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Do Things that Don't Scale

paulgraham.com

41–50 of 223 posts

Re: Do Things that Don't Scale

#41
The initial grind is a part of the startup fairytale that I feel is so often overlooked, yet is often the most interesting.

It shows just how the founders built their engine, the pieces they had to forge, parts that needed to be jammed together in some way to just barely function, components that were thrown out for costing too much and working too little. Every successful startup has their own engine. Some may be exact replicas of others. They work because the problems they tackle have been well explored. And others are bespoke, tailored specifically to handle truly difficult problems, and which require an immense amount of exploration, experimentation, failure, and restarts. That's why an Instagram can take off with less refinement and horsepower than an Airbnb -- we've developed the tools and built the maps to tread on one terrain, but not the other.

Re: Do Things that Don't Scale

#43

Who wants to start a user-acquisition startup?

Upon seeing those words, I realized that's what a lot of media startups are. For example, my companies runs a variety of e-mail newsletters and most of our advertisers are other companies looking to acquire users/customers. We've had advertisers run a single ad with us and pick up 1000 e-mail addresses on their landing pages, etc. That seems quite close to a practical user-acquisition startup even if the intent isn't there.. It does give me some ideas on extra ways to sell the value to potential advertisers though(!) :)

Re: Do Things that Don't Scale

#44
post #8

I was watching a presentation the other day and heard a relevant story. It was about one of the early internet companies during the first dotcom boom. It was a change of address service. You would input your information and the services you needed to cancel and/or change the address for and it would handle it for you. This was in the early days of the consumer web, so none of these companies had APIs for this company…

This reminded me about Joel Spolsky's Strategy Letter III (http://www.joelonsoftware.com/articles/fog0000000052.html), where he talks about a company called PayMyBills. PayMyBills would handle the user's bills and send them electronic reports of the bills each month.

Their strategy required the user to manually call each service provider to change the physical address to PayMyBills' so they would receive all the paper and process it. This created huge barrier of entry (who wants to call every single provider to change their address?). At the same time, if you end up signing up you're likely to stay in because of the time it took you to go service by service to change your address again.

FWIW I don't know what happened to PayMyBills but today their site redirect's to one of Intuit's service.

Re: Do Things that Don't Scale

#45
We gotta say this. We have never been a fan of pg's essays.

BUT THIS ONE IS GEM. Probably the Best. Also remember, even after doing all this there is no guarantee that your startup will succeed. But this one has all the optimal paths.

Re: Do Things that Don't Scale

#46
This bums me out. Majorly. I work at a YC startup (which will remain nameless), and we function exactly the opposite of how this essay suggests. We aren't huge by any means, but we focus heavily on scale, and suppress ideas that do not scale. Automate everything. Nothing should be manual.

I'm an engineer, but I recognize the importance of fantastic customer service. While building an iPhone app, I suggested that users should have easy access to our hotline at every step of the purchase and post-purchase flow in case they ran into issues. The founder rejected this. Why? "People would be calling us constantly". We also spent enormous amounts of time and resources tweaking the app design to perfection (pre-launch), and attempted a massive press launch with exclusive blog posts/coverage while turning our noses at any sort of manual user acquisition.

Fast forward 6 months. That product failed.

Re: Do Things that Don't Scale

#47
I am so glad to read something about hardware startups here. As a engaged hardware engineer who aims to build my own company soon, I miss reading more about hardware startups.

Funny thing, I read the whole OP thinking about how all these ideas would work in a hardware startup, and came to conclusions similar to his before reaching the point about it in the article.

Crowdfunding brought some fresh air to this world, but I still miss an active community as the software startup one is. Maybe I am missing something?

Re: Do Things that Don't Scale

#48
I saw this on a miniature scale when I created a new subreddit (http://reddit.com/r/LSAT)

I spent about two weeks creating quality articles for the sidebar, personally replying to every submission/comment, manually recruiting anyone who mentioned the LSAT, and reaching out to moderators of related subreddits for links.

Mercifully, a subreddit is a small thing to launch, and after two weeks the place became self-sustaining and grew to 1500 subscribers.

I'm seeing the same thing again with a website I just launched (http://lsathacks.com), which has free LSAT explanations.

Very positive initial comments, but just letting people know about it hasn't resulted in a surge of traffic. Instead, I'm going to have to manually recruit people. Only then will I know if it's worthwhile.

My point is that this doesn't apply just to high growth startups. Almost anything new requires initial unscaleable effort.

Edit: The LSAT is the Law School Admission Test, a logic test required for admission to North American law schools.

Re: Do Things that Don't Scale

#49
post #7

I can think of quite a few startups that used a big bang launch with press with success. Off the top of my head - Instagram (MG's series of pieces on Techcrunch), Mailbox, Flipboard, Square, Path. I get where PG is coming from but press can help bootstrap a network effect if you have none.

But the TechCrunch pieces aren't the reason Instagram suceeded. There are plenty of companies who got TechCrunch coverage that failed (most of them).

I read stories about the Instagram founder doing a "bar test". He would show people his app in a noisy bar, with half of their attention. If they couldn't figure it out, then the app was too complicated or too hard to explain.

He also had some very unscalable experience at previous Stanford company (don't remember the name now).

The press can only explain the a product -- it doesn't make the product fit the market.

Re: Do Things that Don't Scale

#50
thanks for the advice. I was thinking abiut hosting and scaling architecture before trying to sell my product, but this piece convinced me it's going to be ok if my first customers run on some dedicated server with everything on it. i'll have plenty of time to think about VMs and load balancer later.

Most useful post i've read from pg as well.

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