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Ben Horowitz’s Top 10 Rules For Success (@bhorowitz)


and I think people’s skills tend to be

and I think people’s skills tend to be highly underestimated in terms of kind

highly underestimated in terms of kind

highly underestimated in terms of kind of just ability to run a company guys

of just ability to run a company guys

of just ability to run a company guys I’m gonna major in computer science and

I’m gonna major in computer science and

I’m gonna major in computer science and one of my friends said wow that’s the

one of my friends said wow that’s the

one of my friends said wow that’s the stupidest thing I’ve ever heard

stupidest thing I’ve ever heard

stupidest thing I’ve ever heard like it come at me again you would not a

like it come at me again you would not a

like it come at me again you would not a misquote me I can’t wait to kill you our

misquote me I can’t wait to kill you our

misquote me I can’t wait to kill you our goal is to be the most important venture

goal is to be the most important venture

goal is to be the most important venture capital firm in the world following your

capital firm in the world following your

capital firm in the world following your passion is a very me-centered view of

passion is a very me-centered view of

passion is a very me-centered view of the world work is what’s important

the world work is what’s important

the world work is what’s important it’s that effort where you learn the

it’s that effort where you learn the

it’s that effort where you learn the secrets I wanted to quit every day who’s

secrets I wanted to quit every day who’s

secrets I wanted to quit every day who’s in that job I felt like throwing up when

in that job I felt like throwing up when

in that job I felt like throwing up when I woke up in the morning but you only

I woke up in the morning but you only

I woke up in the morning but you only get leverage if the person that you hire

get leverage if the person that you hire

get leverage if the person that you hire can do it better than you can if you’re

can do it better than you can if you’re

can do it better than you can if you’re a technology entrepreneur like you’ve

a technology entrepreneur like you’ve

a technology entrepreneur like you’ve got every opportunity to make like a

got every opportunity to make like a

got every opportunity to make like a gazillion dollars like all the VCS and

gazillion dollars like all the VCS and

gazillion dollars like all the VCS and everybody tells me you know bending you

everybody tells me you know bending you

everybody tells me you know bending you know what the key to a great company is

know what the key to a great company is

know what the key to a great company is you know hire a players he’s an American

you know hire a players he’s an American

you know hire a players he’s an American businessman investor blogger and author

businessman investor blogger and author

businessman investor blogger and author he’s the co-founder of a venture capital

he’s the co-founder of a venture capital

he’s the co-founder of a venture capital firm that bears his name he co-founded

firm that bears his name he co-founded

firm that bears his name he co-founded the enterprise software company Opsware

the enterprise software company Opsware

the enterprise software company Opsware that Hewlett Packard acquired from 1.6

that Hewlett Packard acquired from 1.6

that Hewlett Packard acquired from 1.6 billion dollars he’s Ben Horowitz and

billion dollars he’s Ben Horowitz and

billion dollars he’s Ben Horowitz and here his top 10 rules for success

yeah so you know in the world of

yeah so you know in the world of entrepreneurship the big skills are kind

entrepreneurship the big skills are kind

entrepreneurship the big skills are kind of programming skills and people skills

of programming skills and people skills

of programming skills and people skills like those are the big two and I think

like those are the big two and I think

like those are the big two and I think people’s skills tend to be highly

people’s skills tend to be highly

people’s skills tend to be highly underestimated in terms of kind of just

underestimated in terms of kind of just

underestimated in terms of kind of just ability to run a company and so forth

ability to run a company and so forth

ability to run a company and so forth and what I mean by people’s skills is

and what I mean by people’s skills is

and what I mean by people’s skills is the ability to understand other people’s

the ability to understand other people’s

the ability to understand other people’s motivation and other people’s motivation

motivation and other people’s motivation

motivation and other people’s motivation so you’re talking to and then who you’re

