When I first thought about penning this series on startups, I toyed with the idea of establishing some sort of chronological order. But as any founder, or frankly any team member will tell you, there is no such thing as ‘chronological’, and most certainly no such thing as ‘order’ when it comes to building a business.
As with anything, at the start of a journey, naivety plays a massive role. Honestly, in some cases, I am so grateful for this naivety. It made me that optimistic, passion-driven founder that warmed to buyers, investors, suppliers, even to LinkedIn. Yet, in many instances, just being a little less naive would have saved us a whole lot of money, conserved a load of time, and avoided more setbacks than I care to count.
So, here’s my first ‘heads up’ for any budding fmcg startup business builder. That is to sustain yourself
You’ve heard the stories. The “we were slumming it before we made it” tales. But let’s not get caught up in the fantasy of the story you might one day tell. The reality is: from day one, you need to think about you.
As the founder, you are the most important piece of the puzzle. Without your effort and commitment, your business falls before it begins.
So, what does ‘sustaining yourself’ actually mean?
It means figuring out what you need personally, not just what the business needs, to make it through the early stages. Passion and adrenaline are great, but rent is real. Groceries are real. Social plans, the gym, grabbing a (probably overpriced) flat white to stay sane – it’s all real.
Far too many founders think about their business, and survival of their business, before they think about themselves. Founders don’t get involved for short-term wins (spoiler: if you are, food and drink is not for you).
It comes back to a classic: put your mask on before helping others. If you are not able to focus fully on your business because you are chasing a freelance gig, worrying about personal bills, or putting incredible personal pressure on a successful week of sales, your business will feel the strain.
So, when you raise or build your model, be realistic financially. Not greedy, but realistic. What salary do you need to take year on year, for the duration of a forecast, to remain focused, limit personal stress, and ensure you can be fully committed?
Plan your salary from the beginning. Build it into the model. You can’t afford not to.
When I handed in my notice to go all in on the business, three months before Covid lockdowns were even suggested, I crunched the numbers. I knew exactly how long I had to either get revenue for the business or close a funding round. That planning paid off. It meant that when the lockdowns hit, and both income and investor conversations dried up; I could still push forward.
Of course, Covid was completely unpredictable – but the only thing predictable about starting a start-up is unpredictability.
Give yourself the best shot: save up, map your runway, build in realism, and then commit 100%.
As I said, there is no clear order when it comes to building a startup – but sustaining yourself feels as good a place to start as any.
Joe Woolf, founder of Tasty Mates and head of retail at HomeCooks
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