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Keep your costs down, sure ... sort of a basic lesson Cal me crazy, but I'm really skeptical about this author in general ... why is it so hard to find info ab

Keep your costs down, sure ... sort of a basic lesson Cal me crazy, but I'm really skeptical about this author in general ... why is it so hard to find info about his previous $30MM revenue business? What exactly did Bradford & Reed do–and how much was it acquired for? I see mentions of greeting cards and games ... but no mentions of any actual profit or acquisition details. I'm starting to feel like the startup world is becoming inundated with people who just want to sell stuff to startup founders (be it books, info, their name or whatever). Frankly, its getting old. Yes, startup founders need solid advice and lessons from those who have done it before. But, for God's sake, use some discretion when it comes to the source of your advice.

kyro 18y ago
I, too, am interested in finding out more about his previous venture.
- axod 18y ago
  It's been posted a few times, http://www.quicksprout.com/2009/04/08/the-andrew-warner-story-how-a-21-year-old-created-a-385-million-dollar-business-by-returning-his-jcrew-clothes/ http://www.quicksprout.com/2009/04/08/the-andrew-warner-stor...
  - tom_rath 18y ago
    Thanks for that. After reading the two-chair tale o' woe, the comment that they "sold the business in pieces" leads me to think his company collapsed after the dot.com bust. Sure, their 1999-2000 balance sheet looked spiffy, but that was the peak of the boom. How did the next year go? Did these guys enjoy a profitable exit or endure a liquidation? Edit: Poking about, it seems they sold the company in 2003. That's quite a time after the 1999-2000 numbers being splashed about in his feel-good writing. I'll bet the numbers in those later years would shine a bit more light on the business's true condition.
  - callmeed 18y ago
    "We sold the business in pieces to people we did business with over the years" That doesn't sound like an acquisition "that company made 38.5 million dollars a year" No, they made $38.5 million dollars ONE YEAR. The year before, it was 5.5 ... the year after, who knows ... I guess little semantic games like this are necessary when you need to position yourself as a seasoned expert–for the purposes of gaining readership to your blog or selling your book.
    - teej 18y ago
      Some startups would be happy to get $38.5 M in revenue ANY YEAR. You can knock the guy all you like, but he's been through the trenches and his Mixergy content is pretty good.
    - condor 18y ago
      I think it's mentioned that part of his company was sold to brad greenspan of euniverse/intermix(myspace) fame. I don't know how much this reflects on Andrew and/or mailbits, but brad greenspan and euniverse are know for, among other things, 'legitimizing' the adware business, until most everyone realized it wasn't legitimate. Also euniverse and brad had a pretty well publicized accounting fraud scandal that resulted in him leaving euniverse. Anyone that worked in the LA online advertising business during the late 90s early 00s will know euniverse is about as shady as shady can get, without actually getting thrown in jail.
  - anigbrowl 18y ago
    How many really believe the story about selling his old (presumably worn) clothes back to J Crew to raise his seed capital? I'm guessing the truth is that he pitched a J Crew board member by including 'the clothes off his back' as a jokey item in his business proposal, but that's not the substantive part which got him the check. Sorry, I'm getting a 'rich dad, poor dad' vibe off this guy and his site.
    - axod 18y ago
      He sure knows how to "tell a story". That could indeed mean embellishing the facts.
menloparkbum 18y ago
the startup world is becoming inundated with people who just want to sell stuff to startup founders He's part of the parallel universe in silicon valley (physically, and in spirit) of people who hold seminars, arrange mixers, make blogs, write twitter posts, and generally act as a big sideshow and social group for 2nd rate startups and their entourages. It's a surreal place filled with the same people at every event (and linked on every blog or re-tweeted on every tweet) who seem like they must be important, but aren't. Sometimes worlds collide and Tim Ferris does a talk at Google (or TED - WTF?) or Tara Hunt doles out free beer at a conference room at Yahoo!... In my experience unless your girlfriend is working for one of their boutique PR firms you can safely avoid everything about this world.
- alaskamiller 18y ago
  I like the cut of your jib.
- rokhayakebe 18y ago
  "Those who can Do. Those who cannot Teach" (or Blog). "Where ends Performance, starts Appearance"
- rjurney 18y ago
  I'm coming to do a geek/startup tour of silicon valley... can you recommend any events/groups that don't suck? Because what you're describing sounds pretty similar to the worst of our local networking groups, and I get really irritated when I show up for one and its a bunch of guys trying to sell me management consulting and a 'startup' speaker that made millions selling used hardware.
  - menloparkbum 18y ago
    It's hard for me to recommend anything, because I don't feel like I've gotten much out of the good events I've gone to. I'm not really an event guy. I'd probably be more useful in the negative for particular cases, like "that one sucks - definitely DON'T go to that one." Also - I haven't gone to any of these things for almost a year. That said, SuperHappyDevHouse is the only event that is genuinely hacker oriented. Some of the particular tech specific meetups I've been to have had good presentations. If you really want to network it's probably best to figure out where your favorite startups go out to drink beer on Fridays. If you're looking for hackerish, generally interesting things to do, events like Maker Faire are pretty good.
cmos 18y ago
It is a basic lesson, but one that doesn't hurt to hear over and over again. While his example might seem 'obvious' and 'extreme' it is all relative. All startups make mistakes like this. Especially if it's your first one, your doing kinda ok, and your twentysomething. The startups that survive are the ones that don't make that one mistake big enough to tank the company.

