viewed as a failure or not, this depends on your peers and your culture. I suggest you hang out with people who view this as a badge of honor. Life sucks enough without having friends who stomp on you while you&#x27;re down.<p>Family is another matter. Can&#x27;t pick your family. But you can set some ground rules for interacting with them. If you need money from them, be prepared to do things you wouldn&#x27;t normally do. After all, it&#x27;s only fair to let them drive a bit if you&#x27;re needing their help.<p>It&#x27;s nothing but a thing. It can be hugely disasterous, or it can be a slight bump in the road. The difference is all between your ears, inside your head. You get to decide how to view this part of your life -- great adventure continues or yet another failure. I suggest you choose wisely.
kordless超过 11 年前
Speaking from experience, failure is essential to becoming a good entrepreneur. I&#x27;ve heard we learn more from failure than any other learning technique. At no time are you more present in this life when you are failing, of that I can personally assure you.<p>I applaud your ability to share your failure with others, even in an anonymous way. Wherever you go and whatever positive choices you make next will guide you to the thing you were meant to do.
shmerl超过 11 年前
<i>&gt; I’m broke and it’s not fair to my wife to go any longer without pay... I can’t imagine working for somebody else.</i><p>In such circumstances one might need to do what&#x27;s required, and not what one would like to. I hope his wife will explain that to him.
poulsbohemian超过 11 年前
About 18 months ago I was laid off from an executive position at a company I&#x27;d been with about 5 years. At the same time, I was trying to bootstrap a business on the side, I&#x27;m the sole breadwinner in our household, three little kids, and I had a house that was underwater that we couldn&#x27;t sell due in large part to all the foreclosures in the area that were the competition. To make it worse, we had moved to a very remote, rural area for family reasons, so had two houses to cover, and <i>zero</i> job possibilities anywhere in the area. Eighteen months later, that side project has folded (which I&#x27;m ok with), the other house is sold, and I&#x27;m doing well consulting (and with minimal travel). Will your story 18 months from now be rosy and happy? I don&#x27;t know, but I suspect if you are the kind that would take the risk to start up a business, you are the kind that will hustle to do whatever it takes to first reach a point of survival and then the road back to thriving.
flyinglizard超过 11 年前
How you deal with the process and its fallout will be a defining moment for you as a person. Be upfront, be honest, and don&#x27;t worry to much. Life goes on. You&#x27;re in the best place and time there ever existed to fail and move on.<p>The best advice I can give you is that the sky will clear the moment you absolve yourself of the responsibilities. You&#x27;ll be a free, earning man again. Things will only look up, and very quickly the ideas will start flowing again.<p>Take your wife for a talk. Explain to her how it&#x27;s going to be, and that you&#x27;ll be looking for a job the moment you&#x27;ve turned off the lights. You will have some peace, comfort and certainty soon that will allow you to think clearly, and later on, establish a learning process of everything you&#x27;ve gone through.<p>Someone around these parts said that the most difficult part of being an entrepreneur is managing your own psychology. It&#x27;s time you get a hold on yours and own the situation.<p>Good luck!
mbesto超过 11 年前
Here&#x27;s one of the most important lessons I&#x27;ve learned about startup life:<p><i>There is a fundamental difference between being poor and being broke.</i><p>Being broke implies you don&#x27;t have enough cash or expected cash flow to cover your debt - but it doesn&#x27;t mean you haven&#x27;t accumulated wealth. Being poor means you neither have cash nor wealth. The OP is simply broke, but not poor.<p>Knowledge from failing a business is (IMHO) one of the greatest, if not <i>the</i> greatest, ways to accumulate intelligence in business. That is extremely valuable.
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aaronpeck超过 11 年前
I think what you&#x27;re going to find out is letting go will actually be a huge relief. You&#x27;re going to bumble around feeling like a worthless piece of shit for a few weeks and then ideas will start boiling over in your mind. Before you know it you&#x27;ll be writing a business plan or prototyping something new and you&#x27;ll be armed with this failure as a roadmap of what not to do. You sir will be a-ok.<p>PS. Not having any money at least once in your life is something everyone should go through. You&#x27;ll be surprised at how well you eat and live when you thought you&#x27;d be homeless. You&#x27;ll also realize how much bullshit you have in your house or services you pay for that you really don&#x27;t need. Good luck - you won&#x27;t need it.
