I made something people I made something people wantwant

By Paul PajoBy Paul Pajo

Startups in 13 sentencesStartups in 13 sentences

From Paul Graham’s Essay – Startups in 13 From Paul Graham’s Essay – Startups in 13 sentencessentences

I usually send this to people who want to know I usually send this to people who want to know what a startup iswhat a startup is

http://paulgraham.com/13sentences.htmlhttp://paulgraham.com/13sentences.html INC.Com recently had an article about Y INC.Com recently had an article about Y

Combinator – launched 145 companies since Combinator – launched 145 companies since 20052005

A New ParadigmA New Paradigm

What do you want to be?What do you want to be?

8 out of 10 businesses fail 8 out of 10 businesses fail within 2 years of within 2 years of

incorporationincorporationHow do you feel after reading this How do you feel after reading this

statement?statement?

Don’t let the rat race bleed Don’t let the rat race bleed entrepreneurship out of youentrepreneurship out of you

If you get burned out before you even If you get burned out before you even started, it might be hard to get back to started, it might be hard to get back to

the starting linethe starting line

1. Pick good co-founders1. Pick good co-founders

Good to Great principle – who will be Good to Great principle – who will be the people in the busthe people in the bus

2. Launch Fast2. Launch Fast

A reason to engage usersA reason to engage users You start learning immediatelyYou start learning immediately

3. Let your idea evolve3. Let your idea evolve

PayPal wasn’t originally about PayPal wasn’t originally about paymentpayment

Pivot, Pivot, PivotPivot, Pivot, Pivot

4. Understand Users4. Understand Users

Make something people wantMake something people want I made something people wantI made something people want

5. Better to make a few users 5. Better to make a few users love you than a lot love you than a lot

ambivalentambivalent 1,000 fans from kk.org (Techmium)1,000 fans from kk.org (Techmium)

Something in between the “head” and Something in between the “head” and the “long tail”the “long tail”

6. Offer surprisingly good 6. Offer surprisingly good customer servicecustomer service

In a sea of mediocrity, it takes so little In a sea of mediocrity, it takes so little to stand outto stand out

At the onset, it SHOULDN’T ScaleAt the onset, it SHOULDN’T Scale

7. You make what you 7. You make what you measuremeasure

What you measure, motivates youWhat you measure, motivates you When people KNOW they are When people KNOW they are

being measured, they up the antebeing measured, they up the ante

8. Spend little8. Spend little

What is your burn rate?What is your burn rate? Don’t run out of moneyDon’t run out of money

The cheaper you can do this the MORE The cheaper you can do this the MORE you can iterateyou can iterate

9. Get Ramen Profitable9. Get Ramen Profitable

Important MilestoneImportant Milestone ““You make just enough to pay for You make just enough to pay for

the founder’s living expenses”the founder’s living expenses”

10. Avoid distractions10. Avoid distractions

Day Jobs/Consulting/Side ProjectsDay Jobs/Consulting/Side Projects Give your startup a chance – carve Give your startup a chance – carve

some timesome time

11. Don’t get demoralized11. Don’t get demoralized

That’s why you need a co-founderThat’s why you need a co-founder Pivot, Pivot, PivotPivot, Pivot, Pivot

12. Deals Fall Through12. Deals Fall Through

Background processesBackground processes Don’t let your morale depend on itDon’t let your morale depend on it