3 ms·

Beware of Startup Sharks

12 points by orionblastar 14y ago

ChuckMcM 14y ago
I'm sorry but this is is possibly the most ignorant post on startups I have ever read. To quote Pauli it's not even wrong.
BobWarfield 14y ago
If he can learn 37 programming languages, he can learn how to market well enough to bootstrap a company. This is just a long list of excuses not to even get started. There are so many reasons not to get started, so many reasons you will fail, and so many reasons to just go get a real job. If you're listening to any of that you're not really an.d entrepreneur and you probably should just go get a real job.
CyberFonic 14y ago
Terrific post, right on every single count. But ... There's a lot of people out there who think they have got the massivest bestest idea since Zuck's IPO and it will only take a good programmer a couple of days to implement this awesome idea and then they'll be rolling in it. So your startup shark is P T Barnum's great great grandson ... and cashing in on $8000 here and $8000 there and before you know it he's got the best gig going.
- orionblastar 14y ago
  Figuring that 90% of startups fail in this manner, he has a 10% chance of hitting a jackpot. But then he's ruined 90% of the startups that didn't do so well in order to do it. Let's say he funds 1000 startups that is $8M invested, he loses $7.2M in investment money due to a 90% fail. But 10% go on to earn him one million dollars in company stock each. That is a $100M earnings minus the $7.2M loss $92.8M in profits. But if he gets a Facebook Zuck IPO in billions, well he found a diamond in the rough, have won the startup lottery. But you have to ask, why aren't more investors doing this?
dizzystar 14y ago
Fifth marketing, is it really that hard that you have to give away 50% of your stock to do it? You mean to tell me you don't know how Google Adwords works, or how to give a speech at user groups that have an interest in your MVP, or how to create social networking pages for your MVP, or how to make a web page and use SEO to bump it up to the top of Google? You really don't know how to set the pricing strategy, product, promotion, placement, process, and people? You don't even know how to use Vistaprint for cheap Business Cards that you pass out to people in real life and meet them at conventions, business meetings, or just bump into them at sporting events or whatever? You don't know how to contact web sites that do reviews of MVPs and can help promote it? You don't even know how to submit your blog or web site about your MVP to Hacker News? Interesting to mix very easy (vista print business cards) and very effing hard together and act like it is all one level. I do, however, agree with the overall article.
- einhverfr 14y ago
  You know, it's interesting. I am finally co-founding a start-up with someone I have worked with in open source for a couple years. Just got the incorporation paperwork back. Exciting times. You know the initial stages of marketing are easy. Really taking it to the next level is quite difficult. There is a reason why there are people who run marketing firms.
  - orionblastar 14y ago
    Yes but once you do the initial marketing and it pays off, you can afford to hire the marketing firm to take it to the next level.
    - einhverfr 14y ago
      Very true. Additionally, you will get more out of hiring the marking firm by getting all the little nuts and bolts done first. Honestly if I knew the guy personally and trusted him, the initial deal wouldn't be that bad. But I agree with the article that this smells worse than a three day old mackerel.
FollowSteph3 14y ago
What I really like is that he's illustrating that a startup is a LOT more than just writing some code!!!
- orionblastar 14y ago
  Many Programmers think all they can do to be a success is just to write code and nothing else. Those who think that fall victim to the startup shark. There is more to a startup than just writing code, otherwise you just have an Underpants Gnome business plan. http://www.youtube.com/watch?v=tO5sxLapAts http://www.youtube.com/watch?v=tO5sxLapAts Phase 1: Write Code Phase 2: ? Phase 3: Profit!

12 points by orionblastar 14y ago

I'm sorry but this is is possibly the most ignorant post on startups I have ever read. To quote Pauli it's not even wrong.

BobWarfield 14y ago

If he can learn 37 programming languages, he can learn how to market well enough to bootstrap a company. This is just a long list of excuses not to even get started. There are so many reasons not to get started, so many reasons you will fail, and so many reasons to just go get a real job. If you're listening to any of that you're not really an.d entrepreneur and you probably should just go get a real job.

CyberFonic 14y ago

Terrific post, right on every single count. But ... There's a lot of people out there who think they have got the massivest bestest idea since Zuck's IPO and it will only take a good programmer a couple of days to implement this awesome idea and then they'll be rolling in it. So your startup shark is P T Barnum's great great grandson ... and cashing in on $8000 here and $8000 there and before you know it he's got the best gig going.

orionblastar 14y ago
Figuring that 90% of startups fail in this manner, he has a 10% chance of hitting a jackpot. But then he's ruined 90% of the startups that didn't do so well in order to do it. Let's say he funds 1000 startups that is $8M invested, he loses $7.2M in investment money due to a 90% fail. But 10% go on to earn him one million dollars in company stock each. That is a $100M earnings minus the $7.2M loss $92.8M in profits. But if he gets a Facebook Zuck IPO in billions, well he found a diamond in the rough, have won the startup lottery. But you have to ask, why aren't more investors doing this?

dizzystar 14y ago

Fifth marketing, is it really that hard that you have to give away 50% of your stock to do it? You mean to tell me you don't know how Google Adwords works, or how to give a speech at user groups that have an interest in your MVP, or how to create social networking pages for your MVP, or how to make a web page and use SEO to bump it up to the top of Google? You really don't know how to set the pricing strategy, product, promotion, placement, process, and people? You don't even know how to use Vistaprint for cheap Business Cards that you pass out to people in real life and meet them at conventions, business meetings, or just bump into them at sporting events or whatever? You don't know how to contact web sites that do reviews of MVPs and can help promote it? You don't even know how to submit your blog or web site about your MVP to Hacker News? Interesting to mix very easy (vista print business cards) and very effing hard together and act like it is all one level. I do, however, agree with the overall article.

einhverfr 14y ago
You know, it's interesting. I am finally co-founding a start-up with someone I have worked with in open source for a couple years. Just got the incorporation paperwork back. Exciting times. You know the initial stages of marketing are easy. Really taking it to the next level is quite difficult. There is a reason why there are people who run marketing firms.
- orionblastar 14y ago
  Yes but once you do the initial marketing and it pays off, you can afford to hire the marketing firm to take it to the next level.
  - einhverfr 14y ago
    Very true. Additionally, you will get more out of hiring the marking firm by getting all the little nuts and bolts done first. Honestly if I knew the guy personally and trusted him, the initial deal wouldn't be that bad. But I agree with the article that this smells worse than a three day old mackerel.

FollowSteph3 14y ago

What I really like is that he's illustrating that a startup is a LOT more than just writing some code!!!

orionblastar 14y ago
Many Programmers think all they can do to be a success is just to write code and nothing else. Those who think that fall victim to the startup shark. There is more to a startup than just writing code, otherwise you just have an Underpants Gnome business plan. http://www.youtube.com/watch?v=tO5sxLapAts http://www.youtube.com/watch?v=tO5sxLapAts Phase 1: Write Code Phase 2: ? Phase 3: Profit!