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hidingmyname超过 11 年前
I wrote <a href="http://mystartuphas30daystolive.tumblr.com" rel="nofollow">http:&#x2F;&#x2F;mystartuphas30daystolive.tumblr.com</a><p>Like you, I raised money, went through a top accelerator and had a wild ride that doomed in failure.<p>It&#x27;s ok to be terrified. It&#x27;s ok to hurt. Fear paralyzes. You will pull your socks up and do what you need to do. It&#x27;ll hurt more than you know. You&#x27;ll quickly separate your real friends from the rest. And then something amazing will happen, your life will go on.<p>The first thing you&#x27;ll notice is how much of life you&#x27;ve missed while riding the startup &quot;high life&quot;. Big things like love, family, reality will suddenly become clearer and no longer dimmed by the tinnitus of whatever TechStars derivative you&#x27;ve been through.<p>The next is that you&#x27;re a hell of a lot wiser. You&#x27;ll find a job and you&#x27;ll start performing. You&#x27;ll look like a legend because the pace and agility you learned to work at during your startup days will make you a rockstar anywhere you decide to put your talents to use.<p>Your performance will bring more money, and power (to a degree) than you&#x27;ve ever made before. You&#x27;ll make up for lost time.<p>And then, like all of us, you&#x27;ll hear the siren song of entrepreneurship beckon you out into the world again. You&#x27;ll pick up the pieces and start anew.<p>Ride the wave, brother&#x2F;sister. Godspeed.
gavinbaker超过 11 年前
It is hard to be where you are. Thankfully life does move forward.<p>In my case we had a couple million invested in the world changing idea. Saying we failed was very very hard. Hard to tell my friends, our industry partners and my parents.<p>What I did - was take a long walk to my favorite rock on the lake. And I sat there in the cold and watched birds fly and fish eat and the sky change. I cried tears of frustration and of grief, for the possibilities that wouldn&#x27;t be.<p>I then went back the office and made a list of things we needed to do. In my case our investors saw it coming because we&#x27;d missed key milestones for additional funding. Our team was small and I&#x27;d been open with them about missing the milestones.<p>We negotiated out of our contracts and made our final payments. In our case our board had made it clear we needed &quot;wind down money&quot; in the bank and we had it.<p>It wasn&#x27;t easy, not by a long shot. At the end I was drained. I took two months off. I slept, I prayed, I read and I journaled. You may not be able to do all of that, but give yourself a break.<p>What I wished I had was someone to talk to who understood what I was going through. Plenty of people fail in business, but not many have a lot of money backing it, a lot of people believing in it and you feel like you let them down. Take up the offers of help to talk in person. I&#x27;d be glad to sit and listen if you want. The good news is that the sun will rise tomorrow and it will be a new day. And while it won&#x27;t feel great, you will get through all of this.
clarky07超过 11 年前
It&#x27;s interesting, currently my business (bootstrapped and small) is doing just fine. Profitable, making more than I used to working for someone else, and I&#x27;m STILL scared shitless most of the time. The wife and I want to build a house and have kids and that sort of thing, and it all scares me.<p>The really interesting thing though is that in general working for yourself is not much if any more risky than working for someone else. Sure if you are at Apple or Google it&#x27;s unlikely they are going out of business, but companies big and small go bankrupt all the time. Layoffs happen all the time. That&#x27;s the way things work. You just have to make yourself valuable and work hard. Especially in our business, if you are remotely competent it isn&#x27;t hard to find work right now.<p>I really should find a way to feel less stressed. Things are mostly fine, and I know for a fact that I could get a job tomorrow if I wanted&#x2F;needed to. &quot;Failure&quot; for me would likely mean taking a high paying dev job at a great company that I respect. I should just relax and do good work and hope for the best. It&#x27;s hard though, and I see where the OP is coming from.
