Share by EmailMy cofounder and I were talking yesterday about how the startup lifecycle relates to life’s rollercoaster. So we put together this real life, somewhat humorous guide to explaining how an idea is born, the startup, growth, and exit: through the Founder’s eyes.
A high growth company is like a child, it is conceived, born…it grows…and you eventually let it go. But there’s alot of crazy crap that happens in between…
The Idea Phase -Conception
Let’s think of the idea phase as what led up to the birth of a new baby: the lovemaking. Life for a startup or any company begins with an idea. Ideally, that idea was spawn out of passion between you and a partner (co-founder) at the same time. However, it can also be spawn on accident (accidental entrepreneurs), or even makeup love (you were trying to make something better). In a few horrible cases, it could even be spawn out of hate. And of course, it can also be acquired through adoption (aka: acquisition). Some of you won’t spawn your idea with a partner, like life, you will become the single parent of your company. This is never good.
At first, you’re excited when your girlfriend or yourself finds out they’re having a baby. Same with the idea phase. You’re a mix of nervous energy and pure excitement. You’re running around buying all this stuff you really don’t need. In the idea phase, also exists: the research phase. You’re in the research phase, you learn everything you can about your new little spawn of idea; and anticipate the wonderful life you will share.
Your little spawn was born, and the first glimpse was beautiful (perhaps it was your logo, your prototype, the first physical sign of your idea becoming reality). It smiles sweetly at you, and you think to yourself “so this is what love really is”. The nurse tries to touch it, and a new side of you emerges that have never shown before. You get an evil red glare in your eyes, and bark at the nurse….”Don’t touch…my precious!”. But then, your precious shits all over you. This is often when you realize it’s not what it’s cracked up to be.
The Development – Startup Phase -Birth
You recruit friends, family, and babysitting fools to assist with this little needy spawn of an idea. They can’t do much though, because this baby refuses to be held by anybody but you; despite how much you try to pawn it off. You realize, the journey is yours to walk for now. You must feed it & protect it. Everything is routine: feed, change, sleep. Feed change sleep. As much as you hate this phase, it’s critical for the next phase.
For the next year, your life becomes like a dream, and you…a zombie living in it. You hardly remember that year as anything other then…hell. The happy moments are few and far between. Either you or your partner quits their fulltime job to support this thing. And even then, it’s still not enough. Your partner is taking off for doctor’s appointments (or in a startup -meetings), running out to get formula and diapers all hours of the night. Your income has been cut in half, and expenses have been added. Your balance sheet is looking pretty ugly.
What started as an act of passion, now becomes a painful reality. It screams for your attention all hours of the day and night, and takes all your money. You wonder how something so tiny, that can’t even walk yet, puts such a burden on you. You feel restricted, if by some odd chance you do have money left over to go out to dinner; you’re interrupted. You can’t go play hockey, or jetski, because you feel guilty leaving the little thing behind.
You and your partner naturally begin arguing and pointing fingers. “You’re not taking care of the baby! It’s your baby too!”, you yell. Your partner yells back “I try, but you say I don’t do it right!”. You shift blame wherever you can because you’re so beatdown, but you know you can’t just can’t give up. This idea has now formed itself into reality…and there is no giving it back. And so, you continue your journey….this is usually the point that determines who will continue the journey with you, and who won’t. You must give a breakup or divorce at this phase (with your cofounder) a considerable amount of thought…because now it does not mean returning to single life, it means being a single parent who must carry a heavy burden on their own.
The First Glimpse of Startup Growth -Toddler Phase
Some time has passed now; you’re beginning to emerge from your development zombie phase. Your idea is now a moving thing full of life; and your role begins to shift. It wants to run free, but can’t yet. So you end up spending more time chasing the little kid of a company around, then you do feeding it. Now, your job becomes about teaching, guiding, and preparing it for life.
You take it to the park, and introduce it to the other little kids who want to play (investors). You want your kid to grow and socialize; but you’re cautious, analyzing whether these new little friends will harm your kid; or contribute to it’s growth. You’ve got eyes going in multiple directions, and you stay on your feet. You’re constantly monitoring it, prepared to lend a hand if it’s foot accidentally slips. This is the first step to giving your child independence.
Growth Phase -School Age
Now, your child begins the journey into Kindergarten; where he/she will be left all day to fend for itself. It screams and cries at you because it wants you to take care of it; but you know…it needs to grow. You hope you picked the right school, that you can trust your child’s education with (first employees). At first, you’re a little sad. But then the excitement takes over (oh…I can do stuff again!). You begin to regain your creativity, and thirst for life. You go out and explore to begin making up the impact of the negative balance sheet. You’re drive is now re-focused. You’re looking ahead and seeing all the expensive iMac’s, jeans, and college tuition you’re going to have to pay for this child one day.
As the child grows, more and more independence sets in. Your child startup no longer just stays at school by itself, it now spends the weekend at friends homes. These friends begin to influence it, and your kid becomes a stranger at times. As the kid startup now becomes a teenage company, many “suitors” come calling for acquisition to take your precious away. There will be good ones you like; but your company doesn’t want; and there will always be the weirdo with the tattoos and piercings you don’t want to take care of your precious. Eventually, the right suitor comes calling and you happily let go. If you’re really really lucky, your adult company has attracted the best of the best suitors, and one takes it away for an IPO. You are probably ready for retirement; but ironically will be experiencing the exact same feelings at the first conception: nervousness, sadness, yet pure excitement all at once. You may decide to do it again (have another child), but more than likely…you’ll stick to grandkids (mentorees, investments) because you remember the hell of phase 2.
Unless of course, you’re Steve Jobs, in which case your company may call you several times throughout your entire life needing more money and direction.
