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What I Learned From My Startup Failing

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Re: What I Learned From My Startup Failing

#21
post #17

You're giving up after less than a year? I have a rule of thumb. I think that If you want to start a startup, make sure you're willing to devote at least 3 years to getting it going. Otherwise, don't bother. It's difficult enough to get a business off the ground at all, without trying to do so with an extremely tight time constraint. A corollary to this rule I suppose is that you should ensure that you have 3 years w…

re: walking after a year: this is curious to me. on the one hand, success can spring from numerous failures, the numerous implying fast! imagine the inventor always inventing, multiple projects at once! a new one every week! on the other hand, success can spring from committment and dedication. stay focused, don't give up. i'm not refuting your points--in the end, one has to be smart, strategic. go all out in the rig…

Sure. I suppose what motivated me to write the original post in this thread is that I'm beginning to see a lot of people jump into startups with a great amount of wishful thinking and a complete misconception of what they are getting into. It's really the computer geek equivalent of a jock joining the military after high school because the ads are cool and he enjoys fighting.

I'm not a huge fan of the strategy to keep on trying until you succeed. There are some things in life that I will simply not be good at. No matter how much I try, there is no way I will be an Olympic swimmer. That ship sailed well over half a lifetime ago. Some people just aren't cut out for running a business. Hell, even some successful business people are tormented by the idea that they were simply lucky, and spend the remainder of their time failing at future business endeavours.

All I'm suggesting is that you need to go into a startup with a reasonable sense of commitment. For most businesses, I think a reasonable time frame to dedicate to it is 3 years. There isn't a fixed gestation period for a successful business the way there is for creating a baby. But 3 years is long enough for you to have seen some highs and lows, to have performed several iterative improvements to the product/service, and (again, hopefully) witnessed the market's initial reaction and longer term assessment of the product/service. It's enough to have executed a few strategical paths and many more tactical manoeuvres. In effect, it's long enough to provide an adequate number of data points (for you) to make the decision to continue or not if the market hasn't made that decision for you already.

For those of you wanting to go into a startup, think of being able to put in a 3 year commitment and now let your mind explore that idea vs the idea of simply putting in a year's worth of effort. You'll come up with a vastly different sense of obstacles that you will face (e.g., cash flow is a problem for a 3 year commitment for most people but not so for a 1 year commitment). The problem is, most people discount these obstacles and then face them anyway because they aren't successful within that first year. Their strategies don't take them into account and are rendered ineffective as a result. Basically, treat a startup as if you're emigrating to a foreign country for a few years as opposed to just visiting one for vacation. All the same sort of obstacles still apply.

Re: What I Learned From My Startup Failing

#22
post #20
post #17

Earlier quoted context omitted.

re: walking after a year: this is curious to me. on the one hand, success can spring from numerous failures, the numerous implying fast! imagine the inventor always inventing, multiple projects at once! a new one every week! on the other hand, success can spring from committment and dedication. stay focused, don't give up. i'm not refuting your points--in the end, one has to be smart, strategic. go all out in the rig…

You're an airplane pilot trying to get your bird off the ground. You have to attain a certain velocity to succeed. If your runway is short, you'd better open the throttle wide -- and if it isn't working, you have to decide pretty quickly to give up and try again. But if the runway is longer, you have more time: continue building speed until you have enough force to lift off. You just want to avoid giving up when you…

Much more succinctly put than I could have put it, but spot on! The problem I'm seeing is a greater number of pilots that think they're flying Harrier jump jets when they're really piloting Cessnas :)

Re: What I Learned From My Startup Failing

#23

You're giving up after less than a year? I have a rule of thumb. I think that If you want to start a startup, make sure you're willing to devote at least 3 years to getting it going. Otherwise, don't bother. It's difficult enough to get a business off the ground at all, without trying to do so with an extremely tight time constraint. A corollary to this rule I suppose is that you should ensure that you have 3 years w…

This is dangerous advice; failing fast is way better than failing slow. To get to (in your example) breakeven in year 2, you better be showing traction in year 1 after launch, or at least signs of life, which they were not. No one liked or cared about what they were building, and they wisely realized they had no idea what market they were really going after and (after several months' worth of learning) still had no evidence one even existed.

