5 ms·
In other words, starting a business isn't much different than it was in the past - capital and connections are essential. Sure, there're exceptions when someone
by pkorzeniewski 11y ago
In other words, starting a business isn't much different than it was in the past - capital and connections are essential. Sure, there're exceptions when someone with little money and hard work managed to grow their business, but they're that - exceptions. The older I am the more I realize how naive thinking "I just need to create something better than my competitors!" really is. You can have a mediocre product but with capital for heavy marketing and connections to acquire early customers you've much bigger chance of success than "just" having a good product.
- dylanjermiah 11y agoNo matter how good the product is, if the distribution is poor, it will go no where.
- metasean 11y agoDistribution is crucial, but I think pkorzeniewski was highlighting how marketing and networking can trump product quality, and his disillusionment with realizing how often this happens. For many products distribution is correlated with marketing and networking, this isn't true for all products (e.g. web-apps).
- UK-AL 11y agoThe first customers are often people you know well, who need the product. I.E connections.
- gonzo 11y ago> Sure, there're exceptions when someone with little money and hard work managed to grow their business, but they're that - exceptions. My grandfather (and father) were that person.
- whoiskevin 11y agoHmmm if your grandfather was successful in some significant way then your father benefited from that security which is exactly what the article is about. So claiming both were those exceptions is a bold claim indeed.
- eugenekolo2 11y agoI think it's quite different in the software startup industry. You usually don't need much capital, it's more that you need to have a failsafe in case you go bust to not end up unemployed and unable to pay bills.
- deleted 11y ago[deleted]
- crdoconnor 11y ago>I think it's quite different in the software startup industry. You usually don't need much capital You still need a distribution channel. That requires either capital or connections.
- ambicapter 11y agoThe internet?
- crdoconnor 11y agoNo. A well trafficked website or ads are distribution channels. Getting a mention in a newspaper likewise. Just putting something up on the Internet and hoping will get you nowhere.
- cardine 11y agoThere are a million free or extremely cheap distribution channels on the internet. My current business with 7 figures ARR was launched almost exclusively on industry forums and there are no connections required to create an Adwords account. There are countless businesses that started on Reddit or even here on Hacker News with a $0 advertising budget.
- jdiez17 11y agoIt's a matter of effort/reward. Yes, you can advertise for free or very cheap on the Internet, but it's harder to achieve the same amount of success as if you were paying and requires you to put in more work, like engaging with the community (which is not trivial). Of course it's possible to get extremely good ROI on free advertising (especially if your product is excellent or unique), but it's the exception, not the rule.