4 ms·

10 Startup Commandments

66 points by messel 16y ago

messel 16y ago
Background for other HN'ers: The author Andy Swan is a successful multiple exit entrepreneur and seed investor. From the site: "I've started and sold two companies. I have investments in 7-8 others. I love helping passionate people create wealth. Win." Andy's one of the regulars on AVC, has an extraordinarily sharp business sense, and he's also a connoisseur of Pappy Van Winkle Bourbon: http://andyswan.com/blog/?s=pappy http://andyswan.com/blog/?s=pappy
- andyswan 16y ago
  That's me in a nutshell....no wait, this is me in a nutshell: http://www.youtube.com/watch?v=CQ3UHYLTcmM http://www.youtube.com/watch?v=CQ3UHYLTcmM
atldev 16y ago
Great article. Just downloaded the Audible version of "The Dip" (btw, only $5.96 at Amazon right now, about half the cost of the Kindle edition). It seems there are a few points along the continuum of perseverance or personal outs (commandment #4): At one end, burn the boats Cortez-style (worked ok for Cortez in the long run, not so well for all his crew). Is this for the leader's resolve or for the team's? This is probably the hardest for a founder that currently supports a family with a day job. Quit and make the jump on a founder's salary? At the other end, the notion that entrepreneurs are more risk averse than most would guess and don't usually bet the farm on a decision with insufficient data. I don't like this end, sounds like paralysis. Somewhere in the middle is probably where I fit, which is why the lean startup notion of "The Pivot" is so appealing to me. I support a family with a day job, so I like the idea of testing hypotheses rather than betting on a conclusion before the experiment. Plus, I think you can still execute because learning is progress.
- messel 16y ago
  I'm in the same boat, although my wife works I pay the bills on the house/gas/electricity/etc. If I'm going to burn the boats, I don't want to do so while I'm still 10 miles off the coast (some debt from the wedding/honeymoon). I'm confident I could raise from angels but pre traction it's a tough sell.
koteflosse 16y ago
I disagree with #6: "COLLABORATE with relationship group, don’t present to strangers". I love presenting to strangers as a way to get feedback free of relationship-related noise. I rather have strangers poke holes at my business than have relationships ignoring them.
- messel 16y ago
  Different stages maybe kote. At a really early stage when you don't have too much to show, not many strangers will want to listen. You'll need friends at that point.
  - niico 16y ago
    Agree with messel. Beside stranger wanting to listen or not your new product I believe its about "shut up and do it" finish your 1.0 version then show around different kinds of people (tech and non-tech, biz and non-biz related people)and try to get a rich feedback from them
pvg 16y ago
The pants transform is effective here as well ( http://news.ycombinator.com/item?id=1580410 http://news.ycombinator.com/item?id=1580410 ) except you apply it to the words in all caps. 6. PANTS in the face of temporary defeats is particularly trenchant and evocative.
bosch 16y ago
I agree with his points except for #9: "When I see an entrepreneur in a suit, the first thing I think is "I wonder what else he is dressing up"." It doesn't hurt to look professional in a business situation. The vast majority of the business world doesn't wear black turtlenecks and jeans and work in Silicon Valley. For outsiders not in the computer industry there can be a huge difference seeing someone come and present in a suit or even a dress shirt and tie versus sneakers, jeans and t-shirt.
LiveTheDream 16y ago
#4 is straight out of Sun Tzu's Art of War EDIT: Specifically, from XI: The Nine Situations 23. Throw your soldiers into positions whence there is no escape, and they will prefer death to flight. If they will face death, there is nothing they may not achieve. Officers and men alike will put forth their uttermost strength.
- keefe 16y ago
  yeah it's important to note that we're talking about sun tzu's rules for soldiers, not himself. You better believe he had a way out of every room he walked into.
mkramlich 16y ago
I think 4 is unwise. In 3 the "hours? all of them" part is hyperbole and also both unwise and unnecessary. High hours leads to burnout. Plus it should be about results not hours. Most of his points are good.
- dmor 16y ago
  Why do you think #4 is unwise?
  - mkramlich 16y ago
    I think it is unwise to reduce your options, especially in financial matters, especially regarding income, especially if you do not already have FU money. BATNA principle.
    - profitoftruth85 16y ago
      http://www.beyondintractability.org/essay/batna/?nid=1278 http://www.beyondintractability.org/essay/batna/?nid=1278
- kthxbye 16y ago
  Yeah I agree, number 3 and 4 kind of sounds like a fear driven sweat shop to me.

