Financial Safety

Welcome to looking ahead podcast. I’m your host, Mo, and today is my fifth episode in the entrepreneurial conditioning series. Today you will learn different tactics to build some financial stability and safety as an entrepreneur.
Financial safety or stability was one of the areas that I got mostly right before and during my startup experience. I had an agreement with my wife that I won’t find my own startup before I made sure that we had a good cushion. I promised my wife that non of our family members would be impacted by the instability of my startup, at least for the first two years.
Last time I talked about ….

Founding a startup is a big financial risk. You probably giving away some predictable income and jumping into the unknown in the hope of generating more money and eventually creating some financial freedom. But this dream doesn’t happen in the early stages of your startup unless you are super lucky. You will face long times of low or no income at all. This is normal in the startup world. If you don’t have the right plan and preparation in place, your personal finances might be severy impacted and eventually let go of your dream of independence too early.
But it can be mitigated in different ways. But the key here is to separate your financial stability from your startup’s stability. While you should give yourself a salary from your startup when you get funding. But have in mind that your startup will have some extreme scarcity of money and resources. The first to be cut from their salaries are the founders. That’s why there should be a good cushion or other sources of income separate your personal finances from your startup’s financial position.