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The Advantage of No Funding (2011)

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Re: The Advantage of No Funding (2011)

#41

Post by nkozyra »

deltarholamda wrote: post #21

>the desks were just planks of wood on cinderblocks from the hardware store While used as an example of bootstrapping, I have to say that one of my favorite desks ever was a solid-core door on cinderblocks. You can adjust the height to your specifications with bricks or wood shims; the cinderblocks can become cubbies for holding various bits and bobs; you can paint the door whatever color you want cheaply; it can tak…

I used the door + two filing cabinets system for years.

I've since found the next best thing, which is the Malskytt solid birch table top on top of their $15 solid pine trestles.

It's a visual upgrade. I have two, giving me ~ 9ft of solid wood workspace for ~ $200.

I've also made my own custom desks but I got obsessive about them and built every feature known to man into them. The only thing I've done with these is drilled grommets for the cables. In reality all I need is a solid workspace that will last.

Re: The Advantage of No Funding (2011)

#42

Post by bryans »

ilamont wrote: post #10
solatic wrote: post #3

> Never forget that absolutely everything you do is for your customers. Make every decision — even decisions about whether to expand the business, raise money, or promote someone — according to what’s best for your customers. Right, this isn't really about whether or not you take growth funding. This is about minimalism and focus. The fact that some people who take venture funds see fit to use those funds in a vain w…

Never forget that absolutely everything you do is for your customers Hard disagree. I certainly want to keep my customers satisfied and provide them with value, and they (along with employees and partners) are absolutely necessary to the success and continuation of the business. But the number one consideration in any business are the needs of the owner(s), which may include financial, a desire to grow the business,…

> Hard disagree. I certainly want to keep my customers satisfied and provide them with value, and they (along with employees and partners) are absolutely necessary to the success and continuation of the business.

If your customers are only satisfied, that means you end up spending significantly more on acquisition and retention, because nobody is going to be rabidly loyal enough to your business to extol its virtues to their friends and family and colleagues and on social media. That hobbles your growth and virtually eliminates the potential for word-of-mouth. People don't tweet about how a product "is satisfactory and provides an adequate amount of value."

I'd recommend checking out an amazing talk on exceeding customer expectations[1] by a Seattle business coach named Brad Worthley. And I get it, anybody (other than John Madden) with "coach" in their title is almost universally someone to avoid, particularly when they start their talk by mentioning the books they've written, but this guy really does understand how those customer dynamics work. He ELI5s the whole topic, along with excellent anecdotes to show each of the concepts in action.

And I assure you, things work exactly how he describes. If you bend over backward for them, your customers will take care of you. But if you treat them as a "necessity for the continuation of the business," they're not going to care about you at all, which means they'll leave you the minute something better or cheaper comes along -- or the first time you make a mistake.

[1] https://www.youtube.com/watch?v=40eyo7cgJ7w&t=4m30s

Re: The Advantage of No Funding (2011)

#43

Post by showerst »

askafriend wrote: post #24
manwe150 wrote: post #23

Earlier quoted context omitted.

Solid-core doors (new) seem to be a bit north of $250 at the lower end: https://www.homedepot.com/p/Masonite-30-in-x-80-in-Roman-Smo... I think I have seen standing desks for not much more At least the cinder blocks don’t add much cost at $2 each retail

Seems cheaper and better to just pay $500 for this: https://www.fully.com/standing-desks/jarvis/jarvis-adjustabl...

I have a desk that's a set of Jarvis legs with a $20 Ikea hollow core table top that I've had for about 7 years. It cost less than $250 (at the time) and it has held up really well.

Re: The Advantage of No Funding (2011)

#44

Post by jasonwatkinspdx »

manwe150 wrote: post #23
deltarholamda wrote: post #21

>the desks were just planks of wood on cinderblocks from the hardware store While used as an example of bootstrapping, I have to say that one of my favorite desks ever was a solid-core door on cinderblocks. You can adjust the height to your specifications with bricks or wood shims; the cinderblocks can become cubbies for holding various bits and bobs; you can paint the door whatever color you want cheaply; it can tak…

Solid-core doors (new) seem to be a bit north of $250 at the lower end: https://www.homedepot.com/p/Masonite-30-in-x-80-in-Roman-Smo... I think I have seen standing desks for not much more At least the cinder blocks don’t add much cost at $2 each retail

When a company I was a part of did the door desk thing, we got them from a place that trades in reclaimed building materials. I wouldn't be surprised if Derek went to the exact same place in Portland actually.

Re: The Advantage of No Funding (2011)

#45

Post by exdsq »

micromacrofoot wrote: post #4
themanmaran wrote: post #2

> Then they would talk about LOI, ROI, NDAs, IPOs, and all kinds of things that also had nothing to do with actually helping people. Coming from a bootstrap background, I feel that VC backed companies have a tendency to focus way too much on vanity metrics . KPIs that make the buisness look successful, without measuring real conversions. It's like building a business purely to make a nicer looking pitch deck. That, p…

That's because VCs need an exit to make their money. They only care if the business is successful insofar that it can be sold or IPO.

