Reasons To Do a Startup

On Patrick Collison’s (the co-founder and CEO of Stripe) personal site, he has a page for “Advice.” It provides some life advice for readers aged 10-20, but under the 20-30 section, he puts, “If you're 20–30: I don't know yet. I plan to think about this when I'm 35-40.” I call this the Collison Principle of Advice: 

Don't give advice until enough time has passed to gain proper perspective and understanding

So on the topic of “Reasons to Start a Startup,” I defer to the experts. I have my reasons, but I’ll have to wait a few years (at least) to dispense that advice. So here are Marc Andreessen, Paul Graham, and Elad Gil’s thoughts on the topic — startup veterans who have both started companies and met and evaluated thousands of startup founders.

Good reasons to do a startup (Marc Andreessen, Why not to do a startup)

• The opportunity to be in control of your own destiny

• The opportunity to create something new

• The chance to have an impact on the world 

• The ability to create your ideal culture and work with a dream team of people you get to assemble yourself.

• Money

Reasons to not do a startup (Marc Andreessen, Why not to do a startup)

• Emotional rollercoaster

• Nothing happens unless you make it happen

• “Hiring is a huge pain in the ass.”

• Time commitment

• It’s really easy for a startup to go sideways

Forms of desperation that motivate founders to start companies (Elad Gil, Startups are an act of desperation):

• Career desperation — Allow people early or stuck in their careers to jump a few steps ahead

• Financial desperation — Condense decades of salary into a shorter period

• Product or mission desperation — Founders who want something to exist in the world

• Desperation to do something big or important and to avoid wasted time — “make a dent in the universe.”

• Revenge vs. the Arena — Founders who have something to prove

Bad reasons to avoid doing a startup (Paul Graham, Why To Not Not Start a Startup)

• Too young

• Too inexperienced

• Not smart enough

• Know nothing about business

• No idea

• No room for more startups

• Don’t realize what you’re avoiding

• Parents want you to be a doctor

• A job is the default

Good reasons not to avoid doing a startup (Paul Graham, Why To Not Not Start a Startup)

• Not determined enough

• No cofounder

• Family to support

• Independently wealthy

• Not ready for commitment (3-4 years minimum)

• Need for structure

• Fear of uncertainty