

Don’t Plan to Get Rich from Your Startup - rwalling
http://www.softwarebyrob.com/2010/06/10/dont-plan-to-get-rich-from-your-startup/

======
Scott_MacGregor
Getting rich is our goal. We are certainly not aiming for a modest outcome.

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.

We are going to build the #1 company in the market, and maintain that position
over time no matter what.

~~~
democracy
is it "Political Connector" you are talking about?

~~~
Scott_MacGregor
Yes, we are in stealth mode right now.

------
yosho
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.

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.

~~~
iamdave
Well yes, that's terrible advice for an _entrepreneur_ who's very existence is
inherent to the idea of starting a business, and making money.

It's wonderful advice for developers who's existence is inherent to developing
software for people who need it.

------
alex1
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.

On another blog post on his site
([http://www.softwarebyrob.com/2009/09/22/why-luck-is-a-
terrib...](http://www.softwarebyrob.com/2009/09/22/why-luck-is-a-terrible-
marketing-plan-for-your-startup/)), I found this line:

 _"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.”"_

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 _will_ eventually get what
you want, including riches. Guaranteed.

Luck isn't something that magically falls out of the sky and lands on you.
Luck is a combination of opportunity and preparation.

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.

~~~
natemartin
How is "starting a small business" different from a "startup"?

Isn't every startup a small business, by definition, until it gets big?

~~~
alex1
Not all small businesses dream of getting "big." In fact, very little do.

Different people have different definitions of a "startup." To me and (I
think) to many others on HN, a "startup" is a business designed to scale
dramatically. It's an _innovative_ company with high-growth potential.

The new corner coffee shop would be a small business but not a startup. The
owner just wants to make a decent living.

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

------
MicahWedemeyer
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+.

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.

------
dasil003
By silicon valley standards I think modest outcomes _can_ make you rich.
Consider bootstrapping and selling for $5m...

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.

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.

------
bigsassy
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.

[http://www.omnisio.com/startupschool08/david-heinemeier-
hans...](http://www.omnisio.com/startupschool08/david-heinemeier-hansson-at-
startup-school-08)

------
caseyboardman
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.

~~~
scrod
If people pursued this philosophy on a large scale, the economy would be far
more stable, and its participants more contented.

------
alavrik
The post doesn't say anything about innovation which is the key part of
technology entrepreneurship.

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.

And there's more to it. Good engineers could do _much_ better if they join an
existing ambitious startup rather than if they convert to a small software
workshop owners.

------
edw519
Hmmm, let's see...

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!

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:

\- We work on something that pays nothing now because we _have to_. We don't
ever want to wonder what would have been if we didn't.

\- We invest time we can never get back in the _possibility_ 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 _do_ have significant
influence on the outcome.

~~~
NathanKP
I understand your point but I also think that no startup will be truly
successful unless you are working on the startup because you want to and love
what you do, not just because you have to, or because you want to get rich.

~~~
nitrogen
For me, when I say I "have to" work on my startup, I'm really saying that it's
what I want and love to do, and if I didn't do it, I'd spend my whole life
wondering and regretting choosing the "safe" approach. The safe path will
always be available in the future, as long as I keep my skills current, so why
not live a little dangerously until I know for sure whether I'm good at it?

------
samratjp
Obligatory:<http://www.paulgraham.com/wealth.html>

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!

------
Tichy
Micropreneurship???

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

------
chrisbuchino
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.

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

------
charlesju
Sorry, I play to win.