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mironathetin超过 11 年前
Been there too. Here is the lesson to learn: If you got funded and have to pay invoices, employees (including yourself), never hope for more investment. Shrink and - if necessary - finally close your business before (!!!!) you run out of money. This is true for startups, businesses, household budget, pocket money, girlfriends (hrmmm), etc.<p>Startup is a high risk, the statistical odds are against you. Investors know that. If they see you fail, they will not tell you, they will simply stop to invest (and may be think, you will go on to save their a...). Hope that you may find new investment means, you did not start looking early enough to know the odds.<p>I (we) were at the same position in 2001 when the internet bubble burst. I am happy to report, that our business needed heavy investment (like yours did) and it became clear to us, that there will be no more investment for internet business in the foreseeable future. So we did shut down with money on the bank, paid our debts, bought out our gadgets from the company and divided the money that we paid for the gadgets among the shareholders (us :o). Both of us founders saw the startup as a business not as our baby. So we were able to look at it from a kind of outside perspective. This was not the reason why it failed, though, but it lifted us at eye level with the investors.<p>The way we handled it allowed us to book it as a very interesting experience. We were immediately able to look forward.<p>But, here is the positive side: You got investments (a lot even), you survived for 2 years, which is great. Now get together with your co-founders in a nice place, drink a bottle or two of good wine and analyze your mistakes.<p>Sorry to say this now that it is late for you. But next time ...
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ninive超过 11 年前
I&#x27;m a CTO and a serial entrepreneur, and i&#x27;m into this business since i was a kid. 6 years ago after a very intense splash in a huge famous company in US, I&#x27;ve decided to take a break, and fly to the Caribbean to open a sushi restaurant. My girlfriend is a successful F&amp;B manager so i took all the suggestions I can handled from her, and opened it. After 12 months, was a complete failure. The first of my life. I was really scared to lose everything but just the time to close and open my eyes, solutions were there. Time and focus are very helpful. I didn&#x27;t drop. I&#x27;ve found a re-start partner, took my girlfriend with me in business to advice and manage, changed style, and finally sold it to at least break even all the debts and have some vacation, ready to go back to the Internet. The break lasted 4 years at the end, and was the most important time of my life, looking at it from here now. The major growth of your soul. Keep the energy and focus, be sincere, and for sure something good is going to happen. And your second time is going to be ridiculous easier, trust me. Good luck.
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jonhmchan超过 11 年前
This is a dark time, but you can work for someone else. Most of us do.
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ojbyrne超过 11 年前
&quot;We didn’t leave enough money in the bank to pay off our debt, so now we need to tell people we can’t pay. Are they going to come after me, or my house and my car? I’m broke and I’m scared.&quot;<p>Hoping the &quot;well-known accelerator&quot; knew their stuff and the company was structured appropriately so that&#x27;s not an issue.
eli超过 11 年前
&quot;<i>Will [out investors] forgive us? Will any investor ever trust us again?</i>&quot;<p>These are professional investors putting money into an early stage startup, right? I&#x27;m certain they were aware going in that they might not get their money back. (And, in fact, that this was the most likely outcome.)
omegote超过 11 年前
&gt; I can’t imagine working for somebody else. I wish my wife understood that.<p>Seriously?
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patrickod超过 11 年前
Take some time to decompress. The winding down period is stressful and it seems you&#x27;re already feeling the effects.<p>As many have mentioned you&#x27;ve only enriched your resume with this experience. Use it to find yourself work, your incubator network should be full of people looking to hire.<p>I&#x27;ve gone through this and it&#x27;s stressful as all hell but you&#x27;ll make it through. With your nose right up against it the problems seem much more formidable than they are in reality. Employees come first in terms of settling debts. Deal with vendors after that.<p>One point I&#x27;d really stress is that you should talk to people about it. Feel free to reach out (p@trickod.com)
skwirl超过 11 年前
I don&#x27;t have any particular advice to give, but, assuming nothing improper happened here, if you gave it your best, there is nothing wrong with failure. Failure is part of the system. Your investors and employees realize that startups are a risky venture. There are plenty of jobs out there and your employees will land on their feet.<p>I have nothing but respect for startup founders who did their best and came up short. I hope that the experience you&#x27;ve gained serves you well throughout your career and one day you can look back and appreciate the experience. Good luck going forward.
