Startup Founder Mindset vs Big Corp Manager

Unpopular opinion: one of the bad stereotypes as a founder is someone who held former director/managerial positions in well-known big corporations.

When I worked in a big corporation as a manager, my yearly budget was over $5 million (USD). I needed to spend it all; otherwise, my budget was considered sufficient, and it would be cut the next year.

So, in most cases, we tried to spend the same amount or more within the year. To meet our budget goals, we sometimes made questionable decisions, just like you might see perfectly good pavement unexpectedly undergoing construction.

The following year, we would have financial planning to determine the next year’s budget, which typically increased unless there was a global market downturn. We kind of learn how to spend money well.

When I first founded my company, I thought funding rounds might be similar. If I got the first round and did my job well, I could get to the next round without any issues.

In reality, it’s exactly the opposite. No one will give you money just because you spent it well. Instead, we need to think of each investment as if it were our first and last. We must figure out how to survive within the budget, without relying on any additional funding.

Oddly enough, I often meet people who, like my younger self, manage their burn rates poorly. They somehow still think they are working in a big corporation and maintain an overly optimistic mindset.

For me, it took several years to completely shift my mindset toward being a founder.

How about you?

#survival #founder #startups #BurnRate