Why I don't advise entrepreneurs to work from home

Innovation

Yesterday I wrote an article about the difference between accelerators, incubators, co-working spaces, offices, and houses; the article was meant to talk about how certain locations are best suited for certain types of startups and types of entrepreneurs. In the comments section, readers got upset that I said that people working at home tend to have a certain “unwillingness to make any financial commitment  to their idea.” As the comments section got heated – mainly by certain entrepreneurs who are currently working on their project at home, either full-time or while balancing another full-time job – I thought it best to re-address the issue in a dedicated post.

My first concern: Discipline

I work in my bed a lot. It’s nice. I can sit in my San Francisco Giants pyjamas, sip my tea, and respond to emails at my leisure. And that’s the problem. Leisure. We hear glory stories of Steve Jobs sitting in his garage with the Woz, and it’s easy to think “well if he did that and was successful, I’ll do that and be successful!”
Here’s the problem with that logic: trying to align your story with a success story by recreating certain parts of the success story does not a success story make. This is the same logic people use when they say “Zuckerberg and Gates dropped out of Harvard and became billionaires, so don’t go to college.” I would love to see the statistics on students from Harvard who dropped out to start a company and the number of them whose projects didn’t become worldwide successes. They might not have the same opinion about prematurely stopping education.
I find that it is very hard for people to discipline themselves to the extent required in a startup. I’m not talking about forcing yourself to work or making a roadmap, I’m talking about respecting that roadmap. After all, that’s the entire purpose of an accelerator program: they set deadlines for you that you have to respect. Why do you have to respect them? Because the opportunities they present to you down the road are only useful if you’ve done everything leading up to that.
If you can maintain the same rhythm of work, not only in terms of hours but in terms of productivity, meeting self-imposed code-pushing deadlines – then I say ‘go for it.’ But before I give you the OK to work at home, let’s look at another concern

My second concern: Financial Commitment

Let me make this perfectly clear: Financial Commitment means you pay money that was in your bank account in order to fund your project. Time spent working on a startup is not a financial commitment. Money spent maintaining minimal web-hosting services is not a financial commitment. Letting cofounders live on your couch rent-free so you can all work on the startup in the same place is not financial commitment. The following is financial commitment:

  1. Quitting your job (either with or without unemployment) to work full time on your company
  2. Paying a monthly sum for work space, whether co-working, incubator, accelerator, or office space

This may sound harsh, or even unrelated, but the key in all of this is ‘commitment.’ One commenter said that they would go from working at home to renting an office space once investors gave him money to do so. Do you think investors really want to invest in someone whose commitment level only matches the profitability of their venture?
Startups are risky. Startups are risky. Startups are risky. They are risky for VCs. They are risky for employees. They are risky for lawyers, even. But most of all, they are risky for the founders. And if you aren’t risking your own money, why would a VC, an employee, a client, or a user want to take a risk in using your product?

The Hard Truth.

When someone tells me they work on their startup from home, the image I get – as a journalist, as an entrepreneur, as an employee – is of someone who is not willing to commit. Even worse is if you are a sole founder: my father was a single founder running a startup out of his home. It took him nine years to realize he wasn’t getting anywhere. You know why? Because there’s no one around you to tell you you’re not getting anywhere. And then the more you go out of your house, the more people seem to ‘not understand your idea’ (read ‘doubt that you’re making progress’) and so you talk about your idea less, or go out less. Less feedback means less learning. Less learning means less progress. Welcome to the Land of the Living Dead.
Going to a co-working space, an incubator, wherever, means that not only do I have to justify to myself the amount of money I’m spending each month, but I am constantly confronted with feedback, suggestions, insults, ideas. I spend most of my time working at DojoBoost, and startups are constantly telling me about their progress, and I’m constantly pushing them to do more, because that’s what they need.
It is possible to do a startup at home – it has been done before, and it will be done again; however, it is just as much risk as any other part of a startup: the risk of living in the land of the dead, of never progressing, and never even knowing. So if you are willing to take that risk, to constantly spend your time setting goals for yourself and giving yourself feedback, then go ahead and do your startup at home. I’d much rather focus my time on progressing and leave the feedback to my peers.

