
Commercial freedom - scott_meade
http://37signals.com/svn/posts/3324-commercial-freedom
======
georgespencer
I was talking about this very topic with a friend of mine recently.

He works in advertising and felt moderately disingenuous about advising young
people to go into a traditional ad agency.

There has never been a better, more stable time to start a business for most
of the people in the western world. The internet has absolutely equalised just
about every market you can think of. Fixed costs are a thing of the past; seed
capital is plentiful (although there are the same number of top and second
tier VCs, in Europe at least); being young is no longer a barrier to entry but
a competitive advantage; there have been enough radically disruptive
technologies in the last 30 years that it's pretty easy to convince seed
investors to jump on board; we're living in a period where a lot of the world
that was in poverty in the last four or five decades is coming out of poverty;
middle classes are expanding all over the planet; with accessible languages
like Rails and accessible architecture like Heroku it's a piece of piss to
build and deploy a prototype…

The list goes on and on for me. The major barrier to entry for creating things
rather than working in corporations is the type of personality people have. I
see two types of people coming out of universities in Europe: people who see
problems and bitch, and people who see problems and have solutions to them.
(As an aside, I follow the hashtag #firstworldproblem on Twitter because first
world problems are very often the basis of a great product or service.)

If you're a smart person working in a 9-5 then you're missing the biggest
opportunity to do something fantastic, whether successful or not, that there
has ever been. Forget the industrial revolution, or the early days of the
internet. _Now_ is the time to be building cool shit and telling people about
it.

Rare for me to agree with DHH but on this topic I really do.

------
patio11
It literally broke my mind about when I realized that I didn't need to ask for
permission from anyone to start a business. That very well might have been the
first consequential decision I ever made in my life where that was the case.

I think that is related to one of the fundamental mindset shifts you have to
go through, and it is a bit of a wrenching one: success is now successfully
identifying and exploiting features of reality, such as project feasibility
and customer demand, rather than adapting oneself to match the exact published
criteria of the decisionmaker who can grant success. (pg has a much better
phrase for this in the wealth essay: "wealth does not come from Daddy.")

~~~
yellowblue
Literally broke your mind?

~~~
pretoriusB
Yes, literally.

People flogging that dead horse fail to realize that a word has many meanings,
not always compatible with it's original or primary meaning ("sad gay people",
do exist, for example).

If they have looked into a recent dictionary, e.g dictionary.com, they would
have read, for example:

lit·er·al·ly [lit-er-uh-lee] adverb (...) 4.in effect; in substance; very
nearly; virtually.

Emphasis mine.

There's even a usage note:

 _Since the early 20th century, literally has been widely used as an
intensifier meaning “in effect, virtually,” a sense that contradicts the
earlier meaning “actually, without exaggeration_ ".

~~~
rrreese
Or section c of this OED entry:
[http://www.oed.com/view/Entry/109061?redirectedFrom=literall...](http://www.oed.com/view/Entry/109061?redirectedFrom=literally&);

"c. colloq. Used to indicate that some (freq. conventional) metaphorical or
hyperbolical expression is to be taken in the strongest admissible sense:
‘virtually, as good as’; (also) ‘completely, utterly, absolutely’. Now one of
the most common uses, although often considered irregular in standard English
since it reverses the original sense of literally (‘not figuratively or
metaphorically’)."

Which is followed by examples dating back to 1769.

~~~
godDLL
I won't usually leave a comment like this, but well done! That's GrammarNazi^3
(which should sound like "O. G. to the 3" in your head), and is why I
originally love the Internet.

------
meriksson
This is a wonderful essay!

I often think about how extraordinarily lucky I am to be living through this
technological boom. Computation, automation and mass-communication will
continue to transform human society even more for decades. High-end software
development skills will become even more scarce. Immersing yourself in the
boom by running a software shop with a bunch of good friends - the best of
times!

Earlier tonight I was talking to someone about how odd it seems to me that
software startups normally aim to operate at a loss. Perhaps I am a romantic,
but I like the idea of a business making a good profit. Especially when
dealing with something as lucrative as software, a business should be
profitable from day one. I have always regarded David and Jason highly for
having a similar attitude.

~~~
pav3l
>High-end software development skills will become even more scarce.

It's not obvious to me. Can you explain your reasoning?

~~~
meriksson
Sure thing, my reasoning goes like this:

My first premise is that we are still in a relatively early stage of the
technological boom signified by things like electronics, computers, robotics
and the internet. These technologies have changed life on Earth dramatically,
but I think there is at least as much to come. In any case, for the next two
or three decades, more and more aspects of life will be the object of
automation, computation etc. So the demand for software development will
continue to increase, and probably by a lot. Software will become an even
greater part of the economy and continue to crowd out other types of business.

