There is so much focus on starting new business. But starting is easy. Staying in business is the hard part. Having a profitable business should be the goal. That's why Jason Fried of 37Signals coined the term stayups, a wordplay on the much more popular "startup"

Stayups Vs Startups

The mentality for startup founders is to go though a lor of pain for a few years, in the hopes that their company will make them millions in an acquisition. This could be a bad plan since most companies are not venture scale. Unicorns are the rare exception not the rule. Why ruin your health chasing dreams? If you want to build a sustainable business optimize for the joy of coming to work. Build the company so that when you ask yourself "Do I want to do this again?" The answer js yes.

Do I Want to Keep Doing This?

Long term business planning is a fantasy. I want to do what I think, not what I thought.

When it comes to project planning, most tech companies rely on complex strategies. However, 37signals uses a simple approach based on their appetite for a project, meaning they only work on things that truly interest them. This allows for more creativity and motivation in their work.Instead of estimating timelines, they give each project a fixed deadline of 6 weeks, regardless of its outcome. While some projects may not produce any results, others may turn out to be great successes. This approach leads to a stress-free and happy work environment..

Appetite Vs Planning

Jason Fried is the co-founder and CEO of 37signals, the maker of Basecamp and HEY. 37signals is a very different kind of company. With fewer than 80 employees, they have over 100,000 customers, generate tens of millions of dollars in profit each year, and have no investors, board, or any plans to ever raise money or sell the company. In our conversation, we explore a path many tech founders never consider—bootstrapping. We discuss:• Why he and his team prioritize profit above all else• The unexpected challenges with raising venture capital• The “Shape Up” framework for building products• Why, and how, to foster a gut-driven culture• Jason’s thoughts on why work should not feel like war• Advice for starting a bootstrapped business• The philosophy behind Once, 37signals’s new line of software products — Brought to you by ⁠Coda⁠—Meet the evolution of docs | ⁠Sidebar⁠—Accelerate your career by surrounding yourself with extraordinary peers | ⁠Wix Studio⁠—The web creation platform built for agencies — Find the transcript and references at: https://www.lennyspodcast.com/jason-fried-challenges-your-thinking-on-fundraising-goals-growth-and-more/ — Where to find Jason Fried: • X: https://twitter.com/jasonfried • LinkedIn: https://www.linkedin.com/in/jason-fried/ • Email: jason@hey.com — Where to find Lenny: • Newsletter: https://www.lennysnewsletter.com • X: https://twitter.com/lennysan • LinkedIn: https://www.linkedin.com/in/lennyrachitsky/ — In this episode, we cover: (00:00) Jason’s background (03:49) The success of 37signals (06:46) When raising money makes sense (09:58) The power of small teams (13:55) Defining success and goals (17:08) Playing “infinite games” in life (20:11) Starting a business vs. staying in business (22:13) Lessons from 25 years in business (27:28) Venture scale vs. bootstrapping (30:30) Choosing the right path for your business (33:19) The “Shape Up” framework (37:59) The drawback of promises  (39:56) Adopting a new way of working (41:36) The two-week cooldown (43:53) Trusting intuition and gut (46:41) Creating a gut-driven culture (49:44) What Jason looks for in new hires (56:19) Advice on making changes and adapting (01:00:06) What Jason has changed his mind about (01:02:33) Planning in 6-week stretches and figuring it out as you go (01:06:43) Being proud of the work you do (01:09:05) Jason’s thoughts on why work should not feel like war (01:11:31) Advice for starting a bootstrapped business (01:14:33) You must be at peace with the worst that can happen (01:15:42) The benefits of bootstrapping (01:19:11) The value of constraints in business (01:22:00) Jason’s philosophy: “Just keep making great shit” (01:23:19) Once, 37signals’s new line of software products (01:26:33) The philosophy behind Once (01:35:47) Closing thoughts (01:37:23) Lightning round — Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com. — Lenny may be an investor in the companies discussed.

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Interviews with world-class product leaders and growth experts to uncover concrete, actionable, and tactical advice to help you build, launch, and grow your own product. www.lennysnewsletter.com

Jason Fried about sustainable profitable businesses

Stayups Vs Startups

Do I Want to Keep Doing This?

JASON FRIED

Appetite Vs Planning

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