Entrepreneurship is Hard; nay It’s Very Very Hard. Period

It demands more than just a good team, a good idea, or a business plan; it requires everything you have on a personal or professional level. Over the years, as an entrepreneur or a lawyer, many of my budding entrepreneurs have asked me what is the most important document for a startup. A lot of them expected that I would say it to be a legal document such as a Founder’s Agreement or Company Bylaws. Going on a limb here, at max they expected me to say corporate documents such as the startup’s core values, culture, or mission statement. 

However, the document that has helped me the most in my last 10 years of entrepreneurial is the "Founders' Letter". This letter essentially has three parts, let me go into the detail of each one:

First, Uncovering Authentic Motivations:

This is a letter that I write to myself or make my co-founders write for themselves, explaining the real motivations behind the venture, both personal and professional. This is where you explain why you decided to start your venture, what problem you are trying to solve, and what impact you want to make in the world, without sugarcoating or exaggerating anything.

For example, building a billion-dollar company is not a good motivation. Building a company that solves problems for a specific group of customers, on the other hand, that can ensure me to have $500,000 of income per annum is a better one.

But there is no right or wrong answer here. You have to find your own "why", the reason that drives you and inspires you to pursue your dream. You don't have to justify or prove anything to anyone but yourself. In the end, You do you! 

Second, Setting Realistic Expectations:

The second part of this letter should outline what I expect from myself as a founder, or from my co-founders if I have any. What are my goals, my values, my strengths and my weaknesses? How do I plan to overcome the challenges and seize the opportunities? How do I measure my progress and success?

Third, Defining Deal Breakers:

The third part of this letter should define what are the deal breakers for me. What are the situations or scenarios that would make me quit or pivot? What are the red flags or warning signs that I should pay attention to? What are the criteria or indicators that I should use to evaluate my venture?

The Value of the "Founders' Letter":

It is true that when things are going normal, writing this letter may feel like a mere corporate formality or an overkill. How this document hhas helped me immensely in the past to stay focused, grounded, and grateful for what I have achieved so far. It also reminds me of why I started this journey in the first place, and what I hope to accomplish in the future.

But this letter is even more valuable when things are not going well. When I eventually face difficulties, setbacks, or failures, when I feel stressed, frustrated, or discouraged, when I doubt myself or my venture, this letter can be a great source of support and guidance. It can help me to regain perspective, confidence, and resilience. It can help me to remember what matters most, and what doesn't.

I recommend every entrepreneur write their own "The Founders' Letter" and revisit it regularly. It can be a powerful tool to cultivate gratitude and resilience in your startup journey.