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How I Created a $350M Software Company Knowing Nothing About Software

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Re: How I Created a $350M Software Company Knowing Nothing About Software

#21

Post by tiagomartins »

6stringmerc wrote: post #4

Interesting article and impressive to see that kind of tenacity. Truly that's a take-away from the full perspective. The other take aways, for me, aren't nearly as complimentary. 1. Want to make a lot of money? Find an out-dated system where grunt labor is worth a lot less than the technology the grunt labor uses, and target this gap mercilessly (call centers) 2. Act like every other shady, fly-by-night, asshole sale…

1. Want to make a lot of money? Find an out-dated system where grunt labor is worth a lot less than the technology the grunt labor uses, and target this gap mercilessly (call centers)

Finding such a system would require you to have some experience with it, knowing the current problems, and then build a solution for it. This is the case in the article. Which is not easy I'm guessing, at least as a developer.

Re: How I Created a $350M Software Company Knowing Nothing About Software

#22

Post by 6stringmerc »

mildbow wrote: post #7
6stringmerc wrote: post #4

Interesting article and impressive to see that kind of tenacity. Truly that's a take-away from the full perspective. The other take aways, for me, aren't nearly as complimentary. 1. Want to make a lot of money? Find an out-dated system where grunt labor is worth a lot less than the technology the grunt labor uses, and target this gap mercilessly (call centers) 2. Act like every other shady, fly-by-night, asshole sale…

Not sure why you think those 3 points aren't complimentary. They seem like great + useful takeaways. No, they aren't new , but they are useful . Regarding your last point: nothing is a sure thing. Of course survivorship bias is a thing. Of course believing in yourself/ability to figure stuff out isn't a sufficient condition for success. But, maybe it's just a necessary one?

Well I'll freely admit that the 3 points I'm not fond of is directly a result of, rightly or wrongly, preferring stories of tenacity to feature sympathetic characters who strive for and achieve success through merit "idealistic" avenues and behaviors. Those areas I mentioned felt a lot like short-cuts, in that glorifying "cold calling with vaporware until we get enough money to actually make software" doesn't strike me as a useful example, if morals are of any value to the person taking action. It just didn't sit right with me, and thus isn't an admirable aspect of the narrative.

On the last point: Of course nothing is a sure thing, and not once has success come from "believing in yourself" trumped "talent and hard work" without straight up dumb luck. Whether starting a business, playing the lottery, or testing gravity by way of jumping off a large building, I think "believing in yourself" is flat out useless. Or, in a different way of phrasing it, "believing in yourself" is about as fundamental to entrepeneurship as waking up and getting out of bed - of course it's necessary, but that doesn't make the "you can do it too!" framing any less vapid.

Re: How I Created a $350M Software Company Knowing Nothing About Software

#23

Post by TYPE_FASTER »

pmikesell wrote: post #9
6stringmerc wrote: post #4

Interesting article and impressive to see that kind of tenacity. Truly that's a take-away from the full perspective. The other take aways, for me, aren't nearly as complimentary. 1. Want to make a lot of money? Find an out-dated system where grunt labor is worth a lot less than the technology the grunt labor uses, and target this gap mercilessly (call centers) 2. Act like every other shady, fly-by-night, asshole sale…

> but then found someone who would mail me a check for $40,000, even during a recession, because they were risk-taking business owners themselves. Perhaps the guy from Provo Utah, instead of being a sucker, really wanted to see something new and better succeed? Just because he paid for something before it was ready doesn't mean he didn't know what he was doing.

Or it actually made business sense for him to use the new product...hey, the small business owner doesn't have to worry about getting fired for buying from the wrong vendor.

Re: How I Created a $350M Software Company Knowing Nothing About Software

#24

Post by 6stringmerc »

tiagomartins wrote: post #21
6stringmerc wrote: post #4

Interesting article and impressive to see that kind of tenacity. Truly that's a take-away from the full perspective. The other take aways, for me, aren't nearly as complimentary. 1. Want to make a lot of money? Find an out-dated system where grunt labor is worth a lot less than the technology the grunt labor uses, and target this gap mercilessly (call centers) 2. Act like every other shady, fly-by-night, asshole sale…

1. Want to make a lot of money? Find an out-dated system where grunt labor is worth a lot less than the technology the grunt labor uses, and target this gap mercilessly (call centers) Finding such a system would require you to have some experience with it, knowing the current problems, and then build a solution for it. This is the case in the article. Which is not easy I'm guessing, at least as a developer.

Oh for sure, there have been numerous articles featured here that illuminate how sometimes it takes a business + developer mentality - in the form of different people - to tackle an issue, innovate, and end up with a profitable venture. That's pretty much what I think about with the well-worn maxim of "build a better mouse-trap."

