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if you are a maintainer of this web content, please refer to the site documentation regarding web services for further assistance. This option may be re enabled by the project by placing a file with the name .htaccess with this line: april 2008 this essay is derived from a talk at the 2008 startup school. about a month after we started y combinator we came up with the phrase that became our motto: make something people want. We've learned a lot since then, but if i were choosing now that's still the one i'd pick. Another thing we tell founders is not to worry too much about the business model, at least at first.

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Not because making money is unimportant, but because it's so much easier than building something great. A couple weeks ago i realized that if you put those two ideas together, you get something surprising. When you get an unexpected result like this, it could either be a bug or a new discovery. Either businesses aren't supposed to be like charities, and we've proven by reductio ad absurdum that one or both of the principles we began with is false. I suspect it's the latter, because as soon as this thought occurred to me, a whole bunch of other things fell into place. When you scan down the list of most popular web sites, the number of employees at craigslist looks like a misprint. Their revenues aren't as high as they could be, but most startups would be happy to trade places with them.

In patrick o'brian's novels, his captains always try to get upwind of their opponents. They'd face some challenges if they wanted to make more, but not the sort you face when you're tacking upwind, trying to force a crappy product on ambivalent users by spending ten times as much on sales as on development. If a nonprofit or government organization had started a project to index the web, google at year 1 is the limit of what they'd have produced. Back when i was working on spam filters i thought it would be a good idea to have a web based email service with good spam filtering.

But as i thought more about this project, i realized it would probably have to be a company. It would cost something to run, and it would be a pain to fund with grants and donations. Companies often claim to be benevolent, but it was surprising to realize there were purely benevolent projects that had to be embodied as companies to work. There was a window of about two years when spam was increasing rapidly but all the big email services had terrible filters. If someone had launched a new, spam free mail service, users would have flocked to it.

If you start from successful startups, you find they often behaved like nonprofits. And if you start from ideas for nonprofits, you find they'd often make good startups. How wide is this territory? would all good nonprofits be good companies? possibly not. But could you also base a successful startup on behaving like a nonprofit to people who don't have money? could you, for example, grow a successful startup out of curing an unfashionable but deadly disease like malaria? i'm not sure, but i suspect that if you pushed this idea, you'd be surprised how far it would go. For example, people who apply to y combinator don't generally have much money, and yet we can profit by helping them, because with our help they could make money. Maybe an organization that helped lift its weight off a country could benefit from the resulting growth.