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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

#91

Post by enjo »

dookahku wrote: post #48
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…

So how do I find these opportunities? I imagine I have to leave the house and talk to people but where do I go? To whom do I speak?

Many (most?) successful business like this come from people who live and work in the industry for several years noticing the inefficiencies along the way. If you're a technical person, networking at professional events is a GREAT way to find someone that's identified one of these problems who needs someone to bring it to life.

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

#92

Post by turkishrevenge »

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…

True. Same thing with Velos. What a piece of shit that is

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

#93

Post by akcreek »

mrbill wrote: post #85

>"I led the company to $10 million in annually recurring revenues before I departed." Wouldn't a more correct article title be "How I created a $10M Software Company..."? The $350M was after he left.

It would be closer for sure, but $10MM was ARR, so the value of the business was likely $30MM+. The $350MM number was the value at IPO.

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

#94

Post by rhizome »

ilyaeck wrote: post #62
6stringmerc wrote: post #53

Earlier quoted context omitted.

Um, he may have made a significant "observation" as you call it, but it wasn't his idea to research VOIP, to go out and get a device, or even how to implement it in a functional way to enact the advances in technology in a meaningful cost-savings avenue. It's right there in the article: > And I had the good fortune of Tooter, The Machine and my former boss eventually rallying around my vision with their considerable…

I agree. The first sentence of the article pretty much sums the guy up and the figure is hardly inspirational. Tenacity and the ability to sell as well as to manipulate/exploit others: sure he has those, just like any typical street market peddler in Beijing - only Beijing street peddlers aren't lucky enough to have the opportunity scale of Silicon Valley. But, do these qualities make them inspirational figures? Not…

Sales skills are among the most portable across industries.

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

#96

Post by mistermann »

danieltillett wrote: post #37
Animats wrote: post #30

Earlier quoted context omitted.

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 copi…

John you make a very good point. Look for industries where the current market has not kept up with advances in technology due to the business structures of the incumbents. Even if they want to change they can't (e.g Kodak). Hearing aids might fall into this category, but unlike the others on your list you need to deal with the FDA. The FDA should really be called the IPA - Incumbent Protection Agency.

Could a company manufacture a device in China, and sell via the internet (also from China) and completely ignore the FDA? I suppose the unapproved devices could be "banned" and shipment could attempted to be blocked, but is that not damn near impossible with the amount of mail coming in from China on a daily basis?

I can appreciate what the FDA does, but sometimes there comes a point where it is preferable to provide warning and education to consumers but let them choose which product they wish to use.

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

#97

Post by eru »

mistermann wrote: post #96
danieltillett wrote: post #37

Earlier quoted context omitted.

John you make a very good point. Look for industries where the current market has not kept up with advances in technology due to the business structures of the incumbents. Even if they want to change they can't (e.g Kodak). Hearing aids might fall into this category, but unlike the others on your list you need to deal with the FDA. The FDA should really be called the IPA - Incumbent Protection Agency.

Could a company manufacture a device in China, and sell via the internet (also from China) and completely ignore the FDA? I suppose the unapproved devices could be "banned" and shipment could attempted to be blocked, but is that not damn near impossible with the amount of mail coming in from China on a daily basis? I can appreciate what the FDA does, but sometimes there comes a point where it is preferable to provide…

They'd get them via banning the financing, not via stopping the product in the mail.

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

#98

Post by brownbat »

danieltillett wrote: post #37
Animats wrote: post #30

Earlier quoted context omitted.

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 copi…

John you make a very good point. Look for industries where the current market has not kept up with advances in technology due to the business structures of the incumbents. Even if they want to change they can't (e.g Kodak). Hearing aids might fall into this category, but unlike the others on your list you need to deal with the FDA. The FDA should really be called the IPA - Incumbent Protection Agency.

> Look for industries where the current market has not kept up with advances in technology due to the business structures of the incumbents.

TI graphing calculators for high school students?

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

#100

Post by danieltillett »

mistermann wrote: post #96
danieltillett wrote: post #37

Earlier quoted context omitted.

John you make a very good point. Look for industries where the current market has not kept up with advances in technology due to the business structures of the incumbents. Even if they want to change they can't (e.g Kodak). Hearing aids might fall into this category, but unlike the others on your list you need to deal with the FDA. The FDA should really be called the IPA - Incumbent Protection Agency.

Could a company manufacture a device in China, and sell via the internet (also from China) and completely ignore the FDA? I suppose the unapproved devices could be "banned" and shipment could attempted to be blocked, but is that not damn near impossible with the amount of mail coming in from China on a daily basis? I can appreciate what the FDA does, but sometimes there comes a point where it is preferable to provide…

They would just seize them at the border. This is basically the same as international pharmacies selling pharmaceuticals.

You would also want to never plan to travel to the USA ever again - the penalties for ignoring the FDA are not minor.

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