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Evernote CEO to entrepreneurs: "don't do it"

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Re: Evernote CEO to entrepreneurs: "don't do it"

#11

Post by larrys »

"A lot of people think that they want to be an entrepreneur because it’s a good way to make money. It just isn’t, that’s just wrong. Depending on how you count, 95% to 99% of companies fail."

Excuse me. It is a way to make money. That figure assumes the definition of entrepreneur is only startups as discussed in places like HN, Techcrunch etc.

Not only is the figure of 95% or 99% wrong with respect to "entrepreneurs" (unless of course you increase the time to, say, 100 years at which case it may be true across the board) but its like saying "don't apply to Harvard or YC because the chance...". It doesn't take into account any particular persons idea or qualifications to be a success.

But most importantly, the definition of being an entrepreneur also includes running a small restaurant or opening a physical warehouse and selling exercise equipment or starting a website to sell new and used office desks or a million other ideas that will never make it to HN or TC that can make you a good living.

Re: Evernote CEO to entrepreneurs: "don't do it"

#12

Post by larrys »

wsc981 wrote: post #4

As someone who's about to become an entrepreneur, my reasons are: - Money: I do believe I can make a lot of money with the company I intend to start, but I should say I'm not going to start anything revolutionary, just corner a part of the market where there's a big demand (mobile development by contract). It should make me more money in less time then my current job does. - Flextime: I'm a bit of a work-a-holic so I…

Would love to know why your comment was being downvoted.

Re: Evernote CEO to entrepreneurs: "don't do it"

#14

Post by jpdoctor »

larrys wrote: post #11

"A lot of people think that they want to be an entrepreneur because it’s a good way to make money. It just isn’t, that’s just wrong. Depending on how you count, 95% to 99% of companies fail." Excuse me. It is a way to make money. That figure assumes the definition of entrepreneur is only startups as discussed in places like HN, Techcrunch etc. Not only is the figure of 95% or 99% wrong with respect to "entrepreneurs"…

> Not only is the figure of 95% or 99% wrong with respect to "entrepreneurs"

I believe he's quoting numbers from Shikhar Ghosh at HBS. Here's one article that google brought up with a little more detail about how "failure" is defined:

The statistics are disheartening no matter how an entrepreneur defines failure. If failure means liquidating all assets, with investors losing most or all the money they put into the company, then the failure rate for start-ups is 30 to 40 percent, according to Shikhar Ghosh, a senior lecturer at Harvard Business School who has held top executive positions at some eight technology-based start-ups. If failure refers to failing to see the projected return on investment, then the failure rate is 70 to 80 percent. And if failure is defined as declaring a projection and then falling short of meeting it, then the failure rate is a whopping 90 to 95 percent.

http://hbswk.hbs.edu/item/6591.html

Re: Evernote CEO to entrepreneurs: "don't do it"

#15

Post by larrys »

"I think you know what it is: it’s to change the world"

This is such hogwash and brainwashing. People have to earn money and make a living. Nothing wrong with that at all. And if you want to change the world you have a better chance after earning a load of money.

There are people who have gone into medicine to make money (and not better the world and save lives) and are great physicians and provide a service. And they live in big houses have expensive things and enjoy themselves. That's fine. Nothing to apologize about. Same with entrepreneurship or any pursuit (education).

Re: Evernote CEO to entrepreneurs: "don't do it"

#16

Post by EricDeb »

larrys wrote: post #11

"A lot of people think that they want to be an entrepreneur because it’s a good way to make money. It just isn’t, that’s just wrong. Depending on how you count, 95% to 99% of companies fail." Excuse me. It is a way to make money. That figure assumes the definition of entrepreneur is only startups as discussed in places like HN, Techcrunch etc. Not only is the figure of 95% or 99% wrong with respect to "entrepreneurs"…

In the same way one could argue that a person like Kevin Rose has almost a 99% chance of succeeding in a startup he founds.

