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37signals Earns Millions Each Year. Its CEO’s Model? His Cleaning Lady

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Re: 37signals Earns Millions Each Year. Its CEO’s Model? His Cleaning Lady

#51

Post by ahoyhere »

campnic wrote: post #42
Acne_Researcher wrote: post #35

This guy could have built the next Salesforce / google. but he eschewed hiring a sales team. He didn't want that, but still. Failing to achieve your true potential is not something to be bragging about all over the web.

Is someone's "true potential" only reached when they chew up employees during 80 hour weeks? When they have a sales team that will do whatever it takes to land the sale including stretching the truth? Is 'true potential' only evaluated based on attainment of maximum dollars per day of business? I don't see how he has failed anything but living up to your idea of achievement which, frankly, seems a lot more shallow th…

Well it's pretty clear what he means, if you ask me: someone's true potential is only reached when a guy named Acne_Researcher says it is.

Re: 37signals Earns Millions Each Year. Its CEO’s Model? His Cleaning Lady

#52

Post by radicalbyte »

jasonfried wrote: post #34
Jd wrote: post #17

Earlier quoted context omitted.

The problem is that Jason uses superlatives and buzz words in this interview and elsewhere. Either they just are marketing fluff for his "sustainable" (i.e. buzz word-laden) business, or he actually believes them. However, if he actually believes them, and if Groupon really is "absolutely disgusting," why would have he not only given advice but retained shares in in the company? Personally, I don't even give free adv…

"why would have he not only given advice but invested in the company" First, let's get your facts straight: I have not invested a penny in Groupon. I haven't put any personal money into any private company other than my own. I was awarded options as compensation for participating on the board, just as other board members were. Why did I give them advice? Because they asked me for it and I thought I could help. A lot…

^ is what I love about HN.

Is it better to stand by and let them get on with it, or to join them and provide a different opinion? A counterbalance?

I'm in the second camp; work with people, spread your ideas. Give it a try.

Of course I'm also of the opinion that, at board level, it's healthy to have a range of opinions. Only then can you make informed and reasonable decisions.

For the observant (or the fellow Hollanders), we call it the Polder Model (http://en.wikipedia.org/wiki/Polder_Model).

Re: 37signals Earns Millions Each Year. Its CEO’s Model? His Cleaning Lady

#53

Post by Acne_Researcher »

ahoyhere wrote: post #51
campnic wrote: post #42

Earlier quoted context omitted.

Is someone's "true potential" only reached when they chew up employees during 80 hour weeks? When they have a sales team that will do whatever it takes to land the sale including stretching the truth? Is 'true potential' only evaluated based on attainment of maximum dollars per day of business? I don't see how he has failed anything but living up to your idea of achievement which, frankly, seems a lot more shallow th…

Well it's pretty clear what he means, if you ask me: someone's true potential is only reached when a guy named Acne_Researcher says it is.

I felt that with their ideas, talent, and overall ability, they could have been a company useful to society as Google. Instead, they have focused on their niche and done very well. It was their choice to stay small and avoid greatness, and I don't criticize them for it, but I think that bragging about it all over the place is a little tasteless.

Re: 37signals Earns Millions Each Year. Its CEO’s Model? His Cleaning Lady

#54

Post by Acne_Researcher »

timsally wrote: post #50
Acne_Researcher wrote: post #35

This guy could have built the next Salesforce / google. but he eschewed hiring a sales team. He didn't want that, but still. Failing to achieve your true potential is not something to be bragging about all over the web.

The company brings in several millions dollars a year [1]. They have one of the nicest offices in Chicago [2]. One of the partners had a super car commissioned a few years ago which on a technical level is more sophisticated than the machinery available to your average military [3]. So how aren't they "living up to their true potential"? [1] From the article. [2] http://37signals.com/svn/posts/2593-official-pictures-…

Their true potential was to be a 50 billion dollar public company, in my opinion. I could be wrong. There are more important things in life than money, of course. But I felt they chose to leave too many chips on the table.

