How to Know You Are Ready to Go All In on Your Startup

Most of us founders have a day job. We need to stay afloat in the end somehow. Our startups start to gain traction, seeing some revenue.

This might be the one — finally.

Is it time to quit our job and full-send it on the startup when we see this first little bit of traction coming our way? Probably not.

When is the right time?

Today at a Glance:

Forwarded this email? Join 1,000+ founders and sign up!

How to know you are ready to go all in on your startup

There's no perfect moment to quit. We always have to play the odds game. Writing down pros and cons list for staying at our jobs, while doing a startup on the side — or going all in.

However, there are signs that you're ready to take the leap:

Team: You've got a team full of Marvel superheroes. These are people who believe in your vision as much as you do. Remember, no one scales a company better than the folks who built it. Give them a ton of equity, in order to keep the morale high. There’s not a single successful founder out there regretting he gave his first hires way too much equity.

Tech: You've got a product that actually works. It doesn't need to be perfect (newsflash: it never will be), but it should solve a real problem for real people.

Traction: You've got customers who are willing to pay for your solution. And no, your mom doesn't count (sorry, mom).

Truth: You've validated your idea with the market. This means facing the brutal facts, even if they hurt your ego.

Target: You know exactly who your customer is and why they need your product. If you can't explain this to a 5-year-old, you're not ready. Additionally, a good rule of thumb is having a proven product-market fit, so your company keeps scaling rather than staying stagnant.

Time: You've got enough runway to give this a real shot. Ramen profitability is cool, but so is paying rent. This might but does not need to equal having a VC-money/Accelerator backup.

Trust: You've built relationships with mentors, advisors, and potential investors. These folks will be your lifeline when things get tough (and they will).

Remember, going all in doesn't mean burning all your bridges. It means committing fully to your vision while having a solid plan B.

A metaphor I like to use is treating a startup like a very very very cold ice plunge. Currently, you are in the ice plunge up to your knees. You can either go all in, or chicken out. However, if you go all in — there’s still a slight chance you might die from a hypothermia. Act wisely.

Hints you might be more ready than you think

Subscribe to Premium to read the rest.