My second premise is that only a small percentage of the population have the
talent and inclination to become very good programmers, and children with
these traits often do not get proper encouragement and guidance. So from the
beginning, it is very hard for society to produce a large number of
programmers. More importantly, the ratio of people who can become good
programmers is probably more or less a constant, while the need for software
development will grow much faster.

I also see reasons to believe that we are getting worse at producing
programmers. For example, software is become more mature, hiding more and more
of the internals. I started programming at age seven, in the eighties. In
local stores I could buy glossy magazines with articles about programming,
often with entire programs that I could copy into Basic etc. For sure, there
is the internet now, but what kind of programming culture for kids is there? I
could pick my first computer apart and learn all about how it worked. The kids
these days learn to use iPads long before they learn to speak, but they never
get to see what's inside. Who knows where this will lead? We already know that
a lot of graybeards are retiring and they are often impossible to replace
since the current generation of programmers is not nearly as hard-core.

~~~
mdda
The Raspberry Pi could be the foundation of a new generation of programmers :
But I don't see the size of the 'nerdy clique' being any bigger now than when
I started out (soldering a 6502 machine).

If programming were painting, it's probably easier to become a housepainter
now, but the percentage of Picassos is probably the same.

~~~
meriksson
Great analogy with painting! I take what I wrote to apply to good programmers,
the core people needed to get serious things done. Tolerably capable
housepainter-programmers will be churned out in the millions, to be sure.

Things like the Raspberry Pi is great for reaching the nerdy clique, but I
agree that the latter does not seem to be growing. On the other hand, I hear
autism rates are way up in the valley - perhaps we can increase the size of
the clique by selective breeding? =)

------
peacemaker
"All we needed was an idea for a product that people were willing to pay for"

This is the difficult part, in my opinion.

Sure, "Ideas are all around us" but finding one that people will genuinely pay
for, in a market big enough to be profitable yet not already saturated with
high quality competitors, is very difficult.

~~~
markkanof
I don't want to downplay your point, because it's certainly not trivial
identify a problem where people are willing to pay for the solution to that
problem.

However, if you know anyone in an industry other than software development,
this can be a great source of ideas. Just ask a few questions about what their
day to day job responsibilities entail. Then sit back and let them talk. I
find that most people pretty quickly start talking about the pain points. Some
of those pain points are likely to be something that people would pay to
solve. Plus you give your friend/family member/acquaintance a chance to vent
which they probably appreciate as well.

~~~
chc
This suggestion always drives me batty, because it _sounds_ like a good idea,
but either my acquaintances are just spectacularly unhelpful or it requires
some great skill that is always omitted from the suggestion.

~~~
nodelt
The missing piece is your own analysis. They cannot tell you how to solve
their problem, you must do that. They can only tell you where their problems
lie. Combining your greater understanding of the wider internet domain and
your ability to ask pertinent questions, with what you and your team might be
able to accomplish, possible solutions will sometimes reveal themselves.

~~~
vdm
They can't even identify the essential problem in many cases, because they
don't know how technology can help. They can only describe the symptoms, and
you have to diagnose the problem, like a doctor.

------
marcamillion
This!

Every few decades there is some revolution, but there is very rarely one that
is as revolutionary as the one we are living in now.

The argument can be made that the shipping container did something similar
(with respect to distribution) that the internet is now doing - but that's
only half of the equation.

The other half is building the product. Before the internet, sure you could
find a public library near you and hope they have the right information (for
you) that will help you learn the skills needed to build the product you want
from scratch.

Now, everybody has access to not just the right information, but the best
information - and it just gets better every day.

It's like having the library of congress at your street corner, no matter
where you live, 100 years ago.

It is unprecedented how much we can do right now, how many people we can
reach, and how much of an impact a single person can have with such few
resources.

This is why I love economic progress. Without 'economic growth', we would have
never reached here. People don't get that economic growth is synonymous with
advancement. If we don't grow, we can't advance - and if we don't advance we
can't grow.

I don't get why people would advocate not focusing on growth. If we don't
grow, we die - if only for the fact that population growth is not slowing.

But also for the fact that in order to push civilization forward, we have to
grow which creates the environment for these types of disruptions.

------
sounds
I really enjoyed this article. It was an upbeat analysis and he put some good
thought into why software freedoms are important for business.

~~~
a5seo
Definitely agree. It's a great counter to the narrative that everything is
getting worse (China's GDP overtaking the US, inflation, higher taxes, etc).
The things that really matter to building a business are still awesome.

We're incredibly lucky to live in this time and build stuff with minimal
hassle.

------
arbuge
Another benefit to add to that list - no inventory to manage...

~~~
jQueryIsAwesome
An all my domains are open 24/7 without my intervention and without employees,
just think how crazy that would have sound 25 years ago.

