6 ms·

Interesting article and impressive to see that kind of tenacity. Truly that's a take-away from the full perspective. The other take aways, for me, aren't nearly

Interesting article and impressive to see that kind of tenacity. Truly that's a take-away from the full perspective. The other take aways, for me, aren't nearly as complimentary. 1. Want to make a lot of money? Find an out-dated system where grunt labor is worth a lot less than the technology the grunt labor uses, and target this gap mercilessly (call centers) 2. Act like every other shady, fly-by-night, asshole salesman and cold call people without a real product until some sucker from Provo, Utah cuts you a check ($40,000 should be a good amount) 3. Aim to arbitrage a stale technology like long-distance phone calls before any of the competition, pretend getting lucky in such an opportunity is a validation of tenacity ("blieve in yourself" is trite because it's trite) >Believe that even if you do something stupid like quit your job without a clue, somehow you’re going to figure it out. ...or, you can study up on something called "survivorship bias" and realize most of the "wisdom" in the article is utterly useless.

mildbow 11y ago
Not sure why you think those 3 points aren't complimentary. They seem like great + useful takeaways. No, they aren't new, but they are useful. Regarding your last point: nothing is a sure thing. Of course survivorship bias is a thing. Of course believing in yourself/ability to figure stuff out isn't a sufficient condition for success. But, maybe it's just a necessary one?
- 6stringmerc 11y ago
  Well I'll freely admit that the 3 points I'm not fond of is directly a result of, rightly or wrongly, preferring stories of tenacity to feature sympathetic characters who strive for and achieve success through merit "idealistic" avenues and behaviors. Those areas I mentioned felt a lot like short-cuts, in that glorifying "cold calling with vaporware until we get enough money to actually make software" doesn't strike me as a useful example, if morals are of any value to the person taking action. It just didn't sit right with me, and thus isn't an admirable aspect of the narrative. On the last point: Of course nothing is a sure thing, and not once has success come from "believing in yourself" trumped "talent and hard work" without straight up dumb luck. Whether starting a business, playing the lottery, or testing gravity by way of jumping off a large building, I think "believing in yourself" is flat out useless. Or, in a different way of phrasing it, "believing in yourself" is about as fundamental to entrepeneurship as waking up and getting out of bed - of course it's necessary, but that doesn't make the "you can do it too!" framing any less vapid.
  - rezistik 11y ago
    This guy did work though, he did some parts out of your preferred order but by and large he did all of the required effort. It wasn't dumb luck or short cuts, it was smartly planned strategy. It was Agile if you want to get cute with it.
pmikesell 11y ago
> but then found someone who would mail me a check for $40,000, even during a recession, because they were risk-taking business owners themselves. Perhaps the guy from Provo Utah, instead of being a sucker, really wanted to see something new and better succeed? Just because he paid for something before it was ready doesn't mean he didn't know what he was doing.
- TYPE_FASTER 11y ago
  Or it actually made business sense for him to use the new product...hey, the small business owner doesn't have to worry about getting fired for buying from the wrong vendor.
tiagomartins 11y ago
1. Want to make a lot of money? Find an out-dated system where grunt labor is worth a lot less than the technology the grunt labor uses, and target this gap mercilessly (call centers) Finding such a system would require you to have some experience with it, knowing the current problems, and then build a solution for it. This is the case in the article. Which is not easy I'm guessing, at least as a developer.
- 6stringmerc 11y ago
  Oh for sure, there have been numerous articles featured here that illuminate how sometimes it takes a business + developer mentality - in the form of different people - to tackle an issue, innovate, and end up with a profitable venture. That's pretty much what I think about with the well-worn maxim of "build a better mouse-trap." I guess what the framing of the story reminded me of would be somebody looking at the modern shovel, used to dig ditches, and "invents" a new version that reduces the physical strain on the user just enough to get the US Department of Labor to change the mandatory break and lunch times mandated for manual labor, and realizing savings or additional profit through that channel. I mean, sure, inventing new systems and devices is a really worthwhile avenue, no dispute here! This particular story though, it doesn't quite sit well. Maybe it's from years working as a wage slave and feeling a little bit exploited, but I think there's some implications worth considering outright.
- mvc 11y ago
  > Which is not easy I'm guessing, at least as a developer. There's loads of companies based on solving the problems developers face in their day-to-day. AWS, Heroku, New Relic....
mod 11y ago
>> Believe that even if you do something stupid like quit your job without a clue, somehow you’re going to figure it out. > ...or, you can study up on something called "survivorship bias" and realize most of the "wisdom" in the article is utterly useless. Maybe there's a correlation between people who believe that and those who make it long enough to have internet guys say their success is survivorship bias. I'm just playing devil's advocate here. I'm an ex-poker-professional who's well aware that survivorship bias is a thing.
cubano 11y ago
> ...or, you can study up on something called "survivorship bias" and realize most of the "wisdom" in the article is utterly useless. So true...I was thinking more along the lines of "How I Created A $200 Million Retirement Account By Buying the Right Powerball Lottery Ticket" but I like yours as well.
- scottlocklin 11y ago
  He did go on to found another successful startup. https://doctorbase.com/about/our-team/ https://doctorbase.com/about/our-team/
  - randycupertino 11y ago
    Doctorbase recent got acquired by a SoCal EHR company called Kareo this spring, not sure for how much.
  - cubano 11y ago
    I never meant to imply the guy wasn't driven and had serious business skils...that much is beyond obvious. Just his ability to cold call so many people and secure a $40k angel investment over the phone shows he is miles above most when it comes to dedication and drive. My point was..even with all that, it's still a total crapshoot to strike 9-digit gold.
    - scottlocklin 11y ago
      Certainly true. Also worth remembering that only a small fraction of those 9 digits made it into his pocket. Most of it went to his investors (I know John IRL).
Animats 11y ago
No, he made a significant observation - the industry was operating at a high price point which was no longer justified due to advances in technology. That's a classic opportunity. The incumbents in the field won't want to drop their prices by an order of magnitude, even if the technology allows it. Especially if they have an expensive in-house sales force. This is a huge advantage for a startup. This happened to copiers, computer printers, personal computers, graphics cards, word processing software, CAD software, point of sale software, encyclopedias... Up next, hearing aids.
- danieltillett 11y ago
  John you make a very good point. Look for industries where the current market has not kept up with advances in technology due to the business structures of the incumbents. Even if they want to change they can't (e.g Kodak). Hearing aids might fall into this category, but unlike the others on your list you need to deal with the FDA. The FDA should really be called the IPA - Incumbent Protection Agency.
  - Animats 11y ago
    For hearing aid industry disruption, see iHear.[1] Unfortunately, they run on Kickstarter time. (Like mañana, but without the sense of urgency.) They just slipped their delivery date from Q1 2016 to Q2 2016. [1] http://www.ihearmedical.com/ http://www.ihearmedical.com/
    - danieltillett 11y ago
      I suspect this slip is due to having to deal with the FDA. If you look through their FAQ and look at the regulation rigmarole they have to deal with just for their hearing test product you will see why this is not an easy area to innovate in. The one thing you can give the medical industry is they have built an amazing system for maintaining the status quo.
      - tracker1 11y ago
dookahku 11y ago
So how do I find these opportunities? I imagine I have to leave the house and talk to people but where do I go? To whom do I speak?
- corkill 11y ago
  People with problems and money to solve those problems aka business owners.
  - dookahku 11y ago
    > People with problems and money to solve those problems aka business owners. I figure as much. But how do I find them?
- enjo 11y ago
  Many (most?) successful business like this come from people who live and work in the industry for several years noticing the inefficiencies along the way. If you're a technical person, networking at professional events is a GREAT way to find someone that's identified one of these problems who needs someone to bring it to life.
odonnellryan 11y ago
You do make a valid point, but to the reverse, don't use your logic to think you can't do something. That's not good either.
deleted 11y ago
[deleted]

