

Under No Circumstances Start A Company Because You Hate Your Job - BrandonWatson
http://www.thefailingpoint.com/2009/08/gettingstarted/start-a-company-because-you-hate-your-job/

======
arohner
Interesting article, with some useful insight, but I don't agree.

I had talked about creating a startup for a while, but it was hating my job
that pushed me over the edge.

Yes, starting a company is hard. Yes, it can be boring and frustrating and the
only thing preventing you from going out of business is your own will power.

I'm not profitable yet, but even dealing with everything the author mentions,
I'm still happier than working for untalented managers at a bureaucratic
corporation.

~~~
abalashov
Yes, but it sounds like your desire to start a startup preceded your acute
dislike of your job. That's a different scenario than the one the author is
targeting.

I had the same thing happen; I had various business ideas and was increasingly
getting the itch to go out and do my own thing, and carried that itch through
three more jobs. It is absolutely certain that the dislike of the jobs and the
entrepreneurial yearning fed back on each other; although I'm quite certain I
would have disliked my jobs for the same fundamental reasons anyway, feeling
less invested in them because really, inside I wanted to go out on my own no
doubt made me even more miserable than I otherwise would have been if I had no
such compulsion whatsoever. Conversely, innate dislike of the jobs helped
bring me closer to the jump-off point.

Even then, I didn't have the balls to walk away from a secure, steady
paycheck. Instead, I just started performing worse and worse; I was up till 5
AM working on my own stuff, and, well, very obviously not showing up at 9 AM
or what have you the next morning, and seemed kind of preoccupied and
distracted at work too. Eventually, I ran into my last employer who was very
(understandably) demanding and had no tolerance for that kind of crap, and was
summarily fired.

That's what gave me the kick in the ass I needed, because at that point I had
a choice before me: Do I look for my 7th job in 3 1/2 years, or do I grab this
thing by the horns and find my own way to pay the (large) bills next month? I
went for the latter, and that's how it's been ever since. But the thing is,
before I got fired, I don't think there's a way I could've done that.

Sure, I dreamt about getting fired or laid off on innumerable occasions and
halfway wished it would happen, but there's a long psychological gulf between
that and just walking into your boss's office and saying you don't want the
comparatively large, steady paycheck anymore. Obviously, the gulf narrows if
you have substantial savings and/or a cash reserve and/or low living expenses,
but I had none of these, so, there's no telling whether I would have left
eventually--I just sort of sabotaged myself into being kicked out onto the
street.

~~~
wglb
A great personal story.

