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Three Paths in the Tech Industry: Founder, Executive, or Employee

blog.ycombinator.com

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Re: Three Paths in the Tech Industry: Founder, Executive, or Employee

#11

Post by Clubber »

orthoganol wrote: post #8

What about the world of contracting? You can also be someone who has flexibility on where/ when they work and for who, and it's probably a more viable 'path' in tech than in any other industry. Since the vast majority of founders fail, having significant financial cushions from your family or years working prior is probably the top pre-requisite if 'founder' is your path.

Contracting is good, but there is a trap. If you find yourself as a contractor and the market crashes, finding new contracts is much more difficult. At least I experienced this during the dot bomb / 911 collapse in 2001. Also, you have to pay for your health insurance, which is getting crazy expensive, and only gets more expensive as you get older. Make sure you adjust your rate accordingly.

This may or may not apply to all locations and all collapses, but expect collapses to happen every 8-10 years.

Re: Three Paths in the Tech Industry: Founder, Executive, or Employee

#12

Post by hellbreaker »

ryandrake wrote: post #7

> Often times there are hard barriers preventing people from starting a company. In these cases my best advice is to move to a tech hub (preferably the Bay Area) and work for a tech company until you can save the money I had to laugh there. Moving to the Bay Area will reduce your ability to save money, not increase it. I was probably saving 40-50% of my salary when I worked in Nowhereville, Florida. With the housing…

I keep on hearing about that.. so what's savings rate people should expect in SF?

Re: Three Paths in the Tech Industry: Founder, Executive, or Employee

#13

Post by cellis »

hellbreaker wrote: post #12
ryandrake wrote: post #7

> Often times there are hard barriers preventing people from starting a company. In these cases my best advice is to move to a tech hub (preferably the Bay Area) and work for a tech company until you can save the money I had to laugh there. Moving to the Bay Area will reduce your ability to save money, not increase it. I was probably saving 40-50% of my salary when I worked in Nowhereville, Florida. With the housing…

I keep on hearing about that.. so what's savings rate people should expect in SF?

If you're single without kids -- 50% easily. Perhaps someone with kids can comment.

Re: Three Paths in the Tech Industry: Founder, Executive, or Employee

#14

Post by brndnmtthws »

ryandrake wrote: post #7

> Often times there are hard barriers preventing people from starting a company. In these cases my best advice is to move to a tech hub (preferably the Bay Area) and work for a tech company until you can save the money I had to laugh there. Moving to the Bay Area will reduce your ability to save money, not increase it. I was probably saving 40-50% of my salary when I worked in Nowhereville, Florida. With the housing…

It really depends on the kind of lifestyle you choose. If you want to live alone in a fancy apartment, drive a new car, and eat out every day, then you certainly won't be able to save as much.

If you practice frugality, find cheap housing (which does exist if you look hard enough), and don't spend money on things you don't need, then it's quite easy to save a lot of money.

Re: Three Paths in the Tech Industry: Founder, Executive, or Employee

#15

Post by encoderer »

ryandrake wrote: post #7

> Often times there are hard barriers preventing people from starting a company. In these cases my best advice is to move to a tech hub (preferably the Bay Area) and work for a tech company until you can save the money I had to laugh there. Moving to the Bay Area will reduce your ability to save money, not increase it. I was probably saving 40-50% of my salary when I worked in Nowhereville, Florida. With the housing…

I think it depends primarily on if you work for a tech company or a startup.

Re: Three Paths in the Tech Industry: Founder, Executive, or Employee

#16

Post by bitexploder »

metalliqaz wrote: post #5

Missing from the strategies for the first two (really all three): come from wealthy background.

What is the bar for "wealthy background" and "founder". My parents clawed there way to what I would call middle class (most of the time). I am not a founder of a software product firm, but am a founder of a successful consulting firm. We are 4 years into it now.

On the executive front, yes, you are more likely to reach that level of position having a "wealthy background" but there are plenty who don't. Your odds of becoming a moderately successful executive of a medium sized business coming from a middle class background seem dramatically better than winning the tech startup lottery.

I dunno, I just think these categories are very broad and multi dimensional so that you can make decent arguments against the point that a wealthy background being required.

Re: Three Paths in the Tech Industry: Founder, Executive, or Employee

#17

Post by nugget »

trevyn wrote: post #3

There are paths to founder that do not require it to be "incredibly stressful". Another pro for founder is that you can remove yourself from echo chambers if you choose. Maybe this falls under "Choose the people you work with".

My experience is that to be a successful founder you have to be "on call" pretty much 24/7 as you never know when either a major opportunity or a major crisis will arise. People handle situations and stress differently, so this may be more of a burden for some than others.

Re: Three Paths in the Tech Industry: Founder, Executive, or Employee

#18

Post by liveoneggs »

cellis wrote: post #13
hellbreaker wrote: post #12

Earlier quoted context omitted.

I keep on hearing about that.. so what's savings rate people should expect in SF?

If you're single without kids -- 50% easily. Perhaps someone with kids can comment.

you're lucky to max out your 401k

Re: Three Paths in the Tech Industry: Founder, Executive, or Employee

#19

Post by leeoniya »

metalliqaz wrote: post #5

Missing from the strategies for the first two (really all three): come from wealthy background.

not really.

my family moved to the states from moscow when i was 7. we spent all our money that we got from selling a crappy apt on the move itself. we lived on food stamps, had to learn english, my parents (both with technical university degrees) went to community college and worked low wage jobs to pay the rent, bills and tuition. we had a super old used ford that was rusting everywhere a vehicle can rust and the dollar store was where we went shopping. today, i'm somewhere between employee and executive [limited only by personal preference of work/life balance] thanks to my parents; my children will certainly have it easier than my folks or i ever did. but to say that it was because of some innate wealth misses the mark.

Re: Three Paths in the Tech Industry: Founder, Executive, or Employee

#20

Post by autotune »

brndnmtthws wrote: post #14
ryandrake wrote: post #7

> Often times there are hard barriers preventing people from starting a company. In these cases my best advice is to move to a tech hub (preferably the Bay Area) and work for a tech company until you can save the money I had to laugh there. Moving to the Bay Area will reduce your ability to save money, not increase it. I was probably saving 40-50% of my salary when I worked in Nowhereville, Florida. With the housing…

It really depends on the kind of lifestyle you choose. If you want to live alone in a fancy apartment, drive a new car, and eat out every day, then you certainly won't be able to save as much. If you practice frugality, find cheap housing (which does exist if you look hard enough), and don't spend money on things you don't need, then it's quite easy to save a lot of money.

> fancy apartment

Being a 400 sq. ft. studio that you pay $3k per month for to live in an area where you won't get stabbed when you go out at night and is close enough to work where you don't need a car.

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