Daniel’s Reviews > The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup > Status Update

Financial capital can be built by accumulating a cash cushin that will keep the founder going after leaving to work on the startup. The size of this cushin, largely determine the amount of time the founder is able to give the startup. This can be done while building human and social capital, to be able to walk away from the job and work on startup full-time till business becomes cash flow positive or secure funding.

Social capital is the durable network of social and professional relationships through which founders can identify and access resources. This can be done by building connections with potential employees, customers, advisers, and investors before while building human capital.

The reasons to wait before founding a startup are to build: human, social and financial capital.

Building human capital can vary from general to specific which can be earned either via schooling or work experience.

General human capital such as leadership abilities and communication skills like speaking and writing clearly.

Specific capital such as how to manufacture a product or how to negotiate with sales rep.

Based on a study of 27,000 founders, the motivations for starting a company were mostly revolved around wealth and control:

- Autonomy
- Power & Influence
- Financial Gain