so you’re talking to and then who you’re

so you’re talking to and then who you’re also not talking to and how they’re

also not talking to and how they’re

also not talking to and how they’re going to think about something and where

going to think about something and where

going to think about something and where they’re coming from and relate to that

they’re coming from and relate to that

they’re coming from and relate to that in a way that gets you to the right

in a way that gets you to the right

in a way that gets you to the right conclusion about how you build an

conclusion about how you build an

conclusion about how you build an organization or build a company or or

organization or build a company or or

organization or build a company or or you know make a deal or any of these

you know make a deal or any of these

you know make a deal or any of these kinds of things is incredibly valuable

kinds of things is incredibly valuable

kinds of things is incredibly valuable and that’s what I would say most the

and that’s what I would say most the

and that’s what I would say most the kind of good entrepreneurs end up

kind of good entrepreneurs end up

kind of good entrepreneurs end up lacking more than the technical skills

lacking more than the technical skills

lacking more than the technical skills that we see now like being like a boss

that we see now like being like a boss

that we see now like being like a boss level engineer like that’s extremely

level engineer like that’s extremely

level engineer like that’s extremely valuable I’m not discounting that but

valuable I’m not discounting that but

valuable I’m not discounting that but that that’s really the other big big

that that’s really the other big big

that that’s really the other big big skill that you can learn and I was just

skill that you can learn and I was just

skill that you can learn and I was just so excited to tell my friends I was like

so excited to tell my friends I was like

so excited to tell my friends I was like man they’re gonna be just like so fired

man they’re gonna be just like so fired

man they’re gonna be just like so fired up for me I figured it out I’m not gonna

up for me I figured it out I’m not gonna

up for me I figured it out I’m not gonna be stressed anymore and I’m like guys

be stressed anymore and I’m like guys

be stressed anymore and I’m like guys I’m gonna major in computer science and

I’m gonna major in computer science and

I’m gonna major in computer science and one of my friends said wow that’s the

one of my friends said wow that’s the

one of my friends said wow that’s the stupidest thing I’ve ever heard

stupidest thing I’ve ever heard

stupidest thing I’ve ever heard and I’m like why he’s like you’re at

and I’m like why he’s like you’re at

and I’m like why he’s like you’re at Columbia University that’s like a trade

Columbia University that’s like a trade

Columbia University that’s like a trade you can learn that at DeVry they’ll

you can learn that at DeVry they’ll

you can learn that at DeVry they’ll teach you how to build computers fixham

teach you how to build computers fixham

teach you how to build computers fixham program like you should major in

program like you should major in

program like you should major in something real and I was just thinking

something real and I was just thinking

something real and I was just thinking to myself I was like I’m talking about a

to myself I was like I’m talking about a

to myself I was like I’m talking about a limitless machine you’re like talking

limitless machine you’re like talking

limitless machine you’re like talking about a washing machine

but I was so frustrated I couldn’t even

but I was so frustrated I couldn’t even really explain to him why but it was at

really explain to him why but it was at

really explain to him why but it was at that point at my like height of

that point at my like height of

that point at my like height of frustration that I learned the most

frustration that I learned the most

frustration that I learned the most valuable lesson that I learned at

valuable lesson that I learned at

valuable lesson that I learned at Columbia which is don’t listen to your

Columbia which is don’t listen to your

Columbia which is don’t listen to your friends

and the more the more generalized the

and the more the more generalized the more generalized case of don’t listen to

more generalized case of don’t listen to

more generalized case of don’t listen to your friends is think for yourself and

your friends is think for yourself and

your friends is think for yourself and thinking for yourself sounds both simple

thinking for yourself sounds both simple

thinking for yourself sounds both simple and trivial but in reality it’s

and trivial but in reality it’s

and trivial but in reality it’s extremely difficult and it’s profound

extremely difficult and it’s profound

extremely difficult and it’s profound and here’s why as human beings we want

and here’s why as human beings we want

and here’s why as human beings we want to be liked

to be liked

to be liked it’s anthropological if people didn’t

it’s anthropological if people didn’t

it’s anthropological if people didn’t like you in caveman days they would just

like you in caveman days they would just

like you in caveman days they would just eat you so you really have a natural

eat you so you really have a natural

eat you so you really have a natural built-in instinct to want to be liked

built-in instinct to want to be liked

built-in instinct to want to be liked and the easiest way to be liked is to

and the easiest way to be liked is to

and the easiest way to be liked is to tell people what they want to hear and

tell people what they want to hear and

tell people what they want to hear and you know what everybody wants to hear

you know what everybody wants to hear

you know what everybody wants to hear what they already believe to be true and

what they already believe to be true and

what they already believe to be true and so the last thing they want to hear is

so the last thing they want to hear is

so the last thing they want to hear is an original idea that contradicts their

an original idea that contradicts their

an original idea that contradicts their belief system so it’s very hard to even

belief system so it’s very hard to even

belief system so it’s very hard to even bring that kind of stuff up but those

bring that kind of stuff up but those

bring that kind of stuff up but those are the things those are the only things

are the things those are the only things

are the things those are the only things things that you believe that everybody

things that you believe that everybody

things that you believe that everybody around you doesn’t believe when you’re

around you doesn’t believe when you’re

around you doesn’t believe when you’re right that create real value in the

right that create real value in the

right that create real value in the world everything else people already

world everything else people already

world everything else people already know there’s no value created it’s just

know there’s no value created it’s just

know there’s no value created it’s just business as usual so it’s so important

business as usual so it’s so important

business as usual so it’s so important to think for yourself how do you get

to think for yourself how do you get

to think for yourself how do you get along with other VCS

along with other VCS

along with other VCS so this is funny so I got along with

so this is funny so I got along with

so this is funny so I got along with them very well alright so there are VCS

them very well alright so there are VCS

them very well alright so there are VCS that are that I really really like Anil

that are that I really really like Anil

that are that I really really like Anil Boozer II is one of them who I work with

Boozer II is one of them who I work with

Boozer II is one of them who I work with all the time on various deals I just I

all the time on various deals I just I

all the time on various deals I just I just got off the phone with ditch line

just got off the phone with ditch line

just got off the phone with ditch line where I get along with very very well so

where I get along with very very well so

where I get along with very very well so there are a lot of there are a lot of

there are a lot of there are a lot of

there are a lot of there are a lot of VCS I get along with I’m a bad cultural

VCS I get along with I’m a bad cultural

VCS I get along with I’m a bad cultural fit for investing you may have noticed

fit for investing you may have noticed

fit for investing you may have noticed and and then there’s a good reason for

and and then there’s a good reason for

and and then there’s a good reason for this so investor if you think about the

this so investor if you think about the

this so investor if you think about the investing environment it’s this weird

investing environment it’s this weird

investing environment it’s this weird coopertition thing because you compete

coopertition thing because you compete

coopertition thing because you compete for deals but you work on deals together

for deals but you work on deals together

for deals but you work on deals together so you’re kind of partners but your

so you’re kind of partners but your

so you’re kind of partners but your competitors and I don’t come from that

competitors and I don’t come from that

competitors and I don’t come from that culture they come from enterprise

culture they come from enterprise

culture they come from enterprise software right like you know who the top

software right like you know who the top

software right like you know who the top dog in enterprise software is Larry

dog in enterprise software is Larry

dog in enterprise software is Larry Ellison right like ain’t no co-op

Ellison right like ain’t no co-op

Ellison right like ain’t no co-op petition and Larry Ellison

petition and Larry Ellison

petition and Larry Ellison right like all you have to do is mention

right like all you have to do is mention

right like all you have to do is mention like anybody’s close to a competitor and

