Surviving the First 18 Months

Mandy S
May 6
3 min read

A Tactical Playbook for New Entrepreneurs Who Want to Stay in the Game

What should new entrepreneurs focus on in the first 18 months?

The first 18 months of launching a startup feel like balancing on a tightrope—while juggling flaming torches—during a windstorm. Statistically, 20% of small businesses fail within the first year, and by the end of the second year, about 30% are no longer operational.

The early-stage period is unforgiving, and the margin for error is slim. But survival is not just possible—it’s tactical. This article is a structured survival plan to help entrepreneurs gain footing, build traction, and develop the resilience needed to make it past the “danger zone.”

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How do I set realistic revenue benchmarks in year one?

Don’t aim for unicorn status. Aim for cash flow. In the early stage, revenue benchmarks should align with sustainability, not headlines. Break down your financial needs into fixed and variable costs and reverse-engineer a monthly revenue goal from there.

According to CBInsights, 38% of startups fail because they run out of cash, not necessarily because their idea was bad. That means your ability to forecast income, pace expenses, and secure early sales is more important than your elevator pitch.

Start with the “MVP-to-Market Fit” model:

Identify your lowest viable offer.
Test pricing tolerance early.
Avoid giving away your product or service in exchange for “exposure.”
Measure Cost of Acquisition (CAC) and Lifetime Value (LTV) from the start using tools like Baremetrics or ProfitWell.

What systems should founders build early to avoid burnout?

You’re not just building a company—you’re managing your own capacity. Founder burnout is a leading, silent killer of early-stage ventures. According to Harvard Business Review, founders are far more likely to experience chronic stress and insomnia compared to non-founders.

To avoid this trap:

Implement “energy audits” every two weeks.
Offload repetitive tasks using tools like Zapier or Trello.
Learn to say “no” to opportunities that dilute your focus.

Arianna Huffington noted: “Burnout is not the price you have to pay for success.” Sustainable hustle is smarter than 80-hour weeks.

How much traction is enough to raise capital?

Here’s the truth: traction is a moving target. But the one that matters most to early-stage investors is revenue or user growth. Y Combinator advises aiming for 5% to 7% weekly growth in key metrics during the early days.

Depending on your business model:

B2B SaaS startups often raise pre-seed with $5K to $10K in MRR.
Consumer apps might need 10K+ active users.
DTC brands should show high repeat purchase rates or a loyal niche community.

Avoid building “for investors.” Build traction, and the investors will come to you.

What are the most common early-stage missteps to avoid?

1. Building before validating.

Your idea isn’t validated just because your cousin said, “That’s dope.” Talk to at least 50 potential users first.

2. Overspending on things that don’t matter yet.

You don’t need office space, branded hoodies, or a full-time designer. Focus on what moves the needle—sales, retention, and product quality.

3. Hiring too soon.

Founders often hire because they’re overwhelmed, not because the role is ready to scale. Test with freelancers first. Use platforms like Toptal or Upwork.

What are practical ways to grow organically before raising money?

If you can’t raise yet—or don’t want to—here’s a framework:

1. Piggyback on existing communities.

Hang where your users hang. Reddit, Quora, niche Facebook groups, Twitter threads. Contribute value, don’t sell.

2. Use strategic partnerships.

Co-sell or co-market with a brand that serves the same audience. You split the effort, double the exposure.

3. Start a content flywheel.

Educational content that leads to product awareness works. Think blogs, newsletters, webinars, and short-form videos. Tools like Canva or Descript help you create fast, polished assets.

Final Advice from Those Who’ve Been There

Paul Graham (Y Combinator co-founder) once wrote, “Startups don’t win by attacking. They win by transcending.” In other words, don’t fight every battle. Pick the one path that actually helps your customers and obsess over it.

You’ll likely mess up a hundred times. But if you set the right goals, manage your energy, and track your progress with brutal honesty, you’ll give your startup a fighting chance to stay alive.