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.
Founders who have faced failure and had to close their startup due to financial constraints often find themselves in a challenging situation, but there are several strategies they can employ to cover their living expenses:
Emergency Savings: If they have personal savings or an emergency fund, founders can use this to cover their immediate expenses while they regroup and explore new opportunities.
Part-Time Work: Taking on part-time or freelance work can provide a steady income stream and help bridge the financial gap. This can be a short-term solution while they plan their next venture.
Consulting: Many founders have valuable skills and industry knowledge. They can offer their services as consultants to other businesses, leveraging their expertise to generate income.
Networking: Building and maintaining a strong professional network can lead to job opportunities or collaborations. Connections may provide job referrals or even investment in a new venture.
Bootstrapping: If they have another startup idea, they can bootstrap it, meaning they fund and grow it without external funding. This can be financially challenging but allows them to maintain control over their business.
Government Assistance: Depending on their location and circumstances, founders may be eligible for government assistance programs, such as unemployment benefits or small business grants.
Online Education: They can use the downtime to acquire new skills or knowledge that could make them more attractive to employers or better prepared for their next venture.
Temporary Jobs: Taking temporary or seasonal jobs can provide income while they explore long-term options.
It’s important for founders to stay resilient, continuously learn from their failures, and adapt to changing circumstances. Success in entrepreneurship often involves setbacks, and the experience gained from failure can be a valuable asset in the long run.