What’s the best way to build a good company?

Brad Feld (Managing Director at Foundry Group)
The Long Lost Myth of Capital Efficiency – Feld Thoughts

When a company can become cash flow positive on a small amount of capital (say $5m – $10m) and grow over 100% year-over-year without raising another nickel of equity, well that’s a silent killer.

David Jackson (Founder, Seeking Alpha)
Why capital efficiency is critical for SaaS and subscription businesses | A Founder’s Notebook

Capital efficiency gives you time, which is critical for businesses that scale steadily but without viral growth, such as SaaS and subscription businesses.

Sam Altman (President at Y Combinator)
Super successful companies – Sam Altman

They can explain the vision for the company in a few clear words. They generate revenue very early on in their lives. They keep expenses low. They are tough and calm. They make something a small number of users really love. They move fast.

Ben Horowitz (Co-Founder & Partner @ Andreessen Horowitz)
Why Startups Should Train Their People – Ben’s Blog

As success drives the need to hire new engineers at a rapid rate, companies neglect to train the new engineers properly. As the engineers are assigned tasks, they figure out how to complete them as best they can. Often this means replicating existing facilities in the architecture, which lead to inconsistencies in the user experience, performance problems, and a general mess

Sam Altman (President at Y Combinator)
The Post-YC Slump – Sam Altman

The main problem is that companies stop doing what they were doing during YC instead of relentlessly focusing on building a great product and growing, they focus on everything else. In general, startups get distracted by fake work. Two particularly bad cases are raising money and getting personal press. But the list of fake work is long.

Mark Zuckerberg (Founder & Chairman & CEO at Facebook)
How To Get Ahead: Entrepreneurial Lessons From Mark Zuckerberg

The most important thing for you as an entrepreneur trying to build something is, you need to build a really good team. And that’s what I spend all my time on… I spend probably 25 percent of my time recruiting, finding good people, both outside the company and inside the company, to put them in more impactful roles.

Sam Altman (President at Y Combinator)
The three steps to building a great company, and why most startups fail on the first step | A Founder’s Notebook

Task #1: Build a product that users love. Task #2: Figure out how you are going to grow. Task #3: Make sure you are going to stay a winner if you win. [Are the three tasks sequential? In other words, should you figure out growth only after you’ve finished building a product that users love? I think there’s overlap, but broadly speaking — yes, they’re sequential. ]

Dharmesh Shah (Co-founder and CTO of HubSpot)
Happy Birthday HubSpot! 9 Lessons From Our First 9 Years

As a startup, you need to seek that love. We don’t just want people to buy from us. We want people to love us. We want them to love what we love and respect what we do, even if they don’t buy from us. Even if they are unlikely to ever buy from us. Because what we believe is that the more people that love us, and want us to succeed, the more likely we are to do so.

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Long Roadmaps – AVC

And I replied that building a great company is a combination of patience and impatience in equal doses applied unevenly. Impatient short term, patient long term.

Paul Graham (Co-Founder & Partner at Y Combinator)
Beating the Averages

If you do everything the way the average startup does it, you should expect average performance. The problem here is, average performance means that you’ll go out of business. The survival rate for startups is way less than fifty percent. So if you’re running a startup, you had better be doing something odd. If not, you’re in trouble.

Tomasz Tunguz (Partner at Redpoint Ventures)
Why the Bubble Question Doesn’t Matter

1. Think long term 2. Manage your cash effectively 3. Only hire the right people 4. Mitigate churn 5. Raise capital opportunistically to amass a war-chest large enough to achieve your vision