While most people realize the importance of resilience, many founders quit before managing to grow ... [+]
"I'm convinced that about half of what separates the successful entrepreneurs from the nonsuccessful ones is pure perseverance." - Steve Jobs
Starting a business is a journey full of ups and downs, and it is not uncommon for founders to face numerous challenges along the way. While most people realize the importance of endurance, many founders quit before managing to grow their idea into a real business.
This article will outline the main reasons why startup founders quit so that you can plan better for your own project and how you can balance it with your life.
1. Time Constraints
Starting a business is an extremely time-consuming process, and many founders struggle to balance the demands of their business with the demands of their personal lives. This can lead to burnout, and cause some founders to lose their passion for their project.
While this is more than a legitimate concern, it’s crucial to realize that you don’t need to work 16-hour work days if you can't afford to.
While there is a strong correlation between hours worked by a founder and the revenue growth of their startup, almost half of the respondents of a study of SAAS startup founders worked part-time on their projects.
Most people relate startups to an extreme pace and intensity. While it is true that a lot of projects run a race against time, especially if they are burning through their capital or if competitors are out-competing them, in the early startup stages when you don’t have a serious burn-through rate you can afford to work at your own pace. If you are consistent for long enough, this could still lead to something significant.
2. Personal Financial Difficulties
As a startup founder, it is fairly likely that you are highly employable. This means that for you, working on your startup constitutes a high opportunity cost. In other words - instead of earning a good salary from a corporate job, you are likely investing your time in a project which in the early stages wouldn’t pay that well if it pays at all.
To make matters worse, a startup project is something you can easily sink your personal finance into.
Naturally, not all people are in a position to do that and often stop working on their projects in order to find a job that pays better and allows them to feed their families.
The argument from above is applicable here - even if you have a full-time job, consistently investing a small amount of time into your early-stage project could pay dividends. If you are able to get some traction from these efforts, in time you might be able to find investors that would allow you to focus on your project full-time without sacrificing the financial health of your family.
3. Mental Health
Last but not least, starting a business is a high-stress environment for many reasons, and founders struggle to manage the mental toll that this stress takes on them.
Entrepreneurs are 50% more likely than the general population to report having mental health issues like anxiety and depression, according to research by NHS England. In light of this, it’s not a surprise that some founders quit with the goal to improve their quality of life.
Of course, if you feel you are struggling mentally then you should definitely do something about it - ignoring your mental health for the sake of your project would hurt both you and your project.
Perseverance is crucial for startup success, but perseverance doesn’t mean repeating something that doesn’t work. Perseverance in a startup context means being smart and finding the best possible solution that allows you to push your project forward without leading to professional, financial, or mental ruin.