It seems like you had both a push and a pull. Circumstances finally got you to
leap off a cliff, so to speak.

~~~
abalashov
Yeah, I think so.

I'm one of those people that really doesn't make a very good employee.
Although I was considered talented and was prized for my technical abilities
and interdisciplinary knowledge (and I say that not out of immodesty, but
simply because I was told so in no uncertain terms numerous times), and was
cut some slack in situations where a less able person might've been sent
packing because they just can't get their shit together, I had - and have -
the problem of it being damn near impossible to get me to do something I'm not
interested in. Just impossible. I'll do it, somehow, but in a time frame and
workflow that emits kicking and screaming in all the nonauditory ways.

It's not really a conscious protestation. I'm just mentally spoiled because I
grew up developing whimsically, and for fun. Put me in situations where
getting it done and accomplishing the objective is a thousand times more
important than what it actually is and how it works, and I just don't thrive.
I'll do well enough to not be fired, but nothing stellar. I have enormous
productivity potential when I apply myself in enormous marathon spurts toward
something I am motivated to do for one reason or another, but whereas some
people have a consistent base line of performance even in things they don't
care about, mine is pretty disappointingly low.

I want to emphasise how unconscious this sabotage of the task is; it's not
because I'm whining inside my head. I'll just unconsciously structure my
priorities in such a way that something I don't care much for will be
extremely starved for timeslices, and that's that.

I think a lot of "creative" folks are that way.

Anyway, point is, I think there's a corollary to this tendency that expresses
itself in the more general fact of unconscious sabotage. As I progressed
through the employment world, it came to be more and more the case that if I
just didn't want to be somewhere, I'd mentally sabotage it so as to get closer
and closer to being fired or, at the very least, given a very stern talking-
to. The last two jobs before the ultimate one weren't very pretty, either,
it's just that the employers were a lot more progressive and tolerant of my
work habits and lack of punctuality in exchange for getting what they
considered to be a very high caliber of output. If they were as demanding as
my last employer, I would've been fired even sooner.

------
abalashov
I think one aspect of this that deserves more discussion is the difference
between simply being self-employed and having a business model. Discussion
around just "starting a company" in a generalised sense doesn't really capture
this critical nuance very well, though PG's chronic highlighting of the
distinction between being consulting companies and product companies does so
very well.

I had to learn this the hard way, and still am.

Being self-employed ("working for yourself") intrinsically is not too
different from a glorified J.O.B. It's just a bit more flexible in terms of
location, working environment and, depending on what you're doing, some degree
of creative control and, if you can afford it, perhaps some level of freedom
to reject uninteresting or otherwise non-compelling projects. Instead of
having one boss and having to do everything demanded of you, you have 8
different bosses and have to do most of what they demand.

Yes, it's definitely not the same relationship, but, if you need money to
survive, you don't really have nearly as much freedom to not do what they want
- on their terms - as one might imagine in the abstract. And, to be honest, it
doesn't much matter what the hourly rate is; supply and demand works against
you. Insane multiples of your hourly equivalent wage on salary don't offset
that.

I encounter a lot of people with the misconception that self-employment,
contracting and/or business ownership is somehow inherently lucrative just
because it's not being a "wage-slave"; it's really not. I don't make nearly as
much as I did at my last job, and I'm quite a ways off from that. Even if
revenue doubles, most of that is going to be sunk into reinvestments, paying
other people more money, etc.

The other problem - this one being the more central preoccupation of PG's
advisory writing - is that there's just a very hard limit to the amount of
money you can make this way. You're not working 40 billable hours a week, and
you can only do so much work as an individual, especially given that you also
have to tend to all the auxiliary aspects of running a business and, of
course, the selling, marketing and project management part that ensures that
you have more work in the pipeline after the current project is over.

And if you're like me and don't have much money while having significant
living expenses that you got yourself into while living the good life
employed, you can't afford to float lengthy projects either; you pretty much
need things that can turn around within a month from conception to final
delivery and collection because of cash flow imperatives. Your bills are due
monthly, but that timing resolution has no imaginable correlation to how your
customers are going to schedule and implement anything. The small guys suffer
from a shortage of time as much as a shortage of cash; you may get them the
final product, but then they'll drag their feet for a month before doing any
kind of acceptance testing and sign-off, which is required before you get
paid.

Working out some sort of pay-as-you-go terms can solve this problem to some
degree, as I've had to figure out, but there's only so far that's going to
carry you because from a customer's point of view, an 80%-complete project is
just a lump of useless code; there's a synergy that happens at the 100% point
that gives it orders of magnitude more utility (specifically, the kind that's
worth paying for) than when it's less than 100% complete. So, for the most
part it's some kind of relatively small down-payment at the beginning, and a
big lump sum at the end, whenever they feel like declaring it's done and
paying you. And maybe another 10-45 days from there if they have a lengthy AP
process. There's no reason the customer is going to want to pay you 7/8ths of
the money by the time the project is 7/8ths done.

Besides, they all suffer from the same pervasive fear (or "fear," if it's just
a matter of principle that they take this posture, which for many is the case)
that you're going to screw them, by which it is meant take the money and run -
without the necessary "follow-through" and post-sales support and tying up
loose ends. So, customers often believe it necessary to "manage" you with
carrots, and unless you're just drowning in work and positively don't need
anyone who gives you the slightest bit of untoward attitude, you grin and bear
it. Facing that kind of condescension and prejudice - if you choose to look at
it that way - can be more than a little bit reminiscent of how you felt as an
employee before "fashionably cynical" managers and/or businesspeople, with all
their accounts of how lazy employees steal/embezzle/fuck them all the time and
how they don't trust anyone too much and all that good stuff. It's a pretty
crappy place to be in when you just need to be paid cash, like, tomorrow.

In a linear business model like that, it's like a barber shop; you want to
make twice as much money, you have to cut twice as much hair. The only way to
make any serious money this way is to have a nontrivial amount of other people
working for you, and that is a whole new set of problems, especially if you're
doing something highly specialised and yet can only afford to pay fairly
entry-level salaries. There's just no way that the knowledge transfer can be
made effective without talent transfer, which, as we all know, is not really
possible in the balance of things.

That doesn't mean you can't be a worse ("Here! _throws manual at employee_ YOU
figure it out!") or better ("Let me sit down and explain and show you
everything you need to know about this new system") manager, but if it's not
their thing, it's not their thing.

Having a product puts you in a very different place, especially if it's a
take-it-or-leave-it shrinkwrap product. That's something around which you can
build reusable business processes that you can replicate and scale at
_decreasing marginal cost_. That's very important from a hiring standpoint, if
nothing else; if something is narrow enough, you can specify enough process
that more people can do it to a higher - and even more importantly, a more
consistent - standard. It also lowers the per-unit price and makes your
product more attractive, and so on and so forth. The most important point
about product is that the marginal cost on making another deployment/adding
another user/whatever is almost negligible, at least in the software world.
Doing another one-off consulting project very much lacks that indispensable
quality, and thusly limits your profitability.

In short, being self-employed in the former sense can easily be twice the work
for half the money, and there's absolutely nothing about it inherently that's
going to liberate you from the essence of what you most hated about being
employed, whether generally or in a particular place. It's something you have
to approach very pragmatically and with the right goals.

