Ask HN: What's the big deal with startups anyways...

154 points by magnusdeus123 ↗ HN
My father is a custom's officer. My mom's a manager in a bank. Government employees. Middle-class.

Dad focused on his mutual funds, mom on her promotions. And both, on everything in between. We now own three houses and close to a millions-worth.

I wasn't taught to be egotistic, brash and adventurous. I was taught to be hard-working, loyal and obedient.

I was told to maximize my intellectual, professional and social value for a company. Not for a client (the former offered better security and were easier to deal with anyways)

Math and Chemistry, not Psychology and Political Science.

Fixed deposits, not stocks.

I started a local website development business recently. My goal? Have something to show at interviews.

I want to know why this is so wrong today.

I want to know why we fixate so much on the millionaire's presentation about some bread-crumb concept like,“Love your job”. Was anyone was not aware of that?

What about an opinion by the 90k-salaried .NET developer. The one who probably couldn't be happier that he payed off his 3-bedroom condo last week. Or am I wrong here?

Why do we continue to preach the greatness, the undisputed manifesto of startups and entrepreneurship in general.

Why are there half-a-million blog posts by some 28-year old on how having your own startup will result in you losing weight and gaining muscle, eating better, dating supermodels with PhDs while the startup simultaneously mows the lawn and cooks breakfast every morning for you.

Why, even when we know that 9 in 10 of us are doomed.

I want to know: Why the hype?

159 comments

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There is always going to be hype around high variance career paths, because so little is understood about was factors are causal for success.

In low variance career paths, things are pretty straightforward so there is little blog about.

"Why the hype?"

You are asking this on HN, which is run by a startup funding company and started out as "Startup News" ( http://ycombinator.com/announcingnews.html )

Couldn't agree more.

Everyone where they belong. If you don't feel to be part of the internet startup world, why get involved in it if it won't fulfill your desires?

What better place to ask: there is always room for introspection.

I can personally answer the OP: the opportunity to ROCK it, make huge differences in society, touch the lives of more people than you will ever meet in person, do what you love. Just the rush of conceiving an idea, and have it set your mind aflame in those few seconds you're running towards pen and paper is WORTH IT.

Funny you should say that. I'm currently at a mid sized (10k employees worldwide) consultancy, and one of the reasons I'm still there rather than having run with one of my startup ideas is that there I get a chance to "make huge differences in society, touch the lives of more people than you will ever meet in person". I get to be involved in huge projects with real visible impact on peoples lives. At a small company (my own or someone else's) I'd with all likelihood be working on much smaller problems with much smaller impact.
I got asked this twice, so I guess I'll answer. I see articles related to startup across other forums too but I frequent this i.e. I'm comfortable here, and being one of the largest forums dedicated to the concept, it made sense to ask it on HN. I knew that it would be defended by the most updated and committed audience.

Should I have asked it on Yahoo! Answers or something people reckon?

And no, it has nothing to do with going out and getting some sunlight.

Clearly Grampa Simpson said it best for you:

"Oh, son, don’t overreach! Go for the dented car, the dead-end job, the less attractive girl!"

Posts like this are part of the problem (you wouldn't call Peter Norvig an under-achiever, would you?). There are plenty of great jobs at huge firms and there are shit jobs at startups.

Most of the enterprise people I know would hate it if they had to do some of the sysadmin/dba/support stuff most startup people have to do (look at Zed Shaw, he explicitly singled out the sysadmin aspects of his startup job as to why he left dropbox). It's a luxury to be able to have dedicated staff around for that stuff.

I get to write code all day and it keeps me pretty happy. Oh, and I get to leave at 5:00pm and not feel guilty about it. :)

Do you mean the post or my comment is part of the problem? I don't think you read the post. Why do you bring in Peter Norvig and his level of achievement, if he got where he is by leaving the office at 5pm everyday, I would love to hear the facts. The post asked why are startups that attempt to achieve greatness so celebrated? and also why are the opinions of those who dare greatness valued more that someone who is very happy in his averageness? And, why try if we know most will fail? I think someone can achieve greatness working 9-5, I think someone who works 9-5 can have great insight, knowledge, and be truly happy. But the post question was Why do people consider startups to be a big deal?, and the answer is, because they are.
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Would it work out the same again if your parents started today? Also manager in a bank might already be quite well paid?

