Steve Jobs: “You’ve got to find what you love”

This text came from Steve Job’s commencement speech to the Stanford graduating class in 2005.  The original text can be found on the Stanford Report website.

I am honored to be with you today at your commencement from one of the finest universities in the world. I never graduated from college. Truth be told, this is the closest I’ve ever gotten to a college graduation. Today I want to tell you three stories from my life. That’s it. No big deal. Just three stories.

The first story is about connecting the dots.

I dropped out of Reed College after the first 6 months, but then stayed around as a drop-in for another 18 months or so before I really quit. So why did I drop out?

It started before I was born. My biological mother was a young, unwed college graduate student, and she decided to put me up for adoption. She felt very strongly that I should be adopted by college graduates, so everything was all set for me to be adopted at birth by a lawyer and his wife. Except that when I popped out they decided at the last minute that they really wanted a girl. So my parents, who were on a waiting list, got a call in the middle of the night asking: “We have an unexpected baby boy; do you want him?” They said: “Of course.” My biological mother later found out that my mother had never graduated from college and that my father had never graduated from high school. She refused to sign the final adoption papers. She only relented a few months later when my parents promised that I would someday go to college.

And 17 years later I did go to college. But I naively chose a college that was almost as expensive as Stanford, and all of my working-class parents’ savings were being spent on my college tuition. After six months, I couldn’t see the value in it. I had no idea what I wanted to do with my life and no idea how college was going to help me figure it out. And here I was spending all of the money my parents had saved their entire life. So I decided to drop out and trust that it would all work out OK. It was pretty scary at the time, but looking back it was one of the best decisions I ever made. The minute I dropped out I could stop taking the required classes that didn’t interest me, and begin dropping in on the ones that looked interesting.

It wasn’t all romantic. I didn’t have a dorm room, so I slept on the floor in friends’ rooms, I returned coke bottles for the 5¢ deposits to buy food with, and I would walk the 7 miles across town every Sunday night to get one good meal a week at the Hare Krishna temple. I loved it. And much of what I stumbled into by following my curiosity and intuition turned out to be priceless later on. Let me give you one example:

Reed College at that time offered perhaps the best calligraphy instruction in the country. Throughout the campus every poster, every label on every drawer, was beautifully hand calligraphed. Because I had dropped out and didn’t have to take the normal classes, I decided to take a calligraphy class to learn how to do this. I learned about serif and san serif typefaces, about varying the amount of space between different letter combinations, about what makes great typography great. It was beautiful, historical, artistically subtle in a way that science can’t capture, and I found it fascinating.

None of this had even a hope of any practical application in my life. But ten years later, when we were designing the first Macintosh computer, it all came back to me. And we designed it all into the Mac. It was the first computer with beautiful typography. If I had never dropped in on that single course in college, the Mac would have never had multiple typefaces or proportionally spaced fonts. And since Windows just copied the Mac, it’s likely that no personal computer would have them. If I had never dropped out, I would have never dropped in on this calligraphy class, and personal computers might not have the wonderful typography that they do. Of course it was impossible to connect the dots looking forward when I was in college. But it was very, very clear looking backwards ten years later.

Again, you can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something — your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.

My second story is about love and loss.

I was lucky — I found what I loved to do early in life. Woz and I started Apple in my parents garage when I was 20. We worked hard, and in 10 years Apple had grown from just the two of us in a garage into a $2 billion company with over 4000 employees. We had just released our finest creation — the Macintosh — a year earlier, and I had just turned 30. And then I got fired. How can you get fired from a company you started? Well, as Apple grew we hired someone who I thought was very talented to run the company with me, and for the first year or so things went well. But then our visions of the future began to diverge and eventually we had a falling out. When we did, our Board of Directors sided with him. So at 30 I was out. And very publicly out. What had been the focus of my entire adult life was gone, and it was devastating.

I really didn’t know what to do for a few months. I felt that I had let the previous generation of entrepreneurs down – that I had dropped the baton as it was being passed to me. I met with David Packard and Bob Noyce and tried to apologize for screwing up so badly. I was a very public failure, and I even thought about running away from the valley. But something slowly began to dawn on me — I still loved what I did. The turn of events at Apple had not changed that one bit. I had been rejected, but I was still in love. And so I decided to start over.

