The Truth About Startups: What I wish someone had told me about entrepreneurship, Silicon Valley, and successful careers
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The document discusses the realities of startups compared to common myths, emphasizing that building a successful startup often takes about a decade and involves extensive hard work beyond just having a brilliant idea. It outlines reasons to join or start a startup, including mastery, autonomy, and purpose, while also suggesting that gaining experience in established companies can be beneficial. Ultimately, it encourages pursuing growth and connections through various pathways, rather than like solely starting a business.
![“[Established] Companies
execute business models
where customers, their
problems, and necessary
product features are all
“knowns.” In sharp contrast,
startups operate in “search”
mode, seeking a repeatable
and profitable business model.”
– Steve Blank](https://image.slidesharecdn.com/the-truth-about-startups-170407180501/85/The-Truth-About-Startups-What-I-wish-someone-had-told-me-about-entrepreneurship-Silicon-Valley-and-successful-careers-102-320.jpg)
![“On average, an S&P 500
company is now being
replaced about once every
two weeks […] At current
churn rate, 75% of the S&P
500 will be replaced by
2027.”](https://image.slidesharecdn.com/the-truth-about-startups-170407180501/85/The-Truth-About-Startups-What-I-wish-someone-had-told-me-about-entrepreneurship-Silicon-Valley-and-successful-careers-128-320.jpg)
![“The way to get
startup ideas is not
to try to think of
startup ideas […]
The way to have
good startup ideas
is to become the
sort of person who
has them.”
– Paul Graham](https://image.slidesharecdn.com/the-truth-about-startups-170407180501/85/The-Truth-About-Startups-What-I-wish-someone-had-told-me-about-entrepreneurship-Silicon-Valley-and-successful-careers-155-320.jpg)
The Truth About Startups: What I wish someone had told me about entrepreneurship, Silicon Valley, and successful careers
- 1. THE TRUTH ABOUT STARTUPS What I wish someone had told me about entrepreneurship, Silicon Valley, and successful careers
- 2. In the past, most people would tell you to:
- 3. Get a job at a big, established company
- 4. Achieve job securityClimb the corporate ladder
- 8. Mmm, yeah, I’m going to have to go ahead and ask you to come in on Sunday…
- 10. Nowadays, it’s all about startups:
- 18. So what do you do?
- 21. PAST LIVES
- 23. This is the book I wish I had in college hello-startup.net
- 24. I hope this talk & book help you in your career hello-startup.net
- 25. 1. Startup myths 2. Startup truths 3. Startup careers 4. Getting started Outline
- 26. 1. Startup myths 2. Startup truths 3. Startup careers 4. Getting started Outline
- 27. Myth #1: I’ll be an overnight success!
- 29. Reality:
- 30. “Acquired companies were an average of seven years old…
- 31. …while IPO companies went public around 8.25 years, on average.”
- 32. Note: “exits” for the investors. Founders stay on longer.
- 33. So if you remember nothing else from this talk, remember this:
- 34. Building a successful startup takes about a decade.
- 35. Are you willing to give 10 years of your life to this idea?
- 36. Myth #2: I’m going to get rich!
- 38. Reality:
- 39. Most startups pay lower salaries and offer few benefits
- 40. The stock is often worthless
- 41. And most startups fail
- 42. Myth #3: I’ll get to party all day!
- 45. Reality:
- 46. This is startup life.
- 47. It’s not sexy or glamorous. It’s mostly a lot of hard work.
- 48. Myth #4: I’ll get to write code all day!
- 49. Some programmers might be thinking, “this looks great!”
- 50. Reality:
- 51. Building a successful startup takes more than just code
- 52. Sure, you’ll write plenty of code
- 53. But you’ll also have to do everything else, including:
- 54. operating agreements, articles of incorporation, employment contracts, licenses, permits, insurance, NDAs, term sheets, financial modeling, P&L, balance sheet, fundraising, budgeting, cap table, stock certificates, taxes, 81b, 1040, 1099, 1120, W2, pitch decks, customer acquisition, sales calls, CRM, LTV, churn recurring revenue, billing, invoicing, refunds, receipts, interviewing, hiring, firing, promoting, training, motivating, organizing, leading, payroll, HR, mission, vision, culture, renting office space, building a website, setting up email/phone/fax, buying furniture, ordering toilet paper, …
- 55. Myth #5: All I need is a brilliant idea!
- 57. Reality:
- 58. “What surprised me most was how unsure the founders seemed to be that they were actually onto something big. Some of these companies got started almost by accident.”
- 59. It’s not about coming up with a single brilliant idea
- 60. It’s about navigating an idea maze
- 61. Most paths lead to failure. A small few lead to success.
