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This way of thinking about it is interesting. For many people, me included, entrepreneurship is first and foremost a existential choice. Do you have some examp

by oskarth 13y ago

This way of thinking about it is interesting. For many people, me included, entrepreneurship is first and foremost a existential choice. Do you have some examples of what this middle path might look like? For the entrepreneurial-minded, is it different from what is commonly viewed as "lifestyle business" or bootstrapped revenue-first side-project (that might later turn into a solid small-scale business)?

michaelochurch 13y ago
Mid-risk/mid-growth businesses. Designed to grow at 15-40% per year and hire selectively (see: Valve). Can have a desirable culture (e.g. open allocation) that wouldn't survive 75%/year personnel growth. Too risky for bank loans (personal liability) but not the billions-or-bollocks long-shot gambits that are career-making for VCs. But still potentially very profitable if VCs took a portfolio mentality rather than a careerist "I want the next Facebook because of what it'll do for my reputation" approach.
- leoc 13y ago
  Partnership-like arrangements would seem to be an obvious choice of structure for such firms. Valve seems to be basically a single-proprietorship that tries to run and compensates itself like ye olde professional partnership. The problem is, how to get capitalists on board without giving them enough equity to undermine the partnership goal? Partnership isn't an obviously good match with long development times or significant capital costs. Valve had a founder who was willing to play the benevolent owner-operator using his own hoard of stock-option money.
- FD3SA 13y ago
  Also, profit sharing a la investment banks and hedge funds.
- nostrademons 13y ago
  You're describing basically a high-end consultancy or niche enterprise business. These jobs exist, and they aren't particularly hard to find, but you do have to go out and actively search for them. Companies like this don't make the news; they build personal relationships with companies in their industry and then quietly get contracts. You find out about them through your network; once you've worked in an industry for a while you'll know all the niche players, and probably be able to get a job there if you're any good. I interned at one of these in college. I found it wasn't personally for me, because a.) the pace of work was too slow and b.) customers can be a bitch, with often conflicting requirements, and when you're a mid-size enterprise business you don't get to aggregate many customers together into a product. But for someone with a different risk/reward tradeoff from myself, they can be very pleasant places to work.

by oskarth 13y ago

michaelochurch 13y ago

Mid-risk/mid-growth businesses. Designed to grow at 15-40% per year and hire selectively (see: Valve). Can have a desirable culture (e.g. open allocation) that wouldn't survive 75%/year personnel growth. Too risky for bank loans (personal liability) but not the billions-or-bollocks long-shot gambits that are career-making for VCs. But still potentially very profitable if VCs took a portfolio mentality rather than a careerist "I want the next Facebook because of what it'll do for my reputation" approach.

leoc 13y ago
Partnership-like arrangements would seem to be an obvious choice of structure for such firms. Valve seems to be basically a single-proprietorship that tries to run and compensates itself like ye olde professional partnership. The problem is, how to get capitalists on board without giving them enough equity to undermine the partnership goal? Partnership isn't an obviously good match with long development times or significant capital costs. Valve had a founder who was willing to play the benevolent owner-operator using his own hoard of stock-option money.
FD3SA 13y ago
Also, profit sharing a la investment banks and hedge funds.
nostrademons 13y ago
You're describing basically a high-end consultancy or niche enterprise business. These jobs exist, and they aren't particularly hard to find, but you do have to go out and actively search for them. Companies like this don't make the news; they build personal relationships with companies in their industry and then quietly get contracts. You find out about them through your network; once you've worked in an industry for a while you'll know all the niche players, and probably be able to get a job there if you're any good. I interned at one of these in college. I found it wasn't personally for me, because a.) the pace of work was too slow and b.) customers can be a bitch, with often conflicting requirements, and when you're a mid-size enterprise business you don't get to aggregate many customers together into a product. But for someone with a different risk/reward tradeoff from myself, they can be very pleasant places to work.