like anybody’s close to a competitor and

like anybody’s close to a competitor and it’s like a hit will blow off like and

it’s like a hit will blow off like and

it’s like a hit will blow off like and he’ll go like bananas like in Borneo we

he’ll go like bananas like in Borneo we

he’ll go like bananas like in Borneo we saw that at deep absolutely bananas it’s

saw that at deep absolutely bananas it’s

saw that at deep absolutely bananas it’s like its own baby

like its own baby

like its own baby you stepped on my shoes let’s go and so

you stepped on my shoes let’s go and so

you stepped on my shoes let’s go and so you know you know for me and then you

you know you know for me and then you

you know you know for me and then you know also I listen to little wheezy and

so sometimes you know the venture

so sometimes you know the venture capitalist will come at me you know

capitalist will come at me you know

capitalist will come at me you know being friendly hey you know what the

being friendly hey you know what the

being friendly hey you know what the peace sign and you know to me the peace

peace sign and you know to me the peace

peace sign and you know to me the peace sign is just the trigger and the middle

sign is just the trigger and the middle

sign is just the trigger and the middle finger you know

that’s from Weezy does it does it bother

that’s from Weezy does it does it bother you when they talk about you

you when they talk about you

you when they talk about you because they don’t do it to your face

because they don’t do it to your face

because they don’t do it to your face they do it’s people like anonymous so

they do it’s people like anonymous so

they do it’s people like anonymous so yeah so that was a you’re alluding a

yeah so that was a you’re alluding a

yeah so that was a you’re alluding a little bit to when I called them

little bit to when I called them

little bit to when I called them crybabies

crybabies

crybabies which gets actually another thing the

which gets actually another thing the

which gets actually another thing the one thing that does bother me a little

one thing that does bother me a little

one thing that does bother me a little bit about some VCS and some angels so

bit about some VCS and some angels so

bit about some VCS and some angels so one of the things that’s happened a lot

one of the things that’s happened a lot

one of the things that’s happened a lot since we’ve been in the industry is we

since we’ve been in the industry is we

since we’ve been in the industry is we get a lot of people calling the press

get a lot of people calling the press

get a lot of people calling the press anonymously there are probably more

anonymously there are probably more

anonymously there are probably more anonymous quotes about us in the press

anonymous quotes about us in the press

anonymous quotes about us in the press and any other like entity right now and

and any other like entity right now and

and any other like entity right now and Sarah calls me up and she goes Ben I got

Sarah calls me up and she goes Ben I got

Sarah calls me up and she goes Ben I got a tip from six different anonymous

a tip from six different anonymous

a tip from six different anonymous angels saying that you’re doing this and

angels saying that you’re doing this and

angels saying that you’re doing this and I’m going if they don’t like what I’m

I’m going if they don’t like what I’m

I’m going if they don’t like what I’m doing why don’t they just come out and

doing why don’t they just come out and

doing why don’t they just come out and say it

say it

say it hey you know like if I don’t like

hey you know like if I don’t like

hey you know like if I don’t like something somebody’s doing I just come

something somebody’s doing I just come

something somebody’s doing I just come outside put my name on it

outside put my name on it

outside put my name on it and the reason that bothers me so much

and the reason that bothers me so much

and the reason that bothers me so much is the number one thing we look for in

is the number one thing we look for in

is the number one thing we look for in an entrepreneur and the number one thing

an entrepreneur and the number one thing

an entrepreneur and the number one thing that I encourage and I try and help

that I encourage and I try and help

that I encourage and I try and help people develop his courage and the

people develop his courage and the

people develop his courage and the reason that that’s important and it’s

reason that that’s important and it’s

reason that that’s important and it’s very very important and it goes back to

very very important and it goes back to

very very important and it goes back to Aristotle so Aristotle said courage is

Aristotle so Aristotle said courage is

Aristotle so Aristotle said courage is the first virtue and the reason it’s the

the first virtue and the reason it’s the

the first virtue and the reason it’s the first virtue is if you don’t have it

first virtue is if you don’t have it

first virtue is if you don’t have it then you don’t have any virtue because

then you don’t have any virtue because

then you don’t have any virtue because all these other things honesty integrity

all these other things honesty integrity

all these other things honesty integrity you know whatever

you know whatever

you know whatever don’t ever get activated if in when

don’t ever get activated if in when

don’t ever get activated if in when they’re important if you don’t have

they’re important if you don’t have

they’re important if you don’t have cards it’s easy to be honest unless it’s

cards it’s easy to be honest unless it’s

cards it’s easy to be honest unless it’s gonna cost you your job or your marriage

gonna cost you your job or your marriage

gonna cost you your job or your marriage or something you care about then it’s

or something you care about then it’s

or something you care about then it’s hard to be honest so without courage

hard to be honest so without courage

hard to be honest so without courage like you don’t have any of you don’t

like you don’t have any of you don’t

like you don’t have any of you don’t have integrity you don’t have anything

have integrity you don’t have anything

have integrity you don’t have anything you’re you’re just like the you’re a

you’re you’re just like the you’re a

you’re you’re just like the you’re a zero character person and so when people

zero character person and so when people

zero character person and so when people who are supposed to be coaching

who are supposed to be coaching

who are supposed to be coaching entrepreneurs angel investors or feces

entrepreneurs angel investors or feces

entrepreneurs angel investors or feces walk around giving anonymous tips to

walk around giving anonymous tips to

walk around giving anonymous tips to like reporters about stuff they don’t

like reporters about stuff they don’t

like reporters about stuff they don’t think is right like and those guys are

think is right like and those guys are

think is right like and those guys are advising the people who I’m working with

advising the people who I’m working with

advising the people who I’m working with like that really like you know that

like that really like you know that

like that really like you know that that’s something that like piss me off

that’s something that like piss me off

that’s something that like piss me off so like I’m not having it and like i’ma

so like I’m not having it and like i’ma

so like I’m not having it and like i’ma call them on it like they come at me

call them on it like they come at me

call them on it like they come at me again you anonymous code

again you anonymous code

again you anonymous code I can’t wait to get a lock kill you are

I can’t wait to get a lock kill you are

I can’t wait to get a lock kill you are tomorrow did you imagine you’d be

tomorrow did you imagine you’d be

tomorrow did you imagine you’d be managing almost 5 billion so like one of

managing almost 5 billion so like one of

managing almost 5 billion so like one of the things we knew from being

the things we knew from being

the things we knew from being entrepreneurs and this is this is a very

entrepreneurs and this is this is a very

entrepreneurs and this is this is a very very key point in entrepreneurship is

very key point in entrepreneurship is

very key point in entrepreneurship is that it is just as much work and just as

that it is just as much work and just as

that it is just as much work and just as traumatic to build a company that’s

traumatic to build a company that’s

traumatic to build a company that’s trivial and nobody cares about than it

trivial and nobody cares about than it

trivial and nobody cares about than it is to build like a really significant

is to build like a really significant

is to build like a really significant important thing like it’s the same

important thing like it’s the same

important thing like it’s the same amount of work so you might as well try

amount of work so you might as well try

amount of work so you might as well try to do something important and so that

to do something important and so that

to do something important and so that was always I thought with the firm we

was always I thought with the firm we

was always I thought with the firm we were like we are gonna like our goal is

were like we are gonna like our goal is

were like we are gonna like our goal is to be the most important venture capital

to be the most important venture capital

to be the most important venture capital firm in the world and you know like it’s

firm in the world and you know like it’s

firm in the world and you know like it’s a completely megalomaniacal and arrogant

a completely megalomaniacal and arrogant

a completely megalomaniacal and arrogant and idiotic but that’s like if you don’t

