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He focuses on the negative because most businesses fail, and as entrepreneurs are eternal optimists, many don't fully consider the downside of starting a busine

by rjurney 17y ago

He focuses on the negative because most businesses fail, and as entrepreneurs are eternal optimists, many don't fully consider the downside of starting a business. Right now MANY small businesses and startups are failing. Its important to understand the potential negative consequences of starting a business. Most people, and especially around here, are in denial about this basic fact: by the numbers, your startup or small business will most likely fail. Thats ok. Your job is to do everything you can to beat those odds. Also, most people don't have the luxury of 'capital light.' When small businesses fail, families usually suffer. That is part of the game, and its worth talking about once in a while, in between articles about guys that hit it big.

jacquesm 17y ago
Think of it as farming, if you sow a lot of seeds some will never come up, some will come up, wither and die and some will come up and grow to great height, then whither and die. Everything has a lifecycle, businesses do too. Any business that has generated money over its lifespan and has employed people and paid them is by some measure a successful business. The timescale at which that cycle plays and the size of the business are not relevant.
MicahWedemeyer 17y ago
Very true. We constantly hear the "I woke up rich the very next day!" type stories, and it skews the perception of what running a business is like. I have a lot of sympathy for old-school businesses that need a lot of operating capital. Putting your house in danger to support your business is a choice I hope I never have to make. In my case, that would essentially be the same as putting my marriage on the line.
- rjurney 17y ago
  Interesting quote I heard last week, from Stephen Fleming, successful VC and now Vice Provost of Georgia Tech. It was something like, "I've never seen a married founder bootstrap a company to a large exit and had the marriage survive."
  - skmurphy 17y ago
    I think it depends upon what value of large. One counter-example: Greg Gianforte bootstrapped RightNow technologies to 100M in revenue, still runs the company, and is still married. Two others would be Bill Hewlett and David Packard.
    - rjurney 17y ago
      Its not that there aren't outliers. Its that bootstrapped divorce is very common - maybe more common than not.
skmurphy 17y ago
So this was the failure of a long established business. That's certainly a different problem from the "infant mortality" challenges that most startups face.

by rjurney 17y ago

jacquesm 17y ago

Think of it as farming, if you sow a lot of seeds some will never come up, some will come up, wither and die and some will come up and grow to great height, then whither and die. Everything has a lifecycle, businesses do too. Any business that has generated money over its lifespan and has employed people and paid them is by some measure a successful business. The timescale at which that cycle plays and the size of the business are not relevant.

MicahWedemeyer 17y ago

Very true. We constantly hear the "I woke up rich the very next day!" type stories, and it skews the perception of what running a business is like. I have a lot of sympathy for old-school businesses that need a lot of operating capital. Putting your house in danger to support your business is a choice I hope I never have to make. In my case, that would essentially be the same as putting my marriage on the line.

rjurney 17y ago
Interesting quote I heard last week, from Stephen Fleming, successful VC and now Vice Provost of Georgia Tech. It was something like, "I've never seen a married founder bootstrap a company to a large exit and had the marriage survive."
- skmurphy 17y ago
  I think it depends upon what value of large. One counter-example: Greg Gianforte bootstrapped RightNow technologies to 100M in revenue, still runs the company, and is still married. Two others would be Bill Hewlett and David Packard.
  - rjurney 17y ago
    Its not that there aren't outliers. Its that bootstrapped divorce is very common - maybe more common than not.

skmurphy 17y ago

So this was the failure of a long established business. That's certainly a different problem from the "infant mortality" challenges that most startups face.