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	<title>Comments on: Working hard or hardly working? VC-backed startups vs. Bootstraps.</title>
	<atom:link href="http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/feed/" rel="self" type="application/rss+xml" />
	<link>http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/</link>
	<description>Handmade Software Experiences</description>
	<pubDate>Wed, 20 Aug 2008 15:35:14 +0000</pubDate>
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		<title>By: Hillel</title>
		<link>http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57641</link>
		<dc:creator>Hillel</dc:creator>
		<pubDate>Fri, 14 Mar 2008 23:11:07 +0000</pubDate>
		<guid isPermaLink="false">http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57641</guid>
		<description>@Vijay: You've touched on a super important point. In fact, I think it's worthy of another post. Basically, companies would rather base decisions on things they can measure even if they are the wrong things versus admitting that there is no measurable metric and going with what seems right.

The other key of course is that companies that feel that they need to measure how subordinates spend their time is starting from the perspective that their employees are children who can't be trusted as opposed to adults who are naturally inclined to do the right thing. This too is another post I think.

Thanks to everyone for the comments.</description>
		<content:encoded><![CDATA[<p>@Vijay: You&#8217;ve touched on a super important point. In fact, I think it&#8217;s worthy of another post. Basically, companies would rather base decisions on things they can measure even if they are the wrong things versus admitting that there is no measurable metric and going with what seems right.</p>
<p>The other key of course is that companies that feel that they need to measure how subordinates spend their time is starting from the perspective that their employees are children who can&#8217;t be trusted as opposed to adults who are naturally inclined to do the right thing. This too is another post I think.</p>
<p>Thanks to everyone for the comments.</p>
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		<title>By: Vijay Chakravarthy</title>
		<link>http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57639</link>
		<dc:creator>Vijay Chakravarthy</dc:creator>
		<pubDate>Fri, 14 Mar 2008 21:34:36 +0000</pubDate>
		<guid isPermaLink="false">http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57639</guid>
		<description>I think there is another dimension to this that many people are not aware of. 

In any system, say for example, one that produces good software, there are bound to be bottlenecks at any specific point in time. For example, you would be bottlenecked on a few engineers, or on product management etc. At such points, it is far better for the non-bottlenecked people to take it easy, go learn a few skills (to alleviate the bottleneck), etc. than to work hard and overload the system.

This understanding, is in essence, an approach that measures results and throughput rather than number of hours spent working.
Which is not something many organizations are comfortable with, since they dont have those measurements in place, and so have to rely on, IMHO, the completely ad-hoc measure of watching how subordinates spend their time..</description>
		<content:encoded><![CDATA[<p>I think there is another dimension to this that many people are not aware of. </p>
<p>In any system, say for example, one that produces good software, there are bound to be bottlenecks at any specific point in time. For example, you would be bottlenecked on a few engineers, or on product management etc. At such points, it is far better for the non-bottlenecked people to take it easy, go learn a few skills (to alleviate the bottleneck), etc. than to work hard and overload the system.</p>
<p>This understanding, is in essence, an approach that measures results and throughput rather than number of hours spent working.<br />
Which is not something many organizations are comfortable with, since they dont have those measurements in place, and so have to rely on, IMHO, the completely ad-hoc measure of watching how subordinates spend their time..</p>
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		<title>By: roger</title>
		<link>http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57633</link>
		<dc:creator>roger</dc:creator>
		<pubDate>Fri, 14 Mar 2008 18:14:28 +0000</pubDate>
		<guid isPermaLink="false">http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57633</guid>
		<description>http://www.alexa.com/data/details/traffic_details/theyrebeautiful.com?site0=theyrebeautiful.com&#38;site1=invitastic.com&#38;y=r&#38;z=3&#38;h=300&#38;w=610&#38;range=1y&#38;size=Medium</description>
		<content:encoded><![CDATA[<p><a href="http://www.alexa.com/data/details/traffic_details/theyrebeautiful.com?site0=theyrebeautiful.com&amp;site1=invitastic.com&amp;y=r&amp;z=3&amp;h=300&amp;w=610&amp;range=1y&amp;size=Medium" rel="nofollow">http://www.alexa.com/data/details/traffic_details/theyrebeautiful.com?site0=theyrebeautiful.com&amp;site1=invitastic.com&amp;y=r&amp;z=3&amp;h=300&amp;w=610&amp;range=1y&amp;size=Medium</a></p>
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		<title>By: Hillel</title>
		<link>http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57632</link>
		<dc:creator>Hillel</dc:creator>
		<pubDate>Fri, 14 Mar 2008 18:08:31 +0000</pubDate>
		<guid isPermaLink="false">http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57632</guid>
		<description>@Tony. Thanks for all the comments. wrt bootstrapping self-destruct... I guess I always understood bootstrapping to mean you need to identify a source of revenue (other than your savings) from day one, and are constrained by that revenue. It may be a temporary source (relative to your long range business model) - like our consulting efforts (we do for MSFT, YHOO, and other startups btw) but it's still a revenue source (as opposed to just savings).