There might also be more involved than just making money. It's also about work satisfaction.

Ever heard of Maslow's hierachy of needs? On the top of the hierarchy, above things such as family, love, wealth and self-esteem, there is self-actualization and self-expression. You have to express yourself somehow. Some people express themselves with music. Others write blogs. For many people, starting up your own business and do things they way you think they should be done is a way of self-expression. It's your thing. You have built it.
I think it's important to point out that "above", in Maslow's hierarchy, means that it assumes that you already have all the other stuff below, and even that you won't get benefit from moving up the pyramid until you've satisfied everything below.
When the 90k .NET developer shares his opinion, and it's interesting, we listen to it. Just like we listen to anyone else.

But oddly enough, it's usually the entrepreneur that shares interesting things. It's the person who goes out and does new and interesting things that finds new things to talk about. Sometimes they're crap, sometimes they're brilliant... But they're almost always new and interesting.

The '90k dev', by definition, is happy simply to get through the workday and pay his debts. If he was reaching for more, he moves into the entrepreneur class. Sure, they sometimes find nuggets and share them, but more often they either find nothing or don't share it.

"The '90k dev', by definition, is happy simply to get through the workday and pay his debts. If he was reaching for more, he moves into the entrepreneur class."

That's not really true. There's tons of interesting work going on within large organizations, and they often let you work on problems that you can only dream about. The difference is that as an employee, you're usually contractually obligated to keep your mouth shut about your solutions and let others rediscover them on their own.

For me, it's simply about what makes me happy.

I have worked both for startup companies and large corporate entities. While the corporate world does offer some sense of security and reliability (and that is tempting to me sometimes, even now), I have been most unhappy in my career during those times when I was assigned a cubicle and a task list.

Over the years, what I have learned about myself is that I enjoy creating things and applying myself to new challenges. I know this is not the case for everyone. If you were meant for the quiet world of work life, then I strongly agree with you -- it's a surer path to financial security. If you weren't meant for it, then financial security won't matter very much -- you'll be miserable.

Like all hype, you need to take startup variety with a grain of salt. A lot of it is entrepreneurs encouraging others to overcome the fear and inertia that held them back. And for every blog post touting the all-singing-all-dancing power of startups, there is another one saying that it will be ferociously hard work and you may still fail. I'm a happily salaried developer myself, and if I do start a business it won't be a classic "startup". I still get a lot out of HN.
It's because we couldn't imagine ourselves doing anything else. It's certainly not about the money. If I wanted money I'd be doing some tech/marketing consulting or would have continued on the God awful finance track that was so hot when I started undergrad.

It's pure love of the game when you get down to the heart of it. There's a certain love for creating something from nothing.

Sadly, there's too much hype out there from the press/blogging community because that's what gets them pageviews.

Nothing wrong being a salaried 90k .net developer either. This isn't for everyone. It isn't for most to be honest. Now is the best time ever to start something though. The costs to at least see if it will work are close to nothing and if it does work out, the tools to charge are there/raise money to scale are heavily available.

I don't know where you live, but here in the UK it's harder and harder for children of the post-Boomer generations to get the kind of "job for life" that gave such returns.

Your parents were lucky to have lived through a time of cheap/free education, steady growth in the economy, and relatively cheap house prices when they were starting out. With good luck they will get a good pension, paid (in your father's case) by earmarked taxpayer largesse.

For the rest of us, we'll start our employment mired in student debt, higher taxes from paying for Boomer retirees, property prices forever beyond our reach, and an economy so bad that young people regard un- or low-paid slavery as a privilege (sorry, "internships").

The government here is cutting back across the board, and banks and other big companies cutting staff. The "job for life" is gone for us, as a generation.

So, what's riskier - starting out on your own, with the chance to make it big, or struggle for years, or decades, on low-paid, short-term employment ?

