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Reflecting on My Failure to Build a Billion-Dollar Company

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Re: Reflecting on My Failure to Build a Billion-Dollar Company

#261

Post by michaelbuckbee »

mikeg8 wrote: post #238
michaelbuckbee wrote: post #214

Earlier quoted context omitted.

I like and use the term "Bootstrapped Business" -> smaller, tight focus on profitability, trying to meet real needs.

I agree and use it sometimes too but hearing "bootstrapped" applied to companies outside of tech doesn't feel right. Example: my dad owns a 20 person small business selling commercial doors and hardware - we are in the construction industry. Saying he has "bootstrapped the business" still feels weird. That's when good old "small business" should be sufficient enough IMO. It has a stigma but it shouldn't.

Yeah, I mean I guess there are more qualifiers I didn't put in there with respect to tech: "Bootstrapped Software Business", "Bootstrapped SAAS", etc.

Re: Reflecting on My Failure to Build a Billion-Dollar Company

#263

Post by billylindeman »

ilamont wrote: post #196

I was basically alone. I didn’t have a team, nor an office. And San Francisco was full of startups raising gobs more money, building amazing teams, and shipping great products. Some of my friends became billionaires. Meanwhile, I had to run a “measly” lifestyle business. It wasn’t what I wanted to do, but I had to keep the ship from sinking. There's that term again, "lifestyle business." Uttered like a dirty word, wh…

Couldn't agree more.

The lack of business sense in the startup scene is absolutely astounding.

Too many opt for playing game of thrones instead of creating value and capturing some of that value as a profit.

Re: Reflecting on My Failure to Build a Billion-Dollar Company

#264

Post by mactrey »

tomtheelder wrote: post #177
mactrey wrote: post #170

Earlier quoted context omitted.

>at the end of that time there are two metrics, the number of people you helped and the amount of wealth you amassed and held on to, which number is a better representative of 'success'? But of course those are highly correlated - it's easier to help a lot of people if you have plenty of surplus wealth and time to share out. I'd imagine that Warren Buffet will end up helping more people that almost anyone else in the…

I couldn't possibly disagree more. For starters, I think the majority of those who accumulate massive wealth do so at the expense of countless others. Buffet is an excellent example, actually. As probably the premier monopolist of the late 20th and 21st centuries, he has played a huge role in consolidating industries and destroying US wage growth. That's probably the single most detrimental macro trend in terms of qu…

That you can help more people if you have more money is simply a fact, it's not an argument based on the statistically average behavior of wealthy Americans. And as to the sources of wealth, the economy is not a zero sum game. Lebron getting paid $30mm doesn't take money away from anybody.

As far as Warren Buffet goes, I don't worship him - he got pretty lucky, was a little bit disciplined, and rode a wave of increasing value of American stocks for 40 years - but to say he has been a "premier monopolist" (hint: having high profit margins on the back of brand recognition like Coca-Cola and Apple have done is not what a monopoly is) or is a "parasite on economic growth," is only your own preconceived bias.

And as far as the behavior of the very wealthy in general, the things you describe are things that the middle class or the poor do as well. The vast majority of human beings are assholes, unfortunately. If you do happen to be a good person, though, I think the world is better off if you're wealthy than if you're poor. And if you set out to do the most good possible in the world, then choosing a career where you can make a lot of money, and then donating a large portion of it, is not a bad way to go. Doubly so if you can help people along the way, as many doctors or lawyers with pro bono hours do.

Re: Reflecting on My Failure to Build a Billion-Dollar Company

#265

Post by markdown »

Zanni wrote: post #254
ilamont wrote: post #210

Earlier quoted context omitted.

Most businesses should strive to be self-sustaining. And if they make obscene amounts of money, all the power to them. What I dislike is A) the view from startup land that there are only two types of new businesses, "startups" and everything else ("lifestyle") B) and the "everything else" category is somehow inferior or even some sort of hobby or vanity project. Sahil used the term to describe his own company, and at…

There's a legit distinction, though, between startups and other businesses - startups are designed to grow fast. [0] That doesn't mean they're better, but you have to know the difference or you're going to get yourself in trouble. Is a quarter-horse better than a camel? Yes, if you're trying to win a quarter-mile race; not so much if you're trying to survive in the desert. I think some of the disdain comes from legit…

> There's a legit distinction, though, between startups and other businesses - startups are designed to grow fast.

