Why startups are harmful investments - David Heinemeier Hansson (partner of 37signals and the creator of Ruby on Rails)

An impressive and impressive performance under the heading Unlearn your MBA, the main theme of which was that investing money is harmful for a start-up company. And that's why:

• spend your money with much more attention than others;
• getting the first money - you fall into a drug addiction to receive the following,
• it is better to fail right away - than to work for years and not be able to return the investor millions. For a team, a million can be substantial money - investors think in billions,
• The most conducive conditions for a startup's survival are the struggle for profitability from the first day of its existence.

In addition, you can note the following thoughts:

• It is worth paying attention not to income - but to profit, not to market share - but to a share of profit. What is the difference, what is the company's income, if it is almost entirely covered by expenses?
• There are 2 ways to build relationships with customers: “spend” (spend out) and “teach” (teach out). 37signals, David's company, chooses a way to “train”, because sooner or later the student either realizes the need for a product, or recommends it to a friend. The ability to clearly and clearly express thoughts in human language David calls 37signals a competitive advantage.
• the need to work in a startup 60 or even 80 hours a week is a myth. Only a brain that is free from the maximum of possible actions and rested can give rise to productive ideas on the subject of which efforts will bring the most results.
• the best way to gain experience in building processes is to get a job in a company is worse than ever and work there for 6 months,
• without experience as a hired employee, it will be hard to understand the employees yourself (which is contrary to the first thought of the speech, that now is the best time not to go to the hired work, but to create something new in the world yourself)
• The only useful thing David has learned from his studies at Copenhagen Business School is that the business should buy cheaper than sell. And selling is more expensive than buying. A banal, it would seem, thought - however, not every start-up clearly follows this rule.

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Audio and video in English.