Matt Watson and Matt DeCoursey started the Startup Hustle podcast with a mission, to be honest, open, and transparent about the ups and downs of being an entrepreneur.
In Episode 74, the Matts discussed the true cost of being an entrepreneur. They dived in on the not-so-glamorous side of entrepreneurship — the anxiety and depression that come along in building your own business.
This topic stemmed from a 2010 survey done on 242 entrepreneurs which revealed that a whopping 49% of them experienced some mental health condition, with 30% of those surveyed saying they felt depressed.
They shared their thoughts on this podcast as a public service announcement to prepare their listeners about the good and bad sides of being an entrepreneur before they bite the bullet and work on their dream business.
Factors that Cause Startup Founders to Feel Depressed
The Matts discussed some factors that could trigger entrepreneurs to feel depressed at some point in the startup phase. Here are some of them:
- Financial Aspects
- The feeling of going broke
- Burning money on your business
- Realizing that your idea wasn’t great as you thought
- Mental Aspects
- Being diagnosed with Attention Deficit Hyperactivity Disorder (ADHD) and Entrepreneurial Attention Deficit Disorder (ADD)
- Having anxiety
- Social and Legislative Aspects
- Disagreements with your business partners
- Ending up with a lawsuit and wasting precious time waiting for the court’s decision
Tips on How to Overcome the Down Moments as a Startup Entrepreneur
The podcast hosts shared their tips and tricks on snapping out of the “down” moments.
- Matt Watson suggested for entrepreneurs to “keep plugging away”, to keep going, no matter what happens next.
- Matt DeCoursey also shared a quote from Dave McKowski that says, “Activity breeds sales.” This means that you need to get up and “just do something.”
- One of the ways you can lessen your anxiety or depression is to find and work with the right people around you. Hire the best people that can do the things that you’re not good at, or don’t want to do.
The Harsh Realities of Building a Startup
The dynamic duo gave their insights into the stark realities and other business challenges involved with building a startup.
- Most startups are going to fail. This is one of the biggest reasons why many entrepreneurs are depressed.
- Matt DeCoursey speculated that after two years in business, the risk of failure is at 80-90%. For franchises, the rate of failure could be a single digit number since franchises already have a proven business model and come with an owner’s manual.
- Reaching the 5-year mark can be extremely difficult.
- If you’re getting ready to start a business, prepare for some sleepless nights.
- You will feel an instant regret after walking away from a business deal that could have allowed you more income and an upgrade in lifestyle
- Change is hard. Sometimes, you have to admit that you’re the problem.
- For entrepreneurs with some ideas for a software business, understand that there’s so much to learn and discover about the complexity, timing, and everything involved in building a software product.
- If you need help in accelerating your startup for maximum growth and profitability, then we suggest you reach our startup experts at Full Scale – Matt DeCoursey and Matt Watson themselves. Contact us to get your free consultation today.
- Scroll down to get the full transcript of this episode.
Listen to Episode 74 of the Startup Hustle podcast – Founder’s Depression.