61–70 of 94 posts
"37signals/DHH style" companies--in other words, not startups? This is interesting, because his advocacy of non-startups is an oblique way of saying "don't start startups". I wonder, did PG and others even know what the talk was gonna be about?
Github.com, Lighthouse, a lot of companies that make Mac software (think TextMate).
GitHub and Lighthouse are two examples of unproven products. 37signals makes millions of dollars a year, which is what makes them credible.
"37signals/DHH style" companies--in other words, not startups? This is interesting, because his advocacy of non-startups is an oblique way of saying "don't start startups". I wonder, did PG and others even know what the talk was gonna be about?
Earlier quoted context omitted.
GitHub and Lighthouse are two examples of unproven products. 37signals makes millions of dollars a year, which is what makes them credible.
What makes you say they're proven or unproven? They've each got hundreds of users and I can say that they each have at least one paying customer (my company).
I think another aspect of this to consider is this: Eventually, most things will be commoditized, but this happens slower for some things, and faster for others. How does the 'dhh style company' keep that at bay - or do they? How sustainable is the business in the face of cheaper competition?
>How sustainable is the business in the face of cheaper competition? This is where branding and marketing come in. Ask Apple, BMW, Mercedes, Luis Vutton, etc etc. These businesses all sell their products for much more than comparable products, and they do quite well. Why? Because there are two types of consumers that are sold by their marketing: those who appreciate high quality, and those that want to be seen as app…
I thought that idea was one of the highlights of the presentation. If you can sell 400 accounts at 40 USD a month, you're going to live very comfortably. If you can't find a market niche where 400 people would be willing to pay 40$ (or 4000 people pay 4$), you might need to reconsider your idea.
This was a big point in the Italian restaurant analogy as well. You don't have to redefine Italian cuisine, you just have to build a restaurant far enough away from the other guys and make good enough food (among other things) to attract a large enough customer base to meet your goals.
"37signals/DHH style" companies--in other words, not startups? This is interesting, because his advocacy of non-startups is an oblique way of saying "don't start startups". I wonder, did PG and others even know what the talk was gonna be about?
This doesn't deserve to be at -5. Let's leave that kind of trashing of comments to other sites, unless it's something blatantly trollish.
Earlier quoted context omitted.
This doesn't deserve to be at -5. Let's leave that kind of trashing of comments to other sites, unless it's something blatantly trollish.
It does. He seems to be implying that small companies (or companies with modest expectations) cannot be considered "startups" when, in fact, that's nearly always what they are.
Earlier quoted context omitted.
What makes you say they're proven or unproven? They've each got hundreds of users and I can say that they each have at least one paying customer (my company).
Hundreds of users, you say!
Oh, the sarcasm! Perhaps if you'd actually watched the talk before commenting on it, you'd have gotten the point and wouldn't be so unknowingly ironic. ;)
I'd also add that the single most important thing I've found in creating a business like this is keeping your costs low. The same two businesses, with the same income and customers will have very different times during a downturn depending on their committed monthly burn rate. I know it sounds obvious, but its amazing to me how many businesses handicap themselves from day one with large spending commitments.