Perhaps in the US, and probably in just a small part of the US. Everywhere else, a startup is just a new business.

Re: Reflecting on My Failure to Build a Billion-Dollar Company

#267

Post by mindcrime »

Zanni wrote: post #254
ilamont wrote: post #210

Earlier quoted context omitted.

Most businesses should strive to be self-sustaining. And if they make obscene amounts of money, all the power to them. What I dislike is A) the view from startup land that there are only two types of new businesses, "startups" and everything else ("lifestyle") B) and the "everything else" category is somehow inferior or even some sort of hobby or vanity project. Sahil used the term to describe his own company, and at…

There's a legit distinction, though, between startups and other businesses - startups are designed to grow fast. [0] That doesn't mean they're better, but you have to know the difference or you're going to get yourself in trouble. Is a quarter-horse better than a camel? Yes, if you're trying to win a quarter-mile race; not so much if you're trying to survive in the desert. I think some of the disdain comes from legit…

There's a legit distinction, though, between startups and other businesses - startups are designed to grow fast. [0]

I respect and admire pg as much as probably anybody on this board, but I still reject the idea that he has any particular standing to declare his subjective definition of "startup" to be "the" definition by fiat.

I would argue that "startup" actually refers to "businesses that are designed to grow big", where the speed at which you do so is mostly irrelevant. If one wants to raise VC money and tie themselves to that particular time-boxed constraint, that's great. But you can just as well do it "slow and steady" by focusing on early profitability and continually and incrementally reinvesting profits back into the company for growth.

Neither is "better" or "worse" than the other, except in context, just as with the quarter-horse/camel example.

Re: Reflecting on My Failure to Build a Billion-Dollar Company

#268

Post by dbt00 »

ilamont wrote: post #196

I was basically alone. I didn’t have a team, nor an office. And San Francisco was full of startups raising gobs more money, building amazing teams, and shipping great products. Some of my friends became billionaires. Meanwhile, I had to run a “measly” lifestyle business. It wasn’t what I wanted to do, but I had to keep the ship from sinking. There's that term again, "lifestyle business." Uttered like a dirty word, wh…

Most people use the term to describe businesses that require little ongoing effort (hello, “4 hour work week”), but yeah, the implication that people who take vc money aren’t interested in a particular lifestyle is kinda hilarious.

Re: Reflecting on My Failure to Build a Billion-Dollar Company

#269

Post by ilamont »

Zanni wrote: post #254
ilamont wrote: post #210

Earlier quoted context omitted.

Most businesses should strive to be self-sustaining. And if they make obscene amounts of money, all the power to them. What I dislike is A) the view from startup land that there are only two types of new businesses, "startups" and everything else ("lifestyle") B) and the "everything else" category is somehow inferior or even some sort of hobby or vanity project. Sahil used the term to describe his own company, and at…

There's a legit distinction, though, between startups and other businesses - startups are designed to grow fast. [0] That doesn't mean they're better, but you have to know the difference or you're going to get yourself in trouble. Is a quarter-horse better than a camel? Yes, if you're trying to win a quarter-mile race; not so much if you're trying to survive in the desert. I think some of the disdain comes from legit…

There's a legit distinction, though, between startups and other businesses - startups are designed to grow fast.

Are they, though?

I have looked at the incoming classes of various startup accelerators over the years and see lots of niche-focused products and services that can never grow to anything more than a niche-focused product or service as described in their pitch decks.

I'm not putting down those types of businesses (or proto-businesses). I'm just pointing out that they don't have a high-growth profile or potential, the primary dividing line between "startups" and everything else dubbed "lifestyle" in investor circles.

Re: Reflecting on My Failure to Build a Billion-Dollar Company

#270

Post by ironchief »

themoat wrote: post #209
Justsignedup wrote: post #201

Earlier quoted context omitted.

"lifestyle business" is really just a small business that works, is self-sustaining, and not overly bloated to attempt to make obscene amounts of $$$. I feel like this is exactly what most companies should strive for. They'll make better decisions that way.

Reminds me of this talk from Vincent Woo (creator of Coderpad) https://www.youtube.com/watch?v=J8UwcyYT3z0 Really made me rethink my priorities and has had me change the kinds of things I do.

Wow, he called the HelloSign acquisition in 2015. His other two suggestions (native search and messaging) are still in limbo.
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