Why startup?

A student wrote: “I want to be an entrepreneur and start my company, I like your advices on Facebook and Blogs but disagree with you about the desire to make money. If money is not the goal then what is? If the startup is NOT about making money then why bother? Since all successful entrepreneurs are rich if they do not care about money why are they rich? Please advise.

Answer: You confuse the goal of a startup with making money. The goal of a startup is NEVER about making money but create products or services that can bring new value or changes to the market and if possible, disrupt it. Money only comes after you succeed. If you look at startups whose only goal is to make money, most of them failed. When entrepreneurs only want to be rich, they will attract the same type of people who want to make a lot of money. If the company does not make money, most of them leave even before the company is stable enough. Even if they make money, there will be arguments on the sharing of profits as people are greedy and want more. A company like that will never succeed, regardless what they do. The startup is risky business and most entrepreneurs LOST MONEY not making money in the first few years. My advice is if you want to be rich, buy a lottery ticket, not starting a company.

If you read books about successful people in technology, none of them starting with the desire to make money. They all have a passion for building something, creating something of value and changing the world. It is their passion and commitment that drive them to achieve their dream. It is their dedication and willing to work hard and overcome many failures before they succeed. Steve Jobs ‘goal is to beat IBM with the Apple personal computer, not being rich. Bill Gates ‘s goal is to control the home computer business by its software, not making money. It is their desires to change things for the better that allow them to succeed. Today there are millions of people who want to be Mr. Jobs and Mr. Gates, but all they want is the money and the fame, but not the passion or the commitment to change things. That is why they never succeed.

Sources

  • Blogs of Prof. John Vu, Carnegie Mellon University