The wrongness of relativism

cartoon2315

Instagram had 13 employees when they sold for a billion dollars. Was there any startup founder who didn’t feel depressed when that happened? Yes, depressed. All those years of toil and sacrifice, the pain of scaling a complex organization and a complex product, scratching and clawing for revenue growth month after month, and you’ll never have that sort of exit, and 26-year-old Kevin Systrom did it in only 2 years, with 13 buddies, with $0 in revenue, never having had to worry about gross margins or hiring at scale or making sales calls or running out of money.

“It’s not fair,” we all said to ourselves.

That was before WhatsApp sold for 19 billion dollars, with 55 employees. That’s $345m per employee, compared to Instagram’s paltry $77m per employee. That’s so much better than those chumps at Instagram. Well, at least they had to toil for four years instead of two. Still…

Now Slack has been valued at over a billion dollars, less than a year after launch, every month adding more than a million dollars of annual recurring revenue. They’re next! Another collective sigh shudders through the ranks of startup founders, as we grumble over our trifling grindstones.

Oh, but don’t worry, the pundits have wasted no time perpetuating this emotional insanity back onto the founders of these very companies! As IronFire VC Eric Jackson put it:

You know, Kevin, minimum. It’s your turn to be depressed, and dammit you had better take your turn!

Of course you can see through this psychosis. You mustn’t judge yourself with the yardstick of other companies, particularly not against the rarified few who dwell in the extremities of reality.

Measuring yourself against the average or median isn’t much better. What does it actually mean that metric X is better than average and metric Y is below? For any such condition, I can find you another company in worse condition, who is more successful then you, or yet another company without that condition who is less successful by metric Z, and each of you would envy each others’ strengths while ignoring your own, all the while getting increasingly depressed. Sometimes, benchmarks aren’t healthy.

cartoon5516

The right thing is to ask: “What is the best thing I can do for my company, with the specific challenges and benefits that I have in front of me?”

It doesn’t matter whether we’re talking about valuations, growth rates, retention rates, NPS scores, early-stage uncertainty, ratio of revenue to employee, CAC, cash-burn, LTV, gross margin, or selling your company.

The question isn’t “What did some other company do,” but rather, “Am I happy with this metric, and if I change it at the expense of other metrics, or of innovation, or of my lifestyle, or of my happiness, is that the right trade for me, for the company, for my customers, and for my employees?”

If you can answer in the affirmative to all that, you have your answer.

If you’re not even sure how to reason in this manner, that is your next big challenge. Because, if you’re not confident in reasoning about yourself, you have no choice but to compare your worst fears (exaggerated negative) with the public façade of other people (exaggerated positive), and to the absurd extremities that are (rightly!) the darlings of the news media, and this is not a path to finding good answers.

You’re the captain of this ship, and you’re navigating your own waters. Don’t forget it.

2,532 responses to “The wrongness of relativism”

  1. Great post! Heh, it made me think…”business yoga” (don’t worry that the person next to you is able to bend themselves into a pretzal while standing on their head, concentrate on yourself and your own ‘practice.’)

    Thanks Jason for cerebral perspectives to entrepreneurship! :)

  2. You make a very refreshing point. Unfortunately, most if not all of the attention in the media goes to the “Cinderella Story” multi-squillion dollar exits. We live in a Hollywood society that just loves that stuff and we eat it it up without a reality check. If the big payout is the founders main goal then that is where disappointment can easily set in. However, if the goals are more balanced, such as building a sustainable business that has a meaningful purpose for society then there is much less risk of feeling depressed.

  3. ..yes, valuations are just made up Monopoly numbers anyway… sooner or later, you are GOING to actually have to make profits…

  4. Love it Jason!
    I definitely feel trap to comparing myself against others when I started my entrepreneurial journey. I was always looking what others did and felt bad about not being able to keep up with them.