I guess what the framing of the story reminded me of would be somebody looking at the modern shovel, used to dig ditches, and "invents" a new version that reduces the physical strain on the user just enough to get the US Department of Labor to change the mandatory break and lunch times mandated for manual labor, and realizing savings or additional profit through that channel.

I mean, sure, inventing new systems and devices is a really worthwhile avenue, no dispute here! This particular story though, it doesn't quite sit well. Maybe it's from years working as a wage slave and feeling a little bit exploited, but I think there's some implications worth considering outright.

Re: How I Created a $350M Software Company Knowing Nothing About Software

#25

Post by dejv »

dalacv wrote: post #20

For those reading this article and wondering about a niche area that is in need of innovators: LIMS - Laboratory Information Management Systems. Here's the deal. Most manufacturing companies (think Big Pharma, Petrochemical, Chemical, Widget manufacturing, anything really) measure quality. Those quality measurements are probably done in a laboratory. Every laboratory generates data. All that data needs to be managed…

I am doing something like this (aimed to QA/contract laboratories), it is in pivot phase with first customer, replacing pen and paper system (for laboratory doing 500 samples a day).

Let me know if you want to check it out.

Re: How I Created a $350M Software Company Knowing Nothing About Software

#26

Post by rezistik »

6stringmerc wrote: post #22
mildbow wrote: post #7

Earlier quoted context omitted.

Not sure why you think those 3 points aren't complimentary. They seem like great + useful takeaways. No, they aren't new , but they are useful . Regarding your last point: nothing is a sure thing. Of course survivorship bias is a thing. Of course believing in yourself/ability to figure stuff out isn't a sufficient condition for success. But, maybe it's just a necessary one?

Well I'll freely admit that the 3 points I'm not fond of is directly a result of, rightly or wrongly, preferring stories of tenacity to feature sympathetic characters who strive for and achieve success through merit "idealistic" avenues and behaviors. Those areas I mentioned felt a lot like short-cuts, in that glorifying "cold calling with vaporware until we get enough money to actually make software" doesn't strike…

This guy did work though, he did some parts out of your preferred order but by and large he did all of the required effort.

It wasn't dumb luck or short cuts, it was smartly planned strategy. It was Agile if you want to get cute with it.

Re: How I Created a $350M Software Company Knowing Nothing About Software

#28

Post by mod »

6stringmerc wrote: post #4

Interesting article and impressive to see that kind of tenacity. Truly that's a take-away from the full perspective. The other take aways, for me, aren't nearly as complimentary. 1. Want to make a lot of money? Find an out-dated system where grunt labor is worth a lot less than the technology the grunt labor uses, and target this gap mercilessly (call centers) 2. Act like every other shady, fly-by-night, asshole sale…

>> Believe that even if you do something stupid like quit your job without a clue, somehow you’re going to figure it out.

> ...or, you can study up on something called "survivorship bias" and realize most of the "wisdom" in the article is utterly useless.

Maybe there's a correlation between people who believe that and those who make it long enough to have internet guys say their success is survivorship bias.

I'm just playing devil's advocate here. I'm an ex-poker-professional who's well aware that survivorship bias is a thing.

Re: How I Created a $350M Software Company Knowing Nothing About Software

#29

Post by cubano »

6stringmerc wrote: post #4

Interesting article and impressive to see that kind of tenacity. Truly that's a take-away from the full perspective. The other take aways, for me, aren't nearly as complimentary. 1. Want to make a lot of money? Find an out-dated system where grunt labor is worth a lot less than the technology the grunt labor uses, and target this gap mercilessly (call centers) 2. Act like every other shady, fly-by-night, asshole sale…

> ...or, you can study up on something called "survivorship bias" and realize most of the "wisdom" in the article is utterly useless.

So true...I was thinking more along the lines of "How I Created A $200 Million Retirement Account By Buying the Right Powerball Lottery Ticket" but I like yours as well.

Re: How I Created a $350M Software Company Knowing Nothing About Software

#30

Post by Animats »

6stringmerc wrote: post #4

Interesting article and impressive to see that kind of tenacity. Truly that's a take-away from the full perspective. The other take aways, for me, aren't nearly as complimentary. 1. Want to make a lot of money? Find an out-dated system where grunt labor is worth a lot less than the technology the grunt labor uses, and target this gap mercilessly (call centers) 2. Act like every other shady, fly-by-night, asshole sale…

No, he made a significant observation - the industry was operating at a high price point which was no longer justified due to advances in technology. That's a classic opportunity.

The incumbents in the field won't want to drop their prices by an order of magnitude, even if the technology allows it. Especially if they have an expensive in-house sales force. This is a huge advantage for a startup.

This happened to copiers, computer printers, personal computers, graphics cards, word processing software, CAD software, point of sale software, encyclopedias... Up next, hearing aids.

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