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Why Not To Do A Startup

mattmaroon.com

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Re: Why Not To Do A Startup

#41

Post by suboptimal »

kingkongrevenge wrote: post #35
dood wrote: post #16

Startups tend to be fairly binary, with you making either a very large amount off of them or nothing at all. Recently re-reading pg's How To Make Wealth [1] made me wonder if this will soon become an outdated view of startups. The factors leading to the current and predicted rise in the number of startups (free software, cheap hardware, less personnel) should also lead to a large broading of the spectrum of failure s…

I'm a little confused why there's so much focus specifically on startups, where "startup" means a liquidity event focused venture. I thought the goal was just to make a lot of money, not do it in a specific way. I think the highest EV is from founding a private going concern and pocketing profits over the course of ten years. Statistically the majority of millionaires are entrepreneurial sole proprietorships or partn…

That was my impression, too--the article seemed to focus more on the VC path to success, which is like making it big as a professional athlete or entertainer.

For contractors and ISVs, I suppose you have to find a profitable niche.

Re: Why Not To Do A Startup

#42

Post by Readmore »

There are some really good points in his article. It doesn't deter me from continuing to work on my startup but a lot of it hit pretty close to home.

I had a high paying job, which I hated, and quit to do a startup last year. The problem was that while I was motivated and working night and day, the other 'founders' weren't nearly as devoted to it. As I went months and months without a paycheck, living off credit cards mostly, my new wife and I got further and further into debt (I quit my job 2 weeks before our wedding, that went over REAL well with the in-laws). After about 6 months I realized I was working all hours of the day for no money on a project that had a single digit chance of working out. At that point even if we did get the funding we were looking for I was still going to be paying off my credit card debt for years just to get back to the place I was before I started. So what could I do?

I got a real job, high paying enough that money isn't a problem anymore. We are still paying on the credit cards but we should have them taken care of in about 6 more months. The failure didn't stop me from working on startups though, I've seen what I'm capable of when I work for myself and after that I can't stand to spend my days working for someone else. In fact I'm already deep into a new startup, something that I'll hopefully be able to share with all of you in the next month or so.

Hopefully this time will turn out better than the last.

Re: Why Not To Do A Startup

#43

Post by sabat »

He should have started the article by defining what he means by "success".

Me, I don't need plentyoffish money to be successful. Just give me some hope and some extra cash and I'll call it a small win.

Re: Why Not To Do A Startup

#45

Post by pg »

While this is mostly true, it's really the case against doing anything especially ambitious, not just starting startups. You could make an almost identical case against trying to write a great novel. The novelists you hear about in the press are the successful ones. Most people who try fail. It sucks up huge amounts of time regardless. The community is littered with sad, failed novelists. And are the ones who succeed satisfied? No; they just start another novel.

Re: Why Not To Do A Startup

#46

Post by sonink »

This article is very well written - might not reflect the truth of how everything HAS to be in a startup but definitely reflects how most startups end up being. Also, and as I have been lately figuring out, the reason most startups end up being like this is because most startups have a misplaced understanding on how things are supposed to work.

A lot of them try to do too much or try to compete when they should be ideally figuring out the business.

Good mentorship goes a long way of making the startup work the right way.Getting good mentors who have done startups is really the harder part.

Startups are good for society and hopefully good for the individuals who do them - but they need to be done the right way. Matts article serves as a cautionary tale to every startup entrepreneur. If he describes your startup really well, you are probably doing it the wrong way.

Re: Why Not To Do A Startup

#47

Post by parker »

I think this article is a great read... but just as he calls success in startups binary, so is the definition of what a startup actually is. Some aren't looking for that payoff in the end, and the lear jet. Some people simply just want to work for themselves, and can lead a simple lifestyle.

The idea that you have to 'go big or go home' in tech is getting more outdated I'd say. If I have to choose between being a corporate toad or a work-enslaved zombie, I choose neither. We live in a free-market economy, which gives us the flexiblity to make what we want with it. Isn't that what entrepreneurism is all about?

Re: Why Not To Do A Startup

#48

Post by pg »

wave wrote: post #34

What is the percentage of success for YC startups?

It's too early to tell, because it takes 4-5 years to say for sure if a startup has succeeded, and YC is only 3 years old.

I'd be happy if it was a third, and delighted if it was as high as 50%.

Re: Why Not To Do A Startup

#49

Post by simplegeek »

Honestly, I'm not sure what was the point. How powerful this statement by a smoker is "Please, quite smoking" or something like "Don't try climbing mountains. It's dangerous." by Sir Everest. Bad example, may be. But then may be I'm not the target audience.
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