Too old to start up?

Photo credits: Ronn

Whenever someone mentions “startup founder,” you will probably think of fresh graduates who are energetic, driven and in their twenties. So if you are a PME (professionals, managers, and executive), should you start up? It depends whether you are ready for the tough road ahead.

My last corporate job was to lead an analytics software business for an MNC with more than 150 staff reporting to me across Asia Pacific. When I invested money and subsequently joined my first startup as a full-time CEO, all my co-founders were PMEs in software development, retail business, and operations management. With our work experiences, professional networks, specialized skill sets and financial resources, what could go wrong?

A lot, apparently, as we were not prepared for what was about to hit us. Here’s what we learnt:

1. Failure will be more painful for older founders

99 percent of startups fail. However, as a PME-turned-startup founder, if you have the slightest doubt that you can be that 1 percent, it is best for you not to start up. Compared with a younger startup founder, your opportunity costs and risks are far greater considering your lost income, housing loan, retirement plan and more. You need unwavering passion and a strong belief that you are solving a real problem, and not just building a “me-too” solution.

For my first startup, my co-founders and I took almost a year to build our products which consisted of a mobile POS, mobile wallet, and an online marketplace (sounds like Square, isn’t it?). We were not sure what problem we were trying to solve and hitting so many roadblocks. There are too many mobile ordering POS and online marketplaces around so we are spread too thin, burning our cash.

It is only after a year of hard knocks that we finally realized that our mobile wallet seemed to have a good market fit with our partners’ product coupons.

So as a PME, you should leverage on your experiences and network, and research deeply into the ‘problem’ that you have identified and ask:

1. Why is it that other corporates, such as your current employer, are not tackling the problem?
2. Have you validated your idea or prototype with your potential clients, investors, and partners?

The reality is that if you fail, your fall will be more painful than a younger startup founder. Therefore, do not start up if you are not prepared to try all means to succeed.

2. You need to be a superman or superwoman

After you have decided to start up, you will soon find that you have to be versatile in all aspects of growing a business. In a large corporate, you have a well-defined job scope and access to resources to help you grow the business. As a startup founder, you need to work in areas that may be totally new to you. For example, you need to pitch to investors, strike partnerships, develop your product, engage in social marketing, be a content writer, a salesperson, customer support, and many more. On top of all these, you probably need to help out with your kid’s PSLE revision and take care of your aging parents.

3. You need to be a very good salesperson

As a startup founder, you need to be THE salesperson for your business. You need to sell to potential investors, partners, customers and employees about your idea, product, traction, team and strategy.  So if you are a PME and have not been in a sales job before, be prepared to take up this full-time role in your startup.

As a salesperson, you need to be able to handle “no” for an answer. I have personally received no less than 100 no’s and counting since I started up one and a half year ago. These no’s will come in various forms: helpful ones, direct ones, indirect ones, mocking ones, and from those who just do not reply to your messages.

4. Finally, enjoy the journey

Steve Jobs was 52 when he introduced the first iPhone in 2007. PMEs have unique advantages if you have the will to win. You should ask yourself, “What is your motivation for starting up?” and “Can you keep to that calling?”