I didn’t see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me. The heaviness of being successful was replaced by the lightness of being a beginner again, less sure about everything. It freed me to enter one of the most creative periods of my life.

During the next five years, I started a company named NeXT, another company named Pixar, and fell in love with an amazing woman who would become my wife. Pixar went on to create the worlds first computer animated feature film, Toy Story, and is now the most successful animation studio in the world. In a remarkable turn of events, Apple bought NeXT, I returned to Apple, and the technology we developed at NeXT is at the heart of Apple’s current renaissance. And Laurene and I have a wonderful family together.

I’m pretty sure none of this would have happened if I hadn’t been fired from Apple. It was awful tasting medicine, but I guess the patient needed it. Sometimes life hits you in the head with a brick. Don’t lose faith. I’m convinced that the only thing that kept me going was that I loved what I did. You’ve got to find what you love. And that is as true for your work as it is for your lovers. Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it. And, like any great relationship, it just gets better and better as the years roll on. So keep looking until you find it. Don’t settle.

My third story is about death.

When I was 17, I read a quote that went something like: “If you live each day as if it was your last, someday you’ll most certainly be right.” It made an impression on me, and since then, for the past 33 years, I have looked in the mirror every morning and asked myself: “If today were the last day of my life, would I want to do what I am about to do today?” And whenever the answer has been “No” for too many days in a row, I know I need to change something.

Remembering that I’ll be dead soon is the most important tool I’ve ever encountered to help me make the big choices in life. Because almost everything — all external expectations, all pride, all fear of embarrassment or failure – these things just fall away in the face of death, leaving only what is truly important. Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.

About a year ago I was diagnosed with cancer. I had a scan at 7:30 in the morning, and it clearly showed a tumor on my pancreas. I didn’t even know what a pancreas was. The doctors told me this was almost certainly a type of cancer that is incurable, and that I should expect to live no longer than three to six months. My doctor advised me to go home and get my affairs in order, which is doctor’s code for prepare to die. It means to try to tell your kids everything you thought you’d have the next 10 years to tell them in just a few months. It means to make sure everything is buttoned up so that it will be as easy as possible for your family. It means to say your goodbyes.

I lived with that diagnosis all day. Later that evening I had a biopsy, where they stuck an endoscope down my throat, through my stomach and into my intestines, put a needle into my pancreas and got a few cells from the tumor. I was sedated, but my wife, who was there, told me that when they viewed the cells under a microscope the doctors started crying because it turned out to be a very rare form of pancreatic cancer that is curable with surgery. I had the surgery and I’m fine now.

This was the closest I’ve been to facing death, and I hope it’s the closest I get for a few more decades. Having lived through it, I can now say this to you with a bit more certainty than when death was a useful but purely intellectual concept:

No one wants to die. Even people who want to go to heaven don’t want to die to get there. And yet death is the destination we all share. No one has ever escaped it. And that is as it should be, because Death is very likely the single best invention of Life. It is Life’s change agent. It clears out the old to make way for the new. Right now the new is you, but someday not too long from now, you will gradually become the old and be cleared away. Sorry to be so dramatic, but it is quite true.

Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma — which is living with the results of other people’s thinking. Don’t let the noise of others’ opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.

When I was young, there was an amazing publication called The Whole Earth Catalog, which was one of the bibles of my generation. It was created by a fellow named Stewart Brand not far from here in Menlo Park, and he brought it to life with his poetic touch. This was in the late 1960′s, before personal computers and desktop publishing, so it was all made with typewriters, scissors, and polaroid cameras. It was sort of like Google in paperback form, 35 years before Google came along: it was idealistic, and overflowing with neat tools and great notions.

Stewart and his team put out several issues of The Whole Earth Catalog, and then when it had run its course, they put out a final issue. It was the mid-1970s, and I was your age. On the back cover of their final issue was a photograph of an early morning country road, the kind you might find yourself hitchhiking on if you were so adventurous. Beneath it were the words: “Stay Hungry. Stay Foolish.” It was their farewell message as they signed off. Stay Hungry. Stay Foolish. And I have always wished that for myself. And now, as you graduate to begin anew, I wish that for you.