and idiotic but that’s like if you don’t

and idiotic but that’s like if you don’t have that attitude as an entrepreneur

have that attitude as an entrepreneur

have that attitude as an entrepreneur like you should not be an entrepreneur

like you should not be an entrepreneur

like you should not be an entrepreneur so yeah we were always gonna be the

so yeah we were always gonna be the

so yeah we were always gonna be the biggest we were always gonna be the best

biggest we were always gonna be the best

biggest we were always gonna be the best and that that was the goal and there was

and that that was the goal and there was

and that that was the goal and there was no reason to exist if we weren’t going

no reason to exist if we weren’t going

no reason to exist if we weren’t going to do that what I’d like to give is a

to do that what I’d like to give is a

to do that what I’d like to give is a few unconventional graduation thoughts

few unconventional graduation thoughts

few unconventional graduation thoughts and I’m titling them do not follow your

and I’m titling them do not follow your

and I’m titling them do not follow your passion and the world is not going to

passion and the world is not going to

passion and the world is not going to hell in a house but hell in a handbasket

hell in a house but hell in a handbasket

hell in a house but hell in a handbasket and the class of 2015 is not required to

and the class of 2015 is not required to

and the class of 2015 is not required to save it I told you it was gonna be

save it I told you it was gonna be

save it I told you it was gonna be unconventional so don’t follow your

unconventional so don’t follow your

unconventional so don’t follow your passion now you’re probably thinking

passion now you’re probably thinking

passion now you’re probably thinking that’s a really dumb idea because

that’s a really dumb idea because

that’s a really dumb idea because everybody who’s successful and if you

everybody who’s successful and if you

everybody who’s successful and if you Paul a thousand people are successful

Paul a thousand people are successful

Paul a thousand people are successful they’ll all say that they love what they

they’ll all say that they love what they

they’ll all say that they love what they do and so the broad conclusion of the

do and so the broad conclusion of the

do and so the broad conclusion of the world is that if you do what you love

world is that if you do what you love

world is that if you do what you love then you’ll be successful but we’re

then you’ll be successful but we’re

then you’ll be successful but we’re engineers and we know that that might be

engineers and we know that that might be

engineers and we know that that might be true but it all smells it might be the

true but it all smells it might be the

true but it all smells it might be the case that if you’re successful you love

case that if you’re successful you love

case that if you’re successful you love what you do you just love being

what you do you just love being

what you do you just love being successful and everybody loves you it’s

successful and everybody loves you it’s

successful and everybody loves you it’s awesome

so which one is it

so which one is it well I think the figure it out you kind

well I think the figure it out you kind

well I think the figure it out you kind of have to go back in time you have to

of have to go back in time you have to

of have to go back in time you have to back off when you were successful too

back off when you were successful too

back off when you were successful too like right now when you’re graduating as

like right now when you’re graduating as

like right now when you’re graduating as the class of 2015 and the first tricky

the class of 2015 and the first tricky

the class of 2015 and the first tricky thing about passions are they’re hard to

thing about passions are they’re hard to

thing about passions are they’re hard to prioritize which passion is it are you

prioritize which passion is it are you

prioritize which passion is it are you more passionate about math or

more passionate about math or

more passionate about math or engineering are you more passionate

engineering are you more passionate

engineering are you more passionate passionate about history or literature

passionate about history or literature

passionate about history or literature are you more passionate about video

are you more passionate about video

are you more passionate about video games or kpop these are tough decisions

games or kpop these are tough decisions

games or kpop these are tough decisions how do you even know on the other hand

how do you even know on the other hand

how do you even know on the other hand what do you get at are you better at

what do you get at are you better at

what do you get at are you better at math or writing that’s a much easier

math or writing that’s a much easier

math or writing that’s a much easier thing to figure out the second thing

thing to figure out the second thing

thing to figure out the second thing that’s tricky if you’re going forward in

that’s tricky if you’re going forward in

that’s tricky if you’re going forward in time with this follow your passion idea

time with this follow your passion idea

time with this follow your passion idea is that what you’re passionate about

is that what you’re passionate about

is that what you’re passionate about at 21 is not necessarily what you’re

at 21 is not necessarily what you’re

at 21 is not necessarily what you’re going to be passionate about at 40 now

going to be passionate about at 40 now

going to be passionate about at 40 now this is true for boyfriends as well as

this is true for boyfriends as well as

this is true for boyfriends as well as career choices

the third issue with following your

the third issue with following your passion is excuse me a little trouble

passion is excuse me a little trouble

passion is excuse me a little trouble with the throat is you’re not

with the throat is you’re not

with the throat is you’re not necessarily good at your passion and has

necessarily good at your passion and has

necessarily good at your passion and has anybody ever watched American Idol so

anybody ever watched American Idol so

anybody ever watched American Idol so you know what I’m talking about

you know what I’m talking about

you know what I’m talking about like just because you love singing

like just because you love singing

like just because you love singing doesn’t mean you should be a

doesn’t mean you should be a

doesn’t mean you should be a professional singer and then finally and

professional singer and then finally and

professional singer and then finally and most importantly following your passion

most importantly following your passion

most importantly following your passion is a very me-centered view of the world

is a very me-centered view of the world

is a very me-centered view of the world and when you get go through life what

and when you get go through life what

and when you get go through life what you’ll find is what you take out of the

you’ll find is what you take out of the

you’ll find is what you take out of the world over time be it you know whatever

world over time be it you know whatever

world over time be it you know whatever money cars stuff accolades is much less

money cars stuff accolades is much less

money cars stuff accolades is much less important than what you put into the

important than what you put into the

important than what you put into the world and so my recommendation would be

world and so my recommendation would be

world and so my recommendation would be follow your contributions find the thing

follow your contributions find the thing

follow your contributions find the thing that you’re great at put that into the

that you’re great at put that into the

that you’re great at put that into the world contribute to others help the

world contribute to others help the

world contribute to others help the world be better and that is the thing to

world be better and that is the thing to

world be better and that is the thing to follow you know it’s funny sometimes I

follow you know it’s funny sometimes I

follow you know it’s funny sometimes I talked to my wife about this but like

talked to my wife about this but like

talked to my wife about this but like hard work is like super important in

hard work is like super important in

hard work is like super important in life and like now like I grew up like in

life and like now like I grew up like in

life and like now like I grew up like in Berkeley and have any money I played for

