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Sam Altman: A long-term commitment is the only arbitrage opportunity left in startups “Most companies have a 2-3 year time horizon. But companies are almost always a 10 year project if they work. If you think about it that way from the very beginning, you will make very different...

131,168 görüntüleme • 1 yıl önce •via X (Twitter)

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Startup Archive profil fotoğrafı
Startup Archive1 yıl önce

Watch the full @StanfordOnline lecture with Sam Altman here:

Startup Archive profil fotoğrafı
Startup Archive1 yıl önce

Want even more startup insights from the world's best founders? Join the 8,000+ founders who read our free newsletter here:

TheEarningsNugget profil fotoğrafı
TheEarningsNugget1 yıl önce

"How and Why to Start A Startup - Sam Altman & Dustin Moskovitz - Stanford CS183F: Startup School" FULL VIDEO SUMMARY

Jackson profil fotoğrafı
Jackson1 yıl önce

Deciding to think long term from the start is very smart but the idea that that is the “only” arbitrage left is nonsense. Markets will always have many forms of arbitrage that come and go. The last one left? Gimme a break.

Darth Autocrat (Lyndon NA) profil fotoğrafı
Darth Autocrat (Lyndon NA)1 yıl önce

Does he cover stealing from thousands of sources as being part of that long term perspective?

eray profil fotoğrafı
eray1 yıl önce

He is a successful entrepreneur I am not. But if it means you have to spend more time on a new project I disagree, after all you can't know if it will stick out. If it means think long term act quickly I agree

JG profil fotoğrafı
JG1 yıl önce

This is completely true, but not how most VCs I’ve encountered think or act. A sustainable startup ecosystem that builds meaningful business and provides real benefits to society requires this to be the prevailing view.

Matt Antony profil fotoğrafı
Matt Antony1 yıl önce

Great advice!! Founders need to be in it for the long term. To seriously see returns.

Jasper Saberi profil fotoğrafı
Jasper Saberi1 yıl önce

Interesting. Reminds me of Bezos - one of Amazon’s advantages is long-term thinking. This also seems to be the case with investing. Time arbitrage/long-term thinking appears to be the greatest differentiator in investment performance over time. “The market is a giant mechanism for transferring wealth from the impatient to the patient.” (Paraphrasing Buffett)

Breck Yunits profil fotoğrafı
Breck Yunits1 yıl önce

Lol. Maybe @ycombinator will un-expel me now? It's so funny that they wrote me off, kicked me out, and then started realizing I was right about everything.

Benzer Videolar

Q: How do you build a great company? In the clip below, Sam Altman walks through 9 things he has seen the best founders do: #1 Get to know your users really well “The best founders do customer support themselves. They go visit their users—in the case of Airbnb they go live with them. You want to get to know your users really really well.” #2 Have a short cycle time & understand compound growth “The cycle here is basically: talk to customer to understand pain point → build product to address that → get product in front of user → see what they do → repeat cycle. This cycle is how you iterate and improve. The law of compound growth being what it is: if you can get 2% better every iteration cycle, your iteration cycle is every four hours rather than every four weeks, and you compound that over the course of a few years, you’ll be in a very very different place. Make it one of your top goals to build one of the fastest iterating companies the world has ever seen.” #3 Make a long-term commitment “Most companies have a 2-3 year time horizon. But companies are almost always a 10 year project if they work. If you think about it that way from the very beginning, you will make very different and much better decisions. I think this is the only arbitrage opportunity left in the market. Almost no one makes a fairly long-term commitment to a new project. But if you do that, you will think in a different way, you will hire different people, and it will work very well.” #4 Stay lean until everything is working really well “In the early days, when you’re experimenting and zig zagging, you’re like a fast little speed boat and want to be able to turn the whole company on a dime. You can’t do that if you’re a big company—cash burn aside, which is another problem. The flexibility of the company basically decreases with the square of the number of employees, so you want to stay really small until you’re sure things are working. Once things are working, then you can get really big.” #5 Resist the urge to hire; especially resist the urge to hire mediocre people “Vinod Khosla has a saying that I love: ‘the team you build is the company you build.’ This is really true and I never appreciated how true this was for a long time. If you build a team of great people and you have a product that people love, you’ll have a 90%+ chance of success. Those are both really hard to do, and they’re independent variables. But don’t ignore the team component. The best CEOs I know spend huge amounts of their time recruiting and retaining good talent.” #6 Relentless execution “You have to keep going, and do things perfectly, and get all of the details right. You have to care too much about every experience that a customer has with your company.” #7 Startups are about not giving up “One of the very best companies in the last YC batch applied 7 times before they got in. This is just a version of what happens in startups all of the time: you get beat down, again, and again, and again. And that last time when you get pushed down and don’t think you have enough energy to get back up—that’s the time it actually works. This is what you sign up for if you’re going to start a startup.” #8 Fiduciary duty to take care of yourself “This is a 10-year marathon and you have a fiduciary duty to your shareholders to take care of yourself. Some people treat startups like an all-nighter: they don’t take care of their health, they don’t sleep, they don’t maintain their personal relationships. It is true that startups are a bad choice for work-life balance. But you have a duty to yourself, your team, and your investors to take care of yourself.” #9 Clear mission “You don’t have to figure this out on Day 1, but all of the most successful startups I’ve been fortunate enough to be a part of pretty quickly—in the first one to two years—figure out a really important mission. It’s this mission that gets people to join them. It drives the founders. It gets the media to write about them. And even if you start off building a project that’s just interesting to you and solves a problem in your life—which is how you should start—remember that you should have a clear mission at some point… That is what will convince people to come help you, and that is how you will build this idea into a huge company with a ton of people that really love your product.” Follow Startup Archive for more tactical startup advice!