Stay Hungry. Stay Foolish.

Thank you all very much.

Learning to work like Donald Trump – The Art of the Deal

There has been a lot of talk of Donald Trump in the news lately about his possible Presidential bid.  After watching ~10 seasons of the Apprentice and reading about him in the newspaper my entire life I decided to read something penned by his own hand – The Art of the Deal, released in 1987.

What I found in The Art of the Deal greatly surprised me.  While it was released more than 20 years ago the man I found in the pages of the book had familiar qualities to the man I see today.  I cannot say that I whole heartedly endorse Mr. Trump as a business man, a husband, a father, or even a Presidential candidate, but I can say I’ve come to appreciate him and his accomplishments more having read the book.

As I read the book I kept thinking of what King Solomon penned in Proverbs.  Proverbs 12:27 says “Whoever is slothful will not roast his game, but the diligent man will get his precious wealth.”  There are many other passages from Proverbs that I could’ve plugged in that speak of diligence leading to abundance, wealth, power, influence, and fame.

Mr. Trump’s life has been an interesting mix of personal discipline and smarts.  He is one of the few men that has blended an exceptional work ethic with ingenuity.  He is a man that has achieved significant stature in life because he’s been Faithful, Accountable, and Teachable.  Faithful to the values and learnings his father passed onto him at an early age.  Accountable to the public, business partners, and municipalities he’s made deals with.  And in all things Mr. Trump exhibits a willingness to learn and grow in his field.  These qualities have allowed him to achieve things the average man could not even dream of.

Since 1987 he has made some poor choices in business and in his personal life – buckling to “sin that is common to all men” the book of James says.  But in all Mr. Trump has exhibited qualities that make him “known.”  What you see is what you get with him.  From a public facing perspective he has not changed his stance on things like foreign policy (America first), fiscal responsibility (live within your means), and growth fueled by entrepreneurism (creative destruction).  Where he has publicly changed on issues like abortion, going from Pro-Choice to Pro-Life, it was brought about by a close friends pregnancy.

This write up is not an endorsement for Mr. Trump for President, rather it’s a call to each reader to learn the lessons of Proverbs through the life of Donald Trump.  Be diligent in your work.  Have a willingness to roll up your sleeves and work hard.  Educate yourself on your craft.  Never stop learning.  Combine these things together, along with great people who share similar qualities.  Doing these things over a lifetime can lead to abundance, generational wealth, and a Presidency.

One personal side thought.  My pastor, James MacDonald often talks about Discipline-Desire-Delight as it relates to spending quality time with Jesus Christ.  I think these principles apply with our work as well.  The shear discipline of working each day, to the best of our ability, will lead to a desire to continue working hard, and ultimately end with a delight in the work itself.  God, having given us work before the “Fall”, will receive the glory when a person is able revel in the work of their mind and hands.

Get to work!

Vince Lombardi’s Winning Ways

Coach Vince LombariVince Lombardi’s greatest lesson to me is demonstrating the growth orientated mentality.  The writer of Vince Lombardi’s Winning Ways said it this way.  “His real goal wasn’t just to win, but to create the will to win that made winning possible.”  Similar to Coach K at Duke in his approach, Coach Lombardi believed in training men to reach their full potential.  That is the summation of his coaching and teaching style that has left it’s enduring mark on the sport and the world.

Two things stood out to me in this book.  First the statement Coach Lombardi makes to the Packers when they report to training camp for the first time in July 1959.  Coach Lombardi says “You’ve got to give everything that is in you.  You’ve got to keep yourself in prime physical condition, because fatigue makes cowards of us all.”  The other is from Jerry Kramer.  He referred to that same training camp when he said “And there were plays to be run, again and again, until every man knew every maneuver every possible variation.”  Preparation is the key to victory in life.

Prepare or Preparation:  to put in proper condition or readiness.  Vince Lombardi knew how to make a team ready to achieve his goal – every player giving their full effort in unison, thus producing perfection on the field.

