Avoiding Startup Death: A Key to Making Money

This article emphasizes the importance of avoiding failure in startups, highlighting that making money often depends on simply surviving. It's a stark reality that many startups fail, and the article explores common reasons for this, offering practical tips to avoid becoming one of the fallen.

• The author emphasizes that "half of you are going to die" and "if you can just avoid dying, you get rich".
• He observes that startups often die "quietly and heroically" and that a lack of communication is a key indicator of impending doom.

The Importance of Staying Connected

The article argues that staying connected with YC (Y Combinator) is crucial for a startup's success. Regular contact with the organization and fellow founders creates a sense of accountability and fosters a culture of continuous progress, pushing startups to achieve results. It's a hack for survival, turning staying in touch into a path towards making money.

• The author suggests that attending YC dinners and staying in contact with other YC-funded startups creates a "mini Demo Day" environment, motivating founders and encouraging continuous progress.
• He believes that simply by staying connected, startups can avoid "crawling off somewhere and dying."

Demoralization: The Silent Killer

The article identifies demoralization as a major factor in startup failure. The author argues that while running out of money and losing key founders are often cited as reasons for failure, the root cause is usually a lack of motivation. Startups rarely die suddenly; they gradually lose momentum and eventually fade away.

• The author advises that startups should "keep typing" and not give up when things seem hopeless.
• He acknowledges that startups are inherently challenging and that there will be "unbelievably low" moments, but emphasizes that these are normal and that things will eventually get better.

Iterating and Finding Your Niche

The article emphasizes the importance of iteration and finding a niche that resonates with users. Startups rarely get it right the first time, and initial failures are common. The key is to adapt and learn from these failures, focusing on building something that users truly love. It's a vital step in the path towards making money.

• The author advocates for making something that "at least someone really loves", as having a core group of enthusiastic users provides valuable feedback and can boost morale. It allows startups to identify what they are doing well and where they can improve, leading them towards success.
• He highlights examples like Blogger and Delicious, which took time to succeed but started with a loyal user base, proving that incremental growth and continued effort can lead to success.

Avoid Distractions: The "But" Trap

The article strongly cautions against distractions, emphasizing that a startup's primary focus should be on its core product. The article warns against sentences ending with "but we're going to keep working on the startup," as they often indicate a lack of commitment and an underlying desire to give up.

• The author advises against pursuing other projects or returning to school, as they can distract founders and create an escape route if the startup fails. It's crucial to remain focused on the primary goal of making money and achieving success.
• He points out that distractions provide an excuse for failure and make it easier to justify giving up.

Public Humiliation as Motivation: The Power of Pressure

The article introduces an unconventional motivation tactic: public humiliation. The author argues that founders are often more driven by fear of failure than by the desire for riches. Publicly acknowledging a startup's ambition can create a sense of pressure that can drive them to succeed. He uses the example of Octoparts, a company whose founders faced public pressure after appearing in Newsweek, driving them to persevere and fight for success.

• The author proposes that public exposure can be a powerful tool for motivating founders and increasing the likelihood of success, as the fear of failure becomes a driving force.
• He highlights the transformative effect of public pressure on Octoparts, shifting them from lighthearted to grimly determined and increasing their odds of success.

Don't Give Up: Embracing the Inevitability of Challenges

The article concludes by emphasizing the importance of perseverance in the face of adversity. It acknowledges that startups are inherently risky and that challenges are inevitable. However, it encourages founders to embrace these challenges as opportunities for learning and growth. The key to success lies in never giving up, no matter how difficult things get.

• The author reminds founders that "bad shit is coming," but that it is important to stay focused and not let it demoralize them.
• He encourages them to remember that "don't give up" is the key to success, and that even in the face of failure, they can still learn valuable lessons and achieve great things.