Don’t Plan to Get Rich from Your Startup

Getting rich is our goal. We are certainly not aiming for a modest outcome.<p>We are not an imitation of any other company out there, we are unique in many ways. We want to build the company up into a large solid company as quickly as possible. An employer people will want to work for, a place where people will be proud to work--and be paid well.<p>We are going to build the #1 company in the market, and maintain that position over time no matter what.

Heh, yes, let me quit my job, forget about future earnings, and do a start-up so I can have modest returns in a niche industry.<p>I'm sorry, but I don't think that mentality is good advice for entrepreneurs. I'd rather reach for the top of Everest and even if I only get halfway there, it would still be better than conquering an anthill.

If you don't plan on getting rich (or whatever outcome you dream of) from your startup, then why are you doing it? If you want a modest outcome and to be your own boss, then start a small business. It kind of sounds like this guy failed at a couple startups and has just lost all faith in major startup success.<p>On another blog post on his site (<a href="http://www.softwarebyrob.com/2009/09/22/why-luck-is-a-terrible-marketing-plan-for-your-startup/" rel="nofollow">http://www.softwarebyrob.com/2009/09/22/why-luck-is-a-terrib...</a>), I found this line:<p><i>"I know a handful of people – including myself – who have reached for the startup life. Each of us did it for one, maybe two startups (you can only do so many before you burn out). Not surprisingly, none of us “made it.”"</i><p>Are you kidding me? Most startups fail, but you have to keep trying. If you stop after 2 startup failures, then I don't think you have real entrepreneur spirit. You need to keep going until you get what you want, even if you have to start 50 startups. And if you keep going, you <i>will</i> eventually get what you want, including riches. Guaranteed.<p>Luck isn't something that magically falls out of the sky and lands on you. Luck is a combination of opportunity and preparation.<p>As an entrepreneur, you need to have lofty goals. When you tell your friends and family what your goals are, you better get a response along the lines of "You're crazy, you should aim for something lower." That's a good thing. Aim high. Very high. Even if you don't get to your lofty goals, you will probably get much further than you would aiming for modest goals.

Fuck that, I plan to! In fact, having modest ambitions seems like a Really Bad Idea -- you'd give up too easily.

I happen to agree quite a bit with the OP. As revenue from my startup grows, I see it as buying time back from consulting. This year it will buy about 3 months. Maybe next year it will be 6. Eventually I hope it to be 12+.<p>I'll never get rich, but eventually I'll be free to work solely on my startup without anyone else telling me what to do. No one will envy my car, but many will envy my lifestyle.

By silicon valley standards I think modest outcomes <i>can</i> make you rich. Consider bootstrapping and selling for $5m...<p>I do agree with the article in the sense that you need to have a relatively concrete vision and execute on that, then iterate repeatedly to a more grandiose vision. There are so many kids out here with $ signs in their eyes imagining Facebook or Google success without realizing all the stepping stones along the path.<p>There are of course more capital-intensive businesses where it's either worth a $100m or nothing at all, but even those have to start with a focused vision. Operationally a $100m biotech startup probably looks a lot like a $5m SaaS startup.

This reminds me of a talk DHH made about making money online. One of the key take-aways for me was to stop aiming for the Fortune 500, and instead aim for the Fortune 5 million and work from there.<p><a href="http://www.omnisio.com/startupschool08/david-heinemeier-hansson-at-startup-school-08" rel="nofollow">http://www.omnisio.com/startupschool08/david-heinemeier-hans...</a>

Pretty much the plan (as I understand it) behind starting Fog Creek, right? Rather than starting a business to get rich, create yourself a place to pursue your own interests and get paid while doing it.

The post doesn't say anything about innovation which is the key part of technology entrepreneurship.<p>If one can't innovate and create something radically new and efficient, then yes, he should probably stick with traditional business models and limit his ambitions to small markets, slow growth and modest returns focusing on efficient execution.<p>And there's more to it. Good engineers could do <i>much</i> better if they join an existing ambitious startup rather than if they convert to a small software workshop owners.

Hmmm, let's see...<p>If we really wanted to, we could make a very nice livelihood doing contract programming/consulting for let's say $100 per hour. That's roughly $200,000 per year. Not bad. Over 40 years, with compound interest, conservative investments, and a reasonable lifestyle, that adds up to, well a lot!<p>So why would anyone in that position take so much time away from earning to work on a side project, prototype, or startup? There could be many reasons, but the two biggest I can think of are:<p>- We work on something that pays nothing now because we <i>have to</i>. We don't ever want to wonder what would have been if we didn't.<p>- We invest time we can never get back in the <i>possibility</i> of a big pay day. That may or may not ever happen, but unlike OP, this is one lottery we're willing to play because it's more than luck; we <i>do</i> have significant influence on the outcome.

Obligatory:<a href="http://www.paulgraham.com/wealth.html" rel="nofollow">http://www.paulgraham.com/wealth.html</a><p>Although the author does makes some fine points like learning to run a startup by actually running your first one. This is so true for there are much more ways to fail such as co-founders!

Micropreneurship???<p>Is this all turning into a joke? I think I'll apply for a job with BP.

I appreciate the pragmatism from a "devil's advocate" point of view but think this is bad advice in general. What is an entrepreneur if not a visionary and eternal optimist.

A great way to not build the next big thing is to say to yourself "we're not gonna build the next big thing."

Sorry, I play to win.