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Due largely to a link
from Slashdot (thanks!), "Make
More Mistakes" has endured the scrutiny of more readers than most of my
other essays. I've been getting a great deal of feedback, which I do
appreciate.
Lots of people have asked me how SourceGear has been able to financially
survive all those awful mistakes I've made. Some have checked my
background and speculated that I funded all those mistakes using money I got
from the Spyglass IPO, and therefore a posture of risk-taking is appropriate
only for those who are already rich, and therefore my article doesn't really
apply. That's essentially incorrect, but there is a grain of truth
here. I made some nice money when Spyglass went public (but nowhere near
enough to retire). The presence of financial cushion sometimes has made it
easier to take a risk, even though I am already a risk-taker by nature.
But in actuality, very little money has ever flowed from me to
SourceGear. With the exception of a small amount of capital we received
from a few angel investors, SourceGear has been entirely funded from its own
revenues. If this doesn't seem to add up, then keep in mind that half the
story of SourceGear is not being told right now.
The "mistakes" article tells the story of my failures, but we've
experienced an approximately equal collection of successes. I'm
not going to tell those stories right now. It should be sufficient to
know that our losses happened in the context of some wins, some of them quite
large. Each time I took a risk, I tried to be sure that the size of the
risk was appropriate for the company's resources at that time.
If you are just starting out, or if your company is much smaller than
SourceGear, then my mistakes may seem enormous to you. Absent my bad bets,
I could be driving a Ferrari right now. Still, none of these mistakes
were fatal for SourceGear.
Regardless of the scale of your business, the central point of my article
still applies: "Make all the non-fatal mistakes that you can -- don't make
any of the fatal ones." Only you can figure out what might
be "fatal" for your particular situation. Smaller firms should take
smaller risks. Bigger firms can take much bigger risks without
placing the survival of the company in jeopardy.
Either way, choosing to take no risks at all is an excellent algorithm for
avoiding success.
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