How to know if you would succeed as a startup founder

Feb 05, 2024

riped banana on pink surface — Photo by Mike Dorner on Unsplash

Everyone who is ambitious has probably thought about starting a startup. It seems like a great opportunity. The prestige, the impact that one gets to make, having your own schedule, and, oh boy, the money. There is however a darker side. Startups are highly risky. Most startups fail. It is easier to make money at a big company. If you want to work on challenging problems you don't have to worry about 100 other things that you have to do at a startup.

If the latter half of the last paragraph seems daunting, let me quote Michael Seibel (founder of Twitch and a partner at Y Combinator) which might help you see these challenges in a new light.

"There is a certain type of person who only works at their peak capacity when there is no predictable path to follow, the odds of success are low, and they have to take personal responsibility for failure (the opposite of most jobs at a large company).”

If you were wondering if you are one of these people, these might be the questions that help you figure out. Or at least, they were helpful to me.

What is your relationship with resilience? Resilience is going to be one of the most important characteristics you will need to keep going. "It's like eating glass and staring into the abyss" - where one day you are on top of the world and the other you are curled up on the floor. Ask yourself: when was the last time you showed resilience? Does a hard challenge motivate you or stop you in your tracks?
Are you okay with dealing with large amounts of uncertainty? The uncertainty where you don't know for how long you have to keep going, or if you will achieve some semblance of success? When the odds are not in your favor? Ask yourself when was the last time you willingly went into an uncertain situation. It can be when you take a spontaneous trip or start a job abroad. How did the process feel? Did you regret it or did you revel in it?
What is your risk preference? Startups are risky endeavors costing you time and money. Assessing Risk is a matter of perspective - it can depend on how many liabilities you have. Risk is different for someone who has just graduated college versus someone who has worked at a FAANG company for 10 years, has kids, and has a mortgage. Ask yourself what is the worst that can happen if you take a year to start a startup - and will you be okay with that?
How are you at taking up responsibility without being asked? Startups require people to step forward and address tasks beyond their defined roles. Legal compliance, finances, hiring, sales… it’s a long list. Do you thrive when you take personal responsibilities? When was the last time you stepped up to take responsibility? It could be stepping up to take a role in a group project or staying behind to do dishes at a birthday party.
Are you a Gryffindor? If you are, you will be fine. There is a certain courage you need when it comes to startups. Look at those times when you were courageous. Where you looked into the eyes of Draco Malfoy and said bring it on. ;)

If you start a startup - no matter what field it is in or what product you work on - the most important thing is that it is going to be hard. You just need to know if that kind of work gives you energy and inspires you to push even harder when you get your teeth knocked out.

These were the questions that helped me know if a startup would be the right fit. Let me know if you have any questions that helped you figure that question out.

— Ebaad

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