~~~
BrandonWatson
This is a great analysis, and spot on. Having a business that can run without
you, and thus sell 24 hours a day, is very different than taking on project
work where you are paid by the hour or by the project. Repeatable == scalable
when you are talking about a product. You want to be able to ramp production,
and, better yet, enable others to sell for you.

~~~
abalashov
You're very welcome!

I think repeatable doesn't inherently signify scalable; the key is that it's
repeatable at a low marginal cost. Consulting projects are repeatable too, in
the sense that you can - theoretically, if two clients wanted it - do the same
thing over from scratch.

But if your first project let you build scripts and infrastructure and
training and process so as to let the second one happen in 1/3rd of the time,
that's the kind of repeatable that's scalable. Of course, if you only get to
reuse the infrastructure once, that doesn't do much for scalability either,
but if it allows you to lower the price it may work out better. It just
depends on what it is.

Having a business that can run without you in a literal sense is a pipe dream,
except perhaps in a rather large, mature company. Even I could afford to
develop an actual product and hire people to sell, deploy and support it, I'd
still have my grubby mitts all over the process, and it's got less to do with
the fact that I'm a control freak and more with the fact that it's just a
specialised area of endeavour, and I'm unlikely to be able to afford to hire
someone with more perspective and experience in the exact same
interdisciplinary nexus as I.

But I'm not too concerned about that; the goal isn't to avoid work, but simply
to get higher returns on one's time by replicating at a lower cost.

------
grellas
My suggestions based upon years of running my own business and working closely
with entrepreneurs:

Never launch out on your own if your _primary_ motivation is to escape a
dreary job or career path (it is OK if wanting to leave a bad job is an
incidental motivation for doing something you would otherwise want to do).
Always build from strength. Always count the cost (which is great) and the
risks (which are great). Weigh this against the rewards, which are potentially
great (greater financial return, independence, pride of achievement). If you
see a good opportunity before you, and your eyes are open to the downside,
then by all means venture forth if it makes sense to you.

I have elaborated on these points here:
<http://grellas.com/faq_business_startup_013.html> ("Tips from a Business
Lawyer on Becoming a Founder").

------
pmichaud
I think it's spot on. The reality of starting a business isn't glamorous,
people should realize that before they get into it.

~~~
nazgulnarsil
I think this is because marketing feels kind of sleazy to technical types
(does to me, and to my friends).

------
amr
It is one thing to say start your business for the right reasons but this
takes it a bit too far. Hope people don't get discouraged.

~~~
BrandonWatson
@amr - why do you think that this is taking it too far? I would love to hear
your feedback. My personal experience with setting off on my own was just as I
describe here, so maybe I am the oddity. I was surprised, and quite honestly
overloaded, but the minutia of stuff with which we had to deal, especially
when we got into the fund raising process.

~~~
Leon
I may just be a little absurd pointing this out, but is it really necessary to
use twitter speak to preface a reply when the formatting of the conversation
implies your target?

I know I am being pedantic and this is not adding much to the conversation,
but this has been slowly creeping throughout the internet, much more lately,
of the use of twitter speak in seemingly unnecessary places. What influenced
you to use it? Is this a good way to track the influence of certain social
networks, by their adoption of common idioms in other disparate networks? Can
we follow through this idea and scrape networks to find where idioms are being
generated and pinpoint hot-spots of the internet?

Ah, this is just opening a can of worms for such a simple style guideline, but
what are your thoughts on this anyway?

------
mishmax
Yes, but the pain you describe is worth it and makes you a stronger person.
The pain of being in cubeland however is not so worth it (for me).

It's a question of what you will achieve after going through the pain of
starting a company vs. the pain of being an employee of a traditional software
company.

------
jlees
I'm totally in the invoice situation right now, and making that first call to
the first client to ask them kindly to pay up was hard. Chasing it up again
and again (it's 14 days overdue) has become a lot easier though..!

------
Goladus
I disagree with the "under no circumstances" part. There have to be jobs that
are so bad that even a bad experience working for a young company will be
preferable.

Also, I never thought about leaving so that I could make my own schedule. What
I wanted was a meaningful schedule, not one that was simply based on manager's
whim or a policy book.

But I enjoyed the article. For disclosure, I have never actually started a
company.

~~~
BrandonWatson
The "Under No Circumstances" is part of the construct for the titles of the
essays for the book. The book is meant to be a collection of situations that
went wrong, and hopefully how to avoid them. I decided to release the essays
in early for for all to read on the web site, and will have the final versions
online for free as well. Communities like Hacker News are giving me great
feedback about how to make modifications.

------
sutro
Way to go, nutpuncher!

