Essays from Peter Thiel’s Stanford class on startups. In a nutshell, freely available material like this is why I am a college dropout. Every essay is worth reading — queue up your Pocket. I particularly appreciated this one on markets, competition, and monopolies. (via Spittle)
How I failed: Six lessons learned. Wonderful set of insights from Tim O’Reilly. Number four is a very hard problem to solve.
In the last three recoveries, however, America’s economic engine has emitted sounds we’d never heard before. The 1990 recovery took 15 months, not the typical six, to reach the prerecession peaks of economic performance. After the 2001 recession, it took 39 months to get out of the valley. And now our machine has been grinding for 60 months, trying to hit its prerecession levels – and it’s not clear whether, when or how we’re going to get there. The economic machine is out of balance and losing its horsepower. But why?
The answer is that efficiency innovations are liberating capital, and in the United States this capital is being reinvested into still more efficiency innovations. In contrast, America is generating many fewer empowering innovations than in the past. We need to reset the balance between empowering and efficiency innovations.
Clayton Christensen — A Capitalist’s Dilemma
Doubling SaaS Revenue By Changing The Pricing Model. “Most customers do not care about price… those that do are disproportionately terrible customers.”
Did Elizabeth bring your Pinot Gris within three minutes of the time you ordered it? Were your appetizers delivered within seven minutes, entrées within ten, desserts within seven? Were these plates described at the table before they were set in front of you? Were napkins refolded when you went to the restroom? Was non-bottled water referred to as “ice water” (correct) or “water” (incorrect)?
I like to think of funded startups vs. bootstrapped web sites like the split between signed and unsigned bands.
Think about what a band has to do if they sign with a major label. They write music, perform/record it, and play it. Now think about people like Prince, Aimee Mann, etc. that do every single aspect of their music themselves. They have to create and record and distribute music, but also book tours and hotels and hire roadies and even oversee building websites. On the positive side, those going their own way talk about making more money from lower record sales than they did on a label, even though they do a significant amount of work.
So it’s a lot of work, but I would argue it’s totally appropriate for anything that isn’t a huge world-changing idea. And there are a lot of benefits that come from it.