My wife and I are thinking of starting the entrepreneurship journey. We have a great idea (SaaS in LegalTech), we’ve done market research, we’ve talked to potential clients, and we’re about to hire a developer to create an MVP. Currently, we both have full-time jobs. We live in a very high-cost city, have over $3k of monthly student loans, $3k in rent, I have mandatory child support payments of $2k, etc. Point being – we probably need $7k-$10k of monthly income just to live.
We have some money saved up but that would go towards the business and not living expenses. I’m sure there are other startup founders who have been in the same situation.
How do you do a startup but also cover living expenses? I understand that raising money is an option but would a VC really understand if you tell them that you need a $100-$200k salary? That sounds crazy to me.
The investment he has put in to the company has gone in to his directors loan to be paid back to him through the company but he also requested he was paid the same wages as me and my business partner from his first day of investment.
Is this normal? He’s basically getting 30% of the company for nothing although I do understand he has risked his own money in this venture.
Not sure how to phrase things (or maybe I’m asking the wrong questions), but I’ll ask it anyway to at least get the conversation started.
On Feb 2, I joined as the CTO of a 2yr old startup that had very limited tech capabilities. On April 2, the CEO called me into his office and said to expedite an issue that we’ve been tackling for about 2 months now. I thought we were moving at a good pace but I guess I was wrong. That’s on me.
Then we came up with a plan to find an outside team and to outsource it. We executed the plan with constant communication and updates, we stayed nimble to the plan, picked two teams from our selection of 4 and started working on the project.
On April 16th, the CEO changed his mind, overrode my recommendations and said to go with 1 of the 4 outsourcing vendors (that did not make the cut).
How do I address this misalignment? How do I get the CEO’s “trust” so that I can start managing the technical risks instead of him managing it himself (he’s not techy btw)?
So I just noticed the insane amount of “total compensation” of programmers these days. From 200K for fresh grads to 500K at Facebook for Sr Software Engineers.
At that rate you’d easily clear 1M in over 4 years which is the median time it takes for any company to be successful. If you were a programmer making that kind of salary and say you haven’t gotten “rich” yet, why in gods earth would make you want to throw it all away for a crapshoot?
In my time, programmers made $100K and a 2M “payday” doing a startup was something that is desirable. With such an insanely high salary, you’ve pretty much won the lottery without even trying!
This question is for software devs who have had multi-year employment gap & returned back to employment after the gap. I am wondering if you had to pad your resume with fake experience or what approach did you take to get employed again after a multi-year gap?
After more than 5 years working as a software developer, I left my job to work on my startup but the idea did not work, then I got into stock trading & for more than 3 years I coded & backtested several trading strategies but could not find any decent strategy that would produce good income with low investment.
Now I’m thinking of going back to a full-time job but I’m concerned that once I post my resume on job websites with the employment gap & if it does not get me interviews, I cannot change my resume few days/weeks later.
I would really appreciate some guidance from someone who has gone through the same experience.
In 2016, immediately after graduation, we co-founded a crowd-farming venture with my classmate and friend.
The idea was to raise cash from friends in cities around Kenya, farm with it and then share profits after harvest. When we started in 2016, it all went well, we did large scale potatoes and peas. In 2017 the year of election in Kenya, we took a risk to do more acreage since most people had backed down in fear of post-election violence (this is Kenya).
We put in all our efforts, raised a lot of money and did what we could but then, things went sideways. In the months leading to the elections, the economy was in a spiral and farm product prices plunged. It was time to pay our investors/financiers their money plus the interest we had guaranteed, but the prices were bad, but we thought things would be better after the elections. We ended up raising more money to pay our investors and left the crops on the farm waiting for prices to hike after the election.
Things went sideways again.
The presidential election was nullified and that put the situation in more of a mess — buyers were nowhere to be found. We suffered a serious blow, trying to counter the loss, we went into seeking more financing to take advantage of producing at the offpeak irrigation season from Nov 2017 – May 2018
We invested in irrigation equipment and started working and planting mid-Jan … then the worst and most unexpected thing happened.
It started raining in February, something that had never happened, and it rained for 45 days continuous — stopped for 10 days and then continued for the next 19 days. We lost over 70 acres of peas and had zero output … the rest of 2018 we made some money but couldn’t pay off the losses. By December 2018 we were dry … $300,000 in debt, with financiers breathing down our neck.
To try to raise money as fast as we could, we pivoted from farming to online/offline distribution of fashion in Kenya. We take orders from customers in rural shops then deliver to them in wholesale. Three months into it and we are making good progress but with limited financing and resources, it’s hell. Financiers are not agreeing to our temporary payment plan. We are constantly on calls, constantly selling, we are up and down, taking orders, delivering orders, taking threats, explaining the situation, dealing with breakdown … it’s hell.
In the process of launching a retail business. So far, I have done all the paperwork, research, marketing, accounting, social media/account setup and paid for all the inventory and supplies. My co-founder seemed to really want this business until we actually got started. She’s on the LLC with me, but now the state is saying she has an issue with back taxes and we may need a bond.
If I’m looking at this from an unemotional perspective, I’m thinking I should dissolve it and go in a new direction with the inventory and supplies I have. On the other hand, she has a lot of great ideas and marketing experience and has done really well on other businesses she’s dedicated time to. She has two other projects going on right now and I know she’s stressed about time, but I also have a full-time job and two other side hustles and I’m balancing them all.