"I Have a Startup" - Midwest vs Bay Area
leavingcorporate.com
leavingcorporate.com
If you ask a person at a big corporation what they do, they don't usually say "I have a job with a big corporation." Do they? Instead, they would usually say something like "I work in accounting for the largest trucking company in the US." or "I'm a salesman with a company that makes office copiers." Boring, but at least it's an honest answer.
An entrepreneur should be able to muster much more passion than "I have a startup" when asked what it is they do. People tend to respond positively when you show passion and enthusiasm and speak directly about what you do. Even if you have to 'dumb it down' for them to understand (or omit secret information.) Maybe this guy should have enthusiastically said, "Yeah, I'm working on a really neat piece of software that helps people to communicate better by XXX"
For some reason, "I have a startup" makes me think of a few people I know that have no passion for school, but have stayed in grad school for years on end so they can avoid choosing a career. People may have pity or confusion in their voice only because what you're saying has a cop-out or apologetic vibe to it...?
Once you describe what you're doing, then you'll be asked who you work for, and when you say yourself the idea of a startup will be better explained.
I'm always hesitant to do so because I feel that describing what project you work on doesn't describe the hours you work, the responsibilities, and all the extras that come with a startup.
The assumption is that if starting/running businesses isn't what people with an education do, unless they have no other choice. The "default" thing for them is to climb the corporate ladder.
pg talked about this in his "high-res society": http://www.paulgraham.com/highres.html
In a way I could see where this idea comes from: if you lack a college degree (or have one but not from a top-tier school and not with top grades) you're still locked out of some opportunities. The only way to a high ranking position in some companies is to enter as a "college hire" and advanced through the ranks (senior positions are seldom open to outside applicants and there is fear that an experienced applicant will be bored/unmotivated at a junior or entry-level position; academic record is seen as the "best" indication of potential success for a junior applicant). So for those without a college education, often the only way to a senior position is through start-ups.
What doesn't follow - any more - is that for those with an education the only way to a senior position is through a big company. It's still a way (there are lots of smart people at places such as Google, IBM, Amazon, Yahoo), but no longer the only reliable option. Even those at big companies no longer stay with the same big company: "job-hopping" is pretty common for advancement (sometimes for better, sometimes for worse - seeing less competent employees but with higher salaries due to greater negotiating leverage - can be de-motivating for employees who are uninterested in job hopping themselves).
The only way that this assumption is still slightly true is that only big companies offer the chance to work on certain classes of problems that start-ups can not tackle - but here's hope that this will change (and there are indication it is changing).
In cities like Chicago, there are a handful of VCs that all talk to each other. If you pitch to one and they don't like your idea, they trade notes with their other VC buddies in the area and that's it. Your done. Pack up your bags and head to the next city. I could count the number of funded Chicago web startups with one hand.
In the valley there are so many investors with so much more experience willing to fund ideas that investors from other areas simply wouldn't touch. If you pitch to one guy and he doesn't like it, go pitch to another investor... and another... and another... it will be a while before you exhaust this list.
From my experience the bay area doesn't suffer from the same group think problems that most other areas in the world suffer from; including a sizable city like Chicago.
How much does it matter what message a city sends? Empirically, the answer seems to be: a lot. You might think that if you had enough strength of mind to do great things, you'd be able to transcend your environment. Where you live should make at most a couple percent difference. But if you look at the historical evidence, it seems to matter more than that. Most people who did great things were clumped together in a few places where that sort of thing was done at the time.
I kid because I love exclamation QuEsTiOn mArK
The big difference is that in the Bay Area, people significantly older than myself still get it. In the Midwest they're still not sure what this newfangled Facebook is all about. </sweeping generalization>
If I say the same thing to my relatives, no matter where they live, I get the same blank stares.
I personally think it's not "where" but "who".
I try to use very common analogies and to speak as simply and directly as possible. I usually just explain the selling proposition and/or business model of the startup without any additional information about "how we do it" or "in what industry" or "who our competitors are," etc. If they want more details, they can ask.
I've ended up with a few stock answers I use for every one of my startups. I usually just state the problem, and my solution to that problem, in layman's terms. That usually gets the best response. People usually start asking more specific questions, and we go from there. I try to explain what my startup does, and to convey my passion for the business without sounding too much like a pushy salesman or a nut ;-) If the startup is profitable, I add that tidbit.
I actually went from getting blank stares to getting new business and referrals. A simple, clear answer about the benefits your business offers can literally turn people into customers on the spot...or at least promoters of you and your ideas. Genuine enthusiasm and passion is memorable, and people are drawn to it.
I'm not too sure about that. If other people's opinions will strongly influence your mood and business outlook, entrepreneurship might not be for you.
For myself, visualizing how those politely nodding and smiling "that's nice" people would one day be green with envy was a delightful motivator.
These days, the condescension is gone and smiles are a bit tighter.
By all means mix with like-minded people, but your morale and motivation shouldn't depend upon whether or not your neighbour thinks you're 'cool'.
Having the support of the community within the bay area is just one less headache to deal with in conjunction with the many headaches of doing a startup.
An abbreviation of 'toadeater'. Originally, a charlatan's helper who ate (or pretended to eat) poisonous toads so that his employer could display his prowess in expelling the poison.
By default joining start-ups, founding businesses just isn't what educated intelligentsia do. If pg is right, that will change.