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:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. Government Assistance: Depending on their location and circumstances, founders may be eligible for government assistance programs, such as unemployment benefits or small business grants.

7. 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.

8. 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.

With my first Agency, I was the CTO of a Web Development and Social Media Marketing firm; I started with my best friend (2015).

A bunch of stuff happened and after 6 years in business we had to scuttle our studio, go our separate ways.

I’ve since started a second Agency (2021), and I now tour out of a minivan with my wife.

Specifically so I can see more of this world, meet my Clients where they’re at; but also to keep my own Expenses and Agency Overhead down. This allows me to be flexible with the demographic of who I can gift my services too; as it’s more never JUST about the money.

As a Marketing Mentor and Brand Developer, I do 1:1 work, workshops, retreats, AND the actual Asset Fabrication.

We’re Entrepreneurs, that means we pivot, do the unconventional thing, pivot, make our own luck, and create Opportunity.

Being squeezed in this economy has really encouraged our Digital Nomad lifestyle. I’ve had the opportunity to meet so many fun souls and creative clients this way; I want for little.

How do you make the failing dollar go farther? Cut out the bullshit, the extra overhead, and live an unconventional life. In short; learn to do more with less; and be happy doing it.

Money grows on trees, of human connection; so who do you need to meet today?

#IGetByWithALittleHelpFromMyFriends

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.

Majority come from money or have family that would support them. Thats how they got into entrepreneurship in the first place, it allowed them to take on more risks.

I always held a full-time job and raised my family while I was building and failing. On the third attempt it was a debt management company right before the wild West debt management boom. We lost everything, even our home and a lot of our belongings. We spent almost a month in the Dallas Life foundation homeless shelter with three young kids and a pregnant wife. Eventually we lived in a friend from church’s garage for about a month and a half until we were able to get a little house for rent. Then we got a nicer house for rent. Then on attempt for made some money but called it quits after about 2 years. Then I just worked full time for years on end looking for the next thing and then was hit with a divorce.

That’s when I started number 5 which is my current successful company. We’ve already broke 50 million dollars top line revenue this year with very high net profits manufacturing and selling commercial truck parts globally.

I’ve got a new wife in the divorce lasted almost 6 and 1/2 years and we ended up with 50/50 custody and all the normal shit but it cost us over a hundred grand in the process.

I built this company because I was at Rock bottom at that moment and I had six children to take care of in a 28 ft camper. I had no car because my wife had totaled both of our cars our truck and our minivan. She had bounced her bank account five or $6,000. Didn’t pay any the bills for a month or two. I didn’t have a phone or a computer or a car but I had a shitty job making 50 grand a year. I decide to kick off bottom.

My new wife is 99% of the reason for my success because she stood by me through all of the horror of those years. We lived in her camper actually because her divorce was just finishing and she had three children two of them grown one still at home. So all together with the baby that we had we have 10 kids five of them still at home.

We’re doing very well now though. Success is the best revenge.

Being an entrepreneur is tough as hell. There are a lot of successful stories out there, where they failed to mention all the downsides of entrepreneurship. It’s tough as fuck. Sleepless nights, overtime work, no work-life balance. It’s far what they perceive. I got close to burnout, and good thing I was able to redeem myself. Limited working works, and had activities. never went on therapy. Also, I used half my savings to get back on my feet. I’m in ecom since 2019. I can say, I made the right choice. Give this article a read, might be able to answer your questions too. https://www.cuppa.so/post/breaking-entrepreneurial-burnout-understanding-signs-and-recovery-strategies

If they got investments they would probably have had enough to pay themselves salaries.