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Halvar's Guide to Entrepreneurship

thomasdullien.github.io

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Re: Halvar's Guide to Entrepreneurship

#41

Post by tptacek »

softwaredoug wrote: post #13

Maybe a simple question I didn’t see here: paying yourself a salary? How true is it you’ll need to persist under extreme duress unable to pay yourself a salary? Relevant for us with kids / families where we provide the family’s income.

I'm not sure austerity wages for founders are really a thing anymore. Serious investors understand that team turnover is as or more scary than fiscal drama.

There was a longstanding "ramen profitable" ethos on HN, but part of that is rooted in a much older set of YC deal terms and lower expectations for seed rounds. But YC is now one of the principal components of all tech startup funding, the standard terms are much better, syndicated seed rounds have gotten pretty big; I think you're expected not to be silly about comp, but I don't think people are looking for you to signal commitment or virtue or asceticism with your comp package.

If you can't pay yourself a real comp package, something is probably wrong with your business.

Re: Halvar's Guide to Entrepreneurship

#43

Post by xyzzy_plugh »

tptacek wrote: post #40

This is all great. One thing I wanted to call out in particular is Thomas' take on investor verbal agreements. YC has a thing about this: it's called the Handshake Protocol. The idea is: you and your investor agree on (1) an amount to be invested, and (2) a valuation or cap. Maybe you shake hands. Then, after the meeting, you memorialize the deal in an email. The deal is then socially binding: reneging on a Handshake…

This is great, simple advice that is obvious in hindsight.

It works in all sorts of places too! Like negotiating a job offer or a raise or promotion or time-off. It also works outside of the workplace such as following up with social acquaintances ("hey let's play tennis sometime").

It excels at identifying the party unwilling to commit. And in my experience the sooner you figure that out the better.

Re: Halvar's Guide to Entrepreneurship

#44

Post by orphereus »

alexashka wrote: post #37

If you have a thing people want that you spent a decade making that isn't easily replicatable, the rest doesn't matter. If you don't have that, the rest also doesn't matter. Unless you're obsessed with money, in which case, you are very confused and should not be guiding anybody to anything. Guides regarding minutiae from lottery ticket winners are tiresome. I think anyone over 30 has learned what these 'guides' amou…

That is oversimplifying it to the extreme.

Like the example with the doctors and how to find actually good ones, you can add this essay to the list of enterpreneurship tips you can compare and decide for yourself what is useful and what isn't.

Re: Halvar's Guide to Entrepreneurship

#45

Post by tptacek »

xyzzy_plugh wrote: post #43
tptacek wrote: post #40

This is all great. One thing I wanted to call out in particular is Thomas' take on investor verbal agreements. YC has a thing about this: it's called the Handshake Protocol. The idea is: you and your investor agree on (1) an amount to be invested, and (2) a valuation or cap. Maybe you shake hands. Then, after the meeting, you memorialize the deal in an email. The deal is then socially binding: reneging on a Handshake…

This is great, simple advice that is obvious in hindsight. It works in all sorts of places too! Like negotiating a job offer or a raise or promotion or time-off. It also works outside of the workplace such as following up with social acquaintances ("hey let's play tennis sometime"). It excels at identifying the party unwilling to commit. And in my experience the sooner you figure that out the better.

And "unwilling to commit" is fine! That's most people most of the time. The only problem is when there's ambiguity about the commitment.

Re: Halvar's Guide to Entrepreneurship

#46

Post by alexashka »

orphereus wrote: post #44
alexashka wrote: post #37

If you have a thing people want that you spent a decade making that isn't easily replicatable, the rest doesn't matter. If you don't have that, the rest also doesn't matter. Unless you're obsessed with money, in which case, you are very confused and should not be guiding anybody to anything. Guides regarding minutiae from lottery ticket winners are tiresome. I think anyone over 30 has learned what these 'guides' amou…

That is oversimplifying it to the extreme. Like the example with the doctors and how to find actually good ones, you can add this essay to the list of enterpreneurship tips you can compare and decide for yourself what is useful and what isn't.

Thank you. Before you said it, I didn't know what to do but now I know to compare and decide for myself what is useful and what isn't.

I hope my newfound way of life is not oversimpifying it to the extreme.

Re: Halvar's Guide to Entrepreneurship

#47

Post by tamimio »

I love it, amazing article! All the reasons listed apply to me and a while ago before realizing that a lot of other entrepreneurs share the same mindset, I always thought I am a loser unfit in any company I worked for, especially the interviews part, i simply suck at them, period! but I do wonders given the chance. I am just glad I don’t have to go through that anymore.

Re: Halvar's Guide to Entrepreneurship

#48

Post by thepeoplebook »

tptacek wrote: post #41
softwaredoug wrote: post #13

Maybe a simple question I didn’t see here: paying yourself a salary? How true is it you’ll need to persist under extreme duress unable to pay yourself a salary? Relevant for us with kids / families where we provide the family’s income.

I'm not sure austerity wages for founders are really a thing anymore. Serious investors understand that team turnover is as or more scary than fiscal drama. There was a longstanding "ramen profitable" ethos on HN, but part of that is rooted in a much older set of YC deal terms and lower expectations for seed rounds. But YC is now one of the principal components of all tech startup funding, the standard terms are much…

A stable home life is a prerequisite for focused startup work; otherwise day-to-day worries take up too much attention.

Re: Halvar's Guide to Entrepreneurship

#50

Post by doc_ick »

thepeoplebook wrote: post #48
tptacek wrote: post #41

Earlier quoted context omitted.

I'm not sure austerity wages for founders are really a thing anymore. Serious investors understand that team turnover is as or more scary than fiscal drama. There was a longstanding "ramen profitable" ethos on HN, but part of that is rooted in a much older set of YC deal terms and lower expectations for seed rounds. But YC is now one of the principal components of all tech startup funding, the standard terms are much…

A stable home life is a prerequisite for focused startup work; otherwise day-to-day worries take up too much attention.

Agreed, you need to have a clear mind and not too large of a sum to focus on work; for example making an Oreo pie.
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