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Now is the time to do a startup

42floors.com

21–30 of 69 posts

Re: Now is the time to do a startup

#21
"Social media has created the potential for viral distribution."

In theory, certainly.

In reality, not very likely.

The 'network effect' is one of those things that is devastatingly obvious when it happens, and so powerful that it can carry something like Facebook, Twitter or Foursquare to amazing heights very quickly, that everyone thinks they can copy it. But, as is so often the case, it's very, very rare. If you think your startup is going to get to revenue (let alone profit) on the back of 'virality', think again. As a marketing strategy the probability of 'going viral' is so small it might as well not exist.

If you don't have marketing knowledge, capital to buy marketing knowledge, or the resources to go for a very long time without marketing, your startup will very likely fail..

Re: Now is the time to do a startup

#22

Excuse Number Five: who is going to pay my mortgage for the next 18 months? Unfortunately, the Western world's mindset of house ownership means that most people who want to do something different generally can't do so until their 50s. Solving that might stimulate innovation and start-up creation. Imagine an environment where basic accommodation and sustenance was available to everyone. People would have the freedom a…

Replace mortgage with rent and the issue is still the same. If you are single you can probably move in with parents or a friend to save on costs, but that is almost impossible if you have a spouse and kids. There is a very good reason behind home ownership: After 30 years of mortgage payments, you own a house. After 30 years of rent, you have nothing.

One difference is flexibility.

People who rent can sometimes scale down without too much difficulty. Also, people who rent choose a place that meets their current needs. When people buy, they often buy what they think they need/want in the future, so they are usually paying for more house.

Re: Now is the time to do a startup

#23

Excuse Number 5: I don't have an idea. Everyone loves to tout how 'ideas are shit!'. But, when you spend a lot of your time trying to spot problems, only to find out every one of them has been done already... Excuse Number 6: Health Insurance. I've saved enough to cover my mortgage & living expenses for a year. What I haven't saved for is an insurance plan that will not bankrupt my family if one of us has the unfortu…

I was scared by #6 (being new to America and having a great plan from my former employer), but between COBRA and individual plans, I was surprised how easy it is to be covered. My COBRA was terrifyingly expensive (more than my rent), but I got a very affordable individual plan to cover myself and my spouse despite having a recent accident in my medical history. Or you could move to a country where it isn't a problem ;)

Re: Now is the time to do a startup

#24
post #21

"Social media has created the potential for viral distribution." In theory, certainly. In reality, not very likely. The 'network effect' is one of those things that is devastatingly obvious when it happens, and so powerful that it can carry something like Facebook, Twitter or Foursquare to amazing heights very quickly, that everyone thinks they can copy it. But, as is so often the case, it's very, very rare. If you t…

Very true. Distribution is still the #1 problem facing startups and not thinking seriously about it is a recipe for disaster. "I will get the word out on social media" =/= thinking seriously about it.

It has never been so easy to start a company - the author is right about that. Because of that, however, there have never been so many companies starting. As a result, it has never been so difficult to rise above the noise.

Re: Now is the time to do a startup

#25

Excuse Number Five: who is going to pay my mortgage for the next 18 months? Unfortunately, the Western world's mindset of house ownership means that most people who want to do something different generally can't do so until their 50s. Solving that might stimulate innovation and start-up creation. Imagine an environment where basic accommodation and sustenance was available to everyone. People would have the freedom a…

Replace mortgage with rent and the issue is still the same. If you are single you can probably move in with parents or a friend to save on costs, but that is almost impossible if you have a spouse and kids. There is a very good reason behind home ownership: After 30 years of mortgage payments, you own a house. After 30 years of rent, you have nothing.

The thing that a lot of people ignore in this equation is that you might end up owning the house, but you paid a lot more for housing than you would have if you just rented.

Re: Now is the time to do a startup

#26
I've felt this way for some time here in HN.

It feels as though the culture is that you're expected to have ambition to create your own startup, thrive to do better, if not the best, and make yourself matter, except in this case, there's always an unmentioned postscript "in startup world"

I don't even want to discuss the Red Queen Effect, but hear me out. I am a recently graduated developer, with little ambition in technical side. I find some stuff very neat, and am working on a side project that has more caveats on writing than technical.

