Did I done goof it up?

[MakeMoreMoves]

So, I have been working for about 3 months at slowlane (what I went to college for) 50k job. I just switched down to part-time to spend more time on the business. My pay gets cut to about 35k. My parents are giving a little over a year before I have to pay bills. My parents said this is the biggest mistake I have ever made by going part time. I can definetly get this business started in about 2 months max. They think I am only going to make decent sales at the 5 year mark. Honestly feel that I could get a several thousand under a year and get it running. Note my parents are very hardcore slowlaners. Also, can't decide if I should still care about 401k. I mean I am going to keep starting businesses until I get out of the slowlane completely. I will die for this. I am putting in 15%. Should I just lower the percentage for now?

 

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[AgainstAllOdds]

Also, can't decide if I should still care about 401k. I mean I am going to keep starting businesses until I get out of the slowlane completely. I will die for this. I am putting in 15%. Should I just lower the percentage for now?

Here's how I look at it:

Every time you invest in your own business, it's a gamble with "financial freedom" as the payoff.

If you never bet, then you never win.

If you bet without thinking, you'll probably never win.

If you bet, lose, learn, and bet again, then your probability of winning keeps getting higher and higher.

So let's say eventually you learn so much that your probability of winning is 30% and you decide that you're going to keep betting no matter what. You'll bet on one business a year, for 10 years until you get a business that's a success.

... In that case, what's the probability of sucess?

Mathematically: 97.17%

Don't believe me?

Well here's the calculator: http://stattrek.com/online-calculator/binomial.aspx

And here it is if you don't want to click through:

So to answer your question:

Did you goof up?

Maybe.

And most likely you'll fail at your first business.

And possibly on your second.

And on your third ...

But does it matter?

Not as long as you keep improving your chance of success. Because as long as you hit that 30% success rate, eventually success will be nearly guaranteed.

 

[MakeMoreMoves]

Here's how I look at it:

Every time you invest in your own business, it's a gamble with "financial freedom" as the payoff.

If you never bet, then you never win.

If you bet without thinking, you'll probably never win.

If you bet, lose, learn, and bet again, then your probability of winning keeps getting higher and higher.

So let's say eventually you learn so much that your probability of winning is 30% and you decide that you're going to keep betting no matter what. You'll bet on one business a year, for 10 years until you get a business that's a success.

... In that case, what's the probability of sucess?

Mathematically: 97.17%

Don't believe me?

Well here's the calculator: http://stattrek.com/online-calculator/binomial.aspx

And here it is if you don't want to click through:

So to answer your question:

Did you goof up?

Maybe.

And most likely you'll fail at your first business.

And possibly on your second.

And on your third ...

But does it matter?

Not as long as you keep improving your chance of success. Because as long as you hit that 30% success rate, eventually success will be nearly guaranteed.

Wow, thanks. I already invested like 2k into this. Graduated college this year. I Really feel like my first business is going to be a success. Am I just blindly optimistic?

 

[AgainstAllOdds]

Wow, thanks. I already invested like 2k into this. Graduated college this year. I Really feel like my first business is going to be a success. Am I just blindly optimistic?

Not at all.

You should never start a business unless you think it will be successful. So your mindset is the perfect one to have. In fact, here's a quote from Peter Thiel:

“I try to go against many of these bromides that people have in Silicon Valley and one of the ones that I really dislike is that somehow failure is this great learning experience or something like that.” Every time a company fails it is not a beautiful working out of the Darwinian free market and it is not a fantastic educational experience for all involved. Every death is a tragedy and that is even true of deaths of companies."
​

Failure should never be considered an option, except mathematically.

And my point above is not necessarily that you'll fail, but that failing doesn't matter as long as you get better. The odds are in your favor.

 

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[RazorCut]

My parents are giving a little over a year before I have to pay bills.

So I take it you are living at home with your parents and, even though you are earning 35k, you are not contributing?

No wonder they feel that you going part time after just a few months is a mistake. I think you're family would be more supportive if you took on some responsibility and paid your way.

They think I am only going to make decent sales at the 5 year mark.

This is very old school thinking and has a lot to do with the traditional way of setting up a business with high initial costs and low levels of customer acquisition in the early years until you "establish yourself".

Most internet models these days have banished that process unless you are intending to start the next Facebook etc. with the idea of building a huge footprint before monetising or going for an IPO. But to do that you are going to be looking for VC money anyway so will be running on someone else's dime.

I can definetly get this business started in about 2 months max.

Be aware when making projections that most projects take at least twice as long as you expect and cost at least double what you thought they would. And in business the profits will most likely be less than half what you predicted. Not taking these factors into consideration is one of the biggest newbie mistakes I see.

Failure should never be considered an option, except mathematically.

Sure, you certainly should not start a business thinking failure is likely but the potential for failure should never be discounted either. In fact the potential for failure should be part and parcel of your business strategy. Only a fool never considers the downside.

When starting out try to keep your risk level within your comfort zone so if your enterprise does not take off and you have to walk away you can do it relatively unscathed.

Better still build something that will allow you to easily pivot as you learn more about your business and markets and the successful systems you can employ.

Richard Branson's success in life can be attributed to not only picking the right partnerships but in his ability of minimising his exposure on all his new ventures.

 

[skabraham2010]

You're earning 35k annually and are forced to live at home with your parents?


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[Trevor Chaumont]

Good luck in your business ventures! I'm making moves to start my own path in business and I'm really excited about it. Looking forward to hearing your progress

 

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[Jtravismedia]

I can definetly get this business started in about 2 months max.

