Tuesday, 02 January 2024 12:17 GMT

Startup Founder Making ₹1 Lakh Monthly, Ponders Over Rejecting ₹40 Lakh Job Opportunity Was It Worth It?


(MENAFN- Live Mint) A startup founder reflected on giving up ₹40 lakh annual salary 2.5 years ago and starting his own company. The 31-year-old founder based in Mumbai in a social media post sought advice on ₹6 crore business that provided him ₹1 lakh monthly salary.

The caption to the post states,“Need advice: I feel stuck in my start up.” Suggesting that the Profit After Tax (PAT) of his business is 3 to 4 percent, in a Reddit post he stated,“I started my company around 2.5 years ago. Left a job offer at 40lpa. The start up took off since it was in a slightly conventional space."

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Acknowledging that the service based business reached a saturation level despite ₹50 crore target, he wrote,“Did a 5cr turnover after 6 months and the bug of scale bit us. We wanted to make it 50 crs. This is a ops heavy and NPS driven business. Service business.”

He further noted,“We raised money mostly through debt. Around ~1cr. We were NOT able to scale and manage operations....Good thing is that earlier we were bleeding money (PAT ~negative 7%). Now PAT is at least 3-4%.” Unable to scale the business, he said that the company continues to do ₹6 crore annual business but over a crore need to be paid back which was financed through debt.

Complaining about his struggles to cover his expenses with the current income while living in the financial capital, he stated,“I personally dont make much money (~1L / month) which barely takes care of my expenses in Mumbai. I have not build any assets and have taken multiple personal loans. My peers make at least 50 L a yr and I feel like I miss out on all those things.”

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Alleging burnout from the startup pressure and the feeling of being trapped for the coming years, he said,“The business has a potential to make good money but its going to be slow. Plus so much uncertainty. At least for next 2 3 years I will be paying an emi. And I feel stuck.”

Social media reaction

A user presented a useful advice,“Here's a mental framework to survive and grow over the next 2–3 years: first, separate personal finances from business stress. Make your EMIs and basic expenses untouchable in your cash flow plan - that gives your mind a little breathing room. Second, treat operational efficiency as your north star - every tweak, every system you put in place compounds over time. Third, pick one high-leverage growth lever rather than chasing everything - it could be pricing, retention, or expanding a single segment. Fourth, protect your energy and health - sleep, micro-breaks, even small wins celebrated matter. Finally, think in scenarios, not just numbers - if things go slow, how do you survive, and if growth spikes, how do you scale without burning out?”

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Another user remarked,“I'd rather earn less than work for someone else for 40lac per year. The passion and freedom is worth more. Keep going. If possible dilute a bit equity for funding if you're stuck. What is the business you're doing?”

A third user stated, "Comparison is a thief of joy! And this is the“startup cycle” 99% of the founders go through. Self-doubt makes you constantly question your decision, and you're always uncertain about the future.... you're probably sitting at a business valued more than all of your peers (50 lakhs lpa compared to a 6cr revenue business). You can take an exit and turn the tables anytime. But you can also choose to stick with it, grow it, and get a much better exit (probably life changing)."

A fourth comment read,“Dont fall prey to the green grass syndrome. You are a free bird, cherish it. What you really need is a good mentor to help you streamline your business."

A fifth user replied,“If you are here asking this question then I say you look for other options. Startup ecosystem is unpredictable, if you switch 5 years from now, you would have extremely hard time.”

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