I don't think of self-funded startups as bootstraps per se. Though I'll confess that most bootstraps probably have some degree of self-funding even if it's only subsidizing the venture by taking less salary (which we are certainly doing).

Maybe this is just semantics. :)

BTW... i'll definitely check out rescuetime.com. It looks great.</description>
		<content:encoded><![CDATA[<p>@Tony. Thanks for all the comments. wrt bootstrapping self-destruct&#8230; I guess I always understood bootstrapping to mean you need to identify a source of revenue (other than your savings) from day one, and are constrained by that revenue. It may be a temporary source (relative to your long range business model) - like our consulting efforts (we do for MSFT, YHOO, and other startups btw) but it&#8217;s still a revenue source (as opposed to just savings).</p>
<p>I don&#8217;t think of self-funded startups as bootstraps per se. Though I&#8217;ll confess that most bootstraps probably have some degree of self-funding even if it&#8217;s only subsidizing the venture by taking less salary (which we are certainly doing).</p>
<p>Maybe this is just semantics. <img src='http://www.jacksonfish.com/blog/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' /> </p>
<p>BTW&#8230; i&#8217;ll definitely check out rescuetime.com. It looks great.</p>
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		<title>By: Tony Wright</title>
		<link>http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57629</link>
		<dc:creator>Tony Wright</dc:creator>
		<pubDate>Fri, 14 Mar 2008 17:54:12 +0000</pubDate>
		<guid isPermaLink="false">http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57629</guid>
		<description>Huh?  Bootstrapping has a "self-destruct" timer too. Everyone has a tolerance for how much they are willing to watch their savings dwindle (or stagnate) when they know there are 6-figure jobs out there waiting for 'em.

Unless you are a services/hybrid business like Jackson Fish (you guys do consulting/project work for MS, don't you?), you chance of getting a healthy salary early on is slim.

While you can adjust your spending to increase your runway-- bootstrapping is essentially being your own VC.  You are investing savings and/or opportunity cost in your idea/business.

This is true for ANY product business and is even more poignant for strict consumer plays (that don't have a paid offering).  It's a long road with a painful cliff at the end unless you can manage to sprout wings before you get there.

All that being said, I think you are right on a lot of fronts.  By virtue of the business I've created, I have very very good data to support that working 10 days straight kills productivity.  Someday I'll aggregate and publish some data to prove it.  :-)

Great/interesting post-- thanks!</description>
		<content:encoded><![CDATA[<p>Huh?  Bootstrapping has a &#8220;self-destruct&#8221; timer too. Everyone has a tolerance for how much they are willing to watch their savings dwindle (or stagnate) when they know there are 6-figure jobs out there waiting for &#8216;em.</p>
<p>Unless you are a services/hybrid business like Jackson Fish (you guys do consulting/project work for MS, don&#8217;t you?), you chance of getting a healthy salary early on is slim.</p>
<p>While you can adjust your spending to increase your runway&#8211; bootstrapping is essentially being your own VC.  You are investing savings and/or opportunity cost in your idea/business.</p>
<p>This is true for ANY product business and is even more poignant for strict consumer plays (that don&#8217;t have a paid offering).  It&#8217;s a long road with a painful cliff at the end unless you can manage to sprout wings before you get there.</p>
<p>All that being said, I think you are right on a lot of fronts.  By virtue of the business I&#8217;ve created, I have very very good data to support that working 10 days straight kills productivity.  Someday I&#8217;ll aggregate and publish some data to prove it.  <img src='http://www.jacksonfish.com/blog/wp-includes/images/smilies/icon_smile.gif' alt=':-)' class='wp-smiley' /> </p>
<p>Great/interesting post&#8211; thanks!</p>
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		<title>By: Work Post</title>
		<link>http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57624</link>
		<dc:creator>Work Post</dc:creator>
		<pubDate>Fri, 14 Mar 2008 15:17:27 +0000</pubDate>
		<guid isPermaLink="false">http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57624</guid>
		<description>Most of the investors and businessmen my company has talked to say the same thing: until your idea is at least partially realized and you have "customers", a reliable revenue stream and a good management team in place, the VCs you want to work with will not have much interest in you. So I guess that means you have to do what you have to do to get those things before you can (and should) accept funding. And once you do accept funding, the pressure to show results increases. Bottom line, startups are time consuming and you will tend to become obsessed if you start one but the best people I have observed who start their own companies work smarter than everyone else, not harder.</description>
		<content:encoded><![CDATA[<p>Most of the investors and businessmen my company has talked to say the same thing: until your idea is at least partially realized and you have &#8220;customers&#8221;, a reliable revenue stream and a good management team in place, the VCs you want to work with will not have much interest in you. So I guess that means you have to do what you have to do to get those things before you can (and should) accept funding. And once you do accept funding, the pressure to show results increases. Bottom line, startups are time consuming and you will tend to become obsessed if you start one but the best people I have observed who start their own companies work smarter than everyone else, not harder.</p>
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		<title>By: Jeff Yablon</title>
		<link>http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57623</link>
		<dc:creator>Jeff Yablon</dc:creator>
		<pubDate>Fri, 14 Mar 2008 14:36:20 +0000</pubDate>
		<guid isPermaLink="false">http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57623</guid>
		<description>Bravo!

