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When tech startups == closed restaurants

40 pointsby itsderek23over 15 years ago

3 comments

nhebbover 15 years ago
Why do people in the software business feel the constant need to compare it to other fields? I don't know of any other profession that does.<p>I think the restaurant analogy is flawed because the accounting for fixed and variable costs doesn't jibe. You can bootstrap a software company with minimal investment - as YC itself proves, but restaurants require a building, cooking equipment, tables, chairs, dishes, etc. Plus, you can start a software business in your spare time - something I doubt too many restaurateurs attempt.
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zarskiover 15 years ago
The article is is too vague and its advice unbalanced. Sure, you don't want to JUST be ticking off programming related todo list items. Yes, you need to do your marketing (adwords,blogging,emailing,etc.) and you need to watch your burn rate (fiscal management). However, the best marketing is having a great product. The users you do get to sign up you need to keep and in turn have them then do word of mouth. How do you do that with not-so-special software?<p>I don't like the analogy either as there are not enough details. A lot of restaurant startups I have noticed that tank think quality is everything. The have a two-month burn rate and need to be smash hit by the third (I am speculating). I don't want to contradict what I just said about web application quality but you got to balance and hang around for at least certain duration. I like this article on the subject of duration <a href="http://www.dshen.com/blogs/business/archives/lasting_two_years.shtml" rel="nofollow">http://www.dshen.com/blogs/business/archives/lasting_two_yea...</a>.<p>IMHO 30% Marketing. 30% Fiscal management and creativity. 40% Continued application development and enhancement.
pierrefarover 15 years ago
Great stuff. Next time someone demands you code something for free, ask them to feed you for free. Quite an apt analogy.
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