Berkeley and have any money I played for

Berkeley and have any money I played for the football for the yellowjacket so I

the football for the yellowjacket so I

the football for the yellowjacket so I was just like a kid in the neighborhood

was just like a kid in the neighborhood

was just like a kid in the neighborhood and now like I have a lot of money and

and now like I have a lot of money and

and now like I have a lot of money and so like with my kids I’m like okay now

so like with my kids I’m like okay now

so like with my kids I’m like okay now that I’m rich how do I teach you the

that I’m rich how do I teach you the

that I’m rich how do I teach you the value of hard work because that’s really

value of hard work because that’s really

value of hard work because that’s really the only important lesson that I’ve got

the only important lesson that I’ve got

the only important lesson that I’ve got but like for all of you I think most of

but like for all of you I think most of

but like for all of you I think most of you out of public university probably

you out of public university probably

you out of public university probably know a little of the value of hard work

know a little of the value of hard work

know a little of the value of hard work keep that lesson that’s the important

keep that lesson that’s the important

keep that lesson that’s the important that work is what’s important it’s that

that work is what’s important it’s that

that work is what’s important it’s that effort where you learn the secrets that

effort where you learn the secrets that

effort where you learn the secrets that are super valuable and can change

are super valuable and can change

are super valuable and can change people’s lives and change the world but

people’s lives and change the world but

people’s lives and change the world but why did you still believe in the company

why did you still believe in the company

why did you still believe in the company I mean I have to think that that at any

I mean I have to think that that at any

I mean I have to think that that at any point in Silicon Valley history there’s

point in Silicon Valley history there’s

point in Silicon Valley history there’s a lot of people that at that point

a lot of people that at that point

a lot of people that at that point they’re just like this isn’t gonna work

they’re just like this isn’t gonna work

they’re just like this isn’t gonna work markets changed this isn’t a viable

markets changed this isn’t a viable

markets changed this isn’t a viable concept anymore well you know

concept anymore well you know

concept anymore well you know I didn’t I I don’t know how much belief

I didn’t I I don’t know how much belief

I didn’t I I don’t know how much belief I had but I knew that I had kind of

I had but I knew that I had kind of

I had but I knew that I had kind of gotten everybody into the boat with me

gotten everybody into the boat with me

gotten everybody into the boat with me so it wasn’t so much that I didn’t want

so it wasn’t so much that I didn’t want

so it wasn’t so much that I didn’t want to quit I wanted to quit every day who’s

to quit I wanted to quit every day who’s

to quit I wanted to quit every day who’s in that job I felt like throwing up when

in that job I felt like throwing up when

in that job I felt like throwing up when I woke up in the morning do you know

I woke up in the morning do you know

I woke up in the morning do you know what it’s like having a baby now yeah

what it’s like having a baby now yeah

what it’s like having a baby now yeah exactly like I felt like I was pregnant

exactly like I felt like I was pregnant

exactly like I felt like I was pregnant but you know I’d hired every employee

but you know I’d hired every employee

but you know I’d hired every employee and they all trust me I’d raise all the

and they all trust me I’d raise all the

and they all trust me I’d raise all the money I talked every investor into

money I talked every investor into

money I talked every investor into putting their money and I had given

putting their money and I had given

putting their money and I had given stock to you know like my friends and

stock to you know like my friends and

stock to you know like my friends and relatives and they were all excited

relatives and they were all excited

relatives and they were all excited about the prospects for the company when

about the prospects for the company when

about the prospects for the company when it went public like a lot of my friends

it went public like a lot of my friends

it went public like a lot of my friends from high school like bought the stock

from high school like bought the stock

from high school like bought the stock because I was running the company and so

because I was running the company and so

because I was running the company and so I just I felt like I could die but I

I just I felt like I could die but I

I just I felt like I could die but I couldn’t quit and then you know one of

couldn’t quit and then you know one of

couldn’t quit and then you know one of the horrible things about being founder

the horrible things about being founder

the horrible things about being founder CEO is it’s the one job you really can’t

CEO is it’s the one job you really can’t

CEO is it’s the one job you really can’t quit or if you do quit you’re Punk so

quit or if you do quit you’re Punk so

quit or if you do quit you’re Punk so yeah you know I didn’t want to be a punk

yeah you know I didn’t want to be a punk

yeah you know I didn’t want to be a punk so I I just kept you know I just kept

so I I just kept you know I just kept

so I I just kept you know I just kept pedaling but it was rough I mean like

pedaling but it was rough I mean like

pedaling but it was rough I mean like that was a running floud cloud right and

that was a running floud cloud right and

that was a running floud cloud right and it didn’t stop there right like that was

it didn’t stop there right like that was

it didn’t stop there right like that was loud loud loud cloud you know by the

loud loud loud cloud you know by the

loud loud loud cloud you know by the time loud cloud was two-and-a-half years

time loud cloud was two-and-a-half years

time loud cloud was two-and-a-half years old I had like sold like the loud cloud

old I had like sold like the loud cloud

old I had like sold like the loud cloud part of the business and I had to change

part of the business and I had to change

part of the business and I had to change it into another business so like that

it into another business so like that

it into another business so like that the next thing that happened was right

the next thing that happened was right

the next thing that happened was right laughs cloud was gonna go bankrupt so I

laughs cloud was gonna go bankrupt so I

laughs cloud was gonna go bankrupt so I raised 160 million dollars in the IPO

raised 160 million dollars in the IPO

raised 160 million dollars in the IPO but like I burned you know like we

but like I burned you know like we

but like I burned you know like we burned through that and we couldn’t stop

burned through that and we couldn’t stop

burned through that and we couldn’t stop the burn because the customers kept

the burn because the customers kept

the burn because the customers kept going out of business and so like we

going out of business and so like we

going out of business and so like we were headed towards bankruptcy so then I

were headed towards bankruptcy so then I

were headed towards bankruptcy so then I had to you know I sold the services part