Can VCs not profit share to hedge their bets to get an X multiple on their investment back too? Sure some won't be profitable but if I was to invest I'd want some way of recouping my investment back over time and then the upside of a sale/IPO.

Re: The Advantage of No Funding (2011)

#46

Post by exdsq »

manwe150 wrote: post #23
deltarholamda wrote: post #21

>the desks were just planks of wood on cinderblocks from the hardware store While used as an example of bootstrapping, I have to say that one of my favorite desks ever was a solid-core door on cinderblocks. You can adjust the height to your specifications with bricks or wood shims; the cinderblocks can become cubbies for holding various bits and bobs; you can paint the door whatever color you want cheaply; it can tak…

Solid-core doors (new) seem to be a bit north of $250 at the lower end: https://www.homedepot.com/p/Masonite-30-in-x-80-in-Roman-Smo... I think I have seen standing desks for not much more At least the cinder blocks don’t add much cost at $2 each retail

I don't understand these prices - 28x80 is more expensive than 30x80 but cheaper than 32x80

Re: The Advantage of No Funding (2011)

#47

Post by picardo »

themanmaran wrote: post #2

> Then they would talk about LOI, ROI, NDAs, IPOs, and all kinds of things that also had nothing to do with actually helping people. Coming from a bootstrap background, I feel that VC backed companies have a tendency to focus way too much on vanity metrics . KPIs that make the buisness look successful, without measuring real conversions. It's like building a business purely to make a nicer looking pitch deck. That, p…

> VC backed companies have a tendency to focus way too much on vanity metrics.

Well-run companies focus on the right metrics. Badly run companies focus on vanity metrics. There is some of both everywhere in the business world, not just among VC backed companies.

Re: The Advantage of No Funding (2011)

#48

Post by truted2 »

frans wrote: post #40

VC's invest in 30 companies to find 1 unicorn on average. The profit on that one justifies the investment in the 29 others. Problem is that no one knows which one is going to be the hit in the pack of 30. So VC's push all ceo's to grow as fast as possible to find out as soon as possible who will succeed/fail. Great for the VC, too bad for the 29 unlucky ones. Never be the agenda of someone else, be your own agenda. I…

Since the money has already been invested they probably don’t care who succeeds/fails but they want the unicorn to give returns ASAP so they can be spent before they die.

Re: The Advantage of No Funding (2011)

#49

Post by munificent »

nkozyra wrote: post #41
deltarholamda wrote: post #21

>the desks were just planks of wood on cinderblocks from the hardware store While used as an example of bootstrapping, I have to say that one of my favorite desks ever was a solid-core door on cinderblocks. You can adjust the height to your specifications with bricks or wood shims; the cinderblocks can become cubbies for holding various bits and bobs; you can paint the door whatever color you want cheaply; it can tak…

I used the door + two filing cabinets system for years. I've since found the next best thing, which is the Malskytt solid birch table top on top of their $15 solid pine trestles. It's a visual upgrade. I have two, giving me ~ 9ft of solid wood workspace for ~ $200. I've also made my own custom desks but I got obsessive about them and built every feature known to man into them. The only thing I've done with these is d…

I did a similar DIY solution:

1. Bought two long butcher block countertops from Home Depot. Stained and sealed them myself.

2. Bought some IKEA bookcases and desk legs.

Finishing the wood was a lot of work. I ended up doing about six coats on each piece. But for a very good price, I know have an enormous 8'x8' L-shaped desk that looks gorgeous. I wish it was a little deeper since countertops aren't quite as deep as most desks (24" versus 30"), but it's mostly fine.

Pic: https://imgur.com/FFBpMAc

Re: The Advantage of No Funding (2011)

#50

Post by ilamont »

bryans wrote: post #42
ilamont wrote: post #10

Earlier quoted context omitted.

Never forget that absolutely everything you do is for your customers Hard disagree. I certainly want to keep my customers satisfied and provide them with value, and they (along with employees and partners) are absolutely necessary to the success and continuation of the business. But the number one consideration in any business are the needs of the owner(s), which may include financial, a desire to grow the business,…

> Hard disagree. I certainly want to keep my customers satisfied and provide them with value, and they (along with employees and partners) are absolutely necessary to the success and continuation of the business. If your customers are only satisfied, that means you end up spending significantly more on acquisition and retention, because nobody is going to be rabidly loyal enough to your business to extol its virtues…

> And I assure you, things work exactly how he describes. If you bend over backward for them, your customers will take care of you.

Do you own a real business, incorporated with real products, employees, P/L, etc.? If so, I would really like to hear your experience bending over backwards for customers and having the resulting social media and customer buzz solve everything. That's not the way things work in my admittedly limited experience (2 companies, one failed, one ongoing).

I haven't heard of Brad, but the thing that makes me hesitate is not the "coach" but rather the origin - Seattle - which is where a lot of the "obsess over customers" dogma originates.

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