    It took painful months to understand that I’m the owner of my business and I don’t need to compare myself against others. It’s worthless to worry about outperforming others as long as you stay true to your vision and goals.

    Thanks for sharing that lesson with us!

  5. “An often-referenced study from 1978, comparing 22 major lottery winners with people who did not win, found no difference in happiness levels between the two groups.”

    http://www.cnn.com/2011/HEALTH/01/07/lottery.winning.psychology/

    I have been part of a company that “won the acquisition lotto”. While I wasn’t one of the founders that struck it rich, it was very clear that we had lost our soul. It was painful.

    *Even though* we’d negotiated autonomy, when someone pumps a bunch of cash into your company, they expect that you will deliver what they want, which is cash. If you aren’t making that now, everything about your company changes. Goals change, personas change. The culture changes. It’s very hard to mask to your existing employees what is happening, which is, you sold out. End of story.

    While I won’t doubt that there is comfort in knowing you can pay your bills, there’s not much comfort in knowing that from product decisions to ad campaigns, what you’ve built is no longer yours to influence. You sold your baby, and have to come to terms with that.

    • That’s true, but you also have to compare that to the alternative. No startup remains a startup forever. Whether it grows and grows and thus changes in fundamental ways, or it doesn’t grow much and stays independent it also changes, or it sells, or a decade passes and key people naturally leave, no matter what, things will change and it won’t be like it is now. There no exceptions to this, that I’m aware of.

      Thus, an outcome in which on top of that alteration, the people involved can enjoy some monetary upside, can easily be viewed as better than a change which doesn’t involve that.

      I think what you’re saying is that a sale can cause that change “before its time.” That is, there’s more of the “magical” time ahead, yet it was taken off the table in exchange for money. That’s true too, but with all investments it’s typically better to sell too early rather than too late, and it’s impossible to know what would have happened.

      So, maybe it’s worth being a little more charitable towards those companies who decide to sell. No one knows what could have been!

      • Wil Shipley gave the best talk at Code Conf. Seriously, I had a tear in my eye, it was that good.

        He gets very tired of investors insisting on exits. When people ask him an exit strategy, he says “code until I die”. He cites Larry Page, Sergey Brin, and Jeff Bezos as people who took this strategy. If you have a vision, and it’s something people actually want, why is it almost a prerequisite that you sell that vision short? It doesn’t happen with every acquisition of course, but it does happen a lot.

        I guess I came into this business working for a software company that just so happened to be small. We were profitable, and we grew. It took me a year in the Bay Area to realize people were often out to pump and dump.

        If the culture and capital of an acquisition is good for your customers, good. If new blood is what a company needs, good. I guess I get weary when an acquisition will clearly take a company’s focus off the paying customers it has, and on to customers who have more money but very different needs. It’s just sad to watch and be a part of.

        • I think it is pretty well documented that many in the startup biz in the bay area are out for pump and dump (and maybe many outside SV, but less successfully).

          It can be equally soul crushing when a company has no liquidity for anyone, and misses the opportunity to sell (IPO or acquisition) and lays everyone off. You hope that people make the best decision they can given the circumstances. But it helps to understand the mindset of the owners and investors in a company so that you can set your expectations accordingly.

  6. Thanks a lot for sharing kind of information. Your article provide such a great information with good knowledge. Here we would like to inform you as we are professional cleaning & painting service providers in Dubai! Regards Best Deep Cleaning Dubai

  7. Thanks a lot for sharing kind of information. Your article provide such a great information with good knowledge. Here we would like to inform you as we are professional cleaning & painting service providers in Dubai! Regards Tiles polishing service in dubai

  8. Thanks a lot for sharing kind of information. Your article provide such a great information with good knowledge. Here we would like to inform you as we are professional cleaning & painting service providers in Dubai! Regards Tiles cleaning company in dubai