Why is the employment short-term? Isn't the UK like most of Western Europe in that it's quite hard to fire someone (and then you have to give months and months of severance if you do)?
You have short-term (max 6 month) contracts. You don't need to fire someone when their contract ends.
It is harder to fire someone in Europe than in the US.

However, in the UK severance pay is tax free but the legal minimum that is required by your employer is quite low, some employment contracts may specify better redundancy terms but employers don't have to be that generous.

Wait you mean they have to pay severance? That's not required at all in the US. Unless your contract says so, when fired you get nothing.
Only when made redundant. There's no mandatory payment for dismissal. However, it's common for people to leave "by mutual consent" - the employer pays off the employee to leave quickly, rather than go through the formal procedure of establishing incompetence.
I can totally second this adding that the UK and in general northern countries in Europe have even a better situation than southern ones. I come from Italy and there the situation is far direr. Unemployment is stellar, wages are the lowest in Europe, people are losing jobs like falling flies and those who get it usually do not have any stability in the long run.
Native English speaker tip -- 'stellar' means 'good' rather than 'high,' despite the star connotation.
Though, strangely enough, "astronomical" does mean what he was going for, with the same metaphor.
It's not the same metaphor. The idea of a large number being "astronomical" comes from astronomy being the science that uses the largest numbers and units.
Oh, thank you. We have the same word in italian, and we can use it with this meaning. Sometimes I make the mistake to assume that meta-meanings apply cross language as well.
For what it's worth, it's the same in the US, except from what I understand about UK law, it's much easier to be fired in the US.
We live in a world thats becoming more self-centric every day. We are told everyone is special and everyone can achieve. Just to be clear, I agree half-way with your points of view. Not everyone can be an achiever, not every startup is a good one. The fact is - a 90k job doesn't cover all of our costs anymore. The price of housing has tripled over the last 40 years but salaries have gone done on average (inflation adjusted). We have a great unbalance in our system - yes its flawed.

Each and every day you're becoming less significant. Literally. As world population increase, an individuals worth, his identity, his very core will become less and less visible. We stride to stand out, to achieve - to be visible, appreciated, spoken of. Entrepreneurship is a channel through which we can break out of our shell. As for the models, gaining muscle and eating better... what's wrong with eating better?

>Why the hype?

From 1980-2005, nearly all net job creation in the United States occurred in firms less than five years old. Your job security wouldn't exist without startups. The risk-takers are the exploratory outliers changing economic paradigms and promoting growth. If their business model bet succeeds, they have both predicted the future as well as created the future.

We pay them attention even\especially when they say bread-crumb concepts because humans have always been interested in the idea of prophets.

“When you meet an entrepreneur you are looking into the future. You are talking to a crystal ball. That is how I felt when I first spoke with Larry and Sergey.”

- Ron Conway

It's a separate question from what the OP asked, which is more about the individual motivation behind being an entrepreneur, but it is good for the OP to at least appreciate the fact that such people exist, for the sake of the economy.

Even putting job creation statistics aside, entrepreneurship is essential to any economy. There would be no such thing as your stable job if not for an entrepreneur 10 years ago. Job stability doesn't exist in nature. Somebody had to create it, and somebody has to be out there continuing to create new things or the stability will fall apart, or become a stagnant organization that doesn't exist for any good reason. Major improvements come in the form of entrepreneurs, or at least by established companies being checked by entrepreneurs.

A lot of it is about more than the money, but even just considering the money issue entrepreneurship is often better. Let's face it -- if you're intelligent, then selling your time for money (salary) just isn't a very efficient way of making money. Sure, there is an element of risk, but there's risk in almost everything you do in life. Driving a car is "risky", but that doesn't mean YOU have to be a risky driver. Same for entrepreneurship.

To me, working the same job for 40 years hoping I'll save enough money to be able to retire in spite of unknown but probably increasing inflation is what is risky.

I think it's important to remember who runs this website. There's probably other websites out there for the 90k-salaried .NET developers.
If you want to know what's wrong with a government/big company job, go and try one. You could be suprised, just like I was, and start to aim for a high variance career.
People say do what you love, I say do what pains you.