Re: Evernote CEO to entrepreneurs: "don't do it"

#17

Post by ramblerman »

larrys wrote: post #15

"I think you know what it is: it’s to change the world" This is such hogwash and brainwashing. People have to earn money and make a living. Nothing wrong with that at all. And if you want to change the world you have a better chance after earning a load of money. There are people who have gone into medicine to make money (and not better the world and save lives) and are great physicians and provide a service. And the…

Nowhere in the article was "earning money" chastised as being bad. It just suggested there are better options if that is your main goal.

"If you’re smart enough, if you’re talented enough, if you have the drive, if you have the ability, and you’re motivated by making money, then you should just get a real job instead, like become a banker or an investor or a consultant or something. You’ll be much more likely to make a lot of money over the course of your career than by starting a company."

Re: Evernote CEO to entrepreneurs: "don't do it"

#18

Post by antidaily »

"you should just get a real job instead, like become a banker or an investor or a consultant or something"

yeah, consulting. the pie-eating contest where the prize is more pie. but at least you have a nice salary to pay back your MBA student loans. and you get to travel every week and get fat eating out every meal and drinking at networking events.

Re: Evernote CEO to entrepreneurs: "don't do it"

#19

Post by mediaman »

jpdoctor wrote: post #14
larrys wrote: post #11

"A lot of people think that they want to be an entrepreneur because it’s a good way to make money. It just isn’t, that’s just wrong. Depending on how you count, 95% to 99% of companies fail." Excuse me. It is a way to make money. That figure assumes the definition of entrepreneur is only startups as discussed in places like HN, Techcrunch etc. Not only is the figure of 95% or 99% wrong with respect to "entrepreneurs"…

> Not only is the figure of 95% or 99% wrong with respect to "entrepreneurs" I believe he's quoting numbers from Shikhar Ghosh at HBS. Here's one article that google brought up with a little more detail about how "failure" is defined: The statistics are disheartening no matter how an entrepreneur defines failure. If failure means liquidating all assets, with investors losing most or all the money they put into the co…

Great detail on the source of that stat. The use of that 90-95 percent metric is next to meaningless in defining failure rates of startups. There are tons of successful companies generating great returns who have not met the initial projections, because initial projections tend to be unrealistic.

I founded a startup that's profitable and doing $5mm in revenue but would be considered a "failure" because at the beginning we played the hockeystick revenue projection dance (partly to appease potential investors, who discount whatever number you give them anyway, and partly because we were wildly optimistic).

Re: Evernote CEO to entrepreneurs: "don't do it"

#20

Post by larrys »

ramblerman wrote: post #17
larrys wrote: post #15

"I think you know what it is: it’s to change the world" This is such hogwash and brainwashing. People have to earn money and make a living. Nothing wrong with that at all. And if you want to change the world you have a better chance after earning a load of money. There are people who have gone into medicine to make money (and not better the world and save lives) and are great physicians and provide a service. And the…

Nowhere in the article was "earning money" chastised as being bad. It just suggested there are better options if that is your main goal. "If you’re smart enough, if you’re talented enough, if you have the drive, if you have the ability, and you’re motivated by making money, then you should just get a real job instead, like become a banker or an investor or a consultant or something. You’ll be much more likely to make…

"It just suggested there are better options if that is your main goal"

Totally depends on the person. I visited my dentist the other day who clearly didn't have a business head on him (we've spoken many times). He is better off and will make a better living as a dentist giving his intelligence and abilities. I'm married to a Physician and wanted to set her up in her own office. She isn't interested, she would rather just work for the Hospital and get a salary. Everyone is different. The best option for a particular person to make money depends on the persona and their abilities.

As an aside, as far as being a "consultant". In general (as always) a consultant doesn't really build any equity unless they have others working for them. They don't have anything to sell (to someone else as an entity) and over time need to constantly pick up clients and interact with clients. I built a business and after 10 years I had something to sell. It was something that didn't depend on me it had customers, employees etc.

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