Startups
The Hardest Lessons for Startups to Learn
paulgraham.com
Startups
20 min read → 70 sec
A set of counterintuitive startup lessons on releasing early, shipping constant improvements, listening to users, fearing the right risks, staying determined, and treating deals skeptically while focusing on growth.
Startups learn fastest by releasing minimal version 1 early, then improving from user reactions
The main job is making users happy, because growth comes from converting casual visitors into users
2 / 19
Users hate bugs, but they usually accept a minimal version 1 if more is coming soon
3 / 19
Many startups died from releasing too slowly. None died from releasing a stable minimal product too early
4 / 19
Wufoo, a form-builder, released before finishing the database, drew 83,000 visitors, and learned to reduce Flash
5 / 19
The first release is a shakedown cruise that exposes bad ideas, broken teams, and other major flaws
6 / 19
Releasing creates urgency. Live problems feel alarming instead of merely interesting
7 / 19
Startups should improve the product every day or two with one unit of user benefit
8 / 19
Constant product improvement is also marketing. Users notice progress and talk about it
9 / 19
Sites should explain what they do fast and put the strongest value on the front page
Most visitors arrive ready to hit Back, so the site must stop them immediately
10 / 19
Unknown startups are more dangerous than Google. They are as hungry and less visible
11 / 19
Microsoft and Apple changed direction after customers showed them what business to build
12 / 19
The biggest startup killers
1
Internal disputes between founders
2
Inertia and moving too slowly
3
Ignoring users
13 / 19
Determination matters more than intelligence in founders, but it must stay flexible rather than stubborn
14 / 19
Founders who seem ambivalent get less attention from investors, acquirers, and other partners
15 / 19
Treat deals as unlikely until closed, and keep running the company toward user growth
16 / 19
A startup's only real leverage in deals is genuinely not needing the deal
17 / 19
A startup is best seen as a way to make a living faster, not merely a way to get rich
18 / 19
19 / 19
Carouse
Turn any article, video, or podcast into a carousel you can browse in 30 seconds.