I find it painful to see an opportunity and not take it. I have always sold stuff. When I was 14, there was a civil war where I lived and the prices of everything shot up several hundred percent. The government intervened and subsidized food and gasoline. At the time, I was an A-student: I had the second highest grade in the state and was featured on both radio and television. A good kid by every measure .. BUT! I found a contact at a cigarette factory who would sell me cigarettes at 80% discount. He just meant to sell me a pack, because I was a "rich kid". I flipped him over to work for me.

At 14, I ran a cigarette cartel out of my grandmother's house supplying tens of shops and street vendors.

I didn't need the money. My father and all my older brothers and sisters were in America. I didn't do it for the money. I just did it because it was an opportunity.

With some of the money I made I bought a bicycle and decorated it at a carpet shop .. for some reason. I got that idea that, perhaps, draping the bicycle frame in velvet cloth would look more appealing than the bare metal. I took it to the carpet and curtains guy and told him what I wanted done. He was confused, but money is money, so he pimped out my bike in purple velvet; a pair of wheels befitting a dealer.

Every kid in town wanted my bike.

My second venture was bicycle upholstery. A cottage industry unheard of up to that point. I didn't make as much as I did in cigarettes, but to this day, you can go to my old hometown and see kids ride bikes draped in cloth.

You're just born with the bug, I guess.

Super story, I knew you had a 'checkered' history, but didn't realize just how checkered. A cigarette cartel out of your grandmothers house is really quite neat, I'm trying to imagine my (very straightlaced) grandmothers response if I had tried something like that.
Ah! A fellow traveler! Some of us are just born hustlers.

When I was 12, I funded my own computer in no small part by selling most of my stuffed animals and all of my My Little Ponies.

When I was 13, I used to make good money reselling brand new IKEA lamps and things on eBay. I had it down to a system -- selecting the ones that had the biggest multiple of going price over real price, never keeping stock on hand, having a real system to writing the listings, and spacing them out, etc.

Things just got more boring from there on out. And while the secondary IKEA market is funny, it's not as funny as yours.

Bicycle upholstery! Cracked me up. That's amazing.

I'm not nearly as much of a hustler as either of you, but I traded three pokemon cards I got for free from a friend into 400+ cards back in 4th grade. (Pokemon cards were as good as currency for us.) I would trade a pokemon to someone who didn't care about energy cards (and would give me 10:1), then traded 5:1 for better cards, traded those cards for some star cards, traded star cards with better stats for holos with worse stats, traded holos with worse stats for multiple non-holo star cards, and kept this up until somehow I had a lot of cards. Never ended up buying a pack of pokemon cards either. My parents thought I was crazy.

Yeah I ended up accidentally sticking most of my holos into the wash on one occasion though. :(

Because some of us believe that creating something innovative that people use is more rewarding than making small contributions towards an existing product/business at a 9-5 job.

More often than not, society rewards you in proportion to the value you create for it. And you can't create the amount of value that comes with a startup without taking on a lot of risk. (Look up "risk-reward" in economics).

That's why entrepreneurs are glorified. They are willing to take the necessary risks in order to create unusual amounts of value for society and, yes, for themselves.

First, be who you want to be. It's your life and your decisions. As long as you feel in control and are happy, who are we to say what's better than what?

Second, you are asking a question with a false premise. It's not either "make a million and be a rock star" or "work a 9-5 job". There are lots of entrepreneurs on here, just like yourself, who are also working jobs. Lots more that are on their own and just barely Ramen profitable. Lots more that are quite happy with having a cottage business.

There is a business and a hype around startups, no doubt. You see a lot of that here, although its usually sub-rosa.

It's the risk-taking superman story. There's a lot of drama. It's the simple cool idea or magic formula that made the weakling into the giant. Business porn. People selling emotion instead of a reality. Some folks trying to help that don't know what they're talking about, they just got lucky once. Some unlucky people who drew the wrong conclusions. Way, way too much fanboyism and hero worship. But that's okay -- startups are all about making a difference, and that usually entails lots of work and risk. As long as folks know the odds going in, why not stay positive about the whole thing? Our enthusiasm for startups doesn't mean that other choices are bad or wrong. Why wouldn't you be excited about the choices you make in life, no matter what they were?

What's the big deal with startups anyways...

