Recent market conditions have produced a bumper crop of startups and venture capitalists. Not enough thought is given to the questions: Which of them will survive during leaner times? Which of the thousands of startups will actually generate profit? A disturbingly large number of startup founders are more concerned with valuations and term sheets than creating a useful product. Too many venture capitalists are rushing into deals without performing proper due diligence. Groups who’ve never shown interest in venture capital are suddenly jumping into multi-million dollar investments. Many are motivated by fear of missing out on the Next Big Thing rather than a rational evaluation of a business’s earning potential.
Every aspiring entrepreneur should carefully reflect on their reasons for wanting to start their own business before quitting their day job, committing their savings to their new venture, and chasing after Series A. While there’s nothing wrong with desiring wealth, autonomy, and freedom from having to deal with a boss or a job you dislike, these things won’t be the driving force behind your startup’s success. In order to persevere through the hard times and achieve success over the long term, you need to have the right motivations: