#8 | ?? The Unseen Cost of Being a Startup Founder

February 16th, 2024 |? by: Daniele Dellavalle?

It’s stressful. It’s joyful. It’s exhausting. It’s exhilarating.

Imagine if it was possible to quantify the "emotional capital" we have, similar to our financial bank statements. This concept encompasses our reserves of stamina, positivity, and overall physical health. For startup founders, the challenge isn't only running low on financial capital but also depleting this crucial emotional reserve.?

The issue of dwindling emotional capital is rarely addressed. The "cost" in this context refers to founders’ personal well-being, the quality of their relationships, and the fate of the startups they've poured their hearts and souls into. It's imperative for there to be an open dialogue among startup founders, focusing on the emotional toll their journey takes and on the strategies they employ to manage these pressures.?

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The Emotional Costs of Startup Life?

The Isolation Experience for Founders?

Previously, in a conventional work setting, the presence of coworkers and peers was something many took for granted. These interactions provided a buffer against the day-to-day stresses of work. However, transitioning to a startup founder can be a stark contrast—a solitary journey where the camaraderie once enjoyed is noticeably absent. This isolation can amplify the emotional toll on founders, affecting their ability to maintain and nurture personal relationships.?

However, solitude doesn't mean founders are completely alone. One of the most effective remedies for this loneliness is connecting with other founders who are navigating similar challenges. Sharing experiences and strategies for coping can significantly reduce the sense of isolation and build a supportive community.?

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Set Realistic Expectations?

The initial launch of a startup is often filled with excitement and a sense of urgency, akin to the adrenaline rush at the start of a marathon. Early successes, such as securing the first customer or launching a product, provide a sense of momentum. However, as the journey progresses, the pace of achievements can slow, leading to periods of waiting that test a founder's patience and resilience.?

This waiting game can be particularly challenging, as it contrasts sharply with the initial expectations of rapid growth and success. Founders must recalibrate their expectations, understanding that building a sustainable business is a marathon, not a sprint. This adjustment is crucial for maintaining emotional equilibrium and persevering through the ups and downs of startup life.?

Push yourself, but also be kind to yourself. Remember that very few startups reach any type of successful outcome, and even strong operators are often beaten by the market.?

Survivorship bias (or survival bias) is the logical error of concentrating on entities that passed a selection process while overlooking those that did not. This can lead to incorrect conclusions because of incomplete data. Survivorship bias is a form of selection bias that can lead to overly optimistic beliefs because multiple failures are overlooked.?Remember, 90% of the startups fail within the first two years, that's the harsh reality...

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What’s my runway??

Another significant challenge is financial instability. Founders often find themselves in a precarious position, balancing the need to invest in their startup with the practical realities of meeting personal financial obligations.?

The perception of success on social media and among peers can exacerbate feelings of inadequacy and stress. However, the reality is that most startups face similar financial challenges, constantly going to be facing the extermination of the company. Recognizing this physiological dynamic can help founders feel less isolated and more inclined to share their experiences and strategies for financial management.?

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Founders bring the stress home?

Perhaps one of the most significant costs that founders should bear is the impact on personal relationships. The demands of a startup can consume a founder's time and energy, leaving little room for family and friends: how many times have you heard the “this is not a 9 to 5 job” mantra?. This imbalance can lead to strained relationships, as loved ones may feel neglected or undervalued.?

Addressing this challenge requires a conscious effort to communicate openly with loved ones about the demands of startup life. Founders must strive to balance their professional ambitions with their personal lives, nurture (small) quality time and ensure they maintain healthy relationships despite their busy schedules. However, it is important to recognize that while family and friends can be a valuable source of support, they don’t have the expertise to help with founder-specific challenges.?

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The Imperative of Open Dialogue and Community Support?

The emotional toll of building a business from the ground up is substantial, and too often, this aspect of entrepreneurship is overlooked. There is a pressing need for more open discussions about the emotional realities of startup life, including the strategies founders use to cope with stress, isolation, and uncertainty.?

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By fostering a culture of openness (with investors too) and support within the startup community, founders can better navigate the emotional challenges of entrepreneurship. Sharing experiences and advice can help build a resilient community where founders feel understood and supported. This collective effort can significantly reduce the emotional burden of startup life, promoting a healthier and more sustainable approach to building successful businesses.?

While the importance of seeking help is often recognized, many founders still do not access professional support, with some concerned about the stigma surrounding mental health and others too busy and overwhelmed to prioritize their own well-being.?