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Ask HN: Why don't more entrepreneurs focus on lifestyle businesses?

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Re: Ask HN: Why don't more entrepreneurs focus on lifestyle businesses?

#21

Post by rapnie »

RantyDave wrote: post #13

Unpopular opinion: if your company is going to succeed, why do you need VC? Sure, (nearly) every really really big company pulled VC at some point, but this is an industry full of survivor bias - and VC's know full well that almost all their punts are going to fail. VC is, arguably, the most expensive money you will ever borrow. If you could borrow a couple of hundred K against, say, obscene house prices in San Franc…

Fully agree with your unpopular opinion :)

> If your company is going to succeed, why do you need VC?

It's not just the VC but also the definition of success. Nowadays I see this mostly defined as being able to scale up quickly to - preferably - millions of users, and raking in loads of revenue in short time.

But why not have modest goals in mind to define success? Get decent, normal salaries for the initial team of employees, instead of striving to become rich. Then grow slowly and steadily.. you won't need VC at all that way, if you plan things right.

Scrap the word 'disruption' from your business plan. It originally had a negative connotation anyway. Go for sustainability in the holistic meaning of the word..

(PS. I like the use the term 'anti-disruption-layer' in these modern times.. trying to create one)

Re: Ask HN: Why don't more entrepreneurs focus on lifestyle businesses?

#22

Post by auganov »

Assembling a team is tougher for a lifestyle business. A startup lottery ticket is more desirable. "Build this with me so we might get rich" is better than "build this with me so we might pay ourselves large salaries".

Then you've got the current funding climate that absolutely loves companies that look like lifestyle businesses. The temptation to take money is going to be huge.

Also - a failed VC-backed startup looks better resume-wise.

Re: Ask HN: Why don't more entrepreneurs focus on lifestyle businesses?

#23

Post by quietthrow »

Would love get the perspective of vc’s and /or someone who is part of the vc world.

The op’s question is something I have always wondered and am glad (s)he asked it here. I have always thought - generally speaking- if your business can’t make money it’s not a business. I feel There are some exceptions to this rule and require large amounts of capital upfront, but they are exactly that - exceptions and not the norm.

Re: Ask HN: Why don't more entrepreneurs focus on lifestyle businesses?

#24

Post by rajacombinator »

Most entrepreneurs do focus on lifestyle businesses. (Although they wouldn't call them that.) VC driven businesses just happen to be the focus of this site. For some people, it makes more sense to focus on VC style hypergrowth businesses. Succeeding with a lifestyle business is no less difficult, so might as well swing for the fences, especially if someone else will foot the bill.

Re: Ask HN: Why don't more entrepreneurs focus on lifestyle businesses?

#25

Post by MichalSternik »

An old good Joel for you:

https://www.joelonsoftware.com/2000/05/12/strategy-letter-i-...

tldr:

Most people, when they're sure they have this amazing one in a million idea want to make it happen and grow a company really big really fast. And for that, you need VCs to supply truckloads of cash to burn through. This comes with a non-obvious price though.

Check out the essay if you haven't read it, it's really good.

Re: Ask HN: Why don't more entrepreneurs focus on lifestyle businesses?

#26

Post by toddmorey »

RantyDave wrote: post #13

Unpopular opinion: if your company is going to succeed, why do you need VC? Sure, (nearly) every really really big company pulled VC at some point, but this is an industry full of survivor bias - and VC's know full well that almost all their punts are going to fail. VC is, arguably, the most expensive money you will ever borrow. If you could borrow a couple of hundred K against, say, obscene house prices in San Franc…

All ideas I think have a scale where they perform best. Some ideas do require starting capital of $10m or more to really work--VC there may be the best option. However, I've seen too many companies fail by taking on too much money too easily, forcing success to mean many times the multiple that's likely or even possible.

Re: Ask HN: Why don't more entrepreneurs focus on lifestyle businesses?

#27

Post by danieltillett »

quickthrower2 wrote: post #18
privong wrote: post #2

I suspect there are more people who start lifestyle companies than aim for VC-funded companies. But they probably don't get as much press coverage and so seem less common.

And they don't want press coverage. If you are making a nice living doing 4 hours a week selling systems to {one weird old industry a solo founder would die to know about} you hardly want to invite competition. Competition ain't good for your lifestyle :-)

And what industry do you work in quickthrower2 :)

Re: Ask HN: Why don't more entrepreneurs focus on lifestyle businesses?

#28

Post by soneca »

I have the impression that much more people are looking to bootstrap a business than seeking VC funding.

The thing is that funding-seeker founders are very concentraded in a some bubbles in big cities, due to the nature of VC ecosystem and bootstrappers are more dispersed, each one close to their respective market (or or not even so, as in low touch digital business).

I assume you are in one of those bubbles.

Good places to sneak out of it: https://www.microconf.com and https://www.indiehackers.com

Re: Ask HN: Why don't more entrepreneurs focus on lifestyle businesses?

#29

Post by beaconstudios »

I think the VC-backed companies are just the most visible. With VC backing comes PR and lots of noise in all the tech journals, which is then echoed and posted on community sites like reddit and HN. Most bootstrappers (myself included) are just working on their products and markets.
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