As I think about translating this to my business my initial reaction is “it’s not that clear cut.”  In reality if I understand the vision of what I’m trying to achieve then the milestones and resulting daily activity show themselves.  It’s starting with the end in mind and working backwards to today in order to see the building blocks it takes to go from today’s player to tomorrow’s champion.

The idea that fatigue leads to cowardliness goes far beyond the body.  The mental fatigue coupled with the physical fatigue is often what leads to cowardliness for me.  The results are mediocre work days, procrastination, and the desire to fight “tomorrow.”  John Wooden is clear that if I don’t put forth the effort today it’s lost, you cannot go back tomorrow and make up for the lost opportunity today.

The mandate is clear from the way Coach Lombardi lived his life.  Discipline leads to desire leads to delight.  It all starts with daily discipline, but it all ends with enjoying the fruits of that labor in the future.

Proverbs 21:5 says The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.

The Five Temptations of a CEO

In Romans 12:3 the Apostle Paul writes “For by the grace given to me I say to everyone among you not to think of himself more highly than he ought to think, but to think with sober judgment, each according to the measure of faith that God has assigned.”

The Five Temptations of a CEOIn Patrick Lencioni’s The 5 Temptations of a CEO I find Paul’s words shining truth into my life.  The book comes to me on a day where “sober judgement” was handed to me by a mentor in a not so gentle way.  As I think about the next stage of my career it’s no secret that I desire to be a CEO.  I want to be the head coach – the guy who is responsible for leading the team to battle and to victory.

As I read through the temptations and think about recent events in my life it’s clear that I need to take the next step in leadership development by employing the solutions to the temptations.

Temptation 1:  Putting my status and ego before the company’s achievements.

Charlie, the wise janitor, asked Andrew, the CEO of a major tech company, a simple question:  ”What is the greatest day in your career?”  Andrew responds by saying “The day I became CEO.”  Charlie knows a lot about Andrew’s heart from this response.  He knows that Andrew’s entire working life has building towards the moment he became CEO.  He also know that is the zenith of Andrew’s career.  For Andrew this is fantastic, but for the company it’s downhill from here.

While I’ve not experienced this yet in my short career, I take solace in the fact that I’m a growth orientated person and not a goal orientated person.  Dr. John C. Maxwell talks often of the fact that goal orientated people peak and then are unsure what to do with themselves, whereas, growth orientated people simply keep on growing as they cross milestones (goals) off their list.  The list never ends though because the pursuit is the reward, not the destination.

Temptation 2: The desire to be popular with direct reports rather than holding them accountable

Charlie asks Andrew about a man he fired recently, Terry.  Andrew tells of Terry’s underperformance, unpreparedness and the shear sense that Terry is in over his head.  Charlie drives his point home through a series of questions about why Andrew chose to spring the firing on Terry.  Andrew slinks into his chair recognizing that he is the reason Terry failed.  Terry failed because he did not have a clear vision from Andrew on what he was shooting at and why.  Terry could’ve never performed up to the standards of “savior of the company” which is what Andrew silently held him out as.

The need to be liked at all times is something we can laugh at in Michael Scott, but it’s sad to see in real life.  This is a deep character flaw rooted in a misunderstanding of who you really are.  In my case I find it easy to hold other men accountable in church world, but I find it challenging to do in the business world.  I’m not sure if it’s because ego’s are involved, or because there is money on the line, but the desire to “play nice” is a plague I’m working on ridding my heart of.  It’s not about me and my needs, it’s about the company and it’s objectives.  Not being able to hold direct reports accountable hurts me, it hurts the individuals, and it hurts the company.  Accountability is the currency by which we achieve milestones as a team.  You make deposits by exercising it, not withholding it.

Temptation 3:  The need to know my decisions are correct before I share them

Charlie talked about this almost like group-think.  A leader surrounds himself with men who affirm him and reinforce the idea that he is great.  They don’t pursue meaningful dialogue leading to the best solution, they simply gather info, and gather info, and gather info, and then when the decision has passed them by, they make the decision.

