Why to Start a Startup in a Bad Economy

Post by fallentimes » Thu, Oct 16, 2008, 5:19 PM UTC

mariorz wrote: post #39

fallentimes wrote: post #32

"Last year you had to be prepared to explain how your startup was viral. Next year you'll have to explain how it's recession-proof." You should have to explain how it's going to make money, no matter the economy. Founders need to stop thinking they can just magically monetize later after reaching one fobillion users. If it happens, awesome, but don't bank on it. Google was an anomaly, but you wouldn't know it from th…

Do you have examples of sites with a "fobillion" (or close) users that still failed? I'm really curious. The examples I can think of, like friendster, really went under because of lack of users. I agree that you shouldn't bank on getting this fobillion users and after that monetizing them. But that's because the real hard part is getting that much users in the first place.

Post by emmett » Thu, Oct 16, 2008, 5:29 PM UTC

fallentimes wrote: post #41

mariorz wrote: post #39

Earlier quoted context omitted.

Do you have examples of sites with a "fobillion" (or close) users that still failed? I'm really curious. The examples I can think of, like friendster, really went under because of lack of users. I agree that you shouldn't bank on getting this fobillion users and after that monetizing them. But that's because the real hard part is getting that much users in the first place.

That was an obvious hyperbole. The point is: 50,000 or even 100,000 users =! success, and you don't necessarily need users to make money (although it helps!).

Post by ashr » Thu, Oct 16, 2008, 5:59 PM UTC

akkartik wrote: post #40

"What if you quit your job to start a startup that fails, and you can't find another? Good hackers can always get some kind of job. It might not be your dream job, but you're not going to starve." Hmm, isn't that kind of a low bar? I worry that I'll be 40 before I know it, with no savings to show for my years of work. Isn't opportunity cost a concern? Perhaps PG really is writing for the young.

Post by akkartik » Thu, Oct 16, 2008, 6:03 PM UTC

ashr wrote: post #45

akkartik wrote: post #40

"What if you quit your job to start a startup that fails, and you can't find another? Good hackers can always get some kind of job. It might not be your dream job, but you're not going to starve." Hmm, isn't that kind of a low bar? I worry that I'll be 40 before I know it, with no savings to show for my years of work. Isn't opportunity cost a concern? Perhaps PG really is writing for the young.

I sure get the same impression. Start ups are for twenty somethings who are not married. If you are 30+, married and with a mortgage then forget it.

Post by ksvs » Thu, Oct 16, 2008, 6:23 PM UTC

kingkongrevenge wrote: post #18

brk wrote: post #2

Good article, but I disagree with the Microsoft/Apple example in the beginning. MS and Apple happened to come along when the microcomputer was really starting to take off, and they were able to ride that wave (while 1000's of other microcomputer startups crashed). One thing that worries me personally about starting the "stereotypical" HN startup right now, is that I think the free/fremium model is going to lose steam…

> I would look to solar and certain other viable alternative energy options right now as the next major tech growth sector. Right. The next wave is further electrification, new power generation, and first world infrastructure renewal. New advanced rail and massive rail line build outs. Rebuilding sewage and water systems. Alternative energy. Revamping agriculture for expensive oil and scarce fresh water will also be…