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It was about the advantages of running a startup cheaply, not of having no money. And if you're running a startup cheaply, you don't need to raise as much.
by pg 18y ago
It was about the advantages of running a startup cheaply, not of having no money. And if you're running a startup cheaply, you don't need to raise as much.
- conflux0 18y agoBut then again you have to "spend alot of time to raise money" especially when your company hasn't proven its viability yet.
- dwynings 18y agoAdmittedly my mistake; I thought you had said that. Updated the original post.
- ojbyrne 18y agoThe one big disadvantage I see is that you can quit pretty easily. Being poor gets tiring pretty quickly, especially if someone waves a nice fat salary and benefits in front of you.
- pg 18y agoThis is one of the reasons the young and the nerdy tend to have an advantage in starting startups. They have inexpensive tastes. So they feel prosperous on an income that would make someone older and more conventional feel poor.
- ojbyrne 18y agoWe're talking about smart people and inevitably they're going to look at friends who've opted for the corporate world and do the math. Certainly as long as the promise of a big payoff is there, then the math might weigh in favor of doing a startup. But it also might not. That whole time value of money thing says that sacrificing income in your twenties is going to hurt you a lot more in the long run than sacrificing income later on. edit: Of course, right now the "whole time value of money" is basically negative. ;-)
- catch23 18y agoComing from a "poor" entrepreneur who has previously held six-figure software engineer salaries, I can say there's more to entrepreneurship than salary. When I busted my ass working overtime to add cool new features, nobody cared. The company doesn't care, the boss doesn't care, your coworkers don't care either. If I have to spend 1/3 of my life at work, I might as well be doing something I love, even if it puts my retirement at risk.
- ojbyrne 18y agoI mostly agree. But there's something to be said for retirement.
- lincolnq 18y agoThe expected value of doing a startup is high -- I think a little higher than being able to guarantee myself $80K/year. If I work on a startup with 1 cofounder for 5 years and it's got a 10% chance of exiting for $10M, my expectation is roughly $100K/year. So if I can afford to take the (rather high) risk of getting nothing, then I should do the startup. If I value my time differently depending on what I'm working on -- if the startup is lots more fun -- then it's an easy choice.
- daveambrose 18y agoPG, on that note, what would you say is the "sweet spot" in terms of time looking to raise money?