Lecture 1 (wk 1) ========= Sam Altman ---------- Ingredients of a startup: 1. idea 2. product 3. team 4. execution 5. luck A bad idea is still a bad idea. The idea doesn't matter as much as the execution, but is still a big factor. Pivot to find the right idea quicker. Long term planning is a real advantage, as many startups don't think about it. A good idea is also a business that's difficult to replicate. If you have several ideas, work on the one you think most about when not working. To get through the pain of a startup, the **company** should feel like an important **mission**. Good ideas often look bad at the beginning. If they sound too good, too many people are already working on it. You want to find a **small market** to quickly **create a monopoly**, and then expand. You've found it when **people depend on it** even when it's still a crappy incomplete product. Reply to criticism: "I know it sounds like a bad idea, but it's not. Here's why..." Sounds like a bad idea, but is a good idea. Find a market that's going to be big in 10 years. Investors are obsessed with current market. Why now? Why is now the right time for this idea? If it takes **more than a sentence** to explain, it's almost certainly a **bad idea**. Niche clone companies usually fail. More important than starting a startup, is **finding potential cofounders**. Great Idea -> Great Product -> Great Company 1. Talk to users 2. Sleep 3. Stay healthy **Make something people love**, then focus on user growth. You'll know people love it when you see **organic growth** (e.g. word of mouth). If you're waiting on something like a partnership, your product isn't loved and you're wasting time. **Users love simple**. You can always make something with a smaller subset than you thought possible. Worry about making it better later. **Recruit users by hand**, not adwords. E.g. go to coffeeshops and ask to try product, set homepage in Apple stores, etc. Ask them what they like and don't like. Ask them what they'd pay for. Ask if they'd be bummed if the company went away. Ask if they would recommend to their friends. Keep a **tight feedback loop**, super important in early days! Don't hire sales and support people right away - you need to do this yourself first. Dustin (FB) ----------- Being a founder is incredibly stressful. - Fair of failure when an entrepreneur is enormous. You don't want to fail yourself, your employees, investors, etc. - Always on call - Fundraising - You're committed, can't leave easily - You're a role model - You have to report to everyone - There's always work to be done --- Lecture 2 (wk 1) ========= Sam Altman ---------- - Choose cofounder extremely carefully (more careful than first hire) - School and innovative tech companies are good places to find them - 2-3 cofounders works well - Be like James Bond: calm, decisive, relentless, resourceful, always know what to do - Do not hire (wait very long until you hire) - A single mediocre hire in the first 5 will kill a startup - Best source for hires is personal network (you or cofounders) - Experience usually doesn't matter too much, more about attitude - They may not scale, but a good person can always find another place in company - Must be smart, get things done, do you want to spend a lot of time around them? - If you do interview, ask about past experience (e.g. projects) and call references (e.g. In your top 5? Would you hire again?) . Do not ask brainteasers. - Must be a good communicator and should like a little bit of risk. Should be able to enjoy spending time with them socially and must enjoy reporting to them if roles reversed. - "Beast" test: each of your team members should be a beast at something they do - Be generous with equity to employees, very stingy with investors (unfortunately way too common to see the reverse) - Cofounders should decide on cofounder equity early on, and should be mostly equal - **Employees should be happy and feel valued** otherwise they will leave - Give team credit for anything good - Take responsibility for anything bad - Learn a bit of management skills; will go a long way - Do 1-on-1s and give clear feedback - Firing people is one of the worst parts of running a company - Fire fast when not working out - Fire if - bad at job - creates office politics - always negative - Don't start with remote cofounders - Communication and speed is vital which you get from working in the same room CEO has five jobs 1. set the vision 2. raise money 3. evangelize 4. hire and manage 5. make sure the entire company executes **Focus** is super important. - Ask a cofounder what they're spending their time and money on - Maintain growth and momentum - Work together in person --- Lecture 3 (wk 2) =========