Startup Archive

407,650 görüntüleme • 2 yıl önce

Q: How do you build a great company? In the clip below, Sam Altman walks through 9 things he has seen the best founders do: #1 Get to know your users really well “The best founders do customer support themselves. They go visit their users—in the case of Airbnb they go live with them. You want to get to know your users really really well.” #2 Have a short cycle time & understand compound growth “The cycle here is basically: talk to customer to understand pain point → build product to address that → get product in front of user → see what they do → repeat cycle. This cycle is how you iterate and improve. The law of compound growth being what it is: if you can get 2% better every iteration cycle, your iteration cycle is every four hours rather than every four weeks, and you compound that over the course of a few years, you’ll be in a very very different place. Make it one of your top goals to build one of the fastest iterating companies the world has ever seen.” #3 Make a long-term commitment “Most companies have a 2-3 year time horizon. But companies are almost always a 10 year project if they work. If you think about it that way from the very beginning, you will make very different and much better decisions. I think this is the only arbitrage opportunity left in the market. Almost no one makes a fairly long-term commitment to a new project. But if you do that, you will think in a different way, you will hire different people, and it will work very well.” #4 Stay lean until everything is working really well “In the early days, when you’re experimenting and zig zagging, you’re like a fast little speed boat and want to be able to turn the whole company on a dime. You can’t do that if you’re a big company—cash burn aside, which is another problem. The flexibility of the company basically decreases with the square of the number of employees, so you want to stay really small until you’re sure things are working. Once things are working, then you can get really big.” #5 Resist the urge to hire; especially resist the urge to hire mediocre people “Vinod Khosla has a saying that I love: ‘the team you build is the company you build.’ This is really true and I never appreciated how true this was for a long time. If you build a team of great people and you have a product that people love, you’ll have a 90%+ chance of success. Those are both really hard to do, and they’re independent variables. But don’t ignore the team component. The best CEOs I know spend huge amounts of their time recruiting and retaining good talent.” #6 Relentless execution “You have to keep going, and do things perfectly, and get all of the details right. You have to care too much about every experience that a customer has with your company.” #7 Startups are about not giving up “One of the very best companies in the last YC batch applied 7 times before they got in. This is just a version of what happens in startups all of the time: you get beat down, again, and again, and again. And that last time when you get pushed down and don’t think you have enough energy to get back up—that’s the time it actually works. This is what you sign up for if you’re going to start a startup.” #8 Fiduciary duty to take care of yourself “This is a 10 year marathon and you have a fiduciary duty to your shareholders to take care of yourself. Some people treat startups like an all-nighter: they don’t take care of their health, they don’t sleep, they don’t maintain their personal relationships. It is true that startups are a bad choice for work-life balance. But you have a duty to yourself, your team, and your investors to take care of yourself.” #9 Clear mission “You don’t have to figure this out on Day 1, but all of the most successful startups I’ve been fortunate enough to be a part of pretty quickly—in the first one to two years—figure out a really important mission. It’s this mission that gets people to join them. It drives the founders. It gets the media to write about them. And even if you start off building a project that’s just interesting to you and solves a problem in your life—which is how you should start—remember that you should have a clear mission at some point… That is what will convince people to come help you, and that is how you will build this idea into a huge company with a ton of people that really love your product.”

Michael McGuiness

500,017 görüntüleme • 2 yıl önce

Sam Altman on the biggest mistake startup CEOs make when scaling a company “When you’re a Seed or Series A company, you spend a huge amount of effort recruiting, but almost no effort retaining talent — and that is [the right strategy] at the beginning. But if you don’t shift to viewing retaining talent as much of your job as recruiting talent, you eventually have some level of a disaster on your hands.” Sam recalls Mark Zuckerberg speaking at Y Combinator and saying he only hires people he’d report to if the roles were reversed. Sam reflects on this: “If you’re hiring people that are that good — which you should be doing — they have as many opportunities as you do… And so if you don’t make the role good enough that you yourself would stay in it, then you have a hard time retaining your best people for a long period of time.” Sam gives three pieces of tactical advice for CEOs who want to retain their best people: 1. Spend one-on-one time with your best people “The thing that your best 5-10 people crave the most is time with you, the CEO. And that is something that as people get busier, they spend less and less time on. Some of the best CEOs in our portfolio, every month they will take out for a one-on-one dinner or drinks or something each of their best 10 people. This is a huge time commitment. If you think about it, you only get 30 dinner slots in a month. It’s a really big thing to do. But I think it actually works because that is the thing these people really crave… They want you to ask them what you think they should be doing and listen to them and have a personal connection. That’s super important.” 2. Continually give them more responsibility “I think if you stop giving people more responsibility, they will eventually leave. If they get to take on new tasks every year or additional tasks every year, they’re happier.” 3. Proactively re-up their compensation “I think most founders are very bad about proactively re-upping — to the level that they should — their top 5-10 lieutenants.” Video source: Khosla Ventures (2016)

Startup Archive

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