Comments on: The Billion Dollar Corporation: Is it something all companies should strive for? http://www.ericjohnolson.com/blog/2008/01/15/the-billion-dollar-corporation-is-it-something-all-companies-should-strive-for/ Media, Economics, Finance, Business, Technology, etc. Mon, 19 Apr 2010 08:03:18 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Peter Christensen http://www.ericjohnolson.com/blog/2008/01/15/the-billion-dollar-corporation-is-it-something-all-companies-should-strive-for/comment-page-1/#comment-56035 Peter Christensen Wed, 30 Jan 2008 22:19:51 +0000 http://www.ericjohnolson.com/blog/2008/01/15/the-billion-dollar-corporation-is-it-something-all-companies-should-strive-for/#comment-56035 I think if your goal is to run a business, you're much better off with a lifestyle business than a $1B. First, there aren't many $1B businesses at all so you're not likely to succeed anyway. Second, you probably can't get to $1B without giving up some, most, or even all control over it. Justin, I agree that the connotations around "lifestyle" are negative (although I love the term). I think a better set of terms is private and public. "Private" corresponds to what we would call a "lifestyle" business, while "public" would be a company whose goal is to get huge, like to the size of most publicly traded companies (whether or not they ever IPO and become publicly traded themself). Granted, these terms will never catch on because they already mean something else, but oh well. What do you think? I think if your goal is to run a business, you’re much better off with a lifestyle business than a $1B. First, there aren’t many $1B businesses at all so you’re not likely to succeed anyway. Second, you probably can’t get to $1B without giving up some, most, or even all control over it.
Justin, I agree that the connotations around “lifestyle” are negative (although I love the term). I think a better set of terms is private and public. “Private” corresponds to what we would call a “lifestyle” business, while “public” would be a company whose goal is to get huge, like to the size of most publicly traded companies (whether or not they ever IPO and become publicly traded themself). Granted, these terms will never catch on because they already mean something else, but oh well. What do you think?

]]> By: Eric Olson http://www.ericjohnolson.com/blog/2008/01/15/the-billion-dollar-corporation-is-it-something-all-companies-should-strive-for/comment-page-1/#comment-51798 Eric Olson Wed, 16 Jan 2008 17:20:04 +0000 http://www.ericjohnolson.com/blog/2008/01/15/the-billion-dollar-corporation-is-it-something-all-companies-should-strive-for/#comment-51798 Thanks for the comments guys! I should point out that I don't think you either have a lifestyle business or a big corporation. Look at Patagonia for example. They do over $240mm in sales a year. That is by no means a lifestyle business but it isn't a giant public corporation either. It is still owned by the founder which allows the company far more flexibility and, if the founder so chooses, it can be a platform for a richer life for both them and their employees. Dave - thanks for pointing out my two errors. That's what I get for writing late at night. Who has the time to blog at any other point in the day though? Looking forward to catching up soon! Thanks for the comments guys!

I should point out that I don’t think you either have a lifestyle business or a big corporation. Look at Patagonia for example. They do over $240mm in sales a year. That is by no means a lifestyle business but it isn’t a giant public corporation either. It is still owned by the founder which allows the company far more flexibility and, if the founder so chooses, it can be a platform for a richer life for both them and their employees.

Dave – thanks for pointing out my two errors. That’s what I get for writing late at night. Who has the time to blog at any other point in the day though? Looking forward to catching up soon!

]]> By: Dave Schappell http://www.ericjohnolson.com/blog/2008/01/15/the-billion-dollar-corporation-is-it-something-all-companies-should-strive-for/comment-page-1/#comment-51795 Dave Schappell Wed, 16 Jan 2008 17:04:22 +0000 http://www.ericjohnolson.com/blog/2008/01/15/the-billion-dollar-corporation-is-it-something-all-companies-should-strive-for/#comment-51795 Hi Eric, Agree with comment #1, that the term 'lifestyle business' usually conveys negative meaning -- I think that term refers to people who are cash-flowing a business and really not pushing it to grow/improve as fast as it could. One that may fit into that ballpark include Craigslist, which arguably hasn't improved a lot in the last few years -- but, just by not improving in the traditional sense (adding lots of features, design styling, revenue models, etc.) they've differentiated themselves in such a way that they've become part of many people's everyday lives. Not sure where I'm going with this -- just to say that I agree with the premise -- I've worked at really big companies, small companies that have become big companies, and am now building a company that we intend to 'keep small' -- but, by no means would I call our aspiration a lifestyle business. Instead, we think that by keeping our core team small, and focused, we'll do a much better job of listening to our customers and building great products and services that they love. Hope we catch up again in person sometime soon! Dave p.s. Two nits in the post: 1) your link to 37signals early on has a broken URL 2) seque (transition) vs. segway (life-changing mobility device that's going to change the world... remember when we used to drive cars and ride bikes? ;-) ) Hi Eric,

Agree with comment #1, that the term ‘lifestyle business’ usually conveys negative meaning — I think that term refers to people who are cash-flowing a business and really not pushing it to grow/improve as fast as it could. One that may fit into that ballpark include Craigslist, which arguably hasn’t improved a lot in the last few years — but, just by not improving in the traditional sense (adding lots of features, design styling, revenue models, etc.) they’ve differentiated themselves in such a way that they’ve become part of many people’s everyday lives. Not sure where I’m going with this — just to say that I agree with the premise — I’ve worked at really big companies, small companies that have become big companies, and am now building a company that we intend to ‘keep small’ — but, by no means would I call our aspiration a lifestyle business. Instead, we think that by keeping our core team small, and focused, we’ll do a much better job of listening to our customers and building great products and services that they love.

Hope we catch up again in person sometime soon!

Dave

p.s. Two nits in the post:

1) your link to 37signals early on has a broken URL

2) seque (transition) vs. segway (life-changing mobility device that’s going to change the world… remember when we used to drive cars and ride bikes? ;-) )

]]> By: Justin Chen http://www.ericjohnolson.com/blog/2008/01/15/the-billion-dollar-corporation-is-it-something-all-companies-should-strive-for/comment-page-1/#comment-51540 Justin Chen Tue, 15 Jan 2008 15:47:11 +0000 http://www.ericjohnolson.com/blog/2008/01/15/the-billion-dollar-corporation-is-it-something-all-companies-should-strive-for/#comment-51540 Hey Eric, Totally agree. We've strived to use entrepreneurship to help free ourselves to do what we're passionate about and to free our lives to do other things besides work. Unfortunately, being characterized as a "lifestyle" business usually has a negative connotation (especially in the valley). No matter, we're still very happy with the path we've chosen. Justin Hey Eric,

Totally agree. We’ve strived to use entrepreneurship to help free ourselves to do what we’re passionate about and to free our lives to do other things besides work. Unfortunately, being characterized as a “lifestyle” business usually has a negative connotation (especially in the valley). No matter, we’re still very happy with the path we’ve chosen.

Justin

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