The Personal Side of a Bootstrapped Startup

In a previous post I talked about what it means to be bootstrapped, which was written from the company point-of-view. But what about from the founders perspective, the personal side of it? These are the things rarely talked about, but are as equally or more important as any other question a bootstrapping founder must answer.

So before getting into the bootstrapped startup life, think long and hard about the questions below, and talk them over with your spouse (if you have one). This is by no means a comprehensive list, just the major ones I believe are the hardest to answer.

Are you prepared to take a pay cut?

Being part of a bootstrapped startup means that you only have just enough cash to get by, and that’s it. This is most evident when it comes to your salary.

A prime example of this is my own situation. Since 2004 I had been an independent consultant, aside from my 18 month stint with Telligent, making at or near a 3 digit hourly rate. Quick math will tell you that’s pretty damn good (I’m not telling you this out of bravado, just as a point of reference).

But I gave it up to make half that. Let me say that again. Half. Can you cut your salary in half and get by? And maybe more importantly, can your spouse?

Can you give up some of the niceties in your life?

Because you won’t be making near as much money as you did in your cushy corporate job or consulting gig, at least not for awhile, you’ll have to make some cutbacks in your life. Do you really need 4 DVRs in the house? Do you have to take a big vacation when maybe a weekend getaway will do? Are you willing to clip coupons to save on your grocery bill? Can you drop down to a smaller cell phone plan?

These are the things you (and your spouse) have to think about because if you’re not willing to make those kinds of sacrifices, you better think twice about getting into this life.

How well do you handle stress?

The startup life, bootstrapped or not, is stressful. Not only are you freaking out because you took a 50% pay cut, but now you have to worry if you can get your product out the door and if anyone will actually pay for it. You worry that people don’t know you exist. You worry that you’re never going fast enough. You worry that customers will ask for refunds. The worry list is endless.

If you’re not one who handles constant stress very well, you’ll need to learn how to adjust quickly or not get into it at all. After all, business isn’t fun.

How well does your spouse handle stress?

Once you commit to the startup life, by default so does your spouse (and kids if you have any). You can try to shield kids from the stresses of running a bootstrapped company, but your spouse is a different story. Every worry and stress, every sale and refund – every up and down – your spouse feels each of these right along with you.

At the end of the day, your spouse is your one true supporter, and if they aren’t ready for this kind of life, well, then maybe neither are you.

Can you handle the unknown?

In your corporate job, you pretty much know what the next few months will bring. You know that you’ll work around 8 hours a day. You know what project you’ll be working on. You know that you can take normal vacation time. You know that you’ll get paid.

In a startup none of those things are certain. You don’t know what tomorrow holds, much less a month from now. Adapting to the unknown, and embracing it, is one of the keys to success.

But in spite of all that…

… it can be done. You *can* make financial cutbacks in your life, you *can* adapt to handle the stress, you *can* roll with the punches, and so can your spouse.

I’m not trying to scare anyone, but these are the hard questions that nobody talks about. It’s all well and good to get excited about The-Next-Great-Product, but there are life decisions and tough choices that need to be made first.

For me personally, this is what my career has been building towards, and I’m thoroughly enjoying myself. The years of side projects, the constant talking with trusted friends about products and business ideas, it’s all lead to this point. I’ve come a long way and have a long way to go, but it’s been great.

Running a bootstrapped company is hard. It’s stressful. It’s a constant rollercoaster ride – sometimes thrilling, sometimes terrifying. But if you can handle all of the stress and worry that comes with the territory, if you can make the necessary adjustments to your lifestyle, financial and otherwise, then you’ve got a great chance of surviving.

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• Minimum Viable Funding
• Always In Startup Mode
• Clarity