

I quit - eibrahim
http://www.emadibrahim.com/2008/03/20/i-quit/

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hunterjrj
Funding using lines of credit and credit cards? Unbelievably high exposure
here. Best of luck to this person, I truly hope they succeed and do not have
to deal with the consequences of having a massive debt load with suffocating
interest rates!

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hollywoodcole
Well I wrote this long note about staying at your job, saving, and not using
credit cards but deleted it all. I figured its your life and why not take a
chance!

Goodluck! I will be following your blog along the way.

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aflag
What's the problem with using credit card for funding? I'm new here, but I
have already seen many people advising against it.

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phaedrus
Well first of all - it's the same problem as using a credit card to pay for
anything you can't really afford!

However it has a special "bad omen" significance in regards to running your
own business because sometimes you hear stories of someone whose business is
not doing well, and they won't admit it and instead ruin themselves trying to
bail out the business out of personal funds, such as running up a huge credit
card debt.

That's not to say that this guy is going to do that, but just that in general
you cringe when you hear of someone using a credit card to fund a business.

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smook
If a storm is brewing (aka recession coming into full swing)... I wait it out.
I would keep the job, break into the new business idea, build some cash
reserves, then jump. But, heck... it's done. Go for it. Warmest regards, Bill.

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noonespecial
The one thing I can say about the economy with absolute certainty, at whatever
point in the cycle it is... is that there is a recession coming.

 _There is ALWAYS a recession coming._ Go do your thing. Some of the richest
and most powerful men in history began with nothing in the depths of the great
depression.

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dkokelley
Congratulations! I've been out of a job now since the end of Summer 2007. No
startup, unfortunately, just a few websites and odd jobs (and free rent via
parents), but I'm still in school so I can justify it (however that counts).

~~~
eibrahim
Well that's not too bad... I got loans, 3 mortgages, a stack of bills and a
broken xbox 360... But... it could be a lot worse.

~~~
icky
You should write a country song! ;)

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eibrahim
I guess it is too late now :), but what do you guys think? Am I stupid or
brave?

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rms
Congratulations... I don't think anyone here will call you stupid for
quitting. Funding yourself with credit cards though, maybe. I think it's a
really bad decision to go with credit cards over much more risk free money.

~~~
eibrahim
Well, i have my tax refund check which would last me about 4 months... after
that it will be credit cards or investment funding... but i agree credit cards
is not the best way to do it..

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dkokelley
_Do not finance your startup with credit cards. Financing a startup with debt
is usually a stupid move, and credit card debt stupidest of all. Credit card
debt is a bad idea, period. It is a trap set by evil companies for the
desperate and the foolish._

-Dear ol' Mr. Graham himself, from his most recent essay (3rd endnote):

<http://paulgraham.com/boss.html>

~~~
eibrahim
I like the article and agree with most of it... But what would you rather do?

\- Finance through a credit card and own your whole company \- Or finance
through an investor(s) and own half of your company.

If you succeed the credit card is a better choice If you fail the investors
path is the better one.

PS: If you take money from anyone, like it or not, he is your boss :)

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Spyckie
I thought you had friends who were willing to help you out...

Take money from whoever you can - friends, families, and fools. You're not at
the investor stage yet where people can eat you alive, and you can just refuse
it if they try to. Keep well funded if you can; don't wait until you're out of
cash, as investors know you'll be in a bind and will use it against you as
much as they possibly can.

Taking money from friends would add motivation (or stress, but you seem like
the type who can handle tight situations) and resolve to getting your startup
off the ground, so I would recommend you pursue those initial starting funds.

Taking money from someone does make you responsible for that money, but
doesn't make him your boss. They're called investors precisely because they
give you money and hope to make a return on it - they don't have time to boss
you around. Also, if you take money from someone, it means that they believe
in your product, which is a great boost to morale especially if you're going
in alone.

Finally, there are other ways of raising money besides selling your company -
I know convertible debt is one choice, but I'm not familiar with any other
low-cost routes (besides YC).

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eibrahim
I plan to go the FFF (friends, families and fools) route in a few months. I
have money to last me 4 months and after that it will be credit cards, but I
hope to have something solid by then and I will be in a better position to get
money.

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dhimes
How long do you think it will take you to launch? (then multiply by 3...)

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wave
It is nice you were able to find 100k seed money. Most people don't have that
opportunity. I am not sure if it is a good idea using credit cards, but it is
not a secured loan.

Someone posted a quote by Shakespeare "Our doubts are traitors, and make us
lose the good we might oft win, by fearing to attempt."

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eibrahim
Well most of it was just talk... I am not sure how much of it would have
materialized and if it was worth the effort to do so now... maybe later when
my money dries up.

I love the quote.

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akshaye
i have in fact decided to do the same thing. Though i decided to quit about a
couple weeks ago, i'm taking some more time to sort things out before i
actually quit. Its nice to see you do that.. puts different voices in the back
of my head to rest.

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jharrison
Welcome to the club of those who are willing to do things that most are not.
My company has gone from 2 people to 7 and now to 1 over the last 7 years and
I will never work for anyone else.

4 months goes by VERY quickly. Believe that you only have 4 months (or maybe
even 3) and do everything you can to make your project work in that time.
"Work" doesn't mean it'll be perfect. Get it up and adjust on the fly. PG has
said it. Others have said it. Launch and iterate. You can do it!

We're all rooting for you!

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pistoriusp
Good luck, just don't use the credit cards!

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astine
Yes, I would trust my friends more than the credit card companies. The former
would like to see you succeed, the latter would just like to see your money.

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tim2
Some will advise that you should secure funding if you see a downturn coming
so that you can weather the storm. I agree though that getting investments at
early stages can often be far more trouble than it's worth.

As far as quitting, well of course we think it was a good idea.

