Running Out of Money When Building Side Projects
Is it useful when something pushes you to succeed with your microstartup?
In 2019, Reilly Chase was fired from a job making $95K per year. Today – three years later – he's making $95K+ per month. With his own startup.
Started a side project
Reilly started HostiFi while working full-time. It was doing great, reaching $3k MRR in only a year. But suddenly, Reilly was fired for a conflict of interest.
"I was a Security Analyst, worked remotely, made $95k/yr, benefits + bonuses. It was my dream job."Reilly Chase ☁️☁️☁️
He had one year of savings and knew that he must make it within that time or find a new job.
Reilly experienced what I call "the felt urgency of running out of money." I've seen many microfounders – like Reilly – succeed shortly after experiencing it.
Jon Yongfook wanted to become a microfounder and quit his job with a few years of savings.
After building and failing to make money with several projects, he wasn't yet running out of money, but he was worn down and thought that he was going to fail.
He started to apply for jobs. But then COVID happened and companies weren't hiring anymore. Many of Yongfook's friends lost their jobs back then.
"I think that mental switch was important. Getting a job was no longer an option, it was Bannerbear or bust."Jon Yongfook
But you don't need to run out of money to succeed
Both Reilly and Jon experienced "the felt urgency of running out of money" which was helping them succeed with their startups – but would they have succeeded without?
I say you don't need it. Now that you clearly understand that having something external pushing you forward can be immensely helpful, you can succeed without it.
I put these two MRR charts on top of each other. Although the revenue scale is different, do you see how similar these charts are?
I don't know what to make of this exactly, but maybe this is how MRR charts grow after experiencing the urgency to make money? Could be a law of The Universe, no?
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