Why do people in the software business feel the constant need to compare it to other fields? I don't know of any other profession that does.
I think the restaurant analogy is flawed because the accounting for fixed and variable costs doesn't jibe. You can bootstrap a software company with minimal investment - as YC itself proves, but restaurants require a building, cooking equipment, tables, chairs, dishes, etc. Plus, you can start a software business in your spare time - something I doubt too many restaurateurs attempt.
I agree that the software business is new, but it's still business, and the laws of business still apply. You need to have revenues greater than costs and steady cashflow to keep the doors open and the lights on. Lots of us in software forget things like that.
It's an analogy. A tool to further understanding. On many levels software is just like many other businesses, Just like many other businesses are like software on some levels.
I think the restaurant analogy is flawed because the accounting for fixed and variable costs doesn't jibe. You can bootstrap a software company with minimal investment - as YC itself proves, but restaurants require a building, cooking equipment, tables, chairs, dishes, etc. Plus, you can start a software business in your spare time - something I doubt too many restaurateurs attempt.