Given they're still at square one, if they identified a more promising market, they should go for that, and it takes a lot of discipline to admit that all that prior effort is sunk cost.

Re: What I Learned From My Startup Failing

#25
post #2

"Companies succeed with single founders all the time. Just look at Digg, Craigslist, eBay, Netflix, Wordpress, Wikipedia, Amazon, TechMeme, PBWiki, TechCrunch, TechMeme, and Etsy." Is this true? I know it's hard to define "founder" precisely, since some co-founders may get involved after the idea is partly baked, or may not have as much of an impact. But several of these seem to be questionable. (And Techmeme is miss…

You're right -- "founder" is a tough measurement. A lot of times -- as in the case of my own company, RFOP -- one person starts a company, sees a bit of success, then quickly brings on a small group of peers who join with the "co-founder" moniker. As a company grows, it quickly evolves from a solo effort to (some variation of) a team effort. This can mean bringing on employees, or people who join as "co-founder." At…

Obviously I'm biased, but Kevin had little if any vision other than finding a new job. And he was much less known then he is now, after a careful, well-crafted and expensive PR campaign. And yes, I was an "unknown coder" but also an MBA, Ph.D candidate, and I spent years haranguing the business editor of our local paper about how corrupt the news business was. Many people I respect have summed up Kevin in a single word - "shallow."

And to reiterate, elance was not involved in digg. That also was part of the PR campaign.

Re: What I Learned From My Startup Failing

#26
post #25

Earlier quoted context omitted.

You're right -- "founder" is a tough measurement. A lot of times -- as in the case of my own company, RFOP -- one person starts a company, sees a bit of success, then quickly brings on a small group of peers who join with the "co-founder" moniker. As a company grows, it quickly evolves from a solo effort to (some variation of) a team effort. This can mean bringing on employees, or people who join as "co-founder." At…

Obviously I'm biased, but Kevin had little if any vision other than finding a new job. And he was much less known then he is now, after a careful, well-crafted and expensive PR campaign. And yes, I was an "unknown coder" but also an MBA, Ph.D candidate, and I spent years haranguing the business editor of our local paper about how corrupt the news business was. Many people I respect have summed up Kevin in a single wo…

I remember getting one of those email postings from elance a year or two ago, where it was explicitly mentioned about Digg being started through elance. What is the real story then?

Re: What I Learned From My Startup Failing

#27
post #26
post #25

Earlier quoted context omitted.

Obviously I'm biased, but Kevin had little if any vision other than finding a new job. And he was much less known then he is now, after a careful, well-crafted and expensive PR campaign. And yes, I was an "unknown coder" but also an MBA, Ph.D candidate, and I spent years haranguing the business editor of our local paper about how corrupt the news business was. Many people I respect have summed up Kevin in a single wo…

I remember getting one of those email postings from elance a year or two ago, where it was explicitly mentioned about Digg being started through elance. What is the real story then?

That's impressive. I did do a couple of small jobs for Kevin nearly a year and a half before digg, so I guess they can claim we were introduced through it. But there were so many new fees and restrictions on providers that it was just a nightmare to use by the time digg appeared, that I had moved on.

Re: What I Learned From My Startup Failing

#28
i'm not sure what to make of my situation. i've been working at my small business for a full 3 years now. i think the internet can make for a really different start to companies now. i had great attention and great sales at the beginning. then a huge lull because i changed the aesthetic and didn't realize how much that would impact my sales. so i changed it back and again sales were good. the the recession hit. and sales have been terrible. i'm still getting items up for this season and will see how that goes. but the area of the market i occupied is not good for anyone right now.

so how do i assess all this? is this a keep going and wait it out thing? am i failing or is it just the market.

i am now finally hurting for cash. i kep my overhead low through all this and was strategic about material costs too. but now that isn't helping.

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