11 Responses

  1. Avatar
    GS

    “Paying a monthly sum” not some.  It is one thing to work out of one’s house, quite another to be professional no matter where you are working.

  2. Avatar
    Alexandre Dana

    Hey Liam, I totally agree with you on discipline. I have been working on my start-up at home for 3 months and now I really want to burn my bed. But when it comes  to financial commitment, I think you forgot that entrepreneurs already take a  financial risk when they quit their job and decide and decide to be full-time on their project.

    • Avatar
      Liam Boogar

      I did actually explicitly mention that quitting your job is a financial commitment, which is a risk; however, in France, that’s not even always true. With the unemployment structure in France giving people ~60% of their salary for 18 months, it’s really not THAT much of a risk. You take 60% of your normal salary just by changing from working at a big company to working at a startup anyway, so you essentially employ yourself for 18 months)

  3. Avatar
    Emmanuel Bellity

    Hola ! When I started HeyCrowd I worked from home during many months. I had just quit a job that paid me very well. I was a sole founder before Matthieu joined me later down the road. I did not have the money from unemployment that you mentioned below since my employers didnt want to fire me so I had to quit. And I paid real money to hire real developers and designers. So I worked from home (and sometimes, renting that home to go live & work at my parents). And the financial commitment of hiring contractors was money way better spent in my opinion than renting an office space so you can dress to work and shake hands and print stuff to feel like you’re working even though sometimes it doesn’t help shipping a product.
    So even though I agree with your first point, not so much for the financial commitment part 🙂

  4. Avatar
    Julie

    It is true. I remember I really started to feel I was creating my company when I started to pay things for it. Actually we created a coworking space, so we were building our own office, in a way! But the money we spent creating it doubled my motivation about making it great!

  5. Avatar
    Sylvain Gendrot

    We’re arriving to the reason why we create its own job:
    -to become rich
    -to become famous
    -to build the next Facebook/Google/Apple
    -to choose his life
    The last year, during my vacation with a friend at Amsterdam, we met an architect, he spoke to our because we’re french. He explained how he work, 6 month at Paris and 6 month at Amsterdam … at this moment, i really decided to found my company, not to live like him, not to be the next Zuckerberg, but to choose how i want to live.
    I don’t want to work in a OpenSpace of 40 people without air conditioning (like some coworking place !!).
    Neither to pass near a burnout like Christophe Chenebault (founder of Evene.fr).
    I found my company because i love work but not in shitty conditions. It’s too cold for the moment but soon i will work in park, i need two thing:
    my laptop and a cushion for my bottom 😀
    Before launch a startup, ask yourself why you do this ?
    Ps: monday to friday: wake up at 7 o’clock, break(not)fast, showered, dressed for 8.00 … mail/rss/news until 9.00 … self discipline.

  6. Avatar
    Bobbie Johnson

    Totally disagree, though I realise that working from home is not for everybody. Nobody works from home because they are part of a cargo cult: they do it for cost savings, which can be vitally important and relieve pressure on your startup in the early days.
    Plus I would say that you’re underestimating the  in many cases, forgoing other work can be a significant financial commitment — if you think of the cost of lost opportunities, rather than cold hard cash.
    Of course there’s a point where any sensible business needs to formalise, have offices, make significant financial commitments to space and so on (though several significant companies have gone for a long time without it).
    But in the end it all depends on the team, the project, what stage you’re at (and the home). I’d be wary of any sweeping advice.

  7. Avatar
    Guillaume Kalaydjian

    Hey Liam!
    Well, I start experiencing Working-at-home with my buddies, and it’s quite hard to stay focus.Though, we know where we want to go and we have kind of a roadmap, so it’s easier. We set up meetings with part-time collaborators every week, so they can kick our ass if we deserve it.Anyway, we start looking for a cheap co-working space. I’ve heard of a 100euros/month/pers place (open-space) in Paris16e. What do you think? Is Dojoboost 5%equity really worth it?

  8. Avatar
    Zsalloum

    I will add that not only working from home but also part time after a long day time job…i call this commitment because those who have families have no other choice…

Leave a Reply

You must be logged in to post a comment.