Re: 37signals Earns Millions Each Year. Its CEO’s Model? His Cleaning Lady

#56

Post by Acne_Researcher »

mratzloff wrote: post #45
Acne_Researcher wrote: post #35

This guy could have built the next Salesforce / google. but he eschewed hiring a sales team. He didn't want that, but still. Failing to achieve your true potential is not something to be bragging about all over the web.

I suppose he doesn't really have to prove anything to anyone. Not everyone wants to run a 10,000 or 50,000 employee company. Not everyone would be happy with the stress or bureaucracy involved. Not to put too fine a point on it, but your attitude is exactly the kind of thing he's talking about in the linked interview. Mega growth and mega profits are one measure of success. A life with low stress and plenty of time f…

I agree with what you. His style of running a business as likely maximized his personal happiness, and possibly his employees.

But I would have liked to see him say "we could have been far more profitable, but we didn't care about that, so we limited hours and didn't hire salespeople." Instead what I hear him saying is "we are the best business we could be, because we limit hours."

Re: 37signals Earns Millions Each Year. Its CEO’s Model? His Cleaning Lady

#57

Post by loumf »

flyosity wrote: post #46
zupreme wrote: post #9

Wow. It almost sounds like he runs his tech startup like a "real" company. Imagine that. ;-)

I think that 37signals has been in business since the late 90s, so I'm not sure I'd qualify a business that's been in business for 13+ years as a startup.

I like Steve Blank's definition of a Startup -- it's an enterprise set up to search for a profitable business model. 37signals is long past that.

Re: 37signals Earns Millions Each Year. Its CEO’s Model? His Cleaning Lady

#58

Post by gojomo »

jasonfried wrote: post #34
Jd wrote: post #17

Earlier quoted context omitted.

The problem is that Jason uses superlatives and buzz words in this interview and elsewhere. Either they just are marketing fluff for his "sustainable" (i.e. buzz word-laden) business, or he actually believes them. However, if he actually believes them, and if Groupon really is "absolutely disgusting," why would have he not only given advice but retained shares in in the company? Personally, I don't even give free adv…

"why would have he not only given advice but invested in the company" First, let's get your facts straight: I have not invested a penny in Groupon. I haven't put any personal money into any private company other than my own. I was awarded options as compensation for participating on the board, just as other board members were. Why did I give them advice? Because they asked me for it and I thought I could help. A lot…

I thought your prior response (linked to by the comment that started this digression; "453 days ago") was sensible and sufficient. But thanks for chiming in again and definitively.

Re: 37signals Earns Millions Each Year. Its CEO’s Model? His Cleaning Lady

#59

Post by sabat »

timjahn wrote: post #5
sabat wrote: post #3

Earlier quoted context omitted.

This company is not a startup; it's merely a successful small business. the startup community ... get funding and VC wants to make a profit within a year and get out, at the expense of any long-term goals This is not unheard of, but certainly not the norm. Successful VC firms invest of big growth, but over a longer term. Look at the huge VC-backed successes in SV (obvious examples like Google, LinkedIn) and you'll se…

"merely a successful small business." Really? That small business is financially more successful than most crazy ass VC backed startups with the latest photo sharing solution will ever be.

That small business is financially more successful

Sure. But they're not trying to build the same thing. I think it's mainly a midwestern attitude vs. Californian. Fried just wanted to build a business. Startup founders want to build companies.

Re: 37signals Earns Millions Each Year. Its CEO’s Model? His Cleaning Lady

#60

Post by [deleted] »

endtwist wrote: post #14
Jd wrote: post #8

"To me that’s far more interesting than a tech company that’s hiring a bunch of people, just got their fourth round of financing for 12 million dollars, and they’re still losing money. That’s what everyone talks about as being exciting, but I think that’s an absolutely disgusting scenario when it comes to business." Hilarious given that Jason Fried was on the board of directors of Groupon (his comments on this "disgu…

I don't know if it's really that odd. Jason's feelings about the way a company should be run may have been at odds with the way Groupon was run. However, that wasn't what Andrew asked Jason to provide guidance on.

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