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Think Twice Before Starting A Company

57 点作者 garbowza大约 13 年前

10 条评论

spodek大约 13 年前
A lot of advice VCs give entrepreneurs seems to me versions of "make my job easier," like how to write a great business plan, how to pitch, etc. In this case, I see him asking entrepreneurs to improve the signal-to-noise ratio so he can have an easier time funding companies. Nothing wrong with trying to make your life easier, but he makes the article look like he's helping the entrepreneur, when he's writing it to help himself, discouraging some would-be entrepreneurs who might love starting a company even if it didn't make a VC money. For an entrepreneur who makes their business their life, leading the company may be its own reward, making his advice meaningless, since he'll call it a success only if it generates a return on investment.<p>At the very least, I'd appreciate the article more if he specified "Think twice before starting a company <i>that might seek venture capital funding</i>." Most entrepreneurs I know never approach VCs. Did he forget few companies involve technology at all? His advice doesn't apply to them. Well, except that thinking twice is obviously good advice to anyone, but his reasons for it.<p>Entrepreneurship is far greater than starting tech companies looking for VC. I'd be wary of an investor who didn't realize he put himself in such a bubble. With all that name-dropping, you can see how social bubbles can contribute to investment bubbles.<p>If you love starting companies and you have an idea whose time is now, you'll find a way to start your company. If you don't need venture capital, hopefully you won't hear his advice in the first place, or will realize it doesn't apply to you. Even if you do want VC, if your firm eventually dies but you loved doing it and it helps you do better on your next one, it seems to me you've succeeded.<p>EDIT: I fleshed out a few more ideas to this post afterward if anyone wants to read past what I wrote here -- <a href="http://joshuaspodek.com/entrepreneurs-advice-venture-capitalists" rel="nofollow">http://joshuaspodek.com/entrepreneurs-advice-venture-capital...</a>
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tptacek大约 13 年前
Note his core concerns:<p>* It's harder to "stand out" amidst the crowd of startups that easy capital has created.<p>* It's ridiculously hard to hire.<p>* Seed funding is slowing down.<p>* Something about the "innovation cycle".<p>These might be very good reasons to defer the dream of financing a startup with venture funding, but they're also advantages for bootstrapped companies, which:<p>* Lock in viable business models early out of necessity and can outlast most of the built-to-flip companies in the current VC cohort.<p>* Are founded by people who can actually execute on technology.<p>* Don't require outside financing at all, and can thus look at "increasing difficulty" of capital raises and grin.<p>I don't know what to say about the "innovation cycle" though. That might be a killer.
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serverascode大约 13 年前
I think a budding entrepreneur should think a lot more than twice about starting a company, but at the end of the day this post sounds like trying to "time the market" which just isn't possible. If you want to be an entrepreneur, then you have to be willing to start almost any business that has a chance to be profitable.
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dkrich大约 13 年前
It's no more dangerous to "do a startup" now than it's ever been, it only seems like it's harder because everybody is doing the same stupid fashion/flash sale/monthly curated box of shit startup ideas.<p>A successful business finds a need or desire in the market place, solves the need or fulfills the desire, and people pay for its products or services. The principles haven't changed, nor has the percentage of the population capable of creating sustainable businesses. I think the author is confusing causality. He is speaking as if the number of startups coming online somehow affects the viability of other startups. That isn't really so. If you can create something people will pay for and are able to scale it sustainably, you will succeed.<p>What has changed is people's expectations. Whereas it used to be that people understood that building a successful business was a process of years of hard work without a reliance on investment money, nowadays it is assumed that if you aren't a millionaire after six months you've failed. I think Jeff Bezos said that just by taking a long-term approach to your business you instantly make the vast majority of the competition irrelevant.
pudakai大约 13 年前
We're doing the platform approach. I don't think this was part of any grand calculation of where the technology wave is, just that it is the idea we have and it meshes w/our skillset.<p>The field does seem awfully crowded with social/mobile lightweight apps.<p>People prosper all over different parts of economic/tech cycles. My father was a developer (real estate kind, a regular "A Man In Full") in Atlanta, he used to always make all his bank during recessions when all the other developers were going broke. Conversely, during the fat times, he never did very well.<p>We (including Dad) were all aware of this pattern, but never could really figure out why things worked out that way.
