

Things to consider before launching a startup (or) Sometimes it's not so fun - cmos
http://blog.penelopetrunk.com/2009/01/05/7-things-to-consider-before-launching-a-startup/#more-1891

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anonyreliant
"I just hired someone to take care of my house for $50,000 a year: A house
manager. This is in addition to the full-time nanny I have. And the cleaning
service. And the assistant I have at work."

Trouble making payroll? Get rid of your full-time nanny, and assistant, and
cleaning service and house manager. Sounds like the investors are getting
fleeced.

------
patio11
With the proviso that this is more applicable to us knowledge workers than to
a business which needs massive capital investments: there is another option to
being a slave to investors. Bootstrap.

I started my business with a budget of $60, and spent $56 of that. Every.
Single. Penny. of expenses since then has come from a paying customer. I have
never worried about not being able to make payroll. OK, technically, there is
no payroll (I'm not the world's biggest fan of the employer/employee
relationship, for many reasons), but when I tell my freelancers "Hey, Bob, I
will pay you a thousand dollars if you can do X up to your usual level of
quality, how's about it?", I have never once thought "Oh, effity, now I have
to convince someone to give me a thousand dollars so I can pay for Bob's
time". (One reason Bob, and the rest of my freelancers, are typically happy to
work for me is that I pay my invoices in Net 30 -- minutes, that is.)

This means that instead of being tied to the telephone, I think I have made
two calls in 3 years. The first was to give someone their credentials because
their email inbox was full and they had indicated it was an emergency for
them. The second was when Google asked me for a favor, because when Google
asks for a favor I can damn well make time for a phone call.

~~~
Brushfire
Your points are valid. However, although I'm not certain HER startup
qualifies, there are businesses that cannot be started without at least some
cash investment.

Your model really only works in software, consulting, or services. And it
doesnt always work in software. Sometimes you need to buy/lease computers. Or
cars. Or Steel. Or Whatever. And that takes money.

Plus, a business may be generating revenue, but have cashflow issues. This
again depends on the business, model, industry, etc.

Simply saying "Bootstrap" is not always good enough. Granted, from the looks
of her company, it should be in this situation, but shes already dug 60 feet
into a hole, and its nearly impossible to 'bootstrap' yourself out of a
situation like that.

------
yesimahuman
I'm sorry, I feel for you, but it seems like a lot of this stuff is not
necessarily related to your business so much as it is personal.

------
motoko
This reads like a physiological (and subsequent psychological) breakdown.
Please see a physician.

~~~
xcvdf
Ms. Trunk is a professional blogger. I wish I had known this before reading
the article. I would rather not waste my time reading anything these people
write.

~~~
Brushfire
Seriously... Although I feel for her personally (I've been in that financing
situation), her startup is in a bad place, getting worse, in an even worse
industry.

From her startup's "about" page.

\--- We’re a community of top Gen Y thought leaders, forward-thinking
organizations and everyone else who realizes that the way we define ourselves
in both work and in life needs to change. \---

Professional Blogging and Weird Niche Social Networks are no longer valid
business models.

~~~
m0nty
> We’re a community of top Gen Y thought leaders

Wow! Me too! That's just so spooky. I also drive a bat mobile.

------
gabrielroth
I was going to start a startup, but now I won't because I'm afraid I'll get
some kind of horrible eye disease.

~~~
motoko
Myopia?

------
paul7986
A piece on 20/20 about transparent salaries impressive. Good to see that she
is following through on that story through this post. Doing so make it's an
even better story; publicity.

Id never heard of this svc & site until this post.

------
prospero
This is a nice counterpoint to to the self-adulatory posts by Jason Calcanis,
et al. Well written, too.

------
lawrence
Penelope, that's gorgeous writing. I would be concerned about over-sharing
during a sensitive time. I hope things work out for you and your company.

------
fallentimes
Her startup: <http://brazencareerist.com/>

~~~
tom_rath
With so many 'co-founders', a good deal of that stress should be off-loaded to
others.

That confessional reads as though she's swimming through it all alone.

~~~
cmos
It's a very personal situation, so chances are the cofounders are all
stressing and working to resolve it, but there is nothing more demoralizing
than not hitting payroll. It's forces you to confront so many well hidden
issues, especially from your employees. Issues that, if sales pick up and
things start rolling, are best swept aside. The amount of guilt one feels is
directly proportional to how much you are to blame.

The fact that she was able to even write about such an experience is mind
boggling to me. All I know is when I've run out of money, about the last thing
in the world I wanted to do was to share either the lack of funds nor my
downward spiral dealing with it.

The investor called her. He offered the pre-bridge loan to her. Sounds like
she is running the ship.

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puzzle-out
I feel for the employees. It's a "company" - a collection of people - and
other than pointing out that she hasnt met payroll at the beginning, I don't
see any evidence of consideration for her staff.

------
timr
It really bugs me that virtually all of the top-rated comments here are petty
attacks on the author. This was better written and more interesting than 90%
of the puff pieces I read about startups, here or elsewhere. I don't see why
it merits such a mean-spirited response.

I think the comments here are a great example of why women don't want to be in
this industry.

~~~
axod
It was interesting in a "Watch a car crash" type way. If you're short on cash,
you don't have a "House manager".

It doesn't sound like she makes a good CEO to me at all. Not because she's a
woman, but because firstly, she is spending more money than she should be, and
secondly, because she sounds like an emotional wreck.

~~~
ahoyhere
Most people in that situation would be emotional wrecks.

I agree with you that her business seems very unsound, but she should get
massive points for being honest and sharing this with people so others can
learn from those mistakes.

Most people are not good CEOs. Her story is just written from a much more
human angle than the other "not good CEO" stories that show up on HN.