Whenever I find things that bother me in a day-to-day basis, I can whip up an application for myself. Integrating MSN chat logs into Skype logs has been my recent project(ongoing), because I've used MSN auto-logging very extensively. I am content with what I will have and I intend to share to people who'll miss MSN chat logs, and who value them as ostensibly as I do.

Why do I feel like I should be compelled to feel I'm not thriving enough? I've got a decently paying job, I'm learning(SICP is my current project), I'm relatively content doing what I love(writing), and enjoy my free time(gaming, writing and some side short projocts).

Sure, I'm learning but not researching the most important research in my area, I'm content doing what I love but I'm not thriving to achieve the best and make the world better place, I enjoy my free time playing games, but I'm not using the time to better myself.

A couple of my deeply respected friends, who I believe without a doubt have a chance of looking at this comments here, keeps telling me that I need to thrive. I want to tell them, please, just to leave me alone.

I know this comment isn't probably the ideal response to the article. It however is my response to why aren't you more like me and improving undertone of which the article deeply suggests.

Perhaps in a decade or two(or in smaller period) I'll come across an idea niche enough that future Me will think would work, and start work on it. I, currently, am too content with what I have and its prospects to think of anything better. I have some ideas but what good are the ideas? The work is the most that matters, and I am not motivated enough to do them yet. Please accept it. "Wanting to do startup" should not be the reason to do it, in my humble opinion.

Re: Now is the time to do a startup

#27

Excuse Number 5: I don't have an idea. Everyone loves to tout how 'ideas are shit!'. But, when you spend a lot of your time trying to spot problems, only to find out every one of them has been done already... Excuse Number 6: Health Insurance. I've saved enough to cover my mortgage & living expenses for a year. What I haven't saved for is an insurance plan that will not bankrupt my family if one of us has the unfortu…

5 shouldn't stop you. Find a problem that has been solved already and innovate on it.

Re: Now is the time to do a startup

#28
post #22

Earlier quoted context omitted.

Replace mortgage with rent and the issue is still the same. If you are single you can probably move in with parents or a friend to save on costs, but that is almost impossible if you have a spouse and kids. There is a very good reason behind home ownership: After 30 years of mortgage payments, you own a house. After 30 years of rent, you have nothing.

One difference is flexibility. People who rent can sometimes scale down without too much difficulty. Also, people who rent choose a place that meets their current needs. When people buy, they often buy what they think they need/want in the future, so they are usually paying for more house.

Yeah, but rent costs go up year after year while your mortgage is locked in at the purchase price. What will SF rents be in 2030? The mortgage payment on your 2013 house purchase might not look so bad in comparison, and often for a lot more space.

You can also regain some flexibility by renting out your home and temporarily staying somewhere cheaper. This probably isn't doable if you've got kids, but getting a cheap apartment and AirBnBing your old place might be what you need to do to keep the house without sinking your financial ship.

That said, if you're going to start a business while buying a house, better to buy a smaller house and have a working spouse who can carry all/most of the payment for a couple of years. I wouldn't probably wouldn't do it unless I had a reliable high-earning spouse willing to share that responsibility.

Re: Now is the time to do a startup

#29
post #25

Earlier quoted context omitted.

Replace mortgage with rent and the issue is still the same. If you are single you can probably move in with parents or a friend to save on costs, but that is almost impossible if you have a spouse and kids. There is a very good reason behind home ownership: After 30 years of mortgage payments, you own a house. After 30 years of rent, you have nothing.

The thing that a lot of people ignore in this equation is that you might end up owning the house, but you paid a lot more for housing than you would have if you just rented.

Not sure about anywhere else, but where I am (Midwest USA), I can pay $800/mo for a nice 3+ bedroom house, a nice plot of land, 2 car garage, etc in a nice neighborhood, or I can pay $700 for a 2 bedroom apartment. Sure I'm saving $100 a month, but in the end, the house is worth more and goes back to what was stated earlier. After 30 years you own a house.

Re: Now is the time to do a startup

#30
post #27

Excuse Number 5: I don't have an idea. Everyone loves to tout how 'ideas are shit!'. But, when you spend a lot of your time trying to spot problems, only to find out every one of them has been done already... Excuse Number 6: Health Insurance. I've saved enough to cover my mortgage & living expenses for a year. What I haven't saved for is an insurance plan that will not bankrupt my family if one of us has the unfortu…

5 shouldn't stop you. Find a problem that has been solved already and innovate on it.

I know - that one was just a rant. :) But it is frustrating nonetheless.
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