A Simple Guide to Risk Free Startup
Here is my “magical”solution to start your own company without risking
You need to;
- have the technical skills
- have some basic social/business skills
If you don’t have this don’t even think about starting your own startup, your best bet would be just finding a good co-founder or being the #1 employee
- shouldn’t be an operation heavy
shouldn’t require 10 employee, $1M infrastructure investment etc.
- shouldn’t be social
Find the idea
Design and code a working proof of concept, super light MVP while working on your current job
You’ll need maximum 1 year to deliver the product yourself
Pitch it to people you know
Right now all you need is money that’s enough for you to survive one year. Let’s call it $80K. Get as lower as you can without being uncomfortable.
If you can't find and convince at least 3-4 people to invest one year salary to this project (or combination of them to invest this amount) then do not do startups.
Do give away up to 49% of the company. Do not care.
So the valuation of your company will be about 2 x your annual burn rate. i.e. $80K x 2=$160K
You can always try incubators as well, the local ones can be easier to penetrate if there is any.
Only accept investment from people whose fine to lose the investment. Do not take money from relatives, friends etc. You really don’t want that kind of pressure.
You don’t want any extra pressure, you need to know that it’s OK to lose that money.
Now you have 1 year care free time to do your thing. Quit your work and start working on your startup.
Hopefully at the end of the year you have something that works and shows potential. This is the hard bit, if it’s obviously working and bringing money in then good for you.
If it’s not bringing in any money but shows potential you need to stick with it. Try to stick with it maximum of another 6 months, re-evaluate if you are still not ramen profitable, drop it.
If you’re ramen profitable, great you have a successful startup. If not then no worries, shut it down and find a job. If you cannot find a job within a month do not start your own company that means you don’t meet one of the prerequisites of this guide; technically not good enough.
Congratulations, you have just started and failed (or succeeded) a risk free startup. If you failed you lost some time but you learned more than you bargained for and you can always submit “Why I failed my startup” post to Hacker News. Not to mention that someone will send you a job offer right after that post anyway.
If you like you can repeat this many times until actually make it a reality or to figure out that you don't have what it takes to do this. Don’t forget you only need to get it right once.