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Step inside the Group Partner Lounge to hear Y Combinator Group Partners Harj Taggar, Michael Seibel and Brad Flora discuss what startups waste money on—from marketing and sales to legal and hiring.
Chapters (Powered by https://bit.ly/chapterme-yc) –
00:00 – Introduction
02:19 – Hiring lies
04:50 – Contractors
06:51 – Marketing spend
09:53 – Brand advertising
11:02 – Approach events like a startup founder
12:20 – PR
16:01 – Lawyers
20:22 – Advisors
24:39 – Devil’s advocate
Apply to Y Combinator: https://www.ycombinator.com/apply/
Work at a startup: https://www.workatastartup.com/
#startups #money #tech #business
Date: July 8, 2022
"If you want to get really good at firing vendors!" haha
Most startups I worked at had poor resource management.
Freak, this is amazing. Super helpful. I'm trying to get my feet wet in the whole start-up context.
Why are contractors seen as cheap? In the UK contract developers earn 30%+ more and tend to be easier and always much faster to hire. Why fill the first positions with junior to mid level perm developers when a smaller team of experienced developers will get you moving fast. Just don’t mix up contractors with out sourced development companies. That’s a whole different proposition….
"you're in no way an authority in hiring if you haven't at least tried it yourself"
Great content thanks!
The only thing I disaprove on this video, it is the amount of sentences using "like" (ugh) inapropriately. Here is a new product idea: use auto correct real time of your speech with predefined guidelines, using AI LLM for voice content purposes (sort of autotune for content creators) 😅
The largest chunk of wasteful spending by modern technology startups is FEDERAL INCOME TAX on artificial profits. This is due to changes in the tax code requiring Research & Development costs to be amortized over 5 years (domestic) or 15 years (foreign). A business that generates annual revenue of $1,000,000 with annual R&D expenditures of $1,000,000 will now be paying first-year taxes on $800,000 on artificial profit. Unless the startup has investors with deep pockets the federal income taxes due will force the company into bankruptcy.
FYI – This is an overly simplistic example that does not account for other legitimate expenses (i.e., taxes, rent, utilities, etc.) which would result in an actual operating loss.
Anyone can file the paperwork to incorporate a business in a single afternoon. This includes filling out and filing the State and federal forms. As for corporate by-laws or articles of operation for a LLC, you should not just take the boilerplate document drafted by an attorney. You need to understand the document to ensure that you are willing and able to operate your business in accordance with the terms therein.
Why exactly should we send money on lawyers at all? Make contracts simple enough for anyone to understand them.