2
Start a high-information-technology company
if frustration is greater than reward
and greed is greater than fear of failure
and a new technology/product is possible then begin
exit (job);
get (tools to write business plan); write (business plan);
get (venture capital);
start (new company);
get (space, people, product development tools, UNIX license);
sell (product idea) ; design (product);
market & sell & produce (product);
while new company is not profitable then
wait; get (more $); sell (new company);
retire; wait; restart;
if entrepreneur wants to do it again then
start (another high-information-
technology company) else
start (new venture capital company);
end;
Figure 1-1. Simple "Program" for Starting a High-Information-Technology Company.
The founders of the new companies discussed later in this book are typically people who, for a number of reasons, were frustrated with their previous job. On the one hand, they felt compelled to keep the job because they needed the paycheck and wanted to stay
in touch with people and advancements in their field. On the other hand, the fact that their frustration exceeded the rewards they expected to receive from their employer tended to push them to leave the firm.when it comes to starting a new company, this "push" effect is necessary, but not sufficient-at least, not by itself. Thousands of people are frustrated in their present job and yet never strike out on their own. Two additional ingredients are required: having a cash motivation that exceeds one's fear of failure and being able to envision a new technology or product that can serve as the basis for a viable enterprise. These latter two ingredients are the "pull" to form a new company.
Thus, the "if" underlying the creation of a new firm is a combination of the "push" to leave an old company (involving such considerations as bureaucracy, lethargy, politics, and frustration) and the "pull" to form a new company (involving such considerations as a new product, superior technology, recognition, and financial reward). Throughout each succeeding generation of technology, new companies have