Take it in another direction: when people got a job and worked for a benevolent (ha!) company for long stretches, perhaps their entire working lives, there was a set of rules that was really easy to interpret: you showed up when expected and did was was asked if you desired to keep your "place". We live in a different world, now:

Many experts in this field will tell you that there's no such thing as a job anymore; even those of us "lucky" enough to be on someone's payroll are really just self-employed people, albeit with a regular check. Well, if that's true (and I posit that it is), then we all (and I'm an emploYER, thank you) need to accept the reality that high-handed statements like Jason's have no place in the equation.

Most important: we all NEED downtime. Pick a study, any study; they all say the same thing. ANd be honest; did you even need a study to tell you that?

Jeff Yablon
President &#38; CEO
PC VIP Inc.
&lt;a href="http://virtual.answerguy.com" rel="nofollow"&gt;Virtual VIP&lt;/a&gt;</description>
		<content:encoded><![CDATA[<p>Bravo!</p>
<p>Take it in another direction: when people got a job and worked for a benevolent (ha!) company for long stretches, perhaps their entire working lives, there was a set of rules that was really easy to interpret: you showed up when expected and did was was asked if you desired to keep your &#8220;place&#8221;. We live in a different world, now:</p>
<p>Many experts in this field will tell you that there&#8217;s no such thing as a job anymore; even those of us &#8220;lucky&#8221; enough to be on someone&#8217;s payroll are really just self-employed people, albeit with a regular check. Well, if that&#8217;s true (and I posit that it is), then we all (and I&#8217;m an emploYER, thank you) need to accept the reality that high-handed statements like Jason&#8217;s have no place in the equation.</p>
<p>Most important: we all NEED downtime. Pick a study, any study; they all say the same thing. ANd be honest; did you even need a study to tell you that?</p>
<p>Jeff Yablon<br />
President &amp; CEO<br />
PC VIP Inc.<br />
<a href="http://virtual.answerguy.com" rel="nofollow">Virtual VIP</a></p>
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		<title>By: Matt</title>
		<link>http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57616</link>
		<dc:creator>Matt</dc:creator>
		<pubDate>Fri, 14 Mar 2008 07:14:09 +0000</pubDate>
		<guid isPermaLink="false">http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57616</guid>
		<description>Great post. I'm a co-founder at a bootstrapped startup (quit the consulting world about 6 months ago) and it's a real eye opening experience. 

Building products was my passion, I just needed to start actually doing it and really diving into the work to fully realize it. 

With bootstrapping, I think the biggest advantage upfront is control.  A lot of things will change and having a dynamic team that can shift, re-focus, and deliver productively and with real passion is important.</description>
		<content:encoded><![CDATA[<p>Great post. I&#8217;m a co-founder at a bootstrapped startup (quit the consulting world about 6 months ago) and it&#8217;s a real eye opening experience. </p>
<p>Building products was my passion, I just needed to start actually doing it and really diving into the work to fully realize it. </p>
<p>With bootstrapping, I think the biggest advantage upfront is control.  A lot of things will change and having a dynamic team that can shift, re-focus, and deliver productively and with real passion is important.</p>
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		<title>By: Cubicle Dropout</title>
		<link>http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57539</link>
		<dc:creator>Cubicle Dropout</dc:creator>
		<pubDate>Wed, 12 Mar 2008 19:40:11 +0000</pubDate>
		<guid isPermaLink="false">http://www.jacksonfish.com/blog/2008/03/11/working-hard-or-hardly-working-vc-backed-startups-vs-bootstraps/#comment-57539</guid>
		<description>Good Post.  I plan on bootstrapping a startup in the near future for the express purpose of better time management.  Productivity among passionate workers doesn't necessarily follow a 9-5 work schedule, and just because someone shows up for a 9-5 job doesn't mean they're working 9-5.</description>
		<content:encoded><![CDATA[<p>Good Post.  I plan on bootstrapping a startup in the near future for the express purpose of better time management.  Productivity among passionate workers doesn&#8217;t necessarily follow a 9-5 work schedule, and just because someone shows up for a 9-5 job doesn&#8217;t mean they&#8217;re working 9-5.</p>
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