1. I write software: business applications. I love what I do. I love getting something to work right the first time. I love seeing people use the software I wrote to do their jobs and run their businesses. I can't imagine doing anything else.

2. The software I have inherited in all 88 companies I have worked at has sucked. I mean really sucked. Nothing to be proud of. Nothing to want to work on. I think it's because business software is now where medicine was 100 years ago.

So I have a choice. Work on other people's crap or write my own. I have done both, but I have to write my own to be happy in this industry. If I could only work on other people's software, I think I'd rather work in a grocery store.

Starting a software business is the most direct way to do what I really want to do.

I realize that other people have different reasons; this is just one answer to your question.

Other peoples' software will always be "crap" while software you wrote yourself will seem better. Joel Spolsky: "There's a subtle reason that programmers always want to throw away the code and start over. The reason is that they think the old code is a mess. And here is the interesting observation: they are probably wrong. The reason that they think the old code is a mess is because of a cardinal, fundamental law of programming: It’s harder to read code than to write it."

http://www.joelonsoftware.com/articles/fog0000000069.html

(I do understand, though, that some software may legitimately be crap.)

That's true, of course, but not really relevant to this discussion. Even if your own code is crap, you're happy to work on it because it is your code. I think a large part of this, for me anyway, is that I have no one but myself to blame for the state of the code and so: 1) I have internalized all the reasons for why it looks the way it does and 2) I can't fall into the trap of blaming everything that's wrong on an external party.
Really? I see quite a bit of good code from other people. My dissatisfaction with it comes from shear stress when I try to use it from my own software; my expectations of what the code should do are usually subtly different from what the original author intended.
I think Joel (as he often does) has oversimplified this massively. If you are a really good developer then the majority of 'other peoples' code will seem to be crap, likely because it is. It is a minority of coders who really and truly care about how they build software and an even smaller group of those who know how.

Crap software happens because most people don't care about how to write software. It would be like people publishing novels with only a cursory knowledge of the language (and style) they are writing with (not that this doesn't happen cough twilight cough).

Do you change job every week?
He is a regular HN poster. From what I gather of him is that he has been doing this for a while now. He is also a consultant which means that you are allowed to have multiple customers at the same time in various stages of development. If he is focusing his efforts in jobs that are similar he is able to reuse some of the utility routines and design patterns that he has accumulated over the years. I see 88 as a perfectly fair number.
Sounds like a loaded question to me. You know what the big deal with startups are: the potential to create something new and interesting, become independently wealthy, to not answer to a job or deal with the 9-5 daily grind working on other people's ideas, etc. Nobody here made the claim that working at a startup is the most direct path to happiness.
Why fly to the moon when you can simply stay here on Earth and watch someone else do it on TV? Why run a marathon when you could drive instead? Why read a programming book when there's a perfectly good movie sitting in your DVD player?

Ambition. "Educated" risk taking. Non-complacency. A desire to push yourself farther than what society says you should be. To invent something new, world changing. To throw an economic monkey wrench into someones inefficient/crappy invention. To think on your own. To live and die on your own merits.

Many will have different answers as to what motivates them to do it. It's definately not for everyone. You usually "know" if you want to do a startup or not. It's extremely challenging. Not doing one is a perfectly fine choice. Live your life the way you please.

"Why fly to the moon when you can simply stay here on Earth and watch someone else do it on TV? Why run a marathon when you could drive instead? Why read a programming book when there's a perfectly good movie sitting in your DVD player?"

I get asked these sorts of questions about a lot of things I do, and honestly I often don't have a good answer. Why do I keep trying to start a business? Why do I climb mountains? Why do I go to the gym? The best I've come up with is to prove to myself that I can because it's certainly not fun all the time. In fact it's often quite painful, but once you've tasted the elation of success it's like a drug and keeps pulling you back in.