  9. Make use of a travel agent that provides travel deals for handicapped travelers. Booking plane tickets and rooms in hotels with journey agents that provide travel methods to disabled individuals is advantageous in many ways. They make sure they book for his or her disabled customers airlines as well as hotels which are disabled pleasant. They make an effort to offer providers and suggestions which will ensure their own clients journey comfortably. http://www.bestadventuretravel.us

  10. Real estate shareholders live in addition to die by means of their chance to add importance. With not any added importance, there usually are no gains. This applies with almost any business, but what makes real estate a really great business as well as a great investment decision, is the volume of ways you can contribute value and benefit from big gains. http://www.realestatevalley.us

  11. Health fitness tips also recommend that vices should be stopped. Smoking predisposes one to vascular conditions such as arteriosclerosis and heart diseases. Alcohol consumption need not be eliminated but should be limited to 30 jiggers a day only. Alcohol still has health benefits such as vasodilation. These are just some of what Health fitness tips recommend http://www.healthyactivities.us

  12. Health fitness ideas also suggest that vices ought to be stopped. Smoking predisposes someone to vascular conditions for example arteriosclerosis as well as heart illnesses. Alcohol consumption do not need to be removed but ought to be limited in order to 30 jiggers each day only. Alcohol nevertheless has many benefits such because vasodilation. These are are just some of what Health fitness ideas recommend http://www.healthimprove.us

  13. Traveling, for individuals with disabilities, is extremely hectic, particularly when they get to the airport terminal. They face the process of obtaining proper info and instructions. This is actually further aggravated through the huge number of individuals traveling as well as long lists. In international airports, there tend to be attendants which are supposed for carrying on the needs of these travelling along with disabilities. http://www.safetravelguide.us

  14. Many of us have heard your argument pertaining to spending additional now in quality to avoid wasting money after. But why don’t you consider the result your purchase is wearing the entire world, shouldn’t shopping ethically join in on the conversation too? http://www.shoppinguide.us

  15. You can find all kinds and forms of fashion blogs because internet is brimming with them. It can mention the luxury of wearing lanky jeans around boyfriend skinny jeans or precisely how pink takes the best place of dark-colored plus the many extras. Because you go on-line, you is certain to get your fill in the latest popular trends through fashion blogs. http://www.onlinefashionshop.us

  16. Most likely you view the trend in this article… Commercial House loan Financing can be employed in pretty much any marketplace for virtually any commercial property or home. Speak with all your Business Finance Broker while you are ready to invest in a Commercial Real estate investment opportunity. http://www.businessterms.us

  17. Health fitness suggestions also advise that vices needs to be stopped. Smoking predisposes anyone to vascular conditions for instance arteriosclerosis and also heart conditions. Alcohol consumption will not need to be eradicated but needs to be limited to be able to 30 jiggers per day only. Alcohol nonetheless has health improvements such since vasodilation. These are just some of what Health fitness suggestions recommend http://www.idealhealthfitness.us

  18. Read you be conscious of the trend at this point… Commercial Bank loan Financing can be utilised in basically any community for any sort of commercial real estate. Speak in your Business Finance Broker while you’re ready to buy a Commercial Properties opportunity. http://www.financebenefits.us

  19. You’ll find all varieties and styles of fashion blogs because the internet is packed with them. It can speak about the main advantage of wearing slim jeans above boyfriend denims or just how pink takes the spot of african american plus every one of the extras. When you go on the web, you are certain to get your fill with the latest in fashion trends by means of fashion blogs. http://www.currentfashiontrend.com

  20. Real estate traders live as well as die through their capability to add worth. With absolutely no added worth, there tend to be no earnings. This holds true with any kind of business, but why is real estate this type of great business along with a great expense, is the amount of ways you can include value and profit from big earnings. http://www.commercialsproperty.us

  21. Are you thinking concerning remodeling the home? Take into account that you can frequently achieve the goal with out a giant expenditure. Small advancements introduced in virtually every room, including the surface of your home can make every one of the difference. http://www.houseInnovations.us

