Tim O'Reilly

Because I was always self-financed, the business was always, does this make more money than it costs to do it? And eventually you get some scale that allows you to place some bets. But in a lot of ways, the book publishing business is you're continually investing. You're spending a chunk of money to develop a book. You buy a bunch of inventory, and it might not sell. But on average, they do.

Because I was always self-financed, the business was always, does this make more money than it costs to do it? And eventually you get some scale that allows you to place some bets. But in a lot of ways, the book publishing business is you're continually investing. You're spending a chunk of money to develop a book. You buy a bunch of inventory, and it might not sell. But on average, they do.

A conference, if you do it right, you put out a bunch of money up front, but you get it back not long after. And so we've tended to be in those kinds of businesses. Now, we did, for example, build GNN back in when we started it. We launched the whole Internet Users Guide in 1992, and then we launched GNN, which is the first web portal in 1993.

A conference, if you do it right, you put out a bunch of money up front, but you get it back not long after. And so we've tended to be in those kinds of businesses. Now, we did, for example, build GNN back in when we started it. We launched the whole Internet Users Guide in 1992, and then we launched GNN, which is the first web portal in 1993.

And for two years, we put every penny of company profits. We spent a third of our revenue on this thing that had no profits, that we didn't know what it was, but we thought it was really important. And eventually I sold it. And the reason I sold it was actually because it was, again, it was pattern recognition. I had read a book by Ron Davido called Marketing High Technology.

And for two years, we put every penny of company profits. We spent a third of our revenue on this thing that had no profits, that we didn't know what it was, but we thought it was really important. And eventually I sold it. And the reason I sold it was actually because it was, again, it was pattern recognition. I had read a book by Ron Davido called Marketing High Technology.

And he had an appendix in which he talked about what he called the math of market domination. And he said, in order to dominate a market, you have to be at least half the market and growing faster than the market as a whole. And I thought, oh, there's no way we can do that without taking in massive amounts of capital. And I don't want to do that.

And he had an appendix in which he talked about what he called the math of market domination. And he said, in order to dominate a market, you have to be at least half the market and growing faster than the market as a whole. And I thought, oh, there's no way we can do that without taking in massive amounts of capital. And I don't want to do that.

And the reason I didn't want to do that was because of my experience a decade earlier as a consultant. working with, I mean, it was more than 15 years earlier, working with all these startups that turned out to be very boring and unpleasant companies, you know, that were idealistic and whatever. And then they became just like everybody else. I didn't want to be like everybody else.

And the reason I didn't want to do that was because of my experience a decade earlier as a consultant. working with, I mean, it was more than 15 years earlier, working with all these startups that turned out to be very boring and unpleasant companies, you know, that were idealistic and whatever. And then they became just like everybody else. I didn't want to be like everybody else.

Let's just stop in my experience. Yes, it's true. But this notion that it's always you're taking your big investment, big risk, big swing, win big or go home is just part of the myth of Silicon Valley. For thousands of years, people have started businesses with whatever they can scrape together. They scrape by, and some of them are good at it, and they basically grow bigger.

Let's just stop in my experience. Yes, it's true. But this notion that it's always you're taking your big investment, big risk, big swing, win big or go home is just part of the myth of Silicon Valley. For thousands of years, people have started businesses with whatever they can scrape together. They scrape by, and some of them are good at it, and they basically grow bigger.

Our first books that we published My first print run of my first book was 100 copies, and they cost us a dollar, and we sold them for $5 each. And we went, oh, that worked. Let's print some more. It does not have to be a big swing, and you just bit by bit. You know, it's a little bit like Annie Lamont's wonderful book about writing. It's called Bird by Bird.

Our first books that we published My first print run of my first book was 100 copies, and they cost us a dollar, and we sold them for $5 each. And we went, oh, that worked. Let's print some more. It does not have to be a big swing, and you just bit by bit. You know, it's a little bit like Annie Lamont's wonderful book about writing. It's called Bird by Bird.

It is. Actually, most of them are a lot of small swings. I mean, yes, there are big things that we invest in. But relative to the scale of the company, they're not big. They're not betting the company big. Now, again, in one sense, you're always betting the company because the collection of all the things you do, even if they're small, add up to the company that you become. Right.

It is. Actually, most of them are a lot of small swings. I mean, yes, there are big things that we invest in. But relative to the scale of the company, they're not big. They're not betting the company big. Now, again, in one sense, you're always betting the company because the collection of all the things you do, even if they're small, add up to the company that you become. Right.

And you have to pay attention to it. One of the things I wrote once is probably the thing of mine that's been probably repeated as much as anything on the internet. I said, money in a business is like gas in a car. You have to pay attention to filling the tank, but you are not making a tour of gas stations when you go on a road trip.

And you have to pay attention to it. One of the things I wrote once is probably the thing of mine that's been probably repeated as much as anything on the internet. I said, money in a business is like gas in a car. You have to pay attention to filling the tank, but you are not making a tour of gas stations when you go on a road trip.

In business, you should have a purpose that's bigger than money. And if you do, then you're just trying to find a way to finance that purpose. It's a very different approach than if you think your job is to make as much money as possible. If you think your job is to do something, you find ways to make it happen.

In business, you should have a purpose that's bigger than money. And if you do, then you're just trying to find a way to finance that purpose. It's a very different approach than if you think your job is to make as much money as possible. If you think your job is to do something, you find ways to make it happen.