pdq超过 11 年前
This reminds me of the &quot;My Startup has 30 Days to Live Blog&quot;: <a href="http://mystartuphas30daystolive.tumblr.com/" rel="nofollow">http:&#x2F;&#x2F;mystartuphas30daystolive.tumblr.com&#x2F;</a>
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ig1超过 11 年前
Talk to your accelerator and your other investors (assuming they&#x27;re typical startup investors), they&#x27;ll have seen plenty of other startups fail and will be able to give you advice how to handle the situation.<p>They&#x27;ll also know which of their other startups are hiring and should be able to setup introductions to help you and your employees get accelerated interviews, etc. to help with the transition.
iterable超过 11 年前
Stay strong dude. I&#x27;m sure you&#x27;ll make it through and figure it out. Many have made it back from far worse situations. You can do it.
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danthewireman超过 11 年前
A big first professional failure is like breaking up with your first girl&#x2F;boyfriend - it feels like the entire world is ending. After you find out that it didn&#x27;t, it can be wildly liberating because you won&#x27;t really be scared of failure any more. I recommend a few massive fuckups in any career.
dodyg超过 11 年前
I&#x27;ve been having my business for 10 years - which almost died twice.<p>The business is not about you. Yes you are the founder but you are just part of the machination to make it work.<p>When the business fails, it&#x27;s not a judgement on your character or your moral. Failure sucks. Tell the truth your employees ASAP. Deal with the fall out directly.<p>If you need to downgrade your lifestyle, do it. It is better than having the anxiety to put up with un-affordable lifestyle.<p>More importantly - don&#x27;t be an ass to your wife. If you need to get a job, get a job. There&#x27;s plenty of time to try again in the future.
tobinharris超过 11 年前
Think of the first time you had to build a solution to a problem you didn&#x27;t understand. It&#x27;s scary with lots of unknowns.<p>Seeing your company collapsing is scary, and you don&#x27;t know how to deal with it. There are lots of unknowns.<p>In the end, you&#x27;ll find a way of coping that works for you.<p>There&#x27;s good advice here in these comments.<p>Personally I&#x27;d recommend finding someone experience to guide you through the closure. That&#x27;s what I did (accidentally).<p>You&#x27;ll look back in a year and think &quot;That was scary shit but I learnt a shit load&quot;.
fredgrott超过 11 年前
What I am interested in is the thought process involved in balancing things like fund raising, paying one cofounder and not others to stretch it, when to pull back, etc.<p>Obviously, investors want the dev cofounder paid to get product out the door..<p>But I am more interested in the decision process...<p>Let me clarify.. certain small business industries have these accounting&#x2F;financial tools to help determine decision trees such as pay off debt now or later, etc.<p>Is there a similar set of financial ratios&#x2F;trends to assist in the above decision trees?
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timmm超过 11 年前
We are smarter than this. Why do we accept this as a normal part of our industry. There are ways to avoid this, the anxiety, heart ache, and lack of dent in the universe.<p>Let&#x27;s learn from this.
rdl超过 11 年前
Most debt dies with the company. Tax debt (especially employee payroll withholdings) is really the only kind of I know which carries on, along with any personal debts which won&#x27;t get reimbursed (which I got burned by, on credit cards, several times).<p>It&#x27;s all surprisingly easy to walk away from, at least in the US, and particularly with normal professional investors.
throwaway5752超过 11 年前
It happens. Tell your wife. Inform the board. Hire a lawyer to deal with the debts. Inform the employees, giving them some idea of severance and resources to transition elsewhere . Figure out how money you have left and do an orderly wind down. Send out rfps to see if anyone will buy all or part of the company. Then get a new job.
peterjancelis超过 11 年前
You really should look for a job. There&#x27;s nothing wrong with it. Look at it as starting a consulting business with just 1 client, get to know your &#x27;client&#x27; and start suggesting ways you can make more money together - then charge a cut to do so.
