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

blog.ycombinator.com

341–350 of 632 posts

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

#341

Earlier quoted context omitted.

This comment, in turn, is laughable from a guy in his 30's with a wife and toddler... We live on a single income and have our own house with a quarter acre of land. And this is in coastal Florida, not a economically-depressed city in the Midwest. We all need to accept that people are looking for different things in life. It's difficult to save money in SF, while also having a lifestyle that's relatively easy to maint…

You're right that it's difficult if you have a family. But there's a lot of room in between "impossible to save" and "saving is difficult".

Overly literal interpretation is overly literal.

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

#342
post #326

This is rather true in practice, but I find it tremendously depressing. I have found that the executive path is actually the one that most of the scumbags take, it is the one that attracts the most people, and those people are usually not likable, they're salespeople that sell themselves all day. The third group, the one that actually creates value, is accurately represented as not as successful both in terms of mone…

> the one that actually creates value No. We all create value. Businesses, when running smoothly, are like a well oiled machine. Nothing is redundant. Garbage is collected. Businesses is cutthroat industries cannot afford to be redundant. I always wondered why all cars had 4 wheels. Turns out, the 3 wheeled car is horrible (see Top Gear), a 5 wheeled car is pointless, and a 2 wheeled car is a motorcycle. But when you…

This is exactly right. I've been in all three roles and all three are essential to success.

I can also relate to the notion that the engineers do all the work, which was a sentiment I shared early in my career before I understood the kinds of problems executives and founders had to solve. I cringe when I hear an executive say "How hard can it be? Get some bright bulbs in here and have code up a solution that doesn't have these problems." or when an engineer says "The CEO just parties with 'investors' and blows sunshine up our ass while we actually build the thing he is gets credit for." or when a founder says "I wrote the foundation this company at a dam hackathon in 24 hours and you're going to take 6 months to have an alpha release?"

I have seen again and again that people who haven't been in the role they are criticizing have constructed an understanding of it that doesn't capture what the actual role entails. Or in the the crowd funding case completely under estimating to cost or effort to do some aspect of development they have never done before.

If the company is hitting its milestones, people know what they should be doing, and the problems that pop up all seem that they can be overcome. Then you know all three classes of people are doing their jobs well.

When things take forever to get done, nobody knows why or how the thing they are working on fits in, and every week there is a new problem that changes all the priorities and efforts, then you know you're on the way to being dead as a company.

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

#343
post #339
post #326

Earlier quoted context omitted.

> the one that actually creates value No. We all create value. Businesses, when running smoothly, are like a well oiled machine. Nothing is redundant. Garbage is collected. Businesses is cutthroat industries cannot afford to be redundant. I always wondered why all cars had 4 wheels. Turns out, the 3 wheeled car is horrible (see Top Gear), a 5 wheeled car is pointless, and a 2 wheeled car is a motorcycle. But when you…

There are/were six-wheeled cars that got shut out because of market forces unrelated to how well they ran in competition. Google Tyrrell's Formula 1 Six Wheeler

Yes, there are always exceptions.

The point is, what works works, and if you're forced to make things work, before you know it, you'll find yourself looking awfully similar to those in a similar situation.

There is a reason why these business structures are so common.

They work.

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

#344
post #97

Earlier quoted context omitted.

Why would you ever live in a studio if you want to save money?

Um, what's cheaper than a studio? Anything with one or more bedrooms is going to be more expensive. Perhaps you're not familiar with American apartment terminology or I'm missing something? A studio apartment is as cheap as you can get normally.

Fair points. I was thinking strictly in terms of single living but I may have misunderstood.

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

#345
post #104

Earlier quoted context omitted.

Here's my counter-anecdote. I hesitate to do this but I think it's nice for aspiring software engineers to have details. I moved to San Francisco in 2006 straight out of college to work at Google as a SWE. I was $27k in debt (student loan + credit card). My rent was $1450 at the time (2 bedroom with a roommate in a nice part of town), and I took out a $26k loan to buy a car. I'm not particularly frugal. I did well at…

So 7-11 years ago. Not very relevant anymore since the cost of living has increased significantly in SF since then.

7-11 years ago everyone was saying exactly the same thing about the cost of living here as they are now.

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

#346
post #137

Earlier quoted context omitted.

That's an unreasonable comparison. Where would you be working for 45k that would equate to a 150k salary in SF?

Ohio, rural Utah.

I've hired people from Ohio. The salaries are higher than 45k unless you are straight out of college.

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

#347
post #91

How about freelancing? I've been doing that since 1995 -- and my income and happiness have never been higher. Pros: - Work on what you like, with the people you like - Potentially very high salary, definitely more than you would get as an employee - Want to work on side projects (e.g., software, books, and courses)? Go for it, and benefit from multiple income streams. Cons: - You're running a business. That requires…

Cons: Insurance and pre-existing conditions. Not to put a damper on your post, as it sounds like you have had good success. But this is a very real thing for many people. When I graduated and went out into the world, I needed insurance, and this was before the ACA, which meant that my pre-existing condition was not something that would be insurable, at least at any decent rate. The ACA fixed that, but now you have th…

You're 100% right... in the United States.

In other countries, this isn't even a consideration or thought, because health care cannot be denied, and is independent of your job.

I grew up in the US (through college), and returned in graduate school. Paying for health care as a grad student + independent consultant was horrifyingly expensive, and I'm lucky that I was able to do it.

In Israel, where I've lived since 1995 (except for grad school), there are lots of reasons not to be a freelancer -- but health care isn't one of them, I'm happy to say.

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

#348

My experience has been that jumping from employee to any level of executive is the absolute hardest step, at least for me. I think once you are a team lead and have some number of direct reports, you can then start jumping your way up that ladder. But going from 0 to 5 direct reports has often seemed impossible. I'd be open to tips on how to do it.

It's something you're doing that's limiting you. Find a mentor or career coach. Someone with plenty of management experience. They'll help you discover what that is and how you can fix it.

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

#349
post #51

Regardless of which path you'd like to go down, learn some basic financial planning, frugality, and learn to live like a miser. It'll pay dividends, both figuratively and literally. Regarding the executive path, or more generally any management role, learn early on if it's for you. If you're the type that gets caught up in human interest stories, considers it inhumane to fire low performers, or generally believes in…

For someone who recently graduated and quite clueless about financial planning, do you have some resources to get started?

I recommend Ramit Sethi's book, I Will Teach You To Be Rich.

Don't mind the corny title. It's full of practical and solid advice. And unlike many books, he gives you actionable steps to follow through with the advice. That's what makes the difference.

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

#350
post #115

Earlier quoted context omitted.

For someone who recently graduated and quite clueless about financial planning, do you have some resources to get started?

The usual generic financial advice I give is: - Maximize every retirement vehicle offered to you (max 401k, HSA, etc). - Pretend that any money you sock away for retirement doesn't exist. This is best done with automated withdrawals so you never even consider it money in your checking account. - Learn to cook. This doesn't actually save much money at the individual level but is huge for families. - Set up separate ac…

On these notes, you might take a look at the following:

https://www.robinhood.com/ Robin hood is a free stockbroker. They make money from loaning money and collecting interest on leftover funds.

https://www.mrmoneymustache.com/ Mr. Money Mustache is a blog about saving. He mirrors many of the above points and has a lot to share about how he reached an early retirement at 30.

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