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What if successful startups are just lucky?

blog.ploki.info

61–70 of 183 posts

Re: What if successful startups are just lucky?

#61
Great blog Vianney. I just attended a conference last week full of silicon valley's best and brightest (http://warmgun.com/). I don't think that things are totally random, but I was struck by the million different ways to success (and failure). Chance definitely has a lot to do with it. It allows the really hard work to pay off.

Re: What if successful startups are just lucky?

#63
One important point to realize for the author is that games are not services, they are works of art. As such, you can't say this is an incredible game with the same objectivity as this is an incredible service.

Ryzom was a great game, but MMOs are built on one thing: atmosphere. Blizzard made WoW precisely because WarCraft was its longest running and most popular brand to date. Blizzard already had a massive fan base of WC fans ready to play WOW. The lore was considered a masterpiece, which immediately immersed the players in the world before they even played it.

With services, things are much more objective, because we don't care about branding. Using a service like Dropbox is not a deeply emotional experience, but it does work very well. Apple is one of the few companies that can instill emotion into its services and hardware, and that is due to their marketing and design philosophies, which are considered the best in the world. However, this is nowhere near the level of emotion that art invokes.

As such, I would advise the author to carefully distinguish between art and service. When making art, you should never make it with the expectation that others will like it. You should make it such that it satisfies your own tastes. If others like it, you know that your taste is shared. If not, your tastes are unique. It's a win win.

Don't regret making works of art. It is all that succeeds us when we leave this realm.

Re: What if successful startups are just lucky?

#64
post #50

If successful startups are just lucky, I have some questions: - What's the expected monetary return for someone wishing to enter the startup game? In particular, is it positive or negative? For example, the usual platitude "you miss 100% of the shots you don't take" also applies to the lottery, where the expected return is negative. Could it be the case that rational people just shouldn't do startups? - What's the ex…

It's not random in the sense that "anybody who tries has an equal chance at success." The prior you're missing is a person's ability, current mind, and biological mental capacity. Some people are just waaaaaaaaay smarter than other people. "All people are created equal" is a fantasy when you reach extremes (sport abilities, mental abilities, creative abilities). Now, once you have a baseline genius startup mind, no s…

"That's not saying you can't be rich. Anybody can always get dumb success (especially these days) with things like advertising or affiliates or ebooks."

People that are doing this should speakup but I don't believe "anybody" can do the above. Your statement is general to a certain extent and could apply to many areas but I don't think successful people in these areas are any less smart, hardworking, determined than startup founders.

Re: What if successful startups are just lucky?

#65
I've noticed that people who win the lottery are the ones who bought tickets. Also the ones that win usually play every week, increasing their chances.

So at this point how are you defining lucky? They might be lucky but then they also worked harder and longer (i.e. bought more tickets)

Re: What if successful startups are just lucky?

#66

Earlier quoted context omitted.

>> I work on startups because I like building things and I want to change the world. That's nice, but you also need to be able to pay the bills, right?

I don't think "and of course, I also have to pay the bills" is an instructive part of anyone's life mantra. "The bills" are whatever you decide they're going to be - there's a very low fixed cost to staying alive, what you decide you need beyond that is up to you. I have no trouble paying the bills now, but I've gone through times working on a startup where I lived on less than $4 a day, for example, without any regr…

It's great that you are in this situation. When its only you, well it comes down to the lowest denominator for living costs.

I think there is a lot of people that didn't start young with the entrepreneurship bug and ended up married with kids. With these people, paying the bills has a direct and noticeable impact on their family. I would say there is a lot of people in this situation and the dynamics of going "all in" with their idea just doesn't work the same.

I don't think you would argue with what I am saying at all, but there are many people that have obligations to others and we are not all single and only responsible for ourselves.

Being in this situation myself, I look at it as a optimization problem. Given the constraints I have, how can I optimize my situation to be successful with a company.

Re: What if successful startups are just lucky?