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Grokit超过 11 年前
I&#x27;d say the best thing you can do is learn the lesson that you should have had a contingency plan for this situation. Particularly since failure is the most likely outcome of any startup. I know though, that only happens to the &#x27;other&#x27; guys.
atmosx超过 11 年前
I don&#x27;t have any advice to offer, but it&#x27;s the best story&#x2F;post that I&#x27;ve read about startups. I think is exactly what you have to read, before jumping into the startup wagon. Then, you&#x27;re ready to go, if your gut can take it
datahack超过 11 年前
Ha! Not to worry. I got myself 700k in the hole in the 2008 financial crisis trying to &quot;do the right thing.&quot; Spent four years digging out of that mess in a situation where I had to run a company successfully at millions in revenue just to stay afloat. That is a hell of a lot worse than folding the company, and if I knew the hell it would take to dig out, I might have folded! But we&#x27;re free and clear and making money now so it was worth it. This would be the fourth company I started. The previous three I went through the same thing you&#x27;re talking about. Got to the point where I started to wonder if there was something wrong with me, or if I wasn&#x27;t cut out to be an entrepreneur.<p>I know that feeling of strain and staring at the ceiling wondering if I&#x27;m going to survive. No way out. It sucks. That&#x27;s entrepreneurship. That&#x27;s why I&#x27;ll never tell anyone to be in business for themselves. You have to really want it for the right reasons or you&#x27;ll never be able to survive this kind of thing — it will break you. I&#x27;ve actually seen quite a lot of entrepreneurs get &quot;broken&quot; when things got super, super bad to deal with. It&#x27;s overwhelming.<p>But, the way to deal with it is this: what is the TRUTH of the situation. What are the real FACTS? The truth is, it&#x27;s not that bad. It&#x27;s not like you&#x27;re being chased by ruthless drug lords down a dark street. You&#x27;re folding a business.<p>Whenever you find yourself afraid, find the fear, then find the truth. Keep working through those until you feel better. It actually works. If you stick to the facts, you&#x27;ll get through it.<p>Also, dude, you need to keep pushing. Get yourself shut down with class, get honest with your wife, and you&#x27;ll come out swinging. It might sound crazy now, but the average entrepreneur who makes it has a few of these under their belt!<p>Also, awesome piece of advice here: <a href="http://leadercast.com/en/" rel="nofollow">http:&#x2F;&#x2F;leadercast.com&#x2F;en&#x2F;</a> Watch the video from Rorke Denver. Here&#x27;s the cliff notes (pdf): <a href="http://leadercast.com/en/downloads/LN_CalmisContagious.pdf" rel="nofollow">http:&#x2F;&#x2F;leadercast.com&#x2F;en&#x2F;downloads&#x2F;LN_CalmisContagious.pdf</a><p>Now is the time of your testing. How you behave when the shit hits the fan is the question of what kind of leader you&#x27;ll find <i>yourself</i> to be, so don&#x27;t let yourself down. Be calm, be brave, face fact, and dive in! It&#x27;s time to learn as much as you can about what you did to get here and what you can do next time to avoid this outcome!
mindotus超过 11 年前
If you are in the NYC area coffee or drinks on me! Just shoot me an email to john@minus.com<p>Just remember it&#x27;s not the end and there is much more to look forward to perhaps in a future startup months or years down the road.
sytelus超过 11 年前
ummm... Didn&#x27;t we invented a marvelous escape hatch called &quot;aqui-hires&quot; exactly for this situations? If you have even moderately connected investors, you should be able to get aqui-hired in a week or two, very likely sipping pina colada on a Caribbean beach to stretch out before you start the new job with giant bonus vesting schedule that beats any of your colleges. Plus you get to update your Linked-In profiles with &quot;CEO &amp; Founder of Fantastic Startup (Acquired by whatever)&quot;. There are no loosers in startup world anymore, AFAIK.