- 62. And even the best ideas don’t matter without great execution
- 63. 1. Startup myths 2. Startup truths 3. Startup careers 4. Getting started Outline
- 64. You’ve now seen some common startup myths
- 65. It’s not that they never happen, but they are bad reasons to join or start a startup.
- 66. So what are the good reasons to join or start a startup?
- 68. 1. Mastery 2. Autonomy 3. Purpose
- 69. Mastery: The urge to get better at something.
- 70. “I've come to believe that learning is the essential unit of progress for startups.” – Eric Ries
- 71. Learning how to build a product users want
- 72. Learning how to market and sell a product
- 73. Learning how to build and motivate a team
- 74. Learning how to…
- 75. operating agreements, articles of incorporation, employment contracts, licenses, permits, insurance, NDAs, term sheets, financial modeling, P&L, balance sheet, fundraising, budgeting, cap table, stock certificates, taxes, 81b, 1040, 1099, 1120, W2, pitch decks, customer acquisition, sales calls, CRM, LTV, churn recurring revenue, billing, invoicing, refunds, receipts, interviewing, hiring, firing, promoting, training, motivating, organizing, leading, payroll, HR, mission, vision, culture, renting office space, building a website, setting up email/phone/fax, buying furniture, ordering toilet paper, …
- 76. Join a startup if you want to grow as a person
- 77. “A startup is a company designed to grow fast. Being newly founded does not in itself make a company a startup. Nor is it necessary for a startup to work on technology, or take venture funding, or have some sort of "exit." The only essential thing is growth. ” – Paul Graham
- 78. Working for a growing company is an amazing experience
- 84. Autonomy: The urge to control your life.
- 85. At a startup, you choose what to work on
- 86. At a startup, you choose who to work with
- 87. At a startup, you choose how to work
- 88. At a startup, you choose where to work
- 90. Purpose: The urge to do something meaningful.
- 92. Gruntwork’s why:
- 93. We believe software is one of humanity’s greatest inventions.
- 97. We also believe that creating software is too hard.
- 99. We believe making software more accessible will transform humanity.
- 100. This is what gets me up in the morning.
- 101. As a startup, we are searching for the right what and how.
- 102. “[Established] Companies execute business models where customers, their problems, and necessary product features are all “knowns.” In sharp contrast, startups operate in “search” mode, seeking a repeatable and profitable business model.” – Steve Blank
- 103. It turns out that search mode is more fun
- 104. It’s hard to feel passionate about increasing profit margin by 0.3%
- 105. It’s hard not to feel passionate about fighting for survival
- 106. When you’re one of 5,000 employees, you rarely feel like you’re making a difference
- 107. When the company is 5 people, everything you do matters
- 108. 1. Startup myths 2. Startup truths 3. Startup careers 4. Getting started Outline
- 109. You’ve now seen reasons you should or shouldn’t join a startup
- 110. So where do startups fit in your career?
- 111. 1. Join an established company 2. Join a small startup 3. Start your own company
- 112. 1. Join an established company 2. Join a small startup 3. Start your own company
- 113. At least once in your career, join a big, established company
- 114. Try to join one of the leaders in your industry
- 115. A “Google” on your resume will benefit you your entire career
- 116. You will work with amazing people
- 117. You will make a good salary (pay off your loans!)
- 118. You will learn how a successful company operates
- 119. You’ll also learn how not to do things
- 120. 1. Join an established company 2. Join a small startup 3. Start your own company
- 121. At least once in your career, join a small startup
- 122. Now is the golden age of the startup.
- 127. Average tenure for a firm in the S&P 500: 1958: 61 years 1980: 25 years 2012: 18 years
- 128. “On average, an S&P 500 company is now being replaced about once every two weeks […] At current churn rate, 75% of the S&P 500 will be replaced by 2027.”
- 129. Open source 19+ million repositories on GitHub. Services AWS, Twilio, Stripe, MailChimp, Slack, DesignCrowd, RocketLawyer, … Distribution Mobile, email, Twitter, Facebook, LinkedIn, Reddit, Meetup.com, YouTube, AdWords, … Information Books, classes, blogs, accelerators, incubators, conferences, … Money Venture capital, angels, crowdfunding, government grants, self-funding, …
- 130. So why join a startup instead of starting your own?
- 131. If you start a startup, you are stuck with it for up to a decade.
- 132. In that same time period, you can join 3-4 startups.
- 133. Earning experience, connections, and stock at each one.
- 134. “The 100th engineer at Facebook made far more money than 99% of Silicon Valley entrepreneurs.” – Dustin Moskovitz
- 135. Some people chase ambulances
- 136. Some people chase IPOs
- 137. How do you find a good startup to join?
- 138. 1. Look to your network. 2. Look at the products you use. 3. Look at elite VC portfolios.
