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How to Start a Startup. March 2. 00. 5(This essay is derived from a talk at the Harvard Computer. Society.)You need three things to create a successful startup: to start with. Most startups that fail do it because. A startup that does all three will.
And that's kind of exciting, when you think about it, because all. Hard, but doable. Watch Mrs. Doubtfire Online Gorillavid.
And since a startup that. Hard, but doable. If there is one message I'd like to get across about startups. There is no magically difficult step that requires. The Idea. In particular, you don't need a brilliant.
The way a startup makes money is to offer people better. But what people have now is often. Google's plan, for example, was simply to create a search site that. They had three new ideas: index more of the Web, use. Above all, they were determined to. No doubt there are great technical. Google, but the overall plan was straightforward.
And while they probably have bigger ambitions now, this alone brings. There are plenty of other areas that are just as backward as search. Google. I can think of several heuristics for generating. For example, dating sites currently suck far worse than search did. Google. They all use the same simple- minded model. They seem to have approached the problem by thinking about how to.
An undergrad could build something better as a class project. And. yet there's a lot of money at stake.
Online dating is a valuable. An idea for a startup, however, is only a beginning.
A lot of. would- be startup founders think the key to the whole process is the. Venture capitalists know better. If you go to VC firms with a. That shows how much a. The market price is less than the inconvenience. NDA. Another sign of how little the initial idea is worth is the number.
Microsoft's original. Their current business model didn't occur to them until IBM dropped. Ideas for startups are worth something, certainly, but the trouble. They're not something you could.
Their value is mainly as starting. What matters is not ideas, but the people who have them. Good. people can fix bad ideas, but good ideas can't save bad people. People. What do I mean by good people? One of the best tricks I learned. Could you. describe the person as an animal? It might be hard to translate.
I think everyone in the US knows. It means someone who takes their work a little too. What it means specifically depends on the job: a salesperson who. AM rather than go to bed leaving code with a bug in it; a PR. New York Times reporters on their cell. Almost everyone who worked for us was an animal at what they did. The woman in charge of sales was so tenacious that I used to feel.
You could. sense them squirming on the hook, but you knew there would be no. If you think about people you know, you'll find the animal test is. Call the person's image to mind and imagine the.
If you laugh, they're not. You. don't need or perhaps even want this quality in big companies, but. For programmers we had three additional tests. Was the person. genuinely smart? If so, could they actually get things done? And. finally, since a few good hackers have unbearable personalities.
That last test filters out surprisingly few people. We could bear. any amount of nerdiness if someone was truly smart. What we couldn't. But most of those weren't. When nerds are unbearable it's usually because they're trying too.
But the smarter they are, the less pressure. So as a rule you can recognize genuinely. I don't know,". "Maybe you're right," and "I don't understand x well enough."This technique doesn't always work, because people can be influenced. In the MIT CS department, there seems to be. I'm told it derives. Marvin Minsky, in the same way the classic airline. Chuck Yeager. Even genuinely.
It helped us to have Robert Morris, who is one of the readiest to. I don't know" of anyone I've met. At least, he was before he.
MIT.) No one dared put on attitude around. Robert, because he was obviously smarter than they were and yet had. Like most startups, ours began with a group of friends, and it was.
This is a crucial difference between startups and big companies. Being friends with someone for even a couple days will tell you.
It's no coincidence that startups start around universities, because. It's not what people learn in. MIT and Stanford that has made technology companies. They could sing campfire songs in the classes. If you start a startup, there's a good chance it will be with people. So in theory you ought to.
Well, no. Don't make a conscious effort to schmooze; that. What you should do in college is work on your own projects. Hackers. should do this even if they don't plan to start startups, because.
In some cases you. The project may even grow into a startup. But once again, I wouldn't aim too directly at either target. Don't. force things; just work on stuff you like with people you like. Ideally you want between two and four founders.
It would be hard. One person would find the moral weight of. Even Bill Gates, who seems to be. But you don't want so many founders that the company starts to look. Partly because you don't need a lot of people. When there are just two or three founders.
If. there are seven or eight, disagreements can linger and harden into. You don't want mere voting; you need unanimity. In a technology startup, which most startups are, the founders. During the Internet Bubble there. This doesn't. work well. Business people are bad at deciding what to do with. And when business.
Even other hackers have a hard time doing that. For business people it's roulette.
Do the founders of a startup have to include business people? That. depends. We thought so when we started ours, and we asked several. But they all said no. I had to do it myself. And what I discovered was that business. It's not something like physics or medicine. You just try to get people to pay.
I think the reason I made such a mystery of business was that I was. I wanted to work in the pure. People who don't want to get dragged into some kind of. Paul Erdos was. particularly good at this. By seeming unable even to cut a grapefruit. Erdos was an extreme case, but most husbands use the same.
Once I was forced to discard my protective incompetence, I found. I feared. There. are esoteric areas of business that are quite hard, like tax law.
All you need to know about business to run a. If you work your way down the Forbes 4. MBA, you'll learn something important.
After Warren Buffett, you don't hit another. MBA till number 2. Phil Knight, the CEO of Nike. There are only 5 MBAs in the top. What you notice in the Forbes 4. Bill Gates, Steve Jobs, Larry Ellison.
Michael Dell, Jeff Bezos, Gordon Moore. The rulers of the technology. So if you. want to invest two years in something that will help you succeed.
MBA. [3]There is one reason you might want to include business people in a. Some believe only business. That's nonsense. There's nothing about knowing how to. If you can't understand users, however, you should either learn how. That is the single most important.
What Customers Want. It's not just startups that have to worry about this. I think most. businesses that fail do it because they don't give customers what. Look at restaurants. A large percentage fail, about a.
But can you think of one restaurant. Restaurants with great food seem to prosper no matter what. A. restaurant with great food can be expensive, crowded, noisy, dingy. It's true that a restaurant with mediocre food can sometimes.
But that approach is very. It's more straightforward just to make the food good. It's the same with technology. You hear all kinds of reasons why. But can you think of one that had a massively popular. In nearly every failed startup, the real problem was that customers. For most, the cause of death is listed.
Why. couldn't they get more funding? Probably because the product was.
When I was trying to think of the things every startup needed to. I almost included a fourth: get a version 1 out as soon as you. But I decided not to, because that's implicit in making. The only way to make something customers. The other approach is what I call the "Hail Mary" strategy.