💡 Learn what not to do when you start your company, a failure story.
How Did It Start? 🌱
Writing from my personal experience; As me & my team failed our company from taking off. So, we were a small team of 5 members. My partner Jake is the team lead, an ambitious guy. He and I started a software company back in 2018. Only my partner had ideas about what to do to make money as a software company. The other four members including me, were absolute beginners at everything; we had just started learning how to do things professionally. We had a small office, projects already coming in. With the help of our team lead, we all worked on developing an e-commerce platform. It was the project, which gave us the opportunity to learn to do things professionally.
Failed Funding 🪴
As most of us had just started learning, we were not making much money to keep things afloat. Jake was a pro, making money as a freelancer. With that and some personal loans from my family, we managed to keep the company running for a year. The problems started surfacing after a year, as we were unable to pay the salary for the team. We started looking for alternate funding options, as some investors had already approached us. They were happy to invest, but with every investor, there was always a catch. It was giving majority stakes to investors. My team lead thought this was a bad idea and was not willing to give the majority stakes away. Just like that, we missed all funding opportunities.
More Failure To Work As A Team 😞
As things were looking bad, our team’s performance did too. One of the team members wanted a raise in salary because of his family’s situation. We did manage to give him a raise for a few months. But soon we ran out of money; we needed to let someone go or bring in more money. We decided to let him go. And with the remaining four of us, we decided to work without a salary or very little salary. As days went by, we had nothing to motivate us because we failed at funding; we failed as a team. We knew it had come to an end.
Keypoints To Takeaway From My Experience 🤯
- 👉 Build a steady revenue model before your initial funding runs out.
- 👉 Don’t start your company without an experienced team/developers.
- 👉 Don’t put too much of your own money into the company.
- 👉 Don’t be afraid to give the majority stake to investors.
Even though we did fail, we learned a lot from the experience. Which helped us move on to the next thing in our professional life.