had to you know I sold the services part

had to you know I sold the services part of the business and all the cash burn

of the business and all the cash burn

of the business and all the cash burn tedious and then I hit the lay off you

tedious and then I hit the lay off you

tedious and then I hit the lay off you know probably you know another third of

know probably you know another third of

know probably you know another third of the employees and then I kept the

the employees and then I kept the

the employees and then I kept the remaining 80 employees and we became a

remaining 80 employees and we became a

remaining 80 employees and we became a software company a publicly traded

software company a publicly traded

software company a publicly traded software company with no customers in

software company with no customers in

software company with no customers in their revenue which was an another dream

their revenue which was an another dream

their revenue which was an another dream Opsware that’s when we became Opsware

Opsware that’s when we became Opsware

Opsware that’s when we became Opsware so like that was hard but it was good

so like that was hard but it was good

so like that was hard but it was good you know it that kind of stuff it makes

you know it that kind of stuff it makes

you know it that kind of stuff it makes you strong you know eventually you know

you strong you know eventually you know

you strong you know eventually you know we five years later we sold to

we five years later we sold to

we five years later we sold to hewlett-packard for you know one point

hewlett-packard for you know one point

hewlett-packard for you know one point six billion dollars and not a bad exit

six billion dollars and not a bad exit

six billion dollars and not a bad exit which was like still I’m still shocked

which was like still I’m still shocked

which was like still I’m still shocked by that whole thing I still wake up in

by that whole thing I still wake up in

by that whole thing I still wake up in the middle of the night going are we’re

the middle of the night going are we’re

the middle of the night going are we’re gonna run out of money

gonna run out of money

gonna run out of money you only get leverage and this is

you only get leverage and this is

you only get leverage and this is something that is really tricky for

something that is really tricky for

something that is really tricky for founding CEOs to get to but you only get

founding CEOs to get to but you only get

founding CEOs to get to but you only get leverage if the person that you hire I

leverage if the person that you hire I

leverage if the person that you hire I can do it better than you can because as

can do it better than you can because as

can do it better than you can because as long as you feel like you’re better than

long as you feel like you’re better than

long as you feel like you’re better than the method then there’s not you’re just

the method then there’s not you’re just

the method then there’s not you’re just gonna keep second-guessing them and and

gonna keep second-guessing them and and

gonna keep second-guessing them and and you’re not gonna get any leverage and a

you’re not gonna get any leverage and a

you’re not gonna get any leverage and a lot of times like I’ll be talking to

lot of times like I’ll be talking to

lot of times like I’ll be talking to CEOs and they’ll have an executive and

CEOs and they’ll have an executive and

CEOs and they’ll have an executive and they’ll be like now this person’s like

they’ll be like now this person’s like

they’ll be like now this person’s like really good and they’re working really

really good and they’re working really

really good and they’re working really hard and I’m like well but like you’re

hard and I’m like well but like you’re

hard and I’m like well but like you’re always like frustrated about like you

always like frustrated about like you

always like frustrated about like you know you always feel like you have to do

know you always feel like you have to do

know you always feel like you have to do that yourself and it’s like yeah cuz

that yourself and it’s like yeah cuz

that yourself and it’s like yeah cuz they don’t understand how to do this and

they don’t understand how to do this and

they don’t understand how to do this and that and I’m like well then like they’re

that and I’m like well then like they’re

that and I’m like well then like they’re not an executive because the whole point

not an executive because the whole point

not an executive because the whole point of an executive is to get you leverage

of an executive is to get you leverage

of an executive is to get you leverage and so on a question like that it’s like

and so on a question like that it’s like

and so on a question like that it’s like okay where can you find the right person

okay where can you find the right person

okay where can you find the right person and make the hire to get you leverage

and make the hire to get you leverage

and make the hire to get you leverage and wherever that is that’s what you

and wherever that is that’s what you

and wherever that is that’s what you should give up first and you want

should give up first and you want

should give up first and you want leverage in all spots because as CEO you

leverage in all spots because as CEO you

leverage in all spots because as CEO you can be the keeper of the vision but

can be the keeper of the vision but

can be the keeper of the vision but quality control over the top you can but

quality control over the top you can but

quality control over the top you can but you can’t be the lead engineer forever

you can’t be the lead engineer forever

you can’t be the lead engineer forever like that there is no like it doesn’t

like that there is no like it doesn’t

like that there is no like it doesn’t matter how good an engineer like Larry

matter how good an engineer like Larry

matter how good an engineer like Larry Page is great an engineer as he was is

Page is great an engineer as he was is

Page is great an engineer as he was is not an engineer at Google he just isn’t

not an engineer at Google he just isn’t

not an engineer at Google he just isn’t and he cannot work on production

and he cannot work on production

and he cannot work on production products it’s a full-time job even for

products it’s a full-time job even for

products it’s a full-time job even for like somebody who can do as many things

like somebody who can do as many things

like somebody who can do as many things as Larry it’s he cannot do that and

as Larry it’s he cannot do that and

as Larry it’s he cannot do that and nobody can like if Larry can’t do it you

nobody can like if Larry can’t do it you

nobody can like if Larry can’t do it you can’t do it either I guarantee you and

can’t do it either I guarantee you and

can’t do it either I guarantee you and so you’re gonna have to give them all up

so you’re gonna have to give them all up

so you’re gonna have to give them all up and so it’s just a matter of like where

and so it’s just a matter of like where

and so it’s just a matter of like where do you get the leverage all of the

do you get the leverage all of the

do you get the leverage all of the general partners in the firm basically

general partners in the firm basically

general partners in the firm basically agreed that we would give half of our

agreed that we would give half of our

agreed that we would give half of our money away to to charity that we earned

money away to to charity that we earned

money away to to charity that we earned at the firm basically half of everything

at the firm basically half of everything

at the firm basically half of everything we get who are gonna give away and like

we get who are gonna give away and like

we get who are gonna give away and like here’s why here’s why oh let me just say

here’s why here’s why oh let me just say

here’s why here’s why oh let me just say why we did it the world the world is

why we did it the world the world is

why we did it the world the world is complex and it’s not and it can’t be

complex and it’s not and it can’t be

complex and it’s not and it can’t be entirely fair from what you contribute

entirely fair from what you contribute

entirely fair from what you contribute to what you get is very very uneven and

to what you get is very very uneven and

to what you get is very very uneven and even if you just look at Silicon Valley

even if you just look at Silicon Valley

even if you just look at Silicon Valley you know if you look at the the kind of

you know if you look at the the kind of

you know if you look at the the kind of brilliant people at Stanford Hospital or

brilliant people at Stanford Hospital or

brilliant people at Stanford Hospital or you know some of the the people who

you know some of the the people who

you know some of the the people who build the buildings that we live in or

build the buildings that we live in or

build the buildings that we live in or the guys who teach the kids and like the

the guys who teach the kids and like the

the guys who teach the kids and like the the teachers at the schools are like

the teachers at the schools are like

the teachers at the schools are like incredibly smart and dedicated um but

incredibly smart and dedicated um but

incredibly smart and dedicated um but there really is no way that they’re

there really is no way that they’re

there really is no way that they’re gonna ever make anything like what I

gonna ever make anything like what I

gonna ever make anything like what I make at injuries and orbits it’s just

make at injuries and orbits it’s just

make at injuries and orbits it’s just impossible the way society is structured

impossible the way society is structured

impossible the way society is structured like it did there’s no way it can happen

