The problem is that there are two efficiencies/competences here, the efficiency as in doing the accounting correctly, which is relatively easy in comparison to the second: the efficiency as in actually doing relevant novel technical work that matters. The former you could get advice from some books, the latter you won’t get any advice on, it’s a harder problem, and typical level of performance is exactly zero (even for those who get the first part right). The difference in difficulties is larger than that between building a robot kit by following instructions vs designing a ground breaking new robot and making a billion dollars off it.
The best advice to vast majority of startups is: dissolve startup and get normal jobs, starting tomorrow. The best advice to all is to take a very good look at themselves knowing that the most likely conclusion should be “dissolve and get normal jobs”. The failed startups I’ve seen so far were propelled by pure, unfounded belief in themselves (like in a movie where someone doesn’t want to jump, other says yes you can do that!! then that person jumps, but rather than sending positive message and jumping over and surviving, falls down to instant death, while the fire that the person was running away from just goes out). The successful startups, on the other hand, had very well founded belief in themselves (good track record, attainable goals), or started from a hobby project that gone successful.
Judging from the success rate that VCs have at predicting successful startups, I conclude that the “pure unfounded belief on the one hand, well-founded belief on the other” metric is not easily applied to real organizations by real observers.
Mm. This is why an incompetent nonprofit can linger for years: no-one is doing what they do, so they feel they still have to exist, even though they’re not achieving much, and would have died already as a for-profit business. I am now suspecting that the hard part for a nonprofit is something along the lines of working out what the hell you should be doing to achieve your goal. (I would be amazed if there were not extensive written-up research in this area, though I don’t know what it is.)
The problem is that there are two efficiencies/competences here, the efficiency as in doing the accounting correctly, which is relatively easy in comparison to the second: the efficiency as in actually doing relevant novel technical work that matters. The former you could get advice from some books, the latter you won’t get any advice on, it’s a harder problem, and typical level of performance is exactly zero (even for those who get the first part right). The difference in difficulties is larger than that between building a robot kit by following instructions vs designing a ground breaking new robot and making a billion dollars off it.
The best advice to vast majority of startups is: dissolve startup and get normal jobs, starting tomorrow. The best advice to all is to take a very good look at themselves knowing that the most likely conclusion should be “dissolve and get normal jobs”. The failed startups I’ve seen so far were propelled by pure, unfounded belief in themselves (like in a movie where someone doesn’t want to jump, other says yes you can do that!! then that person jumps, but rather than sending positive message and jumping over and surviving, falls down to instant death, while the fire that the person was running away from just goes out). The successful startups, on the other hand, had very well founded belief in themselves (good track record, attainable goals), or started from a hobby project that gone successful.
Judging from the success rate that VCs have at predicting successful startups, I conclude that the “pure unfounded belief on the one hand, well-founded belief on the other” metric is not easily applied to real organizations by real observers.
Mm. This is why an incompetent nonprofit can linger for years: no-one is doing what they do, so they feel they still have to exist, even though they’re not achieving much, and would have died already as a for-profit business. I am now suspecting that the hard part for a nonprofit is something along the lines of working out what the hell you should be doing to achieve your goal. (I would be amazed if there were not extensive written-up research in this area, though I don’t know what it is.)