------
davidw
I sometimes wonder if this is here to stay, and indeed may even expand to
other fields; or whether it's a transient phase, and in the future, people
without lots to spend on capital won't be able to build businesses. I think
the first is correct, but who knows. A serious think about the question and
the economics behind it would be fun to read.

------
throwaway54-762
Wait, DHH races in Le Mans?

~~~
mikebridgman
Yes, a Porsche GT3 - number 37 of course!

<http://37racing.com/about>

~~~
jakebellacera
That's so awesome. TIL.

------
iambvk
I still think there is one middle man that is very tough to get rid of: banks
or payment gateways, like visa.

They still are getting their cut!

If bitcoin is going to change that, it is also going to create opportunity!

------
arpit
As a software developer I love this part about my job. But its these freedoms
that I feel are now challenged by the App Stores.I hope they don't foretell
the future of our industry.

------
rayiner
It helps that the internet is a medium that makes it very difficult to harm
other people, either intentionally or accidentally.

------
digitalengineer
"There's gold in them hills!" The (growth of) the Internet is like the days of
the Gold Rush in the US. Everyone tries to strike it rich, and one a very few
actually do find 'gold'. But I'll tell you who ALWAYS made a killing: The
clever guys that sold the shovels and axes. Be a tool. (You know, like the
guys at 37Signals).

------
dangrossman
There are more than 5 countries the US currently has trade sanctions or
embargoes on, aren't there? That would make this blog post an admission of
violating some federal laws, wouldn't it?

IANAL, I don't know why my mind jumps to such things... I doubt any website's
been prosecuted for not having some kind of country blocklist.

~~~
stevoski
Which countries? I can think of no more than 5.

Also, a trade sanction is sometimes limited to certain types of trade.

------
natmaster
Software is so new, regulators haven't figured out how to push out the little
guys. Enjoy it while it lasts.

------
namank
So, what's next?

------
marshallp
DHH needs to get off his high horse. He's hacked his way into providing a tiny
service for artsy folks but he's not exactly hacking on immortality tech or AI
like some of us. The government needs to consider redistributing some of his
wealth. This essay is him gloating about sitting on piles of cash, where's the
concern for starving african children or terminal cancer patients. He should
sell his company and work on immortality tech. He can start with
extracorporeal devices like described here
<http://www.youtube.com/watch?v=JuBDhT7Y5GU>

~~~
koide
marshallp needs to get off his pony. DHH's is not gloating about the piles of
cash he surely has on this essay. He's talking about the unprecedented and
amazing opportunities unregulated internet gives businesses.

And about your career counseling, I'd rather have DHH building niche web
software with nice UI than have him build life supporting medical equipment.

~~~
marshallp
Why should he keep building nice UI's. He's proven himself as a can-do hacker
and has millions in the bank. He could spend his resources saving lives
instead of polishing what's a tiny hill in the global landscape of ideas.

~~~
koide
He should keep doing whatever he wants to do.

You could propose him a venture on life supporting devices and see what he
tells you.

There's a (tiny) chance he hasn't gotten into life supporting devices because
the opportunity hasn't shown itself. On the other hand it might just be that
this area is too far out of his domain of expertise or he's just not
interested in it. Maybe he doesn't feel like immortality is a worthy goal to
pursue. Maybe he donates thousands monthly to whatever charity he feels truly
help people. Maybe he drinks all that money with friends after race driving.

~~~
marshallp
That's why I said government maybe needs to redistribute wealth if these rich
folk genuinely don't give a shit about poor people. They can keep their money
if they invest in society improving stuff. That's why I said immortality tech.
He could get involved in miniaturizing extra-corporeal devices (artificial
organs) that keep people alive even if their hearts or lungs get too damaged.
He can start by watching that video and contacting those people and putting
together a team of engineers to get it done. If you're not doing an Elon Musk,
then maybe the government needs to raise your taxes.

~~~
koide
Ignoring all the problems like: who gets to decide; how are the decisions
made; how often is success measured; what corrective measures are allowed;
what is the best way to help the poor; what is the best way to redistribute
the wealth; how to prevent lobbies from destroying the plan; how to avoid
money escaping the countries implementing this into tax heavens.

Ignoring all that (and many more questions of the sort) I'm left with only one
question: how exactly is Musk helping "the poor"?

~~~
marshallp
He's helping the poor by making energy cheaper indirectly through kickstarting
an electric car industry.

The tax issue can be resolved by luxury taxes. If people decide they'd like
$100 million yacht, tax them $200 million for it. Countries like Singapore
already have punitive taxes like that on cars.

~~~
scott_meade
How many Teslas would Musk sell when his $100,000 car becomes $250,000 after
tax?