mildbow 11y ago

Not sure why you think those 3 points aren't complimentary. They seem like great + useful takeaways. No, they aren't new, but they are useful. Regarding your last point: nothing is a sure thing. Of course survivorship bias is a thing. Of course believing in yourself/ability to figure stuff out isn't a sufficient condition for success. But, maybe it's just a necessary one?

6stringmerc 11y ago
Well I'll freely admit that the 3 points I'm not fond of is directly a result of, rightly or wrongly, preferring stories of tenacity to feature sympathetic characters who strive for and achieve success through merit "idealistic" avenues and behaviors. Those areas I mentioned felt a lot like short-cuts, in that glorifying "cold calling with vaporware until we get enough money to actually make software" doesn't strike me as a useful example, if morals are of any value to the person taking action. It just didn't sit right with me, and thus isn't an admirable aspect of the narrative. On the last point: Of course nothing is a sure thing, and not once has success come from "believing in yourself" trumped "talent and hard work" without straight up dumb luck. Whether starting a business, playing the lottery, or testing gravity by way of jumping off a large building, I think "believing in yourself" is flat out useless. Or, in a different way of phrasing it, "believing in yourself" is about as fundamental to entrepeneurship as waking up and getting out of bed - of course it's necessary, but that doesn't make the "you can do it too!" framing any less vapid.
- rezistik 11y ago
  This guy did work though, he did some parts out of your preferred order but by and large he did all of the required effort. It wasn't dumb luck or short cuts, it was smartly planned strategy. It was Agile if you want to get cute with it.

pmikesell 11y ago

> but then found someone who would mail me a check for $40,000, even during a recession, because they were risk-taking business owners themselves. Perhaps the guy from Provo Utah, instead of being a sucker, really wanted to see something new and better succeed? Just because he paid for something before it was ready doesn't mean he didn't know what he was doing.