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BeccaCory超过 11 年前
The comments below the post are what makes this really worth reading.
diydsp超过 11 年前
yeah, my thoughts echo what most other people said: just keep your eyes wide open and observant so you can use this experience for next time! e.g. keep a journal and write stuff down so you remember...<p>I was at a code review recently with several people who had clearly never been through a major failure such as a start up going under (i&#x27;ve been through several...) and the difference in our viewpoints was apparent to me. This is valuable experience you&#x27;re getting.
informatimago超过 11 年前
Perhaps now would be a good time to read or youtube about The Venus Project, (and perhaps also about money as debt), to get some perspective.
CmonDev超过 11 年前
I thought start-ups are about spending someone else&#x27;s money and never your&#x27;s.
akbar501超过 11 年前
1.) I hope you are over playing the despair part, but if you really feel that every sucks then you should speak a professional to help give you perspective. Seriously, your mental health matters.<p>2.) Create a list of everything you need to do, then start to work through it.<p>a.) Have a <i></i>conversation<i></i> with your wife. Inform her about what&#x27;s happening, what issues you&#x27;re facing, and ask her about her thoughts. Get on the same page, that way there are two of you working through this. What&#x27;s her game plan? She&#x27;ll likely have some action items that should go onto your list.<p>Get your emotions out, but then move on. I&#x27;ve been doing the startup thing for 14+ years and married for 8+. I cannot emphasize enough that you should not overburden your spouse. She&#x27;s got a lot on her plate now, so get your emotions out once (if you&#x27;re into that), then stay upbeat.<p>b.) Schedule a meeting with your investors. Have a set agenda, use a PowerPoint (or other presentation software) that outlines your current status, etc. Also, show that you are a professional by showing them you have a plan&#x2F;budget&#x2F;timeline to shutdown the business.<p>Your investors are professionals. They know that a large percent of early startups fail. What they will want from your is professionalism.<p>Also, ask for their input. What do they need you to do?<p>c.) Legal: Speak with your attorney (this can also be before #b). Get their input on your legal checklist.<p>You must shutdown the business correctly. Your attorney will be a big asset. Keep your meeting with them professional and focused. Don&#x27;t waste time on emotions in this meeting.<p>d.) Schedule a team meeting and speak with your employees. Help them transition if you can. If you&#x27;re overwhelmed, which it sounds like, then tell them you&#x27;ll be happy to give glowing references. This is easy and will require minimal work on your part while keeping the relationship alive.<p>As with #a, don&#x27;t overburden your employees with your emotions. Sorry, but complaints flow up, not down. They will have their own pressures, and your job as a manager is to help assuage their fears and help them see that everything will be ok.<p>e.) It sounds like you don&#x27;t have kids. Yah! Seriously, grab a beer. This is so much easier without kids.<p>f.) Fill-in this list with input from everyone above plus your co-founders.<p>g.)It&#x27;s only Tuesday. Get moving and this done <i></i>before<i></i> the weekend.<p>3.) Debt: To any first time founders, please allocate budget to shutting down a business. Experience matters here, and it&#x27;s best practice to know your shutdown costs, to budget for them, and to have the professionalism to shut the business down when you have just enough money to close up shop. You should pay debts, invoices that are due, employee salaries, legal fees to shutdown, etc.<p>To the OP, create a list of assets&#x2F;liabilities. If you can sell assets to pay for liabilities then do it. Be cool about who you owe money to. If these are other small businesses &#x2F; startups, then try to make your debt whole.
richardlblair超过 11 年前
congrats! You failed! I&#x27;m serious. I know it&#x27;s hard to see now, but so often life&#x27;s greatest successes are born out of failure.<p>Hang tight. Things will work out.
sjayman超过 11 年前
This too shall pass
wehadfun超过 11 年前
could you sell?
asmallfish超过 11 年前
Sorry to hear it. I&#x27;m sure you can land another job fairly soon if you were running a startup. Go take a small vacation to clear your mind first.
yungether超过 11 年前
These posts are like torture porn.
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