The Desk of Rahul

Don't Jump the Gun

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2 min read

In 2018, I registered a company.

I didn't have a fully functioning product then, but I had an idea and a vision I was working towards.

And I thought registering a company would make things official, and it's something I would've done later anyway.

I hired an agency and registered a company named Typemojo LLP.

It was a month-long and expensive affair, but having a registered company where I was the founder felt good.

But here's the thing, I didn't need to have a company at that point.

The product I was building was months away from being ready for public, and I had better things to do than getting wrapped up in unnecessary paperwork.

Then, why register a company so soon?

I jumped the gun.

Ever since I started experimenting with projects over the Internet, I've always wanted to create a company someday.

There was something alluring about having a registered entity that building apps, or blogs couldn't provide.

So, when I got close to launching an Internet business, I rushed to make it official by turning it into a registered company.

Unfortunately, it was a bad impulse decision.

While I reaped no benefits from that company, I had the following recurring obligations:

  • File a nil GST (tax) report every month
  • File compliance forms 2–3 times a year
  • Pay for virtual office space because a company needs a communication address
  • Pay monthly fees to a CA for the company filings

It was a frustrating process which pinched harder considering I didn't get any value in return.

The product wasn't out, and the company wasn't making any money.

So, any benefit in taxes or money management from operating under a company was non-existent.

After one and a half years of bearing unnecessary compliance filings and wasting around ₹85,000 (~$1,050) in total, I shut down the company and walked away with a valuable lesson:

"Don't jump the gun!"

We often rush significant decisions emotionally and without rational thinking.

Sometimes, they work out. Sometimes they don't.

What if, instead of jumping in, we paused, stepped back and understood the potential paths our decision might lead to?

For example, if I had taken some time to understand the regular paperwork and costs involved in running a registered company and weighed them against the benefits I would be getting in return, registering a company would've been a no-go at that stage of the business.

Keeping that in mind, whenever I need to make a significant decision now, I dial down the excitement and do due diligence on my actions.

Will I be creating unnecessary work or making life changes I'm not ready to deal with?

Like the time I got a puppy. I understood there were hard life changes involved in caring for a dog, but I was ready to adjust.

And it was one of the best decisions I made in recent years.

What about you?

How do you make complex or life-changing decisions?