One of the interesting things Charlie said about his father is the fact that he learned three simple words that he was almost proud to say “I was wrong.”  He was proud in the sense that it pushed the team to be better, it made the other player stronger, and it fostered an environment of trust because someone had to step out and dissent from the groups opinion, and they were right.  In the moment Charlie’s father had been proven wrong, but the business was benefiting from that fact.

Dr. Maxwell often talks about having 60% of the information about a given decision being enough to move forward in today’s fast paced world.  I think about the months I have spent agonizing over a decision I know to be right only being afraid to step out and dissent from the team.  Not doing this has the opposite affect.  It breeds distrust, makes other question my motives, and ultimately is a character probably stemming back from the need to be liked by everyone.

My mentor today was very clear.  You have some tough decisions to make, then make them and move on.

Temptation 4:  The desire for harmony

The two men were interrupted by three others at this point.  The new men had spent a lot of time with Charlie learning his leadership temptations and were aware of them.  They were not perfect in their execution, but the awareness lead to greater leading.

Unity is something we often talk about in our management team.  The more I have thought about it tonight, the more I’m realizing that it has become a cover for sweeping major issues under the rug.  Unity is not unified thinking, unity is the agreement that at the end of the day I’m not going to let a minor become a major.  The problem with that is that majors are still majors and sometimes unity needs to be decreed, not just sought.

I have found myself personally guilty of this over the last few months.  Hard truths needed to be shared with members of my team and I too often was a coward to outright say them.  I thought about what to say, I journaled about what to say, but I never outright said them.  More recently I have found the strength to say what has needed to be said, but this needs to be done far more frequently if I’m going to be able to avoid this CEO temptation.

Temptation 5:  Invulnerability, not trusting the other members of my team

Charlie and Andrew left the train by this point and are waiting at a bus stop.  Charlie asks Andrew if his career is in the hands of his direct reports.  And then he asks if their career is in his hands.  Andrew did not make the connection at first; however, he understood that a focused team is far more productive that a bunch of individual superstars.  He also understood that he must lead that team and that he must go first.

This is something I do well at.  I find there is more strength in transparency than their is in holding my cards close to the vest.  It may be because I’m a bad poker player, or because I’m a simpleton, but I find this approach to be less exhausting because people tend to reciprocate.  From time to time I run across people who do not and I do find them very difficult to deal with, but as long as expectations are clear, then the transparency remains a strength.  When I get psycho-analytical on people, their issues, and their motives, that’s typically where I will be tripped up.  Going first and putting my desired outcome in the hands of other people while I lead them towards their desired outcome is something comes very naturally.  We agree on the shared outcome and then can run like hell after it!

Conclusions:

This book hit me at the right moment.  As I prepare for the day when I wear the polo that says Head Coach, I know that I’m not preparing for the day, rather I’m preparing for the growth the team, organization, and individuals are going to experience because I’ve moved into the leading position.  That’s not to say leading isn’t happening today.  God has been very gracious in opening my eyes tonight to the deficiencies of my leadership and is allowing me the opportunity to make course corrections today before my name is called for that head coaching job.

Super Bowl XLV – a microcosm of the Packers season and Dallas

“The Green Bay Packers are your 2011 World Champions.”  I love hearing Wayne Larrivee say those words as he finishes his WTMJ broadcast tonight.  Super Bowl XL was a great contest between two NFL stalwarts.  Aaron Rodgers is the games MVP throwing 3 touchdowns and another QB Rating north of 100.  Great day to be a Packers fan!

The game was odd though in that it seemed to be a microcosm on the Packers season and on Dallas’ handling of the Super Bowl logistics.

The Packers first dealt with injuries and came in very healthy – only Erik Walden being a late week scratch, but replaced by the very capable Frank Zombo.  As Super Bowl got into the second quarter the Packers had a 21-3 lead when key personnel starting dropping like flies.  First Donald Driver goes to the sideline.  Then Sam Shields.  The Charles Woodson.  You even saw Nick Collins head into the tunnel before half time with the Steelers still on offense.

