I didn’t say “”No money”, I said “won’t get rich”, which is the most likely outcome. *Most* startups fail. Many that IPO wind up with options under water because the market said “Meh!” at their IPO. Many that don’t fail are acquired if they are lucky, or have a going business that comes nowhere the dreams they had going in. If you love what yo0u do enough that you can be content with that, you’re in a far better place than someone crushed under a burden of disappointment and feel like a total failure. There’s a difference between being a failure and not succeeding like you thought you might.

There is an enormous amount of wishful thinking in startups, and a corresponding refusal to face reality until it bites them hard on the ass. A question I ask just about everyone engaged in a consuming effort, startup or other is “What’s your Plan B? What do you do if what you are engaged in *doesn’t” work out? The universe may not cooperate with you…”

I would have to disagree on the idea of do something you’d do even for no money. It is fine to start a business that you would NOT do if there was no potential to make money, what you have to focus on though is creating value for people which will generate the wealth as opposed to just caring about yourself.

We definitely have experienced it, visit us http://www.nextinline.io

In my actual company we all started with our won computers, so everyone (we are still five) who joined had to bring his own laptop. It is an small save but sometimes it is not about the money but the attitude.

3×5 card design: If you *can’t* accurately describe what you want to do on a 3×5 card, you probably haven’t thought it through. Prospective customers won’t get why they should buy from you, and prospective investors won’t get why they should fund you.

The Big Brass Ring: What’s your goal? If you are filled with visions of dollar signs, and your goal is to IPO and become filthy rich, you’re doing it wrong. Do it because you love it, can’t imagine doing anything else, and will continue to do it whether or not you get big and rich in the process. Getting rich is a side effect of success, and not success itself.

What’s your business?: Be prepared to pivot. You may discover your real business isn’t the one you thought it was going in. (Like the outfit I heard of years back where a VC board member said “Your business isn’t selling software. It’s selling what your software can do. You are not a software vendor. You are a service provider, and should focus on selling your services.” He was right.)

Who are your customers?: Value is relative. Something is worth what someone else is willing to pay for it. Revenue comes from outside the enterprise, because people are willing to pay for what you offer. Who are they? Why should they buy from you instead of someone else? If there are lots of someone elses they might buy from, you may be in the wrong business.

Ego and Status: The underlying motivations for most folks in any enterprise revolve around ego and status, and they want to feed the first and increase their share of the second. Titles and compensation tend to have more to do boosting egos and status markers than with the survival and growth of the business. When I hear folks saying “*I’m* in a *startup*!”, I bite my tongue to avoid saying “Gee. That’s too bad. I’m sorry.” I see a swelling ego ripe for deflation, since the vast majority of startups sink without a trace.

Focus: I’m a director of a small company that has nothing to do with tech and software. My main function is “Guy the CEO calls when he doesn’t know about something assuming I will know about it.” My biggest chore is keeping the CEO focused. He’s full of dreams about what the company might become in the future at the expense of the present. I spend a lot of time saying “You are attempting to get a production out the door. None of what you are dreaming of will occur unless productions *get* out the door. What is the next thing that *you* must do to get the current production completed? *That’s* your focus. The dreams will take care of themselves.”
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Dennis

Another one I see a lot (not so much from that company though) is participation in stuff that gets respect from your peers (events, …) rather than your customers. It can indeed help in order to recruit from your peers; but when being a part of those things start being a primary goal, it can definitely smell like you’re doing it for the social status.

Also, super strong titles that are way beyond the person’s real role. I once met a “co-founder” who wasn’t there when the company was founded, and didn’t even have shares in the company. It was quite obvious that he was there for the title, and had little to lose if the company would tank. Ah, horror stories…

https://www.washingtonpost.com/news/powerpost/wp/2016/11/02/why-a-federal-high-tech-start-up-is-a-money-loser/