TYPE_FASTER 11y ago
Or it actually made business sense for him to use the new product...hey, the small business owner doesn't have to worry about getting fired for buying from the wrong vendor.

tiagomartins 11y ago

1. Want to make a lot of money? Find an out-dated system where grunt labor is worth a lot less than the technology the grunt labor uses, and target this gap mercilessly (call centers) Finding such a system would require you to have some experience with it, knowing the current problems, and then build a solution for it. This is the case in the article. Which is not easy I'm guessing, at least as a developer.

6stringmerc 11y ago
Oh for sure, there have been numerous articles featured here that illuminate how sometimes it takes a business + developer mentality - in the form of different people - to tackle an issue, innovate, and end up with a profitable venture. That's pretty much what I think about with the well-worn maxim of "build a better mouse-trap." I guess what the framing of the story reminded me of would be somebody looking at the modern shovel, used to dig ditches, and "invents" a new version that reduces the physical strain on the user just enough to get the US Department of Labor to change the mandatory break and lunch times mandated for manual labor, and realizing savings or additional profit through that channel. I mean, sure, inventing new systems and devices is a really worthwhile avenue, no dispute here! This particular story though, it doesn't quite sit well. Maybe it's from years working as a wage slave and feeling a little bit exploited, but I think there's some implications worth considering outright.
mvc 11y ago
> Which is not easy I'm guessing, at least as a developer. There's loads of companies based on solving the problems developers face in their day-to-day. AWS, Heroku, New Relic....

mod 11y ago

>> Believe that even if you do something stupid like quit your job without a clue, somehow you’re going to figure it out. > ...or, you can study up on something called "survivorship bias" and realize most of the "wisdom" in the article is utterly useless. Maybe there's a correlation between people who believe that and those who make it long enough to have internet guys say their success is survivorship bias. I'm just playing devil's advocate here. I'm an ex-poker-professional who's well aware that survivorship bias is a thing.

cubano 11y ago

> ...or, you can study up on something called "survivorship bias" and realize most of the "wisdom" in the article is utterly useless. So true...I was thinking more along the lines of "How I Created A $200 Million Retirement Account By Buying the Right Powerball Lottery Ticket" but I like yours as well.

scottlocklin 11y ago
He did go on to found another successful startup. https://doctorbase.com/about/our-team/ https://doctorbase.com/about/our-team/
- randycupertino 11y ago
  Doctorbase recent got acquired by a SoCal EHR company called Kareo this spring, not sure for how much.
- cubano 11y ago
  I never meant to imply the guy wasn't driven and had serious business skils...that much is beyond obvious. Just his ability to cold call so many people and secure a $40k angel investment over the phone shows he is miles above most when it comes to dedication and drive. My point was..even with all that, it's still a total crapshoot to strike 9-digit gold.
  - scottlocklin 11y ago
    Certainly true. Also worth remembering that only a small fraction of those 9 digits made it into his pocket. Most of it went to his investors (I know John IRL).

Animats 11y ago

No, he made a significant observation - the industry was operating at a high price point which was no longer justified due to advances in technology. That's a classic opportunity. The incumbents in the field won't want to drop their prices by an order of magnitude, even if the technology allows it. Especially if they have an expensive in-house sales force. This is a huge advantage for a startup. This happened to copiers, computer printers, personal computers, graphics cards, word processing software, CAD software, point of sale software, encyclopedias... Up next, hearing aids.

danieltillett 11y ago
John you make a very good point. Look for industries where the current market has not kept up with advances in technology due to the business structures of the incumbents. Even if they want to change they can't (e.g Kodak). Hearing aids might fall into this category, but unlike the others on your list you need to deal with the FDA. The FDA should really be called the IPA - Incumbent Protection Agency.
- Animats 11y ago
  For hearing aid industry disruption, see iHear.[1] Unfortunately, they run on Kickstarter time. (Like mañana, but without the sense of urgency.) They just slipped their delivery date from Q1 2016 to Q2 2016. [1] http://www.ihearmedical.com/ http://www.ihearmedical.com/
  - danieltillett 11y ago
    I suspect this slip is due to having to deal with the FDA. If you look through their FAQ and look at the regulation rigmarole they have to deal with just for their hearing test product you will see why this is not an easy area to innovate in. The one thing you can give the medical industry is they have built an amazing system for maintaining the status quo.
    - tracker1 11y ago

dookahku 11y ago

So how do I find these opportunities? I imagine I have to leave the house and talk to people but where do I go? To whom do I speak?

corkill 11y ago
People with problems and money to solve those problems aka business owners.
- dookahku 11y ago
  > People with problems and money to solve those problems aka business owners. I figure as much. But how do I find them?
enjo 11y ago
Many (most?) successful business like this come from people who live and work in the industry for several years noticing the inefficiencies along the way. If you're a technical person, networking at professional events is a GREAT way to find someone that's identified one of these problems who needs someone to bring it to life.

odonnellryan 11y ago

You do make a valid point, but to the reverse, don't use your logic to think you can't do something. That's not good either.

deleted 11y ago

[deleted]