66 points by messel 16y ago

Background for other HN'ers: The author Andy Swan is a successful multiple exit entrepreneur and seed investor. From the site: "I've started and sold two companies. I have investments in 7-8 others. I love helping passionate people create wealth. Win." Andy's one of the regulars on AVC, has an extraordinarily sharp business sense, and he's also a connoisseur of Pappy Van Winkle Bourbon: http://andyswan.com/blog/?s=pappy http://andyswan.com/blog/?s=pappy

andyswan 16y ago
That's me in a nutshell....no wait, this is me in a nutshell: http://www.youtube.com/watch?v=CQ3UHYLTcmM http://www.youtube.com/watch?v=CQ3UHYLTcmM

atldev 16y ago

Great article. Just downloaded the Audible version of "The Dip" (btw, only $5.96 at Amazon right now, about half the cost of the Kindle edition). It seems there are a few points along the continuum of perseverance or personal outs (commandment #4): At one end, burn the boats Cortez-style (worked ok for Cortez in the long run, not so well for all his crew). Is this for the leader's resolve or for the team's? This is probably the hardest for a founder that currently supports a family with a day job. Quit and make the jump on a founder's salary? At the other end, the notion that entrepreneurs are more risk averse than most would guess and don't usually bet the farm on a decision with insufficient data. I don't like this end, sounds like paralysis. Somewhere in the middle is probably where I fit, which is why the lean startup notion of "The Pivot" is so appealing to me. I support a family with a day job, so I like the idea of testing hypotheses rather than betting on a conclusion before the experiment. Plus, I think you can still execute because learning is progress.

messel 16y ago
I'm in the same boat, although my wife works I pay the bills on the house/gas/electricity/etc. If I'm going to burn the boats, I don't want to do so while I'm still 10 miles off the coast (some debt from the wedding/honeymoon). I'm confident I could raise from angels but pre traction it's a tough sell.

koteflosse 16y ago

I disagree with #6: "COLLABORATE with relationship group, don’t present to strangers". I love presenting to strangers as a way to get feedback free of relationship-related noise. I rather have strangers poke holes at my business than have relationships ignoring them.

messel 16y ago
Different stages maybe kote. At a really early stage when you don't have too much to show, not many strangers will want to listen. You'll need friends at that point.
- niico 16y ago
  Agree with messel. Beside stranger wanting to listen or not your new product I believe its about "shut up and do it" finish your 1.0 version then show around different kinds of people (tech and non-tech, biz and non-biz related people)and try to get a rich feedback from them

pvg 16y ago

The pants transform is effective here as well ( http://news.ycombinator.com/item?id=1580410 http://news.ycombinator.com/item?id=1580410 ) except you apply it to the words in all caps. 6. PANTS in the face of temporary defeats is particularly trenchant and evocative.

bosch 16y ago

I agree with his points except for #9: "When I see an entrepreneur in a suit, the first thing I think is "I wonder what else he is dressing up"." It doesn't hurt to look professional in a business situation. The vast majority of the business world doesn't wear black turtlenecks and jeans and work in Silicon Valley. For outsiders not in the computer industry there can be a huge difference seeing someone come and present in a suit or even a dress shirt and tie versus sneakers, jeans and t-shirt.

LiveTheDream 16y ago

#4 is straight out of Sun Tzu's Art of War EDIT: Specifically, from XI: The Nine Situations 23. Throw your soldiers into positions whence there is no escape, and they will prefer death to flight. If they will face death, there is nothing they may not achieve. Officers and men alike will put forth their uttermost strength.

keefe 16y ago
yeah it's important to note that we're talking about sun tzu's rules for soldiers, not himself. You better believe he had a way out of every room he walked into.

mkramlich 16y ago

I think 4 is unwise. In 3 the "hours? all of them" part is hyperbole and also both unwise and unnecessary. High hours leads to burnout. Plus it should be about results not hours. Most of his points are good.

dmor 16y ago
Why do you think #4 is unwise?
- mkramlich 16y ago
  I think it is unwise to reduce your options, especially in financial matters, especially regarding income, especially if you do not already have FU money. BATNA principle.
  - profitoftruth85 16y ago
    http://www.beyondintractability.org/essay/batna/?nid=1278 http://www.beyondintractability.org/essay/batna/?nid=1278
kthxbye 16y ago
Yeah I agree, number 3 and 4 kind of sounds like a fear driven sweat shop to me.