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How do founders who faced failure, and had to close their startup due to financial constraints, manage to cover their living expenses? (alien.top)

submitted 10 months ago by misfitzen@alien.top to c/entrepreneur@indiehackers.space

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How do founders who faced failure and had to close their startup financially support themselves? Usually, it takes a considerable amount of time to generate income from a new startup. Additionally, many employers are hesitant to hire former founders because they anticipate that these individuals might leave once their own startup stabilizes, or they may question the founders' skills, as perceived by recruiters.

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[–] arthor@alien.top 1 points 10 months ago

Cash off table equity - Investors bought out a big chunk of the business, the founder is now a millionaire, win or lose.

It's not their money - e.g for example billionaire Chip Wilson and his kids, nephews, relatives, etc have all tried (and mostly failed) at several new businesses with his money.

Living with debt - People take 1/4m loans to go to school, for a prospective future. No difference doing this with a business.

Saving up - Some people save up their own capital to launch a business, and run it until this money dries up. Give themselves a bit of runway to find a job or pivot if their business fails.

Having a support partner - Spouse brings in an income to support their lives, whether their business succeeds or not.

Generally speaking, if you aren't coming from infinite wealth, trying to live below your means is ideal. Makes failing hurt less, makes winning more rewarding.