like it did there’s no way it can happen

like it did there’s no way it can happen but their contribution to what I do is

but their contribution to what I do is

but their contribution to what I do is significant like without them like you

significant like without them like you

significant like without them like you know like I’ve got kids that are in

know like I’ve got kids that are in

know like I’ve got kids that are in those schools I get sick I go to those

those schools I get sick I go to those

those schools I get sick I go to those doctors like I live in that environment

doctors like I live in that environment

doctors like I live in that environment and like I appreciate it I like really

and like I appreciate it I like really

and like I appreciate it I like really appreciate the effort and the work and

appreciate the effort and the work and

appreciate the effort and the work and the and what they do

the and what they do

the and what they do and so for me to be in a position where

and so for me to be in a position where

and so for me to be in a position where I can put money into the resources that

I can put money into the resources that

I can put money into the resources that I share with them and like make their

I share with them and like make their

I share with them and like make their life a little easier like I just feel

life a little easier like I just feel

life a little easier like I just feel like it’s the right thing to do so it’s

like it’s the right thing to do so it’s

like it’s the right thing to do so it’s nothing more than that and I don’t think

nothing more than that and I don’t think

nothing more than that and I don’t think there’s any kind of like way I can give

there’s any kind of like way I can give

there’s any kind of like way I can give money to other people like if if you’re

money to other people like if if you’re

money to other people like if if you’re a technology entrepreneur like you’ve

a technology entrepreneur like you’ve

a technology entrepreneur like you’ve got every opportunity to make like a

got every opportunity to make like a

got every opportunity to make like a gazillion dollars like that that

gazillion dollars like that that

gazillion dollars like that that opportunity is there whether like a

opportunity is there whether like a

opportunity is there whether like a invest and get a percentage of your

invest and get a percentage of your

invest and get a percentage of your company or not but like if you’re a

company or not but like if you’re a

company or not but like if you’re a teacher you don’t have that opportunity

teacher you don’t have that opportunity

teacher you don’t have that opportunity but man if I can get you the resources

but man if I can get you the resources

but man if I can get you the resources to do your job better so that you’ve got

to do your job better so that you’ve got

to do your job better so that you’ve got like a little more space in your

like a little more space in your

like a little more space in your classroom like that could make the

classroom like that could make the

classroom like that could make the difference for a kid who could do

difference for a kid who could do

difference for a kid who could do something that’s really important and so

something that’s really important and so

something that’s really important and so like that’s what I’m about and that’s

like that’s what I’m about and that’s

like that’s what I’m about and that’s what I’m gonna do and I’m very proud

what I’m gonna do and I’m very proud

what I’m gonna do and I’m very proud that our whole firm is doing that with

that our whole firm is doing that with

that our whole firm is doing that with me look at the hard thing about hard

me look at the hard thing about hard

me look at the hard thing about hard things which is just that we’re not

things which is just that we’re not

things which is just that we’re not don’t come from yeah that’s just it’s

don’t come from yeah that’s just it’s

don’t come from yeah that’s just it’s just a way cool title the hard thing

just a way cool title the hard thing

just a way cool title the hard thing about hard things

about hard things

about hard things well actually wrote that title myself

well actually wrote that title myself

well actually wrote that title myself which I understand it’s like actually

which I understand it’s like actually

which I understand it’s like actually pretty rare in the book business if they

pretty rare in the book business if they

pretty rare in the book business if they let you keep your own title but where it

let you keep your own title but where it

let you keep your own title but where it came from was you know when I was a CEO

came from was you know when I was a CEO

came from was you know when I was a CEO it was easy time I slept like a baby

it was easy time I slept like a baby

it was easy time I slept like a baby woke up every two hours and cried and

woke up every two hours and cried and

woke up every two hours and cried and you know when I when I would be up and

you know when I when I would be up and

you know when I when I would be up and and this is not a joke it’s actually

and this is not a joke it’s actually

and this is not a joke it’s actually true you could ask my wife I’d be up at

true you could ask my wife I’d be up at

true you could ask my wife I’d be up at 3 o’clock in the morning just sitting

3 o’clock in the morning just sitting

3 o’clock in the morning just sitting there going why are none of the

there going why are none of the

there going why are none of the management books that I’m reading

management books that I’m reading

management books that I’m reading helping me like there they are no help

helping me like there they are no help

helping me like there they are no help at all and and I read literally every

at all and and I read literally every

at all and and I read literally every management book and you know I realized

management book and you know I realized

management book and you know I realized that you know management books are

that you know management books are

that you know management books are generally written for like how here’s

generally written for like how here’s

generally written for like how here’s how you to not screw up your company but

how you to not screw up your company but

how you to not screw up your company but if you start a company that lasts like a