It felt like the wheels were about to come off for the Packers.  You have a lead, and there is no way you’re holding it against a great team like Pittsburgh without these key personnel. But that is the way the Packers entire season has gone.  You can run down the list of key personnel lost to injury and insert the name of the man who stepped in to fill those shoes, and the coaching staff tweaking their plans to match the new man’s strengths.  The only difference is that the Packers coaching staff typically had a week to scheme, where as in Super Bowl XLV they had mere seconds.  It’s a great testament to the resolve of players and coaches alike that they could fail forward in this way.

On the flip side the city of Dallas did not win any future Super Bowl contracts.  Everything on sports talk radio and the Net suggested the city and Cowboys botched their opportunity.  From the hotels being 45+ minutes from the stadium, to no central media location for fans and players, to even the Fire Marshall being there at game time trying to clear the stadium seating for breaking the indoor attendance record.  All of this did not show well on Dallas or the Cowboys.

The microcosm the Super Bowl produced can be summed up in Christina Aguilera’s performance of the National Anthem, then during the Black Eyed Peas half time show with the word “love” having a side burned out on the V, and the stadium seating problem all echoed the city and team’s unpreparedness.

Leading through crisis

How do you lead through tough times?

Steve Miller:
* You must have a pre-determined plan. You must know how you’re going to respond before things fall apart. In Job 1:20, Job losses stripped him all the way back to his values.
* Know your values. Your emotions respond to your values. We tell our emotions how to respond, we don’t let ourselves simply respond.

Dave Anderson:
* “You don’t wait your way out of a crisis.”
* In order to lead through a crisis you must:
1. Lead: don’t maintain, lead. “Chart the course, not the results.”
2. Redefine expectations for the people.
3. Narrow focus to short term goals. You need results now, daily objectives, to make a day worth it you must put a number on the day for accountabilities sake.
4. Remove dead weight. Don’t be in the business of rescue missions.
5. Cut once, cut all. Explain the closure to those remaining.
6. Focus on what you can control – attitude, work ethic, etc.
7. Don’t compromise my character. “We become more from the crisis.”

John Maxwell:
1. Face reality head-on.
* reality is the foundation you build on in crisis
* Jack Welch said in Straight to the Gut, here are 6 rules to lead by:
1. Control your own destiny or someone will
2. Face reality as it is
3. Be candid with everyone
4. Don’t manage, lead
5. Change before you have to
6. If you don’t have a competitive advantage, don’t compete

2. Believe in myself – crisis makes belief in myself plunge.
* acid test: I bet on myself
* during a crisis most people are looking for a sponsor
* allow others to borrow my belief

3. Posses a spirit of learning in a crisis
* lessons learned in a crisis are 10x of that learned during good times
* Maxwell is writing a book called Sometimes you win, sometimes you lead.
* What did the crisis teach me? If I don’t learn, the opportunity to learn will present itself again.
* What 2-3 things have I learned in the last two years from the financial crisis?
* What am I learning today from things not going well?

Tom Arrington:
* Leaders must lead because all eyes are on the leader. They must do it in a calm, assuring tone.
* Set high standards
* Develop a simile plan
* Work with urgency, not frantic, controlled power
* Keep every promise made

Location:Logan,United States

How not to die by Paul Graham

This was one of the most influential articles that I’ve read as it relates to being an entrepreneur.

This is a talk I gave at the last Y Combinator dinner of the summer. Usually we don’t have a speaker at the last dinner; it’s more of a party. But it seemed worth spoiling the atmosphere if I could save some of the startups from preventable deaths. So at the last minute I cooked up this rather grim talk. I didn’t mean this as an essay; I wrote it down because I only had two hours before dinner and think fastest while writing.)

A couple days ago I told a reporter that we expected about a third of the companies we funded to succeed. Actually I was being conservative. I’m hoping it might be as much as a half. Wouldn’t it be amazing if we could achieve a 50% success rate?

Another way of saying that is that half of you are going to die. Phrased that way, it doesn’t sound good at all. In fact, it’s kind of weird when you think about it, because our definition of success is that the founders get rich. If half the startups we fund succeed, then half of you are going to get rich and the other half are going to get nothing.