kyro 18y ago

I, too, am interested in finding out more about his previous venture.

axod 18y ago
It's been posted a few times, http://www.quicksprout.com/2009/04/08/the-andrew-warner-story-how-a-21-year-old-created-a-385-million-dollar-business-by-returning-his-jcrew-clothes/ http://www.quicksprout.com/2009/04/08/the-andrew-warner-stor...
- tom_rath 18y ago
  Thanks for that. After reading the two-chair tale o' woe, the comment that they "sold the business in pieces" leads me to think his company collapsed after the dot.com bust. Sure, their 1999-2000 balance sheet looked spiffy, but that was the peak of the boom. How did the next year go? Did these guys enjoy a profitable exit or endure a liquidation? Edit: Poking about, it seems they sold the company in 2003. That's quite a time after the 1999-2000 numbers being splashed about in his feel-good writing. I'll bet the numbers in those later years would shine a bit more light on the business's true condition.
- callmeed 18y ago
  "We sold the business in pieces to people we did business with over the years" That doesn't sound like an acquisition "that company made 38.5 million dollars a year" No, they made $38.5 million dollars ONE YEAR. The year before, it was 5.5 ... the year after, who knows ... I guess little semantic games like this are necessary when you need to position yourself as a seasoned expert–for the purposes of gaining readership to your blog or selling your book.
  - teej 18y ago
    Some startups would be happy to get $38.5 M in revenue ANY YEAR. You can knock the guy all you like, but he's been through the trenches and his Mixergy content is pretty good.
  - condor 18y ago
    I think it's mentioned that part of his company was sold to brad greenspan of euniverse/intermix(myspace) fame. I don't know how much this reflects on Andrew and/or mailbits, but brad greenspan and euniverse are know for, among other things, 'legitimizing' the adware business, until most everyone realized it wasn't legitimate. Also euniverse and brad had a pretty well publicized accounting fraud scandal that resulted in him leaving euniverse. Anyone that worked in the LA online advertising business during the late 90s early 00s will know euniverse is about as shady as shady can get, without actually getting thrown in jail.
- anigbrowl 18y ago
  How many really believe the story about selling his old (presumably worn) clothes back to J Crew to raise his seed capital? I'm guessing the truth is that he pitched a J Crew board member by including 'the clothes off his back' as a jokey item in his business proposal, but that's not the substantive part which got him the check. Sorry, I'm getting a 'rich dad, poor dad' vibe off this guy and his site.
  - axod 18y ago
    He sure knows how to "tell a story". That could indeed mean embellishing the facts.

menloparkbum 18y ago

the startup world is becoming inundated with people who just want to sell stuff to startup founders He's part of the parallel universe in silicon valley (physically, and in spirit) of people who hold seminars, arrange mixers, make blogs, write twitter posts, and generally act as a big sideshow and social group for 2nd rate startups and their entourages. It's a surreal place filled with the same people at every event (and linked on every blog or re-tweeted on every tweet) who seem like they must be important, but aren't. Sometimes worlds collide and Tim Ferris does a talk at Google (or TED - WTF?) or Tara Hunt doles out free beer at a conference room at Yahoo!... In my experience unless your girlfriend is working for one of their boutique PR firms you can safely avoid everything about this world.

alaskamiller 18y ago
I like the cut of your jib.
rokhayakebe 18y ago
"Those who can Do. Those who cannot Teach" (or Blog). "Where ends Performance, starts Appearance"
rjurney 18y ago
I'm coming to do a geek/startup tour of silicon valley... can you recommend any events/groups that don't suck? Because what you're describing sounds pretty similar to the worst of our local networking groups, and I get really irritated when I show up for one and its a bunch of guys trying to sell me management consulting and a 'startup' speaker that made millions selling used hardware.
- menloparkbum 18y ago
  It's hard for me to recommend anything, because I don't feel like I've gotten much out of the good events I've gone to. I'm not really an event guy. I'd probably be more useful in the negative for particular cases, like "that one sucks - definitely DON'T go to that one." Also - I haven't gone to any of these things for almost a year. That said, SuperHappyDevHouse is the only event that is genuinely hacker oriented. Some of the particular tech specific meetups I've been to have had good presentations. If you really want to network it's probably best to figure out where your favorite startups go out to drink beer on Fridays. If you're looking for hackerish, generally interesting things to do, events like Maker Faire are pretty good.

cmos 18y ago

It is a basic lesson, but one that doesn't hurt to hear over and over again. While his example might seem 'obvious' and 'extreme' it is all relative. All startups make mistakes like this. Especially if it's your first one, your doing kinda ok, and your twentysomething. The startups that survive are the ones that don't make that one mistake big enough to tank the company.