Live data from Hacker News

I have never read a business plan or balance sheet

twitter.com

121–130 of 346 posts

Re: I have never read a business plan or balance sheet

#121

Earlier quoted context omitted.

why do you think its bullshit? for startup companies that are looking for seed investments who writes business plans?

The YC application is effectively a business plan.

Oh is it?

Give it to an MBA to evaluate and they will come right back complaining about it. Guaranteed. And asking for a formal business plan with a detailed financial planning.

So, yes, in practice for someone who are familiar with startups it is a business plan. For everybody else it's just a generic description.

Re: I have never read a business plan or balance sheet

#122
post #74
post #25

Can’t read what he says as I was blocked years ago. I had expressed the mildest degree of cynicism one can possibly express in response to a straight up lie.

A lot of people are very sensitive to cynicism. It's easy to burn Bridges this way. I think it's kind of sad.

He’d burnt the bridges himself long ago.

I was already aware, from things he’d said about me, that he was not a person I would ever do business with.

Re: I have never read a business plan or balance sheet

#123

Earlier quoted context omitted.

How much you were making: seen on income statements as revenues and on balance sheets as accounts receivable . How much you were spending: seen on income statements as expenses and on balance sheets in accounts payable . How much cash in the bank: seen on cash flow statements as starting/ending cash position and seen on balance sheets as cash assets . Paul graham didn't care about your poetry, he just wanted to see y…

You keep throwing barbs around but missing the important point. He specifically didn’t want to see balance sheets or income statements as he knows they can be full of bullshit (FWIW my only university qualification is in accountancy, so I know what he means). All he cared about the bank balance and whether it was going up or down, because that’s what indicates whether the company would survive or not. He still cared…

But you just said that he actually didn't care much about that stuff, that he just wanted to know 3 specific datapoints. Datapoints that traditional financiers have gotten from traditional financial statements for centuries. Sure, there's lots of bullshit in financial statements. But there's also lots of bullshit in emails and slack messages. If someone is pumping up a balance sheet with dead receivables and check kiting and other forms of bullshittery, what's stopping them from saying the same thing over an email?

You're acting like PG is sitting on something profound here, but there's nothing profound in the slightest. Nobody has ever gotten rich writing financial statements, they get rich by creating value that didn't exist before. The financial statements don't get you customers, don't build revenues, don't develop products, don't manage your cash flows, and don't manage expenses. But they're still crucial because they communicate, in a fairly standardized way, all of the most important measurements of a businesses success...including the three things that you just said PG cared most about.

Telling people that financial statements don't matter is like telling a PhD-candidate astrophysicist that it doesn't matter that they can only communicate in Azerbaijani as long as their physics research is rock solid. It's already completely brain-dead obvious that the physics research quality is the most important thing...but it's a breach of duty to tell them that they don't need to know how to communicate it to their peers.

Re: I have never read a business plan or balance sheet

#124

He invests in seed rounds where those often go down the drain. The things that matter at this stage are: Founders and general market size. So sure, ignoring the noise of those two makes sense.

People really struggle to recognize context. I assume most people who are getting so upset about pg’s tweet are reading it as “business plans are stupid. Balance sheets are stupid. No company should ever make one because no one should ever read it. Anyone who reads one is stupid.” It should be implied that his advice is only relevant the type of investing which pg does. pg tweeted later on that his solution is someth…

He might have meant to scope them but he has a few bugs in his code^H^H^H^Htweet that mean it's completely unscoped.

But yes I agree, he's talking early-stage startups. At that stage balance sheets seem like they would be obvious.

If I had one and you looked at it. It would tell you that I'm draining my personal savings and should probably go and take a job at a FAANG and stop trying to build a startup.

Re: I have never read a business plan or balance sheet

#125
post #25

Can’t read what he says as I was blocked years ago. I had expressed the mildest degree of cynicism one can possibly express in response to a straight up lie.

Do you mind giving more details?

Not something I’m going to dig into, sorry. People have every right to block others, without giving any explanation and I support that side of it completely.

It stood out from my pov because there’s very very few times I’ve noticed I’m blocked and I don’t generally mean to cause any offence. The most I would’ve been intending to cause was a little introspection.

Re: I have never read a business plan or balance sheet

#126

He later goes on to claim he's "never read a pitch deck". https://twitter.com/paulg/status/1492696791434731529?s=20&t=... What an eye roll.

I love the man's essays and he is clearly a genius, but he's getting carried away a bit on Twitter.

Clearly very smart, but I haven't heard or read anything from him that would classify as genius.

Re: I have never read a business plan or balance sheet

#127

He later goes on to claim he's "never read a pitch deck". https://twitter.com/paulg/status/1492696791434731529?s=20&t=... What an eye roll.

I love the man's essays and he is clearly a genius, but he's getting carried away a bit on Twitter.

People considering him a genius as opposed to a narcissist who accidentally got rich likely fuels his need to drop nuggets of "wisdom" to the peasants like this.

Re: I have never read a business plan or balance sheet

#128

Earlier quoted context omitted.

If that truly is the point he's trying to make, then he needs to say that. The message he actually conveyed is "these things aren't important". And while I'd agree with him on the business plan, telling prospective startup founders that they shouldn't ever worry about the balance sheet is pure negligence and he should be called out for it. I've long respected PG for his role in transforming the VC industry from it's…

“telling prospective startup founders that they shouldn't ever worry about the balance sheet” He said nothing of the sort.

He just told them that he isn't ever gonna look at it. Not sure how you could interpret that in any other way.

Re: I have never read a business plan or balance sheet

#129

Earlier quoted context omitted.

I founded a company without a business plan. Raised money without a business plan. Ran the business profitably for a long time and then sold the majority of it without a business plan. I don’t see the value in a formal business plan at all and so I would almost agree with your made up quote there. I mean obviously you need to have a plan for your business. But writing it down in some formal way seems like a waste of…

Ok, you don’t need a business plan. But no balance sheet? You can’t file your taxes without a balance sheet. How can you run anything larger than a mom-and-pop business without ever seeing a balance sheet?

He's not saying you don't need a balance sheet. He's saying looking at one for an early stage startup as an outsider doesn't help him make a decision.

I suspect if you asked him he would tell you that particularly as the startup grows the startup should be across the financials, just that it doesn't help an outsider with no context as to why you're in the red.

Re: I have never read a business plan or balance sheet

#130
post #125

Earlier quoted context omitted.

Do you mind giving more details?

Not something I’m going to dig into, sorry. People have every right to block others, without giving any explanation and I support that side of it completely. It stood out from my pov because there’s very very few times I’ve noticed I’m blocked and I don’t generally mean to cause any offence. The most I would’ve been intending to cause was a little introspection.

You could probably just ask in some way (email maybe) to become unblocked. It's really easy to feel like you're under attack constantly with that many followers so I'm not surprised any of them go heavy on the blocking.
Post reply on HN