Hacker News new | ask | show | jobs
by jacquesm 181 days ago
Not only that, the vast bulk of unicorn wanna-be's end up failing (sometimes failing upwards though) and then it is all for nothing.

Aiming for the middle ground: reasonable growth, good financial strategies based on unit cost profitability and a very tight hand on the purse will get you a solid business that can serve as the jump off point for many other things on top of giving the founders a much better shot at financial independence. This is all a variation on the risk/reward theme.
1 comments
steffoz 181 days ago
To be fair, it's rarely all for nothing for what I hear. Secondary stock sales [1] are very common and allow founders to take some big chips off the table. To me, it is more a matter of keeping things simple, manageable, safe and more fun for how I like to work :)

https://www.startuphacks.vc/blog/founders-guide-to-secondary...

link
jacquesm 181 days ago
Sure, but your personal preferences have an outsized effect on your chances for success because they are very much aligned.

I know plenty of founders that gave it all and then some (including their health, their family relationships and in some cases their lives) and that ended up worse than the shape they were in when they started. So yes, you hear a lot of stories about secondary stock sales and so on but those are the exceptions and very much not the norm. That's just survivorship bias.

link
bpt3 181 days ago
Fellow small business owner here. Just as a reminder, discussing any successful (where successful is defined as not failed) business is a lesson in survivorship bias.

Most businesses of all sizes, shapes, and forms fail within 10 years.

link
lurk2 180 days ago
> Most businesses of all sizes, shapes, and forms fail within 10 years.

I hear this all the time with variations to the number of years, which makes me suspect it isn’t true.

link
LastTrain 180 days ago
What part do you suspect isn’t true?
link
lurk2 180 days ago
That a majority of businesses fail over a given duration of time. It’s probably true on a long-enough timescale, but the idea that the majority of businesses fail within one year or ten just seems completely dubious. How is a business defined? How is failure defined?
link