  22. Health fitness guidelines also advice that vices must be stopped. Smoking predisposes you to definitely vascular conditions including arteriosclerosis along with heart ailments. Alcohol consumption don’t need to be taken away but must be limited for you to 30 jiggers every day only. Alcohol even now has benefits such while vasodilation. These are are just some of what Health fitness guidelines recommend http://www.healthcarecentre.us

  23. Health fitness points also propose that vices need to be stopped. Smoking predisposes that you vascular conditions like arteriosclerosis in addition to heart disorders. Alcohol consumption does not need to be taken out but need to be limited to help 30 jiggers daily only. Alcohol however has health advantages such seeing that vasodilation. These are just some of what Health fitness points recommend http://www.healthcareaffect.us

  24. Just about everyone has heard the particular argument regarding spending a lot more now about quality to save lots of money afterwards. But think about the influence your purchase has on the planet, shouldn’t shopping ethically engage in the debate too? http://www.eventsshopping.us

  25. There are actually all documents and forms and sizes of fashion blogs being the internet is heaped with them. It can go over the main advantage of wearing thin jeans finished boyfriend a pair of jeans or the simplest way pink takes site of charcoal plus the whole set of extras. Whenever you go over the internet, you could get your fill of this latest in fashion trends with the aid of fashion blogs. http://www.serviceadvisories.com

  26. Health fitness recommendations also suggest vices really should be stopped. Smoking predisposes want you to vascular conditions just like arteriosclerosis plus heart health conditions. Alcohol consumption needn’t be wiped out but really should be limited so that you can 30 jiggers on a daily basis only. Alcohol continue to has rewards such when vasodilation. These are are just some of what Health fitness recommendations recommend http://www.healthifitness.us

  27. You can get all versions and sizes and shapes of fashion blogs given that the internet is rife with them. It can consider the benefit of wearing skinny jeans throughout boyfriend tight pants or skirts or the correct way pink takes spot of black colored plus the extras. Whilst you go web based, you get your fill belonging to the latest popular trends using fashion blogs. http://www.globenewscenter.us

  28. You will discover all types and designs of fashion blogs since the internet is filled with them. It can discuss the benefit of wearing thin jeans more than boyfriend denim jeans or exactly how pink takes the area of dark plus all of the extras. While you go on the internet, you can get your fill from the latest popular trends by way of fashion blogs. http://www.fashionlabel.us

  29. One can find all methods and figures of fashion blogs when the internet is complete with them. It can focus on the advantage of wearing slender jeans about boyfriend pants or the way in which pink takes the location of ebony plus most of the extras. As you may go on line, you will receive your fill within the latest in fashion trends by fashion blogs. http://www.theworldnews.us

  30. I know that you read the trend these… Commercial Loan Financing should be considered in just about any trade for some kind of commercial premises. Speak with each of your Business Finance Broker if you end up ready to get a Commercial The property market opportunity. http://www.mybusinessmanager.us

  31. The laws associated with nature are simply as these people treat each and every specie (and not just man) along with equality. Inside a jungle, each and every specie will get its because of share associated with food, air as well as water that enable these phones live the dignified life without having to be dependent on every other creation. Character makes absolutely no distinction in between one specie, and also the other because all species would be the children from the same Lord. http://www.equallaw.us

  32. Health fitness hints also counsel that vices has to be stopped. Smoking predisposes to vascular conditions which include arteriosclerosis together with heart medical conditions. Alcohol consumption should not be taken off but has to be limited that will 30 jiggers each and every day only. Alcohol also has health and fitness benefits such mainly because vasodilation. These are just some of what Health fitness hints recommend http://www.healthandfoodideas.com

  33. Almost certainly you be aware of the trend listed here… Commercial Property finance loan Financing work extremely well in essentially any field for any specific commercial asset. Speak with the Business Finance Broker if you find yourself ready to purchase a Commercial Housing opportunity. http://www.aboutfinancenews.com