If you can just avoid dying, you get rich. That sounds like a joke, but it’s actually a pretty good description of what happens in a typical startup. It certainly describes what happened in Viaweb. We avoided dying till we got rich.

It was really close, too. When we were visiting Yahoo to talk about being acquired, we had to interrupt everything and borrow one of their conference rooms to talk down an investor who was about to back out of a new funding round we needed to stay alive. So even in the middle of getting rich we were fighting off the grim reaper.

You may have heard that quote about luck consisting of opportunity meeting preparation. You’ve now done the preparation. The work you’ve done so far has, in effect, put you in a position to get lucky: you can now get rich by not letting your company die. That’s more than most people have. So let’s talk about how not to die.

We’ve done this five times now, and we’ve seen a bunch of startups die. About 10 of them so far. We don’t know exactly what happens when they die, because they generally don’t die loudly and heroically. Mostly they crawl off somewhere and die.

For us the main indication of impending doom is when we don’t hear from you. When we haven’t heard from, or about, a startup for a couple months, that’s a bad sign. If we send them an email asking what’s up, and they don’t reply, that’s a really bad sign. So far that is a 100% accurate predictor of death.

Whereas if a startup regularly does new deals and releases and either sends us mail or shows up at YC events, they’re probably going to live.

I realize this will sound naive, but maybe the linkage works in both directions. Maybe if you can arrange that we keep hearing from you, you won’t die.

That may not be so naive as it sounds. You’ve probably noticed that having dinners every Tuesday with us and the other founders causes you to get more done than you would otherwise, because every dinner is a mini Demo Day. Every dinner is a kind of a deadline. So the mere constraint of staying in regular contact with us will push you to make things happen, because otherwise you’ll be embarrassed to tell us that you haven’t done anything new since the last time we talked.

If this works, it would be an amazing hack. It would be pretty cool if merely by staying in regular contact with us you could get rich. It sounds crazy, but there’s a good chance that would work.

A variant is to stay in touch with other YC-funded startups. There is now a whole neighborhood of them in San Francisco. If you move there, the peer pressure that made you work harder all summer will continue to operate.

When startups die, the official cause of death is always either running out of money or a critical founder bailing. Often the two occur simultaneously. But I think the underlying cause is usually that they’ve become demoralized. You rarely hear of a startup that’s working around the clock doing deals and pumping out new features, and dies because they can’t pay their bills and their ISP unplugs their server.

Startups rarely die in mid keystroke. So keep typing!

If so many startups get demoralized and fail when merely by hanging on they could get rich, you have to assume that running a startup can be demoralizing. That is certainly true. I’ve been there, and that’s why I’ve never done another startup. The low points in a startup are just unbelievably low. I bet even Google had moments where things seemed hopeless.

Knowing that should help. If you know it’s going to feel terrible sometimes, then when it feels terrible you won’t think “ouch, this feels terrible, I give up.” It feels that way for everyone. And if you just hang on, things will probably get better. The metaphor people use to describe the way a startup feels is at least a roller coaster and not drowning. You don’t just sink and sink; there are ups after the downs.

Another feeling that seems alarming but is in fact normal in a startup is the feeling that what you’re doing isn’t working. The reason you can expect to feel this is that what you do probably won’t work. Startups almost never get it right the first time. Much more commonly you launch something, and no one cares. Don’t assume when this happens that you’ve failed. That’s normal for startups. But don’t sit around doing nothing. Iterate.

I like Paul Buchheit’s suggestion of trying to make something that at least someone really loves. As long as you’ve made something that a few users are ecstatic about, you’re on the right track. It will be good for your morale to have even a handful of users who really love you, and startups run on morale. But also it will tell you what to focus on. What is it about you that they love? Can you do more of that? Where can you find more people who love that sort of thing? As long as you have some core of users who love you, all you have to do is expand it. It may take a while, but as long as you keep plugging away, you’ll win in the end. Both Blogger and Delicious did that. Both took years to succeed. But both began with a core of fanatically devoted users, and all Evan and Joshua had to do was grow that core incrementally. Wufoo is on the same trajectory now.