#67
post #3

Of course they are lucky. Luck is not the only thing, you really do need something useful and it has to work so you need to know your audience, but luck is a big part of it. You have to be in the right place at the right time. That is all luck.

Though the right place at the right time is almost never at home watching TV. Getting out and meeting a lot of people greatly increases the chance that you will be in the right place at some point.

Re: What if successful startups are just lucky?

#68
post #65

I've noticed that people who win the lottery are the ones who bought tickets. Also the ones that win usually play every week, increasing their chances. So at this point how are you defining lucky? They might be lucky but then they also worked harder and longer (i.e. bought more tickets)

The lottery analogy made me think of this: Even if most startups fail, is the expected value nonetheless positive?

Re: What if successful startups are just lucky?

#69
If successful startups are just lucky, then getting an A on your project/exams in school was all luck. Can someone show us someone making money with shitty products today? Yeah, it's possible to get popular with an incomplete buggy product, but if it's filling a need, it's better than nothing. You will still have to work hard and improve to maintain your position.

Say what you might about how facebooks earlier/current code was/is horrible and in PHP, Facebook has done amazing things to be able to handle a billion users every second/every day. Say what you might about how simple instagram or snapshot is, they filled a need and grew. Their products doesn't "suck", sure they might be valued ridiculously by some groups of investors, but don't discount their work.

Successful startups are not JUST lucky. There is always an element of lucky, but there is also the hardwork. One mistake a lot of "failed" startups make is thinking and believing that they failed. If your goal is to create an application that solves a certain problem and you do so. You have succeeded. A lot of startups have this goal, they don't really have a goal of making money. After they achieve a goal of building their app, then they want to make money and when they fail on that end, they consider everything a failure. The truth is that making money is not just about your apps or how smart you are or hard you worked to designed.

It takes a very different set of skills to market, hustle, and sell. A lot of programmers don't have those business skills, and they whine and cry when the world don't rush to their door for the better mouse trap. Don't cry, the world didn't know because you failed to market or they have heavily vested in another one because you started late.

If you want to really realize that startups are not just lucky, find the other group we don't talk about on HN that make money off the internet. The hustlers, these are guys with little to zero tech knowledge. They do whatever they can, outsource via internet, basic wordpress sites, they sell actually products, their business is rarely based on ads, their business is physical products, software as a service or ebooks etc. Technology is usually a small part of their game, maybe 10%, the other 90% is pure sweat and hustling. We don't hear for them, but there are many of them out there, making very good money.

Successful starts are not lucky, they out hustled the rest and that's just what it is. So if you wish to make money, don't just stay a hacker, become a hacker and a hustler.

Re: What if successful startups are just lucky?

#70
I used to think I was really smart and that my intelligence would carry me when I finally set out to start a company.

Wrong, while I still consider myself to be smart, I don't think I'm savvy enough to rely upon good decisions to carry me. There are plenty of people smarter than me that have failed in their ventures. So, I've reverted to a brute force strategy coupled with an unrelenting resolve to see projects to completion.

Just lucky? Not just. When you build your companies with a willingness to change, frequently self re-evaluating, you will amaze yourself with how much you grow as an entrepreneur. It is ridiculous what I know today when compared against my assumptions 2 years ago.

When the author was talking about the failed MMO, I took him at his word when he said his team created an amazing game. So the point of failure is obviously marketing. Who knows what could have been if those game developers had a comparable marketing team in their corner. What if they launched a beta 1 year into development to help develop a core user group as well as aid in gamer feedback which could then be redigested by the marketing team to help them create buzz.

I love this rumored quote assumedly from Jack Dorsey "It only took 10 years for me to become an overnight success." The entrepreneur that doesn't die is hardened and polished in failure over a number of years. When luck finally strikes, he will have the tools, experience, insight, vision to take full advantage.

I'm 2 years into this journey, hopefully I'll find luck in year 3, and hopefully I will have grown enough to take full advantage of it.

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