- 140. 1. Join an established company 2. Join a small startup 3. Start your own company
- 141. You’ll probably have more fun and make more money joining someone else’s company.
- 142. As a founder, you will make roughly 10x the sacrifice.
- 143. 10x more stress 10x more risk 10x more time
- 144. So is it ever a good idea to start a company?
- 145. Yes: When you can’t not do it.
- 146. You have an idea or passion that you simply must do.
- 147. You’ve worked on it for years, even while at other jobs.
- 148. You just have to bring your dream into the world.
- 149. Just remember: a startup is one way to accomplish your dream.
- 150. 1. Do a side project. 2. Go into politics. 3. Do volunteer activities. 4. Build a community. 5. Join someone else’s company. 6. Invest in someone else’s company. 7. Start a non-profit. 8. Start a lifestyle business. 9. Start a startup. 10. Do academic research. 11. Publish articles, papers, and books. 12. Give talks. 13. Create an open source project. 14. Become an advisor or mentor. 15. Become a teacher.
- 151. 1. Do a side project. 2. Go into politics. 3. Do volunteer activities. 4. Build a community. 5. Join someone else’s company. 6. Invest in someone else’s company. 7. Start a non-profit. 8. Start a lifestyle business. 9. Start a startup. 10. Do academic research. 11. Publish articles, papers, and books. 12. Give talks. 13. Create an open source project. 14. Become an advisor or mentor. 15. Become a teacher. A startup is merely one means to an end.
- 152. 1. Startup myths 2. Startup truths 3. Startup careers 4. Getting started Outline
- 153. So how do you start? How do you build a good career?
- 154. “You need to be good at something before you can expect a good job.” – Cal Newport
- 155. “The way to get startup ideas is not to try to think of startup ideas […] The way to have good startup ideas is to become the sort of person who has them.” – Paul Graham
- 156. The way to have a great career is not to search for a great career but to make yourself great.
- 157. How to become great: 1. Study 2. Build 3. Share
- 158. How to become great: 1. Study 2. Build 3. Share
- 159. Read books
- 160. Read papers, articles, blogs
- 161. Take classes
- 162. Go to meetups, conferences, and talks (like this one!)
- 163. Aim to be a “T-Shaped Person”
- 164. How to become great: 1. Study 2. Build 3. Share
- 165. When I was a kid, I didn’t like reading.
- 166. When I was in college, I didn’t like reading.
- 167. When I was starting my career, I didn’t like reading.
- 168. You know what finally got me to love reading?
- 169. Becoming a person who needs reading.
- 170. What kind of person is that?
- 171. A maker.
- 172. As I tried to build software, teams, & products, I realized:
- 173. I have no idea what I’m doing.
- 174. It turns out that the knowledge I needed was in books.
- 175. The more I built, the more I had to learn, the more I read.
- 176. Go make things.
- 177. Work projects, side projects, learning projects, open source, hackathons, prototypes, inventions, art, music, teams, communities, …
- 178. How to become great: 1. Study 2. Build 3. Share
- 179. Share everything you’ve learned
- 180. Write
- 181. Speak
- 182. Open source
- 183. Why?
- 184. Quality: you do better work when others are looking.
- 185. Branding: you become an expert by sharing your expertise.
- 186. Mastery: the best way to learn is to teach.
- 187. That’s why I’m here today.
- 188. To share what I’ve learned with all of you.
- 190. Questions?
- 191. Office buildings: Floriane Vita Man in suit: energiepic.com Ladder: Miguel Virkkunen Carvalho Cubicles: Tim Patterson Office Space: 20th Century Fox The Social Network: Columbia Pictures Silicon Valley: HBO The 4-hour Work Week: Tim Ferriss Ping pong: SageChimera Biz Stone: Joi Ito Coding: Hitesh Choudhary Steve Jobs: Matthew Yohe Mark Zuckerberg: Brian Solis Reid Hoffman: Joi Ito Idea maze: Chris Dixon Robert Heinlein: Wikimedia Primitive Wheel: John O’Neill Camp Fire: Eric Dufresne Code: Ilya Pavlov Software frustration: Tim Gouw Coffee: David Mao Steve Blank: Eric Millette Paul Graham: Dave Thomas Dustin Moskovitz: Dustin Moskovitz Ambulance: Paul Sableman Stressed woman: Aledander Dummer Woman writing: Startup Stock Photos Man and whiteboard: Startup Stock Photos Classroom: Wokandapix Journals: Lum3n Meetup: Sebastiaan ter Burg T-Shaped Person: Valve Writing: Alvaro Serrano Teaching: Pop Tech Pair coding: Startup Stock Photos Expert: Graham Lavender References & image credits