So when you release something and it seems like no one cares, look more closely. Are there zero users who really love you, or is there at least some little group that does? It’s quite possible there will be zero. In that case, tweak your product and try again. Every one of you is working on a space that contains at least one winning permutation somewhere in it. If you just keep trying, you’ll find it.

Let me mention some things not to do. The number one thing not to do is other things. If you find yourself saying a sentence that ends with “but we’re going to keep working on the startup,” you are in big trouble. Bob’s going to grad school, but we’re going to keep working on the startup. We’re moving back to Minnesota, but we’re going to keep working on the startup. We’re taking on some consulting projects, but we’re going to keep working on the startup. You may as well just translate these to “we’re giving up on the startup, but we’re not willing to admit that to ourselves,” because that’s what it means most of the time. A startup is so hard that working on it can’t be preceded by “but.”

In particular, don’t go to graduate school, and don’t start other projects. Distraction is fatal to startups. Going to (or back to) school is a huge predictor of death because in addition to the distraction it gives you something to say you’re doing. If you’re only doing a startup, then if the startup fails, you fail. If you’re in grad school and your startup fails, you can say later “Oh yeah, we had this startup on the side when I was in grad school, but it didn’t go anywhere.”

You can’t use euphemisms like “didn’t go anywhere” for something that’s your only occupation. People won’t let you.

One of the most interesting things we’ve discovered from working on Y Combinator is that founders are more motivated by the fear of looking bad than by the hope of getting millions of dollars. So if you want to get millions of dollars, put yourself in a position where failure will be public and humiliating.

When we first met the founders of Octopart, they seemed very smart, but not a great bet to succeed, because they didn’t seem especially committed. One of the two founders was still in grad school. It was the usual story: he’d drop out if it looked like the startup was taking off. Since then he has not only dropped out of grad school, but appeared full length in Newsweek with the word “Billionaire” printed across his chest. He just cannot fail now. Everyone he knows has seen that picture. Girls who dissed him in high school have seen it. His mom probably has it on the fridge. It would be unthinkably humiliating to fail now. At this point he is committed to fight to the death.

I wish every startup we funded could appear in a Newsweek article describing them as the next generation of billionaires, because then none of them would be able to give up. The success rate would be 90%. I’m not kidding.

When we first knew the Octoparts they were lighthearted, cheery guys. Now when we talk to them they seem grimly determined. The electronic parts distributors are trying to squash them to keep their monopoly pricing. (If it strikes you as odd that people still order electronic parts out of thick paper catalogs in 2007, there’s a reason for that. The distributors want to prevent the transparency that comes from having prices online.) I feel kind of bad that we’ve transformed these guys from lighthearted to grimly determined. But that comes with the territory. If a startup succeeds, you get millions of dollars, and you don’t get that kind of money just by asking for it. You have to assume it takes some amount of pain.

And however tough things get for the Octoparts, I predict they’ll succeed. They may have to morph themselves into something totally different, but they won’t just crawl off and die. They’re smart; they’re working in a promising field; and they just cannot give up.

All of you guys already have the first two. You’re all smart and working on promising ideas. Whether you end up among the living or the dead comes down to the third ingredient, not giving up.

So I’ll tell you now: bad shit is coming. It always is in a startup. The odds of getting from launch to liquidity without some kind of disaster happening are one in a thousand. So don’t get demoralized. When the disaster strikes, just say to yourself, ok, this was what Paul was talking about. What did he say to do? Oh, yeah. Don’t give up.

Paul Graham

5 Moral Fences

Protecting myself from myself for Christ and for others.
Dr. James MacDonald writes: I was a pastor in seminary when the moral failures of the late ‘80’s hit the news and they scared me. In addition to the newsworthy blowouts, I was hearing a shocking number of similar tragedies from my own circle of pastor/friends. I remember one Sunday night in 1987 when I cried all the way to church. I was terrified as I asked over and over, “How does this happen? Could this happen to me? How can I protect myself and my growing little family from the devastation a moral failure would cause? How can I be sure my actions will remain pure when men better and stronger than me were falling like flies?”

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