if you start a company that lasts like a

if you start a company that lasts like a week and then you’ve screwed it up and

week and then you’ve screwed it up and

week and then you’ve screwed it up and then like where’s the book for that you

then like where’s the book for that you

then like where’s the book for that you know and that’s that’s what was missing

know and that’s that’s what was missing

know and that’s that’s what was missing so I would think about I’d be like okay

so I would think about I’d be like okay

so I would think about I’d be like okay yeah so like all the VCS and everybody

yeah so like all the VCS and everybody

yeah so like all the VCS and everybody tells me you know bendin you know what

tells me you know bendin you know what

tells me you know bendin you know what the key to a great company is you know

the key to a great company is you know

the key to a great company is you know hire eight players and I’d be sitting

hire eight players and I’d be sitting

hire eight players and I’d be sitting there like oh great cuz I was gonna hire

there like oh great cuz I was gonna hire

there like oh great cuz I was gonna hire a bunch of idiots

a bunch of idiots

a bunch of idiots now you’ve unlocked the secret for me

now you’ve unlocked the secret for me

now you’ve unlocked the secret for me thank you

thank you

thank you but you know like that that wasn’t like

but you know like that that wasn’t like

but you know like that that wasn’t like that way I never liked that what the

that way I never liked that what the

that way I never liked that what the hard thing is not to like hire the best

hard thing is not to like hire the best

hard thing is not to like hire the best people right like the hard thing is when

people right like the hard thing is when

people right like the hard thing is when your company is going like this and the

your company is going like this and the

your company is going like this and the great best people don’t want to work for

great best people don’t want to work for

great best people don’t want to work for you and then like who do you hire and

you and then like who do you hire and

you and then like who do you hire and like how does that work and like you

like how does that work and like you

like how does that work and like you know do you hire the person who’s like

know do you hire the person who’s like

know do you hire the person who’s like okay across the border do you hire the

okay across the border do you hire the

okay across the border do you hire the person that’s got something like

person that’s got something like

person that’s got something like horribly wrong with them but like super

horribly wrong with them but like super

horribly wrong with them but like super great about them and like how do you

great about them and like how do you

great about them and like how do you think about that and like what do you do

think about that and like what do you do

think about that and like what do you do with the horribly wrong stuff once you

with the horribly wrong stuff once you

with the horribly wrong stuff once you get them you know that’s a hard thing

get them you know that’s a hard thing

get them you know that’s a hard thing and there’s like in a bit I read this

and there’s like in a bit I read this

and there’s like in a bit I read this the Jim Collins books which I hate sorry

the Jim Collins books which I hate sorry

the Jim Collins books which I hate sorry you like him I know it doesn’t mean

you like him I know it doesn’t mean

you like him I know it doesn’t mean you’re not smart if you like them

you’re not smart if you like them

you’re not smart if you like them because a lot of people smart people

because a lot of people smart people

because a lot of people smart people like them but the thing that he does is

like them but the thing that he does is

like them but the thing that he does is he he makes you feel good about yourself

he he makes you feel good about yourself

he he makes you feel good about yourself like but then when you get into it you

like but then when you get into it you

like but then when you get into it you realize cause and effect is all like

realize cause and effect is all like

realize cause and effect is all like swung around and all these things but

swung around and all these things but

swung around and all these things but he’s like big what great companies have

he’s like big what great companies have

he’s like big what great companies have is a big hairy audacious goal and I like

is a big hairy audacious goal and I like

is a big hairy audacious goal and I like that’s great but that’s not hard like

that’s great but that’s not hard like

that’s great but that’s not hard like it’s pretty easy to write a big hairy

it’s pretty easy to write a big hairy

it’s pretty easy to write a big hairy like we’re gonna go to the moon you know

like we’re gonna go to the moon you know

like we’re gonna go to the moon you know we’re gonna build the biggest company in

we’re gonna build the biggest company in

we’re gonna build the biggest company in the world bring up software on every

the world bring up software on every

the world bring up software on every desktop it’s all gonna be ours like

desktop it’s all gonna be ours like

desktop it’s all gonna be ours like that’s our goal okay so now you’ve

that’s our goal okay so now you’ve

that’s our goal okay so now you’ve missed your goal and like Natalie did

missed your goal and like Natalie did

missed your goal and like Natalie did you miss your goal but you build up your

you miss your goal but you build up your

you miss your goal but you build up your whole company to achieve your goal and

whole company to achieve your goal and

whole company to achieve your goal and you have a cost structure that’s

you have a cost structure that’s

you have a cost structure that’s designed to hit your goal and you missed

designed to hit your goal and you missed

designed to hit your goal and you missed your goal and you’re running out of cash

your goal and you’re running out of cash

your goal and you’re running out of cash and the company’s burning to the ground

and the company’s burning to the ground

and the company’s burning to the ground and all of the company but everybody

and all of the company but everybody

and all of the company but everybody works for you thinks you’re a moron

works for you thinks you’re a moron

works for you thinks you’re a moron because you missed your goal okay that’s

because you missed your goal okay that’s

because you missed your goal okay that’s hard like that’s the hard thing like

hard like that’s the hard thing like

hard like that’s the hard thing like what do you do there well that’s not in

what do you do there well that’s not in

what do you do there well that’s not in Jim’s book like you need to talk about

Jim’s book like you need to talk about

Jim’s book like you need to talk about that it’s like nobody ever misses our

that it’s like nobody ever misses our

that it’s like nobody ever misses our goal who’s a great company so like why

goal who’s a great company so like why

goal who’s a great company so like why would you miss your goal like you must

would you miss your goal like you must

would you miss your goal like you must I’d be great it’s like okay

I’d be great it’s like okay

I’d be great it’s like okay so anyway that good that’s where the

so anyway that good that’s where the

so anyway that good that’s where the hard thing about it okay thank you so

hard thing about it okay thank you so

hard thing about it okay thank you so much for watching I made this video

much for watching I made this video

much for watching I made this video because s bgm 247 asks me to so if

because s bgm 247 asks me to so if

because s bgm 247 asks me to so if there’s a famous entrepreneur that you

there’s a famous entrepreneur that you

there’s a famous entrepreneur that you are going to profile next leave it in

are going to profile next leave it in

are going to profile next leave it in the comments below and I’ll see what I

the comments below and I’ll see what I

the comments below and I’ll see what I can do

can do

can do I’d also love to know which of the top

I’d also love to know which of the top

I’d also love to know which of the top 10 rules is gonna have the biggest

10 rules is gonna have the biggest

10 rules is gonna have the biggest impact on your life leave it in the

impact on your life leave it in the

impact on your life leave it in the comments I won’t join the discussion and

comments I won’t join the discussion and

comments I won’t join the discussion and if you like this video

if you like this video

if you like this video my personal goal on this channel is to

my personal goal on this channel is to

my personal goal on this channel is to help reach a million subscribers so I

help reach a million subscribers so I

help reach a million subscribers so I don’t think you think of to help share

don’t think you think of to help share

don’t think you think of to help share the video spread the message I really

the video spread the message I really

the video spread the message I really truly deeply appreciate it thank you

truly deeply appreciate it thank you

truly deeply appreciate it thank you guys so much for watching continue to

guys so much for watching continue to

guys so much for watching continue to believe and I’ll see you soon

”

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