Confession: I lost everything by "never giving up".
One of the biggest and most dangerous lies in start-up culture is "never give up". There are many situations where you absolutely should give up, and doing so will save you a hell of a lot of pain and loss.
Here is my story, so you can understand where I'm coming from.
Three mistakes I should have walked away from
- I forced the VC deal through. The VC funding was off the table more than it was on, but out of pure desire, drive and willingness to do the deal, I rammed it through. I should have walked away from the table. Instead, I ended up signing something similar to my own death warrant. I should have given up on VC funding.
- I grew before the money arrived. Influenced by bad advice from the VC and the allure of rapid growth, I expanded operations and hired aggressively before the funds were even transferred. This led to a cash flow nightmare, with mounting operational costs running too far ahead of revenue growth. I should have given up on this strategy a lot quicker.
- I tried too hard to save the business. That included taking discounted deals from customers and offering myself everywhere to try to make something happen. This made the mess three times bigger than it needed to be. I should have accepted my fate and given up at this point.
What experience teaches you
With more experience you become wiser and more able to spot these problems in real time.
If I had had the vision and awareness at the time, the next two years would have been a lot easier. Instead, I spent that time picking myself up and rebuilding, ready to go again.
Knowing when to give up is not weakness. It is part of the job.