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sayemm大约 13 年前
Timing and picking your battles will make you or break you.<p>Starting a company just because everyone else seems to be doing it and because it's the hot new trend are the worst reasons. Good reasons to do a startup though, what counts as being in the right place at the right time, I think are: (a) having a great product in a strong market, (b) meeting exceptionally talented co-founders with good chemistry, and (c) being in a good position to take risk in life (minimal debt, decent finances, good confidence in being able to rebound and get a job amidst this recession, just in case the venture completely fails)
6ren大约 13 年前
Industries often have sayings that turn out to be relevant only in the short-term. It used to be that you needed to tackle a "technically difficult problem"; but many startups have succeeded by building something that people want without creating new technology but "executing" well. He's suggesting we cycle between technology and applications of it.<p>Obviously we need both tech and apps, but is there evidence in the past of them occurring in cycles?<p>That said, it's true that everyone is complaining that there's nothing really new, that most apps are trivial. And of course, in the last few years bandwidth/browser/cloud has gotten good enough for web-apps to go mainstream and cause modernization across many industries, which requires domain knowledge and "execution".<p>I'd love opportunity to be in "enabling technologies and platforms" - but it seems innovators in software infrastructure (libraries, languages, middleware) today often get nothing. Exceptions from the past: databases, postscript. Please prove me wrong!
michaelochurch大约 13 年前
Concur. I think this is a very volatile and potentially dangerous time to "do a startup" if you don't have a very focused and somewhat proven plan. I think it's time to ignore what the Cool Kids are doing (in 2-4 years, they won't be cool) and go <i>away</i> from where they are so as to avoid following them into idiocy.<p>This sounds easier than it actually is. The advice of "focus on real work and ignore the idiotic social climbing" or "build something useful" seems obvious and easy to follow, but when complete jackasses are getting funded and acq-hired for millions, it's easy to be swayed, embittered, confused, or otherwise influenced by the distractions. It's really hard for a 2x-year-old first-time founder <i>not</i> to find himself doing stupid stuff amid all the insanity.<p>Winter is coming. That doesn't mean that "the crash" is here. It might be 4 years out, or 4 weeks away. It might be a sudden drop or a slow deflation. I have no idea when or how it will come, and I don't think anyone does. Still, there are some conclusions to take away from it. First, those of us who aren't ready to be Founders properly (that means, having enough VC connections that VCs consider you a social equal and will take the time to mentor you if they don't fund you) should probably sit this bubble out. Sure, being a <i>founder</i> provides a unique and immensely educational "startup experience", but taking a subordinate role as employee #37 at a VC darling is not much different and rarely any better than taking a regular job. Actually, I'd argue that it's often worse for subordinate employees, because VC-istan tends to have crappy health benefits, inexperienced and unstable management, and a lack of long-term focus on peoples' careers (because the company may not exist in 5 years). If your ambition is to be a Real Founder (again that's not some guy whittling at his trust fund, but someone who VCs are actively interested in, and who could get an EIR job with a phone call) and you're not there yet, there's probably not enough gas in this bubble left to get there before the end of it. People who are out of school now have a decent shot at being Real Founder material by the start of the <i>next</i> startup boom, if they really crack the books and work hard starting now and right through the bust... during which the wantrepreneurs and social climbers will get discouraged and leave, making the field less congested and giving the real players a chance to shine.<p>Which means... it's time to take the focus away from what TechCrunch and Sequoia are doing, and back to the difficult and often obscure (if intrinsically rewarding, and often lucrative in the long term) campaign to improve one's technical skills through practice and hard work. This doesn't have to occur at a startup, although it can. But now is also a good time to go back to school, to work in a more established organization, to try out Real Technology instead of these silly social apps, and to start networking.
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mgkimsal大约 13 年前
"three years ago, I was telling everyone I met to start companies."<p>"First, part of my perspective is just driven by my natural instincts to be counter-cultural. When there seems to be a lot of hype around an area or activity, I find myself pretty un-attracted to it. "<p>So... create/contribute to the culture of 'start a company' ("bias towards action") and then claim "counter culture" thinking against "hype" (which you helped foment).<p>Interesting angle...
YuriNiyazov大约 13 年前
It's never a bad time to start a consulting webdev shop where you get paid to implement other people's products for a nice fee.