As someone who is moving on from a deflated partnership to a more controlled single driven business I had these exact same thoughts.
Be careful and be honest with yourself. I don't know what you're like as a person but you've got a slow lane good job, which at least means you're seen to be of value.
When starting my previous business we said, 'We'll do this, this and this and get at least £1000 per month at least!' Surely! Why not!?! How could it fail?
Well, we failed horribly on execution.
We assumed that, because people wanted it, and our stuff was good, we would make money. But there's a lot more to success than that it turned out.
Also move out. That's a good wage for part time!?!

 

[The-J]

This is the most Asian thread I've ever seen. Lmao.

Your parents aren't going to disown you and curse you on your ancestors, bro. They actually do care about you and want to see you succeed.

So go for it. Stop being scared, do what you need to do, make a F*ckin sale, move out and make your ancestors proud!

(I apologize to any Asians that I offended with this post, but I believe it needs to be said. Asian (and other immigrant) parents are often strict, blunt, and prefer to have their child take as few risks as possible, regardless of upside. Fastlane is all about freedom and taking calculated risks. What young Asians need to do is to have the balls to do what they want, regardless of how their parents will take it. Although you can never quite dismiss them from your life, you can seat them at the back of the car so they don't have the steering wheel. Remember, even though your parents fears are unfounded, they're afraid because they don't want to see you get hurt.)

(I also realized that OP might not be Asian. It's just a very familiar plight, that's all.)

 

[Consummation]

You're earning 35k annually and are forced to live at home with your parents?


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Disclaimer: I do not live with my parents and have lived on my own for 5+ years now.

I don't understand what all the hate is about not living with parents. There are tons of people who live with their parents who do not contribute monetarily. Especially fresh out of college? Quite honestly it is the wisest route to go if things fit into place.

Contributions: A simple fact of fastlane. We trade time for money.

If the OP is contributing time into helping maintain, do yard work, run errands, or what ever else his parents ask of you that consumes time. How is this different that money? He is contributing.

Why must the OP contribute a monetary amount? It's the same thing at the end of the day. There is time being traded in place of a roof over his head. Sure if they were asking him for a monetary amount then it's a different story.

The OP never said his parents were forcing him to stay there. There was no mention of him having to pay rent, or being pressured to pay rent. He's better off starting a business with very minimal expenses and having a good amount of money saved up. There are way too many businesses out there that fail due to lack of funding.

The more important question is what are you doing during your time and time frame.

If you're sitting around doing nothing all day long, sure your parents aren't going to take you seriously. Constant updates and specific communication to the parents wouldn't hurt.

Work your a$$ off, how ever know when to decompress for a day. Do not abuse it.

You don't mention, so are they for it or against it? Seems like they aren't against it, how ever they have their own opinion. What if it did take 5 years? (Traditional or not) would you commit to it?

How long since you have started this business?

Why two months will it be successful?

Generally it takes a business at least 6 months to gain traction, why will yours be only two? (*generally*)

What could you be doing differently NOW that will make you progress?

What is your biggest hurdle to overcome?

Can you walk? Can you run? Can you jump?

If not what steps can you take to do so?

Ditto for twice as much time and twice as much money.

If it was easy everyone would do it.

What makes anyone who has done it better than you?

Keep your head up OP I will be looking for a progress thread.

/

 

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[Imgal]

Disclaimer: I do not live with my parents and have lived on my own for 5+ years now.

I don't understand what all the hate is about not living with parents. There are tons of people who live with their parents who do not contribute monetarily. Especially fresh out of college? Quite honestly it is the wisest route to go if things fit into place.

Contributions: A simple fact of fastlane. We trade time for money.

If the OP is contributing time into helping maintain, do yard work, run errands, or what ever else his parents ask of you that consumes time. How is this different that money? He is contributing.

Why must the OP contribute a monetary amount? It's the same thing at the end of the day. There is time being traded in place of a roof over his head. Sure if they were asking him for a monetary amount then it's a different story.

The OP never said his parents were forcing him to stay there. There was no mention of him having to pay rent, or being pressured to pay rent. He's better off starting a business with very minimal expenses and having a good amount of money saved up. There are way too many businesses out there that fail due to lack of funding.

I think the angle people are working at ... and I may be wrong isn't so much that OP shouldn't be living with their parents, but questioning whether that is the best option for where OP is right now. With a 35k job it shouldn't be hard to find somewhere to rent which would give OP independence, and in turn perhaps show their parents that they are able to cope on their own, thus putting more confidence in the fact that they can do something and succeed at it if they wanted to.

The ups and downs on starting your entrepreneurial life have seen me spend many a month crashing out on my parents floor and while it's been when times are tough I've always paid my way... even if it was incredibly difficult to scrape together. They would have left me off every single time. I wouldn't though because I wanted them to see my work ethic and this wasn't a game. I knew that life was about responsibilities and I wasn't going to ignore mine. I also worked every spare hour I had on my business... while they were watching television and unwinding at the end of the day they knew I was working away trying to achieve my dream. This never stopped the "We're worried about you... is this really the right path for you?" conversations, but it did gain me respect and support.

My advice to anyone living with their parents on their road to their entrepreneurial castle of success... pay your way whether it's monetary, unpaid work or in simply laying out what you're doing and how your business is growing... even the latter is a form of payment as it shows to them that there is some ROI in allowing you to stay. It will also put you in a totally different mindset of having to get things done.

 

[Mineralogic]

You're earning 35k annually and are forced to live at home with your parents?


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guys - I also KNOW someone like this..Young aggressive, positive....sub 30 and still taking advantage of living home

unreal. Millennial thing? also rents have rocketed