Chapter 1: The Pressure to Grow

Recently, a friend expressed his disagreement with my assertion that the “go-big-or-go-home” mindset is detrimental to startups. He emphasized that some pressure is essential for a company's expansion; without it, one risks stagnation and disappointment.

While he has a point, I believe he misses a crucial perspective. In tech accelerators, the mantra is often centered around growth, with Monthly Recurring Revenue (MRR) being paramount. It becomes a ritual to check your MRR first thing in the morning, often before even brushing your teeth.

In truth, your environment heavily influences your mindset. If your peers are grinding around the clock, you’re likely to adopt the same mentality. If everyone is fixated on rapid startup growth, you will undoubtedly feel that pressure too. However, this scenario assumes a circle of about 50 people, most of whom you know. You might not sense anything amiss—after all, one of your friends might have graced the cover of Forbes. But, for a broader perspective, you need to take a step back.

PS: I devote 96% of my time to my newsletter, which boasts 1.2 million views and 32,000 readers. If you're interested in joining my network, here’s a link. I was deeply immersed in this world a decade ago.

Ten years ago, I wasn't on the cover of Forbes (not yet, anyway), but I was a co-founder relentlessly chasing growth to please our investors. We did manage to impress a few along the way. Reflecting on that period now, I've come to realize how much I’ve learned, but also how unhealthy my life became.

You might think that stressing over achieving a specific MRR is harmless, that it’s merely a phase that will lead to a lucrative exit, allowing you to unwind in an expensive home. However, this belief is far from reality for most entrepreneurs. Sure, if you create a software like Slack and sell it for over $20 billion, that could be your story. But let’s be honest: very few entrepreneurs reach that level of success.

When things don’t pan out as expected, you might find yourself regretting the back pain from neglecting your health over the years, missing out on hobbies like learning the piano, or losing meaningful friendships—all contributing to your eventual burnout.

Entrepreneurship can be exhilarating, but excessive ambition can lead to unhealthy outcomes. It all circles back to how you define success.

What do you really want? Is it to be featured on Forbes? To impact millions positively? To create a memorable product? Or simply to amass wealth? Each option is valid.

You have two paths: embark on a joyful, sustainable journey or speed through life in a high-powered Lamborghini that leaves lasting side effects.

As I grow older, I've come to understand that achieving a work-life balance is more crucial than I once thought. In my earlier days, I viewed those who prioritized balance as lazy. Now, I regret not adopting that mindset sooner. I would gladly extend my entrepreneurial journey by five years if it meant leading a healthier, happier, and more productive life.

Many startups frame their journey as a grueling adventure, but it doesn’t have to be that way. It can be a fulfilling and productive experience. You can check your MRR after brushing your teeth; it's perfectly fine. You might even choose to pass on an investor who’s fixated on hitting $250k in Annual Recurring Revenue (ARR) or take a week off for a mountain getaway. Initially, it might feel wrong, but eventually, it will feel liberating.

Some may criticize you for not being ambitious enough or for falling behind. You know what? Let them think that. Prioritize enjoyment in each step. The individual who endured a decade of success but was miserable during that time paid a hefty price for what might be considered a future payoff. You don’t have to sacrifice your journey for the sake of potential success.

Invest your time wisely rather than fixating solely on financial returns. Time is a unique asset that cannot be replenished through funding rounds.

Statistically, ambition and burnout often coexist. The successful figures you admire, like Elon Musk and Jeff Bezos, have likely experienced their share of burnout. Ask their employees, and you’ll hear tales of strain and turmoil. I don't subscribe to this approach, which is why I stand by my view that the “go-big-or-go-home” mentality has indeed harmed startups.

The moment entrepreneurs embrace a “go-wherever-and-whenever” philosophy is when they recognize that time is their most valuable resource.

What’s your take on this? Do you think pressure is essential for growth? Do you see a middle ground? Have you encountered burnout? I’d love to hear your thoughts in the comments for a lively discussion.

I'm Al, a business consultant based in Zurich, Switzerland. I’m passionate about delivering value to my readers. If you’re interested in my content, feel free to follow me on social media.

Chapter 2: The Reality of Burnout

This video explains the concept of hockey stick growth in startups, detailing what it means and providing examples of companies that have successfully achieved this growth trajectory.

In this audiobook preview, Bobby Martin discusses the four key stages of hockey stick principles in business, offering insights into navigating the startup landscape.