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This is unusually straw-mannish of you pg.

From the article: "What matters is: Are you profitable? Are you building something great? Are you taking care of your people? Are you treating your customers well?"

All of those questions can be answered without needing access to a companies ledger. Jason answers those questions himself in the article.

I think his point was that stories about those questions don't get as much readership per unit of reporter effort, hence they aren't being written.

Posting 37signals' revenue numbers would have zero impact on that.



Anyone who proposes that the discussion should focus on profitability rather than funding rounds is presumably not proposing that we simply talk about it as one bit of information: profitable or not. That would make pretty short articles. It also wouldn't be very interesting; there are hundreds of plumbers and barbers and cafes within a few miles of me who are profitable.

And plenty of these plumbers and barbers and cafes probably do great work and treat their employees well. Do you really want to read articles about all of them? I don't. What makes a company newsworthy (unless it's as a case study) is its size, or potential size.


It sounds like you might not be familiar with the author Jason referred to right before his critique of the current focus on size: Ricardo Semler.

In his books he develops a very humanistic look at the role of businesses in our lives. As entrepreneurs, employees, and as customers. I won't be able to do the ideas justice here, but I will try:

A business obsessed with revenue and growth is like a person obsessed with how many breaths they have taken, or how much food is in their pantry -- these are means to an end, not ends in themselves. Food is required for life but it's not the purpose of living. Businesses as conceived by Semler and Fried aren't designed to maximize revenue so much as make the world a better place (#include your essay about google being almost a nonprofit).

It may be that stories of plumbers, barbers, and cafes wouldn't be interesting to you. I like to hear about people living enjoyable lives, delighting their customers, and making their corner of the universe a better place. It's a lot more psychically healthy than reading about people trying to gain the most while providing the least (the tech crunch articles Jason refers to)

So many people seem obsessed with getting a large quantity of money, and only then trying their hand at building a fulfilling life. I have always thought of Semler as running things in reverse: how do we design a seven day weekend that is cash positive?

(Semler's book, The Seven Day Weekend, is highly recommended to anyone who wants to hear more)


I understand quite well the idea of company that isn't focused simply on revenue growth. I've been running one for the past 7 years. And I'm interested in reading about others. But articles of that type are case studies, not news, which is why I explicitly distinguished between them.


first "What makes a company newsworthy (unless it's as a case study) is its size, or potential size."

then "But articles of that type are case studies, not news"

first "Do you really want to read articles about all of them? I don't."

then "I've been running one for the past 7 years. And I'm interested in reading about others."

I think what you want is for Jason to have said "I wish the technical community were focused on case studies of awesome companies rather than news stories about funding and growth." Which I think he would agree with, and would remove your points.

(Not that case study vs news is a real dichotomy -- what's stopping someone from calling news about a round of funding a "case study about getting funding"? Why can't there be news stories about how awesome the customer experience at X has gotten?)


Not that case study vs news is a real dichotomy

In fact, we see case studies as news (and even less-than-news) all day long here and elsewhere. You can tell by the titles that generally come from blogs and usually look clickbait-y: "How Company/Developer X achieved goal Y," "Why Language Z helped us triple our revenues," etc.


News is, by definition, about current events. Case studies are about past events. So, in general, they can't be the same thing (even if, of course, the publication of an interesting case study can be interesting - and current - news).

"Why can't there be news stories about how awesome the customer experience at X has gotten?": If you really want to know, I advise you to read "Storytelling: Branding in practice".


News is, by definition, about current events. Case studies are about past events.

You are logically incorrect. Well, by your own logic. How can you publish news about a current event? To be written as news it has to be happened in the past.


It all depends how you define "current".


I'm afraid I have to disagree here. As someone who runs a small business which, for not-immediately-relevant reasons isn't in a position to try for startup-style explosive growth, I'd be really interested in hearing about how people in similar situations run their business. Regarding your examples of plumbers, barbers and cafes, we all think we know exactly how to run these, and in our heads probably think it's a pretty simple thing. What if we're wrong and there's something to learn?

I believe that businesses in this space are run with old-fashioned tools (management methods, process optimisation techniques, technology) for reasons of tradition and lack of information sharing rather than anything inherent to the businesses themselves. My experiences with business growth accelerators leads me to believe we as a community re-invent the wheel an enormous amount, and anything that helps me reduce that is of interest.

