In this biweekly column, Andy Dunn, founding CEO of Bonobos and Pie, offers advice on leading teams, building things, and surviving startup life.. Have a question for Andy? Listen here.
I’m a startup founder diagnosed with bipolar II disorder. I have been suffering from major depression since 2021, which culminated in 2023 while battling suicidal thoughts. It’s still promising, but he’s starting to lose his passion for his three-year-old startup and wants to close it. How can you prioritize your health without throwing the baby out with the bathwater?—christie
Hello Christy. Your mental health must come first. I’m so proud of you for getting through these three years with him. I know how difficult it is, but I’m so glad you’re still with us.
If your startup still has a future and you’ve lost your passion, it’s best to sell it, even if it’s for a penny. After all, it will give you the story that you sold the company. Maybe your team members will get an offer, and you and your investors will probably get wiped out, but you’ll live to tell (literally) and start something new again. A merger with another startup that doesn’t ask for much in return could also be a way to do this.
For yourself, on the other hand, it might be a good idea to take some time off and go back to work until your mental health is on solid ground. It may take him a year or two in a decompression chamber to recover from the double stress you are under.
If a sale or merger to a larger company amounts to an “acquisition,” then shut down that company. Are you okay. It happens all the time. Your investors are already wealthy. And you will rise again.
Be sure to let everyone know you’re doing this and do it right away. That way, you have money available for exit costs and no one on your team or investor group feels blindsided. Do your best to obtain retirement benefits for your team and be 100% transparent about your intentions and runway with investors.
Don’t say you’ve lost your passion. Tell them it’s not working and you can’t take advantage of it. Share your pain with those you are close to, as a team and as an investor.or just pull burning rate And please do your best and tell everyone.
Candid conversations with investors can actually energize your company. It unlocks their empathy and makes them think creatively. I have more love for you than you can imagine. If they want to invest more money, you can work together to find a new CEO. It won’t be easy, but if some of the company’s stakeholders want to stay in business, perhaps they’d rather get a 5% to 20% investment from the new CEO than their own investment. Better to accept dilution.
Whatever path you choose, I’m proud of you.
What do you think about your startup’s growth rate in terms of building a business around trust? You can’t buy trust.—Shizu Okusa
Growth slows down. Growth is overrated. Capitalism loves hypergrowth. But corporate culture favors steady, compound growth.
Think of it this way. Once he reaches $1 million in sales, it may take a minute or so, but he will not only have a potential company, but a potential business. If it grows at a compound annual rate of 75%, you’ll have $50 million in 8 years. This was so good that he didn’t have to double or triple his investment as some impatient investors would like.
If the growth rate then drops to 25% per year, it will still have sales of 250 million in year 15. This is quite amazing and will probably allow you to trade at multiples of earnings such as: If you’re growing up that fast. That means we’ve driven $100 million to $250 million in exits over 8 to 10 years. not bad.
It will get better if you keep doing it. Great things can take a long time. I need more Patagonia and less FTX.
If you are touched by excessive growth, God bless you. Then you will learn an important lesson. can Even if you can’t buy trust, you can buy employee retention. And if everyone is doing it, trust can build over time.
A wise man once told me that it takes a long time for culture to kill a fast-growing company. Greed is a powerful thing. And growing up can be a lot of fun. People learn a lot and grow. Winning together is a great way to build trust. When you’re on a winning team, it’s hard not to trust each other.
However, success rarely happens overnight. Take time to check your own internal compass.
I love the story of my friend Eric Allevest. He has been self-employed for over a decade and founded a remote-first company since 2006. I learned from him that I could do things differently and may be glad I did in the future.
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