When to Start.

Hello everyone. Today we're talking about when is a good time to get started on building a new startup.

I like to look at it in 3 ways.

1. The macro environment - in general, you should not worry about this too much. Although a recession certainly makes it harder for most companies to generate revenue & raise money. It takes most businesses 8-12 years to go public, so the current economic cycle isn't particularly relevant over the long term.

2. Passion - You need to be really excited about a specific idea or at the very least a market. Starting a company is hard - your passion and resilience will be needed to carry you through numerous tough times.

3. Personal runway - You and your cofounders need at least 6 months but ideally 1 year of personal runway before you will need to take a salary. Almost all businesses take more than a year to reach the seed stage, so you need to be realistic about how much cash you’ll require.

Alright, thanks a lot for watching and best of luck out there.

Hello everyone. Today we're talking a little more about why the macro environment doesn't matter when you're starting a company.

1. It usually takes 8-12 years to take a company from idea to IPO, so no matter when you start, you will almost certainly experience one or two recessions before going public. If you can start a business during a recession and make it work, there's a good chance it will be in a very strong position when the economy improves.

2. The impact of the macro environment pales in comparison to the importance of your personal passion for the idea and your personal runway to work on the idea before raising significant capital. If you're not passionate and you don't give yourself time to build, the macro environment simply won't matter.

3. Lots of incredible companies got started during recessions. For example, going back to 2009 you have the founding of startups like: Mailchimp, Slack, Square and Whatsapp. Even though fundraising and sales might be tougher, there's no reason you can't build a billion dollar company, starting now.

Alright, thanks a lot for watching and best of luck out there.

Hello everyone, today we're talking more on why it's important to wait until you find an idea, or market, you're really passionate about before starting a company.

1. If we assume it takes 10 years to build your business, then that's a long time you'll need to stay motivated. You will need to be working on something you care about deeply to maintain excitement during the many lows.

2. Hiring is hard. For most founders, hiring quickly becomes a core activity and the caliber of people you hire, is a major determinant of your success. In a very competitive market, you will need to be absolutely magnetic with candidates. That requires authentic passion if you're going to convince the best people to join your team.

3. As you build your startup you will encounter a wide variety of unpredictable problems. Many of these will require creative solutions and those kinds of innovations tend to come from people who are interested in solving the problem. You won't be focused on the major problems, if you don't really care about them.

Alright, thanks a lot for watching and best of luck out there.

Hello everyone, today we're talking more about why you'll need personal runway before getting started on a startup.

1. Most companies take at least 1 year to raise a seed round over $1M, before that the company will not be able to afford paying the founders a reasonable salary. In most cases, you will need to find the money for your personal needs.

2. Personal runway can cause lots of friction. If one founder has a different timeline to others, and the topic is not openly discussed, there's potential for a large and unwelcome surprise. Cofounders having to leave because of their personal runway happens a lot.

3. Needing a salary early is a bad look for investors. Investors want to feel like the startups they invest in are going to be successful with or without their capital. They don't like feeling as if the company's big plans are 100% dependent on investors coming along.

Alright, thanks a lot for watching and best of luck out there.