Sure, we have a different metric for success, but that doesn't mean there aren't unusually successful small businesses (that will remain comparatively small) that might have something interesting to say.


lay off Paul, he's not making an arguement here that one is better than the other, he's arguing that the press wants stories that pull readership. Writing that Instagram sold for $1B is more interesting than someone that makes a few million in profit a year and has 4 day work weeks.

I myself side with the 37 signals guys that profit is king, but that takes nothing away from my friends that are in start ups chasing big coin.

Either is a viable strategy and i think it's terrible that this community doesnt allow both to co-exist as viable options.


> i think it's terrible that this community doesnt allow both to co-exist as viable options

I think it does. There are many of us that are focused on either lifestyle or profit-driven businesses and those articles are often received well. What isn't are articles attacking the funded companies' approach.


The only way I can see this happening is if dotcom bust 2.0 happens (or major changes in tax code, macro economy, etc), employees totally write off the value of equity, and companies switch to profit sharing payouts. Cash salary is more directly relevant, though, with some guarantee of payout -- quitting a safe $100k/yr job for a $20k/mo job at a startup with $20k in the bank, maybe not.

Companies would also pick vendors based on financial stability, for which profit is probably a major factor, although cash in the bank would also be.

Or maybe it would happen if investment rules relaxed and private equity (Private Equity or direct investment like second market in non-public companies) happened, as communicating financials to lots of investors would still be relevant.


"And plenty of these plumbers and barbers and cafes probably do great work and treat their employees well. Do you really want to read articles about all of them? I don't."

Personally I believe there are many great lessons to be learned from those local/profitable businesses which if written I'd gladly consume. If the press would only dig for those types of stories I'm sure they would come back up with gold.

As an entrepreneur who is interested in growing a long lasting and sustainable business there are many lessons which I can imagine a seasoned business owner, no matter the market, could teach me (i.e,: how had they dealt with times of feast as well famine. What was it like when they had they'r first repeat customer, etc.).

"What makes a company newsworthy (unless it's as a case study) is its size, or potential size."

To be honest I believe this sums Jason's point in one line.

The current tech culture doesn't seem to acknowledge nor celebrate the stories of those founders, entrepreneurs, developers, or business minds whose offerings are geared towards providing impecable customer service; so that doesn't get written about fairly frequently.

Now I may be wrong in my observations but it would seem as if this current generation of the tech vanguard simply aren't interested in those things. The signal, which has become an ever increasing continuous one, seems to be about more, more and bigger, bigger, bigger.

Hey, maybe that's all there is to it, but I'd like to believe we've got much more in us than simply who can amass the largest seed round, or who has had their Series A round over subscribed.

Again, I may be wrong but just a thought.


"And plenty of these plumbers and barbers and cafes probably do great work and treat their employees well. Do you really want to read articles about all of them? I don't. What makes a company newsworthy (unless it's as a case study) is its size, or potential size."

The real world is a better movie. Real people, real work, real life make for interesting stories. I would much rather read about healthy business, regardless of size, than sizeable business, regardless of health. Jason Fried was on target.


So I guess you spend your afternoons reading blue chip 10-k's? Didn't think so.


Just Sunday afternoons. Haven't for awhile. Keen to get back into it. All the best with the work at Etsy.


Apologies, that 3AM comment came off more dickish than I intended. Was meant to be a joke implying there is reason people don't write stories about simple, successful companies: they're boring.


DHH and Jason have both been making big statements on profiability and how it is good to charge your customers etc - in fact when FB was valued at 33 billion DHH wrote something that basically said it was nonsense.

Although one part of me says that the message is good, the other part says - why dont they publish their size? Like you rightly said, the value that many people would attribute to their words would vary based on size.

And the other thing is, many of these concepts that they tout might only work for a particular size. that is another reason we need to know how big they are.


But I'd bet those blue-collar folks would not mind being written about like "startups" get written about. A little hype could do them a lot of good.

What makes a company "newsworthy" is a good PR firm!


pg, if you think potential size is interesting, why are you so against the biggest ideas?




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