Simon from Launch48 guest blogs about this question: What happens if your startup fails? It’s enough to keep you up at night and is the reason many people will never become entrepreneurs.
Through Launch48 and personal experience I have seen what happens when startups fail, and if it helps quench your fear, it’s not as bad you may think. Below are 3 tips to managing startup failure that will hopefully hold you in good steed if your startup fails, but more importantly give you the confidence to go out and do it.
Don’t risk the house
It may seem obvious but when you really believe in an idea you may get carried away and start making financial bets that are beyond your means.
To sound like a mother, only bet what you can afford to lose. Make sure you have cash flow available to your personally to ensure mortgage and rent is paid, bills are covered and food is available (ramen noodles anyone?).
Network network network
The age old adage it’s not what you know, it’s who you know. We all know this is true in business, its also true in your personal life.
Networking should be something you are always doing, but the more people you meet and impress the bigger the pool of people you can get in touch with when you startup falls off a cliff. These people will be able to provide work and consultancy opportunities and this is where you start earning the income to allow you to try again.
Build Brand You
This point is the full stop on the last paragraph. To take full advantage of the networking that you are smashing out you need to give people a reason to take notice of you.
People take notice when you talk sense. Start to carve your own niche and show that you know your field. If you come from an accountancy field start to blog about how startups can use accountancy, or if you are a consultant start to apply some of the theory you know to startups. You do this by blogging, tweeting, creating video tutorials and presenting at meetup groups.
Many people don’t feel they can add to what is out there, but if you know your stuff (which you obviously do) people will be interested.
Unfortunately this isn’t the definitive guide to avoiding failure (if I knew that I would be kicking back in my mansion and not writing this blog on a bumpy Easyjet flight), however it should provide tangible advice to help you manage your concerns about quitting the easy pay packet for startup fun.
The key is to be sensible and take thought out risks. Would you rather try and fail or never try at all?
My final tip
is to practice your startup skills. You don’t get good at anything without practice. The next London Launch48 Weekend in October is the perfect opportunity to find out what it takes to launch a startup. Launch48 will provide some of the best mentors you will find in London (with over $200 million in exit revenue) along with 70 other entrepreneurs, developers and designers who are looking to build a idea and create a team.
For more information visit london.launch48.com