Why run a marathon when you could climb a mountain? Why climb a mountain when you can write a novel? Why write a novel when you can compose a symphony? Why compose a symphony when you can run a marathon?
Why run a marathon? Because if you try to climb a mountain, you'll get distracted by your novel, which you won't finish because of the symphony you've got in mind. At some point, you just have to pick something and do it. Do it until you are good enough that starting over with something else just seems like an unsatisfying waste of time. If you don't pick something, you won't ever do anything of note.
Climbing up that mountain isn't always fun but the sense of achievement when you get to the top is always good.
You can either experience fear of the unknown, or the pain of finding out. They both hurt, but fear diminishes you, while knowledge makes you powerful. You can wake up the morning of your local 5k Turkey Trot with a gut full of fear, or you can pop out of bed excited, knowing it'll be a walk in the park compared to the marathons you've run.
I agree, there seems to be much more startup advice on HN than people sharing experiences... So yes, there is too much hype.

That said, I am a gainfully employed scientist with money in the bank, and I am also a hard-working co-founder. It is not about money or promises of easy-living to me. It is about the challenge of building something that does not yet exist.

I don't read self-help books, and avoid blog posts about start-up strategy. I consider such things as a serious waste of time, and a dangerous distraction from free-thinking. However, some people share actual experiences on HN, and I find that to be valuable.

Also IMHO: 9 in 10 of us are not 'doomed'. I don't believe there is an 'us', and I do not perceive myself to be taking chances. Everyday I am doing something that makes me happy. Where's the chance in that?

If your goal is to accrue money, then for God sake's don't do a startup. As you point out, there are much better ways to do that.

This is a bit like going to a Christian forum and asking "What's the big deal with Jesus anyways?", or an accounting forum and saying "What's the big deal with debits and credits anyways?". You're only seeing "hype" because you're looking for it where it's strongest. My parents never talk about startups. Nor do my siblings. My girlfriend doesn't other than curiousity about my own experience. My friends generally don't. My online friends from video games don't.

If you think you're in an echo chamber, step outside. It will likely do you some good, especially re: startups.

Speaking of echo chamber, stepping outside SV for a while would probably do many good.
Or the United States for that matter.
This is so true. Everytime I visited outside of U.S, it reminded me of what complete different worlds many people lived outside of U.S. Different food, different languages, different people, different values, different ambition. It's an amazing feeling.
It's almost like it's a whole other country.
Indeed, sad it is that the most up-voted comment is just begging the OP's question.

Why not just answer the question, what's the substance behind the hype?

I hardly think it's wrong to ask people to question their assumptions, especially when it's done in a thoughtful, non-confrontational way.

I thought I did, indirectly. My answer is that there is no prevailing "hype". This is a community of startup enthusiasts, so it should be fairly obvious that everything discussed here, and on the articles and blogs linked from here, will revolve around startups. If you want to learn about the values of working a jobby job, this is not a place where you're going to find a great conversation.
I think there are two separate issues.

First of all, some poeple, like me, prefer to shape their own product without serving obediently for years climbing some corporate ladder, executing orders handed down by superiors. That preference, for me, is independent of all economic considerations.

The economic issue seems like a question of risk tolerance at first sight, but actually it isn't. A startup may be high risk, high potential reward, but starting a startup and being an employee are not exclusive choices. You can always look for a job if your startup fails. If you never try to start a startup, you needlessly settle for the low reward without getting anything a startup founder doesn't get. You're just renouncing one of the opportunities that our society provides. Why would you do that?

>>Why the hype?>>

So my goal for the last year while I have been doing startups my goal has been to get ramen profitable and we did that just a couple of months ago.

The reason this was so important to me is because now, I feel like I am "living off the land" or "surviving in the wild" and answering to literally no one. The amazing part about start-ups is that they make me feel truly alive and independent, while working for someone else makes me feel trapped and dependent. Right now, I'm really happy.

I'm also looking forward to the next part of our start-ups growth, which staying with the analogy, will be like growing a clan of like minded people who want to build on what we started.

Also, I read once in 'Stumbling on Happiness' that people are happy when they can actually have an impact on things. In less than a year, we have already significantly impacted the YouTube space and will be continually impacting the entertainment industry. The exciting part is in my opinion we have done this for the better and that as promised in the book that does makes me happy.

I guess in some ways, I'm some sort of new aged tech-hippy, but at least I'm not alone: http://www.paulgraham.com/boss.html