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The argument against this is that founding a startup, when factoring in the incredibly low success rate, may not be the best strategy to gain money. Joining an

by YazIAm 8y ago

The argument against this is that founding a startup, when factoring in the incredibly low success rate, may not be the best strategy to gain money. Joining an early stage startup (with equity) that's clearly on a growth path, or even working for a Google, Facebook, etc. is a much better bet for making money. Also, startups, where startup means creating a new unproven solution intended to achieve exponential growth, are unfathomably hard. It's hard (in my experience) to stay motivated in the face of startup hardships when one's primary objective is money.

everdev 8y ago
Starting a business is one of the best paths to make a lot of money in a short time period though. And it all depends on your financial goals. Want low 6-figures a year? Get a career. Want medium 6-figures a year? Bootstrap a business. Want 7-figures a year? Take VC money. And yes, the success rates get progressively worse, but if your goal is to average $500k-$1M+/year over the next 5 years, your chances of making that as an employee are probably far less than your chances of making that owning a startup.
- avmich 8y ago
  > if your goal is to average $500k-$1M+/year over the next 5 years, your chances of making that as an employee are probably far less than your chances of making that owning a startup Exactly. Startup is the only way to make money, while being reliably preserved from management errors which you can't prevent or compensate for. You can join an early Facebook, but that's a luck game, not a systematic approach where you'll actually influence chances.
  - mattmanser 8y ago
    A lot of people wouldn't call a company that is never destined to grow overall a few million $$$ turnover a startup. It's a term without a strict definition.
- fernandopj 8y ago
  "You’re not going to get rich renting out your time. You must own equity - a piece of a business - to gain your financial freedom." - Naval[1] [1] https://twitter.com/naval/status/1002103670400417792 https://twitter.com/naval/status/1002103670400417792

by YazIAm 8y ago

everdev 8y ago

Starting a business is one of the best paths to make a lot of money in a short time period though. And it all depends on your financial goals. Want low 6-figures a year? Get a career. Want medium 6-figures a year? Bootstrap a business. Want 7-figures a year? Take VC money. And yes, the success rates get progressively worse, but if your goal is to average $500k-$1M+/year over the next 5 years, your chances of making that as an employee are probably far less than your chances of making that owning a startup.

avmich 8y ago
> if your goal is to average $500k-$1M+/year over the next 5 years, your chances of making that as an employee are probably far less than your chances of making that owning a startup Exactly. Startup is the only way to make money, while being reliably preserved from management errors which you can't prevent or compensate for. You can join an early Facebook, but that's a luck game, not a systematic approach where you'll actually influence chances.
- mattmanser 8y ago
  A lot of people wouldn't call a company that is never destined to grow overall a few million $$$ turnover a startup. It's a term without a strict definition.
fernandopj 8y ago
"You’re not going to get rich renting out your time. You must own equity - a piece of a business - to gain your financial freedom." - Naval[1] [1] https://twitter.com/naval/status/1002103670400417792 https://twitter.com/naval/status/1002103670400417792