Startup Runway Over Consulting

A story about Shaan mentoring a 20-year-old entrepreneur who was considering abandoning his entrepreneurial path for a consulting job.

"I mentor this guy who's 20 years old. He tried to do some stuff that didn't work out, and he was about to take a consulting job because he needed to pay bills and didn't want to move back home with his parents.

He told me he needed $2,000 per month to live. I said 'Let's slow down before you take that consulting job. For 12 months of runway, you need $24,000. I know you do some investing in the stock market - do you have enough money there that you could sell to live off of while chasing your entrepreneurial dreams?'

He said yes, but he didn't want to sell because he was getting good returns. I asked him what returns he expected - he said 50%. I told him, 'Even if you achieve this delusional 50% return consistently, your $24,000 would only turn into $36,000 after a year. You'd make $12,000, which is nowhere near your goals.'

The point was that instead of trading time for money at a consulting gig, he could sell some stock, get $24,000 of runway, and give himself multiple shots on goal to build something he believes in. He'd learn more, have more fun, and have more upside than taking the consulting job."