  34. The truth is that I will sit right here today as well as write what you need to be searching for in business trends after which a 12 months from right now, write exactly the same sort associated with article along with different tips to keep close track of as business as well as society develop. http://www.expertsbusinessadvice.com

  35. You’ll discover all sorts and patterns of fashion blogs for the reason that internet is rich in them. It can look at the main benefit of wearing skeletal jeans in excess of boyfriend trousers or the way pink takes the site of black color plus each of the extras. Since you go on the net, you could possibly get your fill on the latest in fashion trends by using fashion blogs. http://www.latestfashiontrends.us

  36. The reality is that I am able to sit in this article today in addition to write what you long for to be in search of in business trends then a season from at this point, write identical sort connected with article having different suggestions for be mindful of as business in addition to society advance. http://www.onlineservicecentre.com

  37. Travel will give you something to count on… to organize… to review for… and later to share. You will bring home experiences. Life might get somewhat monotonous when you let the item, particularly when you finally retire whilst your work lifetime ends. Anticipation might be priced at at least approximately the excursion itself along with the memories of which follow this trip. http://www.topstoriesus.us

  38. Health fitness strategies also recommend that vices should really be stopped. Smoking predisposes you to vascular conditions which includes arteriosclerosis and even heart problems. Alcohol consumption don’t have to be done away with but should really be limited to help you 30 jiggers 24 hours only. Alcohol always has what are the benefits such simply because vasodilation. These are are just some of what Health fitness strategies recommend http://www.healthafitness.us

  39. Health fitness tips and hints also suggest that vices could be stopped. Smoking predisposes people to vascular conditions along the lines of arteriosclerosis not to mention heart sicknesses. Alcohol consumption does not have to be got rid of but could be limited towards 30 jiggers a full day only. Alcohol even so has health rewards such for the reason that vasodilation. These are just some of what Health fitness tips and hints recommend http://www.healthfitnesstogether.com

  40. Travel provides you with something to anticipate… to get ready for… to research for… and later to talk about. You brings home tales. Life could possibly get somewhat monotonous should you let this, particularly once you retire as well as your work existence ends. Anticipation may be worth at least around the journey itself and also the memories which follow the actual trip. http://www.travelandadventure.us

  41. Seen you are aware of the trend in this case… Commercial Home owner loan Financing are available in very nearly any market place for any variety of commercial building. Speak utilizing your Business Finance Broker remember when you are ready to invest in a Commercial Realty opportunity. http://www.bestfinanceideas.com

  42. More than likely you understand the trend below… Commercial Home finance loan Financing works extremely well in nearly any sector for just about any commercial residence. Speak using your Business Finance Broker when you find yourself ready to get a Commercial Real estate property opportunity. http://www.businessplanning.us

  43. Real estate individuals live plus die by way of their capability add cost. With virtually no added cost, there will be no sales. This very well with every business, but why is real estate this sort of great business including a great choice, is the sheer numbers of ways it’s fine to use value and cash in on big sales. http://www.friendlyrealestate.us

  44. Real estate option traders live together with die by just their capacity add valuation. With hardly any added valuation, there happen to be no proceeds. This well said with all business, but what makes real estate an extremely great business in addition to a great financial commitment, is numerous ways it is possible to value and profit from big proceeds. http://www.newservicespoints.com

  45. Real estate businesses live not to mention die from their capability to add benefits. With certainly no added benefits, there are actually no business earnings. This for sure with any sort of business, but what makes real estate this great business and then a great funding, is the sheer number of ways you’ll be able to value and take advantage of big business earnings. http://www.generalspot.us

  46. Your article really amazing to read this is my first visit and please share this type of article it also provides information. And I would like to thanks for this information that I had been looking. Regards Floor polishing dubai

Sign up to receive 1-2 articles per month: