I shouldn't generalize, yet this is true.

Spending is simpler than earning.

Prove me wrong, but with home debt at $145k in 2020 and individual debt at $67k, people don't have their priorities straight.

Where does this loan originate?

Under-50 Americans owed $7.86 trillion in Q4 20T. That's more than the US's 3-trillion-dollar deficit.

Here’s a breakdown:
🏡 Mortgages/Home Equity Loans = $5.28 trillion (67%)
🎓 Student Loans = $1.20 trillion (15%)
🚗 Auto Loans = $0.80 trillion (10%)
💳 Credit Cards = $0.37 trillion (5%)
🏥 Other/Medical = $0.20 trillion (3%)

Images.google.com

At least the Fed and government can explain themselves with their debt balance which includes:

-Providing stimulus packages 2x for Covid relief

-Stabilizing the economy

-Reducing inflation and unemployment

-Providing for the military, education and farmers

No American should have this much debt.

Don’t get me wrong. Debt isn’t all the same. Yes, it’s a negative number but it carries different purposes which may not be all bad.

Good debt: Use those funds in hopes of them appreciating as an investment in the future

-Student loans
-Business loan
-Mortgage, home equity loan
-Experiences

Paying cash for a home is wasteful. Just if the home is exceptionally uncommon, only 1 in a million on the market, and has an incredible bargain with numerous bidders seeking higher prices should you do so.

To impress the vendor, pay cash so they can sell it quickly. Most people can't afford most properties outright. Only 15% of U.S. homebuyers can afford their home. Zillow reports that only 37% of homes are mortgage-free.

People have clearly overreached.

Ignore appearances.

5% down can buy a 10-bedroom mansion.

Not paying in cash isn't necessarily a negative thing given property prices have increased by 30% since 2008, and throughout the epidemic, we've seen work-from-homers resort to the midwest, avoiding pricey coastal cities like NYC and San Francisco.

By no means do I think NYC is dead, nothing will replace this beautiful city that never sleeps, and now is the perfect time to rent or buy when everything is below average value for people who always wanted to come but never could. Once social distance ends, cities will recover. 24/7 sardine-packed subways prove New York isn't designed for isolation.

When buying a home, pay 20% cash and the balance with a mortgage. A mortgage must be incorporated into other costs such as maintenance, brokerage fees, property taxes, etc. If you're stuck on why a home isn't right for you, read here. A mortgage must be paid until the term date. Whether its a 10 year or 30 year fixed mortgage, depending on interest rates, especially now as the 10-year yield is inching towards 1.25%, it's better to refinance in a lower interest rate environment and pay off your debt as well since the Fed will be inching interest rates up following the 10-year eventually to stabilize the economy, but I believe that won't be until after Covid and when businesses like luxury, air travel, and tourism will get bashed.

Bad debt: I guess the contrary must be true. There is no way to profit from the loan in the future, therefore it is just money down the drain.

-Luxury goods
-Credit card debt
-Fancy junk
-Vacations, weddings, parties, etc.

Credit cards and school loans are the two largest risks to the financial security of those under 50 since banks love to compound interest to affect your credit score and make it tougher to take out more loans, not that you should with that much debt anyhow. With a low credit score and heavy debt, banks take advantage of you because you need aid to pay more for their services. Paying back debt is the challenge for most.

Choose Not Chosen

As a financial literacy advocate and blogger, I prefer not to brag, but I will now. I know what to buy and what to avoid. My parents educated me to live a frugal, minimalist stealth wealth lifestyle by choice, not because we had to.

That's the lesson.

The poorest person who shows off with bling is trying to seem rich.

Rich people know garbage is a bad investment. Investing in education is one of the best long-term investments. With information, you can do anything.

Good with money shun some items out of respect and appreciation for what they have.

Less is more.

Instead of copying the Joneses, use what you have. They may look cheerful and stylish in their 20k ft home, yet they may be as broke as OJ Simpson in his 20-bedroom mansion.

Let's look at what appears good to follow and maintain your wealth.

#1: Quality comes before quantity

Being frugal doesn't entail being cheap and cruel. Rich individuals care about relationships and treating others correctly, not impressing them. You don't have to be rich to be good with money, although most are since they don't live the fantasy lifestyle.

Underspending is appreciating what you have.

Many people believe organic food is the same as washing chemical-laden produce. Hopefully. Organic, vegan, fresh vegetables from upstate may be more expensive in the short term, but they will help you live longer and save you money in the long run.

Consider. You'll save thousands a month eating McDonalds 3x a day instead of fresh seafood, veggies, and organic fruit, but your life will be shortened. If you want to save money and die early, go ahead, but I assume we all want to break the world record for longest person living and would rather spend less. Plus, elderly people get tax breaks, medicare, pensions, 401ks, etc. You're living for free, therefore eating fast food forever is a terrible decision.

With a few longer years, you may make hundreds or millions more in the stock market, spend more time with family, and just live.

Folks, health is wealth.

Consider the future benefit, not simply the cash sign. Cheapness is useless.

Same with stuff. Don't stock your closet with fast-fashion you can't wear for years. Buying inexpensive goods that will fail tomorrow is stupid.

Investing isn't only in stocks. You're living. Consume less.

#2: If you cannot afford it twice, you cannot afford it once

I learned this from my dad in 6th grade. I've been lucky to travel, experience things, go to a great university, and conduct many experiments that others without a stable, decent lifestyle can afford.

I didn't live this way because of my parents' paycheck or financial knowledge.

Saving and choosing caused it.

I always bring cash when I shop. I ditch Apple Pay and credit cards since I can spend all I want on even if my account bounces.

Banks are nasty. When you lose it, they profit.

Cash hinders banks' profits. Carrying a big, hefty wallet with cash is lame and annoying, but it's the best method to only spend what you need. Not for vacation, but for tiny daily expenses.

Physical currency lets you know how much you have for lunch or a taxi.

It's physical, thus losing it prevents debt.

If you can't afford it, it will harm more than help.

#3: You really can purchase happiness with money.

If used correctly, yes.

Happiness and satisfaction differ.

It won't bring you fulfillment because you must work hard on your own to help others, but you can travel and meet individuals you wouldn't otherwise meet.

You can meet your future co-worker or strike a deal while waiting an hour in first class for takeoff, or you can meet renowned people at a networking brunch.

Seen a pattern here?

Your time and money are best spent on connections. Not automobiles or firearms. That’s just stuff. It doesn’t make you a better person.

Be different if you've earned less. Instead of trying to win the lotto or become an NFL star for your first big salary, network online for free.

Be resourceful. Sign up for LinkedIn, post regularly, and leave unengaged posts up because that shows power.

Consistency is beneficial.

I did that for a few months and met amazing people who helped me get jobs. Money doesn't create jobs, it creates opportunities.

Resist social media and scammers that peddle false hopes.

Choose wisely.

#4: Avoid gushing over titles and purchasing trash.

As Insider’s Hillary Hoffower reports, “Showing off wealth is no longer the way to signify having wealth. In the US particularly, the top 1% have been spending less on material goods since 2007.”

I checked my closet. No brand comes to mind. I've never worn a brand's logo and rotate 6 white shirts daily. I have my priorities and don't waste money or effort on clothing that won't fit me in a year.

Unless it's your full-time work, clothing shouldn't be part of our mornings.

Lifestyle of stealth wealth. You're so fulfilled that seeming homeless won't hurt your self-esteem.

That's self-assurance.

Extroverts aren't required.

That's irrelevant.

Showing off won't win you friends.

They'll like your personality.

#5: Time is the most valuable commodity.

Being rich doesn't entail working 24/7 M-F.

They work when they are ready to work.

Waking up at 5 a.m. won't make you a millionaire, but it will inculcate diligence and tenacity in you.

You have a busy day yet want to exercise. You can skip the workout or wake up at 4am instead of 6am to do it.

Emotion-driven lazy bums stay in bed.

Those that are accountable keep their promises because they know breaking one will destroy their week.

Since 7th grade, I've worked out at 5am for myself, not to impress others. It gives me greater energy to contribute to others, especially on weekends and holidays.

It's a habit that I have in my life.

Find something that you take seriously and makes you a better person.

As someone who is close to becoming a millionaire and has encountered them throughout my life, I can share with you a few important differences that have shaped who we are as a society based on the weekends:

-Read

-Sleep

-Best time to work with no distractions

-Eat together

-Take walks and be in nature

-Gratitude

-Major family time

-Plan out weeks

-Go grocery shopping because health = wealth

#6. Perspective is Important

Timing the markets will slow down your career. Professors preach scarcity, not abundance. Why should school teach success? They give us bad advice.

If you trust in abundance and luck by attempting and experimenting, growth will come effortlessly. Passion isn't a term that just appears. Mistakes and fresh people help. You can get money. If you don't think it's worth it, you won't.

You don’t have to be wealthy to be good at money, but most are for these reasons.  Rich is a mindset, wealth is power. Prioritize your resources. Invest in yourself, knowing the toughest part is starting.

Thanks for reading!

Here’s why that’s baloney

Mark Cuban popularized entrepreneurship.

Shark Tank (which made Mark famous) made starting a business glamorous to attract more entrepreneurs. First off

This isn't an anti-billionaire rant.

Mark Cuban has done excellent. He's a smart, principled businessman. I enjoy his Web3 work. But Mark's work and productivity theories are absurd.

You don't need to outwork everyone in this recession to live well.

You won't be able to outwork me.

Yuck! Mark's words made me gag.

Why do boys think working is a football game where the winner wins a Super Bowl trophy? To outwork you.

Hard work doesn't equal intelligence.

Highly clever professionals spend 4 hours a day in a flow state, then go home to relax with family.

If you don't put forth the effort, someone else will.

- Mark.

He'll burn out. He's delusional and doesn't understand productivity. Boredom or disconnection spark our best thoughts.

TikTok outlaws boredom.

In a spare minute, we check our phones because we can't stand stillness.

All this work p*rn makes things worse. When is it okay to feel again? Because I can’t feel anything when I’m drowning in work and haven’t had a holiday in 2 years.

Your rivals are actively attempting to undermine you.

Ohhh please Mark…seriously.

This isn't a Tom Hanks war film. Relax. Not everyone is a rival. Only yourself is your competitor. To survive the recession, be better than a year ago.

If you get rich, great. If not, there's more to life than Lambos and angel investments.

Some want to relax and enjoy life. No competition. We witness people with lives trying to endure the recession and record-high prices.

This fictitious rival worsens life and work.

If you are truly talented, you will motivate others to work more diligently and effectively.

No Mark. Soz.

If you're a good leader, you won't brag about working hard and treating others like cogs. Treat them like humans. You'll have EQ.

Silly statements like this are caused by an out-of-control ego. No longer watch Shark Tank.

Ego over humanity.

Good leaders will urge people to keep together during the recession. Good leaders support those who are laid off and need a reference.

Not harder, quicker, better. That created my mental health problems 10 years ago.

Truth: we want to work less.

The promotion of entrepreneurship is ludicrous.

Marvel superheroes. Seriously, relax Max.

I used to write about entrepreneurship, then I quit. Many WeWork Adam Neumanns. Carelessness.

I now utilize the side hustle title when writing about online company or entrepreneurship. Humanizes.

Stop glorifying. Thinking we'll all be Elon Musks who send rockets to Mars is delusional. Most of us won't create companies employing hundreds.

OK.

The true epidemic is glorification. fewer selfies Little birdy needs less bank account screenshots. Less Uber talk.

We're exhausted.

Fun, ego-free business can transform the world. Take a relax pill.

Work as if someone were attempting to take everything from you.

I've seen people lose everything.

Myself included. My 20s startup failed. I was almost bankrupt. I thought I'd never recover. Nope.

Best thing ever.

Losing everything reveals your true self. Unintelligent entrepreneur egos perish instantly. Regaining humility revitalizes relationships.

Money's significance shifts. Stop chasing it like a puppy with a bone.

Fearing loss is unfounded.

Here is a more effective approach than outworking nobody.

(You'll thrive in the recession and become wealthy.)

Smarter work

Overworking is donkey work.

You don't want to be a career-long overworker. Instead than wasting time, write down what you do. List tasks and processes.

Keep doing/outsource the list. Step-by-step each task. Continuously systematize.

Then recruit a digital employee like Zapier or a virtual assistant in the same country.

Intelligent, not difficult.

If your big break could burn in hell, diversify like it will.

People err by focusing on one chance.

Chances can vanish. All-in risky. Instead of working like a Mark Cuban groupie, diversify your income.

If you're employed, your customer is your employer.

Sell the same abilities twice and add 2-3 contract clients. Reduce your hours at your main job and take on more clients.

Leave brand loyalty behind

Mark desires his employees' worship.

That's stupid. When times are bad, layoffs multiply. The problem is the false belief that companies care. No. A business maximizes profit and pays you the least.

To care or overpay is anti-capitalist (that run the world). Be honest.

I was a banker. Then the bat virus hit and jobs disappeared faster than I urinate after a night of drinking.

Start being disloyal now since your company will cheerfully replace you with a better applicant. Meet recruiters and hiring managers on LinkedIn. Whenever something goes wrong at work, act.

Loyalty to self and family. Nobody.

Outwork this instead

Mark doesn't suggest outworking inflation instead of people.

Inflation erodes your time on earth. If you ignore inflation, you'll work harder for less pay every minute.

Financial literacy beats inflation.

Get a side job and earn money online

So you can stop outworking everyone.

Internet leverages time. Same effort today yields exponential results later. There are still whole places not online.

Instead of working forever, generate money online.

Final Words

Overworking is stupid. Don't listen to wealthy football jocks.

Work isn't everything. Prioritize diversification, internet income streams, boredom, and financial knowledge throughout the recession.

That’s how to get wealthy rather than burnout-rich.

Learn to identify them, make habits to avoid them

First, a clarification. This article is aimed to make new programmers aware of their mistakes, train them to detect them, and remind them to prevent them.

I learned from all these blunders. I'm glad I have coding habits to avoid them. Do too.

These mistakes are not ordered.

1) Writing code haphazardly

Writing good content is hard. It takes planning and investigation. Quality programs don't differ.

Think. Research. Plan. Write. Validate. Modify. Unfortunately, no good acronym exists. Create a habit of doing the proper quantity of these activities.

As a newbie programmer, my biggest error was writing code without thinking or researching. This works for small stand-alone apps but hurts larger ones.

Like saying anything you might regret, you should think before coding something you could regret. Coding expresses your thoughts.

When angry, count to 10 before you speak. If very angry, a hundred. — Thomas Jefferson.

My quote:

When reviewing code, count to 10 before you refactor a line. If the code does not have tests, a hundred. — Samer Buna

Programming is primarily about reviewing prior code, investigating what is needed and how it fits into the current system, and developing small, testable features. Only 10% of the process involves writing code.

Programming is not writing code. Programming need nurturing.

2) Making excessive plans prior to writing code

Yes. Planning before writing code is good, but too much of it is bad. Water poisons.

Avoid perfect plans. Programming does not have that. Find a good starting plan. Your plan will change, but it helped you structure your code for clarity. Overplanning wastes time.

Only planning small features. All-feature planning should be illegal! The Waterfall Approach is a step-by-step system. That strategy requires extensive planning. This is not planning. Most software projects fail with waterfall. Implementing anything sophisticated requires agile changes to reality.

Programming requires responsiveness. You'll add waterfall plan-unthinkable features. You will eliminate functionality for reasons you never considered in a waterfall plan. Fix bugs and adjust. Be agile.

Plan your future features, though. Do it cautiously since too little or too much planning can affect code quality, which you must risk.

3) Underestimating the Value of Good Code

Readability should be your code's exclusive goal. Unintelligible code stinks. Non-recyclable.

Never undervalue code quality. Coding communicates implementations. Coders must explicitly communicate solution implementations.

Programming quote I like:

Always code as if the guy who ends up maintaining your code will be a violent psychopath who knows where you live. — John Woods

John, great advice!

Small things matter. If your indentation and capitalization are inconsistent, you should lose your coding license.

Long queues are also simple. Readability decreases after 80 characters. To highlight an if-statement block, you might put a long condition on the same line. No. Just never exceed 80 characters.

Linting and formatting tools fix many basic issues like this. ESLint and Prettier work great together in JavaScript. Use them.

Code quality errors:

Multiple lines in a function or file. Break long code into manageable bits. My rule of thumb is that any function with more than 10 lines is excessively long.

Double-negatives. Don't.

Using double negatives is just very not not wrong

Short, generic, or type-based variable names. Name variables clearly.

There are only two hard things in Computer Science: cache invalidation and naming things. — Phil Karlton

Hard-coding primitive strings and numbers without descriptions. If your logic relies on a constant primitive string or numeric value, identify it.

Avoiding simple difficulties with sloppy shortcuts and workarounds. Avoid evasion. Take stock.

Considering lengthier code better. Shorter code is usually preferable. Only write lengthier versions if they improve code readability. For instance, don't utilize clever one-liners and nested ternary statements just to make the code shorter. In any application, removing unneeded code is better.

Measuring programming progress by lines of code is like measuring aircraft building progress by weight. — Bill Gates

Excessive conditional logic. Conditional logic is unnecessary for most tasks. Choose based on readability. Measure performance before optimizing. Avoid Yoda conditions and conditional assignments.

4) Selecting the First Approach

When I started programming, I would solve an issue and move on. I would apply my initial solution without considering its intricacies and probable shortcomings.

After questioning all the solutions, the best ones usually emerge. If you can't think of several answers, you don't grasp the problem.

Programmers do not solve problems. Find the easiest solution. The solution must work well and be easy to read, comprehend, and maintain.

There are two ways of constructing a software design. One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies. — C.A.R. Hoare

5) Not Giving Up

I generally stick with the original solution even though it may not be the best. The not-quitting mentality may explain this. This mindset is helpful for most things, but not programming. Program writers should fail early and often.

If you doubt a solution, toss it and rethink the situation. No matter how much you put in that solution. GIT lets you branch off and try various solutions. Use it.

Do not be attached to code because of how much effort you put into it. Bad code needs to be discarded.

6) Avoiding Google

I've wasted time solving problems when I should have researched them first.

Unless you're employing cutting-edge technology, someone else has probably solved your problem. Google It First.

Googling may discover that what you think is an issue isn't and that you should embrace it. Do not presume you know everything needed to choose a solution. Google surprises.

But Google carefully. Newbies also copy code without knowing it. Use only code you understand, even if it solves your problem.

Never assume you know how to code creatively.

The most dangerous thought that you can have as a creative person is to think that you know what you’re doing. — Bret Victor

7) Failing to Use Encapsulation

Not about object-oriented paradigm. Encapsulation is always useful. Unencapsulated systems are difficult to maintain.

An application should only handle a feature once. One object handles that. The application's other objects should only see what's essential. Reducing application dependencies is not about secrecy. Following these guidelines lets you safely update class, object, and function internals without breaking things.

Classify logic and state concepts. Class means blueprint template. Class or Function objects are possible. It could be a Module or Package.

Self-contained tasks need methods in a logic class. Methods should accomplish one thing well. Similar classes should share method names.

As a rookie programmer, I didn't always establish a new class for a conceptual unit or recognize self-contained units. Newbie code has a Util class full of unrelated code. Another symptom of novice code is when a small change cascades and requires numerous other adjustments.

Think before adding a method or new responsibilities to a method. Time's needed. Avoid skipping or refactoring. Start right.

High Cohesion and Low Coupling involves grouping relevant code in a class and reducing class dependencies.

8) Arranging for Uncertainty

Thinking beyond your solution is appealing. Every line of code will bring up what-ifs. This is excellent for edge cases but not for foreseeable needs.

Your what-ifs must fall into one of these two categories. Write only code you need today. Avoid future planning.

Writing a feature for future use is improper. No.

Write only the code you need today for your solution. Handle edge-cases, but don't introduce edge-features.

Growth for the sake of growth is the ideology of the cancer cell. — Edward Abbey

9) Making the incorrect data structure choices

Beginner programmers often overemphasize algorithms when preparing for interviews. Good algorithms should be identified and used when needed, but memorizing them won't make you a programming genius.

However, learning your language's data structures' strengths and shortcomings will make you a better developer.

The improper data structure shouts "newbie coding" here.

Let me give you a few instances of data structures without teaching you:

Managing records with arrays instead of maps (objects).

Most data structure mistakes include using lists instead of maps to manage records. Use a map to organize a list of records.

This list of records has an identifier to look up each entry. Lists for scalar values are OK and frequently superior, especially if the focus is pushing values to the list.

Arrays and objects are the most common JavaScript list and map structures, respectively (there is also a map structure in modern JavaScript).

Lists over maps for record management often fail. I recommend always using this point, even though it only applies to huge collections. This is crucial because maps are faster than lists in looking up records by identifier.

Stackless

Simple recursive functions are often tempting when writing recursive programming. In single-threaded settings, optimizing recursive code is difficult.

Recursive function returns determine code optimization. Optimizing a recursive function that returns two or more calls to itself is harder than optimizing a single call.

Beginners overlook the alternative to recursive functions. Use Stack. Push function calls to a stack and start popping them out to traverse them back.

10) Worsening the current code

Imagine this:

Add an item to that room. You might want to store that object anywhere as it's a mess. You can finish in seconds.

Not with messy code. Do not worsen! Keep the code cleaner than when you started.

Clean the room above to place the new object. If the item is clothing, clear a route to the closet. That's proper execution.

The following bad habits frequently make code worse:

• code duplication You are merely duplicating code and creating more chaos if you copy/paste a code block and then alter just the line after that. This would be equivalent to adding another chair with a lower base rather than purchasing a new chair with a height-adjustable seat in the context of the aforementioned dirty room example. Always keep abstraction in mind, and use it when appropriate.

• utilizing configuration files not at all. A configuration file should contain the value you need to utilize if it may differ in certain circumstances or at different times. A configuration file should contain a value if you need to use it across numerous lines of code. Every time you add a new value to the code, simply ask yourself: "Does this value belong in a configuration file?" The most likely response is "yes."

• using temporary variables and pointless conditional statements. Every if-statement represents a logic branch that should at the very least be tested twice. When avoiding conditionals doesn't compromise readability, it should be done. The main issue with this is that branch logic is being used to extend an existing function rather than creating a new function. Are you altering the code at the appropriate level, or should you go think about the issue at a higher level every time you feel you need an if-statement or a new function variable?

This code illustrates superfluous if-statements:

function isOdd(number) {
  if (number % 2 === 1) {
    return true;
  } else {
    return false;
  }
}

Can you spot the biggest issue with the isOdd function above?

Unnecessary if-statement. Similar code:

function isOdd(number) {
  return (number % 2 === 1);
};

11) Making remarks on things that are obvious

I've learnt to avoid comments. Most code comments can be renamed.

instead of:

// This function sums only odd numbers in an array
const sum = (val) => {
  return val.reduce((a, b) => {
    if (b % 2 === 1) { // If the current number is odd
      a+=b;            // Add current number to accumulator
    }
    return a;          // The accumulator
  }, 0);
};

Commentless code looks like this:

const sumOddValues = (array) => {
  return array.reduce((accumulator, currentNumber) => {
    if (isOdd(currentNumber)) { 
      return accumulator + currentNumber;
    }
    return accumulator;
  }, 0);
};

Better function and argument names eliminate most comments. Remember that before commenting.

Sometimes you have to use comments to clarify the code. This is when your comments should answer WHY this code rather than WHAT it does.

Do not write a WHAT remark to clarify the code. Here are some unnecessary comments that clutter code:

// create a variable and initialize it to 0
let sum = 0;
// Loop over array
array.forEach(
  // For each number in the array
  (number) => {
    // Add the current number to the sum variable
    sum += number;
  }
);

Avoid that programmer. Reject that code. Remove such comments if necessary. Most importantly, teach programmers how awful these remarks are. Tell programmers who publish remarks like this that they may lose their jobs. That terrible.

12) Skipping tests

I'll simplify. If you develop code without tests because you think you're an excellent programmer, you're a rookie.

If you're not writing tests in code, you're probably testing manually. Every few lines of code in a web application will be refreshed and interacted with. Also. Manual code testing is fine. To learn how to automatically test your code, manually test it. After testing your application, return to your code editor and write code to automatically perform the same interaction the next time you add code.

Human. After each code update, you will forget to test all successful validations. Automate it!

Before writing code to fulfill validations, guess or design them. TDD is real. It improves your feature design thinking.

If you can use TDD, even partially, do so.

13) Making the assumption that if something is working, it must be right.

See this sumOddValues function. Is it flawed?

const sumOddValues = (array) => {
  return array.reduce((accumulator, currentNumber) => {
    if (currentNumber % 2 === 1) { 
      return accumulator + currentNumber;
    }
    return accumulator;
  });
};
 
 
console.assert(
  sumOddValues([1, 2, 3, 4, 5]) === 9
);

Verified. Good life. Correct?

Code above is incomplete. It handles some scenarios correctly, including the assumption used, but it has many other issues. I'll list some:

#1: No empty input handling. What happens when the function is called without arguments? That results in an error revealing the function's implementation:

TypeError: Cannot read property 'reduce' of undefined.

Two main factors indicate faulty code.

• Your function's users shouldn't come across implementation-related information.

• The user cannot benefit from the error. Simply said, they were unable to use your function. They would be aware that they misused the function if the error was more obvious about the usage issue. You might decide to make the function throw a custom exception, for instance:

TypeError: Cannot execute function for empty list.

Instead of returning an error, your method should disregard empty input and return a sum of 0. This case requires action.

Problem #2: No input validation. What happens if the function is invoked with a text, integer, or object instead of an array?

The function now throws:

sumOddValues(42);
TypeError: array.reduce is not a function

Unfortunately, array. cut's a function!

The function labels anything you call it with (42 in the example above) as array because we named the argument array. The error says 42.reduce is not a function.

See how that error confuses? An mistake like:

TypeError: 42 is not an array, dude.

Edge-cases are #1 and #2. These edge-cases are typical, but you should also consider less obvious ones. Negative numbers—what happens?

sumOddValues([1, 2, 3, 4, 5, -13]) // => still 9

-13's unusual. Is this the desired function behavior? Error? Should it sum negative numbers? Should it keep ignoring negative numbers? You may notice the function should have been titled sumPositiveOddNumbers.

This decision is simple. The more essential point is that if you don't write a test case to document your decision, future function maintainers won't know if you ignored negative values intentionally or accidentally.

It’s not a bug. It’s a feature. — Someone who forgot a test case

#3: Valid cases are not tested. Forget edge-cases, this function mishandles a straightforward case:

sumOddValues([2, 1, 3, 4, 5]) // => 11

The 2 above was wrongly included in sum.

The solution is simple: reduce accepts a second input to initialize the accumulator. Reduce will use the first value in the collection as the accumulator if that argument is not provided, like in the code above. The sum included the test case's first even value.

This test case should have been included in the tests along with many others, such as all-even numbers, a list with 0 in it, and an empty list.

Newbie code also has rudimentary tests that disregard edge-cases.

14) Adhering to Current Law

Unless you're a lone supercoder, you'll encounter stupid code. Beginners don't identify it and assume it's decent code because it works and has been in the codebase for a while.

Worse, if the terrible code uses bad practices, the newbie may be enticed to use them elsewhere in the codebase since they learnt them from good code.

A unique condition may have pushed the developer to write faulty code. This is a nice spot for a thorough note that informs newbies about that condition and why the code is written that way.

Beginners should presume that undocumented code they don't understand is bad. Ask. Enquire. Blame it!

If the code's author is dead or can't remember it, research and understand it. Only after understanding the code can you judge its quality. Before that, presume nothing.

15) Being fixated on best practices

Best practices damage. It suggests no further research. Best practice ever. No doubts!

No best practices. Today's programming language may have good practices.

Programming best practices are now considered bad practices.

Time will reveal better methods. Focus on your strengths, not best practices.

Do not do anything because you read a quote, saw someone else do it, or heard it is a recommended practice. This contains all my article advice! Ask questions, challenge theories, know your options, and make informed decisions.

16) Being preoccupied with performance

Premature optimization is the root of all evil (or at least most of it) in programming — Donald Knuth (1974)

I think Donald Knuth's advice is still relevant today, even though programming has changed.

Do not optimize code if you cannot measure the suspected performance problem.

Optimizing before code execution is likely premature. You may possibly be wasting time optimizing.

There are obvious optimizations to consider when writing new code. You must not flood the event loop or block the call stack in Node.js. Remember this early optimization. Will this code block the call stack?

Avoid non-obvious code optimization without measurements. If done, your performance boost may cause new issues.

Stop optimizing unmeasured performance issues.

17) Missing the End-User Experience as a Goal

How can an app add a feature easily? Look at it from your perspective or in the existing User Interface. Right? Add it to the form if the feature captures user input. Add it to your nested menu of links if it adds a link to a page.

Avoid that developer. Be a professional who empathizes with customers. They imagine this feature's consumers' needs and behavior. They focus on making the feature easy to find and use, not just adding it to the software.

18) Choosing the incorrect tool for the task

Every programmer has their preferred tools. Most tools are good for one thing and bad for others.

The worst tool for screwing in a screw is a hammer. Do not use your favorite hammer on a screw. Don't use Amazon's most popular hammer on a screw.

A true beginner relies on tool popularity rather than problem fit.

You may not know the best tools for a project. You may know the best tool. However, it wouldn't rank high. You must learn your tools and be open to new ones.

Some coders shun new tools. They like their tools and don't want to learn new ones. I can relate, but it's wrong.

You can build a house slowly with basic tools or rapidly with superior tools. You must learn and use new tools.

19) Failing to recognize that data issues are caused by code issues

Programs commonly manage data. The software will add, delete, and change records.

Even the simplest programming errors can make data unpredictable. Especially if the same defective application validates all data.

Code-data relationships may be confusing for beginners. They may employ broken code in production since feature X is not critical. Buggy coding may cause hidden data integrity issues.

Worse, deploying code that corrected flaws without fixing minor data problems caused by these defects will only collect more data problems that take the situation into the unrecoverable-level category.

How do you avoid these issues? Simply employ numerous data integrity validation levels. Use several interfaces. Front-end, back-end, network, and database validations. If not, apply database constraints.

Use all database constraints when adding columns and tables:

• If a column has a NOT NULL constraint, null values will be rejected for that column. If your application expects that field has a value, your database should designate its source as not null.

• If a column has a UNIQUE constraint, the entire table cannot include duplicate values for that column. This is ideal for a username or email field on a Users table, for instance.

• For the data to be accepted, a CHECK constraint, or custom expression, must evaluate to true. For instance, you can apply a check constraint to ensure that the values of a normal % column must fall within the range of 0 and 100.

• With a PRIMARY KEY constraint, the values of the columns must be both distinct and not null. This one is presumably what you're utilizing. To distinguish the records in each table, the database needs have a primary key.

• A FOREIGN KEY constraint requires that the values in one database column, typically a primary key, match those in another table column.

Transaction apathy is another data integrity issue for newbies. If numerous actions affect the same data source and depend on each other, they must be wrapped in a transaction that can be rolled back if one fails.

20) Reinventing the Wheel

Tricky. Some programming wheels need reinvention. Programming is undefined. New requirements and changes happen faster than any team can handle.

Instead of modifying the wheel we all adore, maybe we should rethink it if you need a wheel that spins at varied speeds depending on the time of day. If you don't require a non-standard wheel, don't reinvent it. Use the darn wheel.

Wheel brands can be hard to choose from. Research and test before buying! Most software wheels are free and transparent. Internal design quality lets you evaluate coding wheels. Try open-source wheels. Debug and fix open-source software simply. They're easily replaceable. In-house support is also easy.

If you need a wheel, don't buy a new automobile and put your maintained car on top. Do not include a library to use a few functions. Lodash in JavaScript is the finest example. Import shuffle to shuffle an array. Don't import lodash.

21) Adopting the incorrect perspective on code reviews

Beginners often see code reviews as criticism. Dislike them. Not appreciated. Even fear them.

Incorrect. If so, modify your mindset immediately. Learn from every code review. Salute them. Observe. Most crucial, thank reviewers who teach you.

Always learning code. Accept it. Most code reviews teach something new. Use these for learning.

You may need to correct the reviewer. If your code didn't make that evident, it may need to be changed. If you must teach your reviewer, remember that teaching is one of the most enjoyable things a programmer can do.

22) Not Using Source Control

Newbies often underestimate Git's capabilities.

Source control is more than sharing your modifications. It's much bigger. Clear history is source control. The history of coding will assist address complex problems. Commit messages matter. They are another way to communicate your implementations, and utilizing them with modest commits helps future maintainers understand how the code got where it is.

Commit early and often with present-tense verbs. Summarize your messages but be detailed. If you need more than a few lines, your commit is too long. Rebase!

Avoid needless commit messages. Commit summaries should not list new, changed, or deleted files. Git commands can display that list from the commit object. The summary message would be noise. I think a big commit has many summaries per file altered.

Source control involves discoverability. You can discover the commit that introduced a function and see its context if you doubt its need or design. Commits can even pinpoint which code caused a bug. Git has a binary search within commits (bisect) to find the bug-causing commit.

Source control can be used before commits to great effect. Staging changes, patching selectively, resetting, stashing, editing, applying, diffing, reversing, and others enrich your coding flow. Know, use, and enjoy them.

I consider a Git rookie someone who knows less functionalities.

23) Excessive Use of Shared State

Again, this is not about functional programming vs. other paradigms. That's another article.

Shared state is problematic and should be avoided if feasible. If not, use shared state as little as possible.

As a new programmer, I didn't know that all variables represent shared states. All variables in the same scope can change its data. Global scope reduces shared state span. Keep new states in limited scopes and avoid upward leakage.

When numerous resources modify common state in the same event loop tick, the situation becomes severe (in event-loop-based environments). Races happen.

This shared state race condition problem may encourage a rookie to utilize a timer, especially if they have a data lock issue. Red flag. No. Never accept it.

24) Adopting the Wrong Mentality Toward Errors

Errors are good. Progress. They indicate a simple way to improve.

Expert programmers enjoy errors. Newbies detest them.

If these lovely red error warnings irritate you, modify your mindset. Consider them helpers. Handle them. Use them to advance.

Some errors need exceptions. Plan for user-defined exceptions. Ignore some mistakes. Crash and exit the app.

25) Ignoring rest periods

Humans require mental breaks. Take breaks. In the zone, you'll forget breaks. Another symptom of beginners. No compromises. Make breaks mandatory in your process. Take frequent pauses. Take a little walk to plan your next move. Reread the code.

This has been a long post. You deserve a break.

It’s simply not conceivable, or at least not credible.

One of the most touted selling points of Crypto has always been this grandiose idea of decentralization. Bitcoin first arose in 2009 after the housing crisis and subsequent crash that came with it. It aimed to solve this supposed issue of centralization. Nobody “owns” Bitcoin in theory, so the idea then goes that it won’t be subject to the same downfalls that led to the 2008 crash or similarly speculative events that led to the 2008 disaster. The issue is the banks, not the human nature associated with the greedy individuals running them.

Subsequent blockchains have attempted to fix many of the issues of Bitcoin by increasing capacity, decreasing the costs and processing times associated with Bitcoin, and expanding what can be done with their blockchains. Since nobody owns Bitcoin, it hasn’t really been able to be expanded on. You have people like Vitalk Buterin, however, that actively work on Ethereum though.

The leap from Bitcoin to Ethereum was a massive leap toward centralization, and the trend has only gotten worse. In fact, crypto has since become almost exclusively centralized in recent years.

Decentralization is only good in theory

It’s a good idea. In fact, it’s a wonderful idea. However, like other utopian societies, individuals misjudge human nature and greed. In a perfect world, decentralization would certainly be a wonderful idea because sure, people may function as their own banks, move payments immediately, remain anonymous, and so on. However, underneath this are a couple issues:

• You can already send money instantaneously today.

• They are not decentralized.

• Decentralization is a bad idea.

• Being your own bank is a stupid move.

Let’s break these down. Some are quite simple, but lets have a look.

Sending money right away

One thing with crypto is the idea that you can send payments instantly. This has pretty much been entirely solved in current times. You can transmit significant sums of money instantly for a nominal cost and it’s instantaneously cleared. Venmo was launched in 2009 and has since increased to prominence, and currently is on most people's phones. I can directly send ANY amount of money quickly from my bank to another person's Venmo account.

Comparing that with ETH and Bitcoin, Venmo wins all around. I can send money to someone for free instantly in dollars and the only fee paid is optional depending on when you want it.

Both Bitcoin and Ethereum are subject to demand. If the blockchains have a lot of people trying to process transactions fee’s go up, and the time that it takes to receive your crypto takes longer. When Ethereum gets bad, people have reported spending several thousand of dollars on just 1 transaction.

These transactions take place via “miners” bundling and confirming transactions, then recording them on the blockchain to confirm that the transaction did indeed happen. They charge fees to do this and are also paid in Bitcoin/ETH. When a transaction is confirmed, it's then sent to the other users wallet. This within itself is subject to lots of controversy because each transaction needs to be confirmed 6 times, this takes massive amounts of power, and most of the power is wasted because this is an adversarial system in which the person that mines the transaction gets paid, and everyone else is out of luck. Also, these could theoretically be subject to a “51% attack” in which anyone with over 51% of the mining hash rate could effectively control all of the transactions, and reverse transactions while keeping the BTC resulting in “double spending”.

There are tons of other issues with this, but essentially it means: They rely on these third parties to confirm the transactions. Without people confirming these transactions, Bitcoin stalls completely, and if anyone becomes too dominant they can effectively control bitcoin.

Not to mention, these transactions are in Bitcoin and ETH, not dollars. So, you need to convert them to dollars still, and that's several more transactions, and likely to take several days anyway as the centralized exchange needs to send you the money by traditional methods.

They are not distributed

That takes me to the following point. This isn’t decentralized, at all. Bitcoin is the closest it gets because Satoshi basically closed it to new upgrades, although its still subject to:

• Whales

• Miners

It’s vital to realize that these are often the same folks. While whales aren’t centralized entities typically, they can considerably effect the price and outcome of Bitcoin. If the largest wallets holding as much as 1 million BTC were to sell, it’d effectively collapse the price perhaps beyond repair. However, Bitcoin can and is pretty much controlled by the miners. Further, Bitcoin is more like an oligarchy than decentralized. It’s been effectively used to make the rich richer, and both the mining and price is impacted by the rich. The overwhelming minority of those actually using it are retail investors. The retail investors are basically never the ones generating money from it either.

As far as ETH and other cryptos go, there is realistically 0 case for them being decentralized. Vitalik could not only kill it but even walking away from it would likely lead to a significant decline. It has tons of issues right now that Vitalik has promised to fix with the eventual Ethereum 2.0., and stepping away from it wouldn’t help.

Most tokens as well are generally tied to some promise of future developments and creators. The same is true for most NFT projects. The reason 99% of crypto and NFT projects fail is because they failed to deliver on various promises or bad dev teams, or poor innovation, or the founders just straight up stole from everyone. I could go more in-depth than this but go find any project and if there is a dev team, company, or person tied to it then it's likely, not decentralized. The success of that project is directly tied to the dev team, and if they wanted to, most hold large wallets and could sell it all off effectively killing the project. Not to mention, any crypto project that doesn’t have a locked contract can 100% be completely rugged and they can run off with all of the money.

Decentralization is undesirable

Even if they were decentralized then it would not be a good thing. The graphic above indicates this is effectively a rich person’s unregulated playground… so it’s exactly like… the very issue it tried to solve?

Not to mention, it’s supposedly meant to prevent things like 2008, but is regularly subjected to 50–90% drawdowns in value? Back when Bitcoin was only known in niche parts of the dark web and illegal markets, it would regularly drop as much as 90% and has a long history of massive drawdowns.

The majority of crypto is blatant scams, and ALL of crypto is a “zero” or “negative” sum game in that it relies on the next person buying for people to make money. This is not a good thing. This has yet to solve any issues around what caused the 2008 crisis. Rather, it seemingly amplified all of the bad parts of it actually. Crypto is the ultimate speculative asset and realistically has no valuation metric. People invest in Apple because it has revenue and cash on hand. People invest in crypto purely for speculation. The lack of regulation or accountability means this is amplified to the most extreme degree where anything goes: Fraud, deception, pump and dumps, scams, etc. This results in a pure speculative madhouse where, unsurprisingly, only the rich win. Not only that but the deck is massively stacked in against the everyday investor because you can’t do a pump and dump without money.

At the heart of all of this is still the same issues: greed and human nature. However, in setting out to solve the issues that allowed 2008 to happen, they made something that literally took all of the bad parts of 2008 and then amplified it. 2008, similarly, was due to greed and human nature but was allowed to happen due to lack of oversite, rich people's excessive leverage over the poor, and excessive speculation. Crypto trades SOLELY on human emotion, has 0 oversite, is pure speculation, and the power dynamic is just as bad or worse.

Why should each individual be their own bank?

This is the last one, and it's short and basic. Why do we want people functioning as their own bank? Everything we do relies on another person. Without the internet, and internet providers there is no crypto. We don’t have people functioning as their own home and car manufacturers or internet service providers. Sure, you might specialize in some of these things, but masquerading as your own bank is a horrible idea.

I am not in the banking industry so I don’t know all the issues with banking. Most people aren’t in banking or crypto, so they don’t know the ENDLESS scams associated with it, and they are bound to lose their money eventually.

If you appreciate this article and want to read more from me and authors like me, without any limits, consider buying me a coffee: buymeacoffee.com/calebnaysmith

40 years pass. After 14 years of retirement, you die. Am I the only one who sees the problem?

I’m the Jedi master of escaping the rat race.

Not to impress. I know this works since I've tried it. Quitting a job to make money online is worse than Kim Kardashian's internet-burning advice.

Let me help you rethink the move from a career to online income to f*ck you money.

To understand why a job is a joke, do some life math.

Without a solid why, nothing makes sense.

The retirement age is 65. Our processed food consumption could shorten our 79-year average lifespan.

You spend 40 years working.

After 14 years of retirement, you die.

Am I alone in seeing the problem?

Life is too short to work a job forever, especially since most people hate theirs. After-hours skills are vital.

Money equals unrestricted power, f*ck you.

F*ck you money is the answer.

Jack Raines said it first. He says we can do anything with the money. Jack, a young rebel straight out of college, can travel and try new foods.

F*ck you money signifies not checking your bank account before buying.

F*ck you” money is pure, unadulterated freedom with no strings attached.

Jack claims you're rich when you rarely think about money.

Avoid confusion.

This doesn't imply you can buy a Lamborghini. It indicates your costs, income, lifestyle, and bank account are balanced.

Jack established an online portfolio while working for UPS in Atlanta, Georgia. So he gained boundless power.

The portion that many erroneously believe

Yes, you need internet abilities to make money, but they're not different from 9-5 talents.

Sahil Lavingia, Gumroad's creator, explains.

A job is a way to get paid to learn.

Mistreat your boss 9-5. Drain his skills. Defuse him. Love and leave him (eventually).

Find another employment if yours is hazardous. Pick an easy job. Make sure nothing sneaks into your 6-12 time slot.

The dumb game that makes you a sheep

A 9-5 job requires many job interviews throughout life.

You email your résumé to employers and apply for jobs through advertisements. This game makes you a sheep.

You're competing globally. Work-from-home makes the competition tougher. If you're not the cheapest, employers won't hire you.

After-hours online talents (say, 6 pm-12 pm) change the game. This graphic explains it better:

Online talents boost after-hours opportunities.

You go from wanting to be picked to picking yourself. More chances equal more money. Your f*ck you fund gets the extra cash.

A novel method of learning is essential.

College costs six figures and takes a lifetime to repay.

Informal learning is distinct. 6-12pm:

• Observe the carefully controlled Twitter newsfeed.

• Make use of Teachable and Gumroad's online courses.

• Watch instructional YouTube videos

• Look through the top Substack newsletters.

Informal learning is more effective because it's not obvious. It's fun to follow your curiosity and hobbies.

The majority of people lack one attitude. It's simple to learn.

One big impediment stands in the way of f*ck you money and time independence. So often.

Too many people plan after 6-12 hours. Dreaming. Big-thinkers. Strategically. They fill their calendar with meetings.

This is after-hours masturb*tion.

Sahil Bloom reminded me that a bias towards action will determine if this approach works for you.

The key isn't knowing what to do from 6-12 a.m. Trust yourself and develop abilities as you go. It's for building the parachute after you jump.

Sounds risky. We've eliminated the risk by finishing this process after hours while you work 9-5.

With no risk, you can have an I-don't-care attitude and still be successful.

When you choose to move forward, this occurs.

Once you try 9-5/6-12, you'll tell someone.

It's bad.

Few of us hang out with problem-solvers.

It's how much of society operates. So they make reasons so they can feel better about not giving you money.

Matthew Kobach told me chasing f*ck you money is easier with like-minded folks.

Without f*ck you money friends, loneliness will take over and you'll think you've messed up when you just need to keep going.

Steal this easy guideline

Let's act. No more fluffing and caressing.

1. Learn

If you detest your 9-5 talents or don't think they'll work online, get new ones. If you're skilled enough, continue.

Easlo recommends these skills:

• Designer for Figma

• Designer Canva

• bubble creators

• editor in Photoshop

• Automation consultant for Zapier

• Designer of Webflow

• video editor Adobe

• Ghostwriter for Twitter

• Idea consultant

• Artist in Blender Studio

2. Develop the ability

Every night from 6-12, apply the skill.

Practicing ghostwriting? Write someone's tweets for free. Do someone's website copy to learn copywriting. Get a website to the top of Google for a keyword to understand SEO.

Free practice is crucial. Your 9-5 pays the money, so work for free.

3. Take off stealthily like a badass

Another mistake. Sell to few. Don't be the best. Don't claim expertise.

Sell your new expertise to others behind you.

Two ways:

• Using a digital good

• By providing a service,

Point 1 also includes digital service examples. Digital products include eBooks, communities, courses, ad-supported podcasts, and templates. It's easy. Your 9-5 job involves one of these.

Take ideas from work.

Why? They'll steal your time for profit.

4. Iterate while feeling awful

First-time launches always fail. You'll feel terrible. Okay. Remember your 9-5?

Find improvements. Ask free and paying consumers what worked.

Multiple relaunches, each 1% better.

5. Discover more

Never stop learning. Improve your skill. Add a relevant skill. Learn copywriting if you write online.

After-hours students earn the most.

6. Continue

Repetition is key.

7. Make this one small change.

Consistently. The 6-12 momentum won't make you rich in 30 days; that's success p*rn.

Consistency helps wage slaves become f*ck you money. Most people can't switch between the two.

Putting everything together

It's easy. You're probably already doing some.

This formula explains why, how, and what to do. It's a 5th-grade-friendly blueprint. Good.

Reduce financial risk with your 9-to-5. Replace Netflix with 6-12 money-making talents.

Life is short; do whatever you want. Today.

5 VC investment criteria

I reviewed 200 startup business concepts last week. Brainache.

The enterprises sold various goods and services. The concepts were achingly similar: give us money, we'll produce a product, then get more to expand. No different from daily plans and pitches.

Most of those 200 plans sounded plausible. But 10% looked venture-worthy. 90% of startups need alternatives to venture finance.

With the success of VC-backed businesses and the growth of venture funds, a common misperception is that investors would fund any decent company idea. Finding investors that believe in the firm and founders is the key to funding.

Incorrect. Venture capital needs investing in certain enterprises. If your startup doesn't match the model, as most early-stage startups don't, you can revise your business plan or locate another source of capital.

Before spending six months pitching angels and VCs, make sure your startup fits these criteria.

Likely to generate $100 million in sales

First, I check the income predictions in a pitch deck. If it doesn't display $100M, don't bother.

The math doesn't work for venture financing in smaller businesses.

Say a fund invests $1 million in a startup valued at $5 million that is later acquired for $20 million. That's a win everyone should celebrate. Most VCs don't care.

Consider a $100M fund. The fund must reach $360M in 7 years with a 20% return. Only 20-30 investments are possible. 90% of the investments will fail, hence the 23 winners must return $100M-$200M apiece. $15M isn't worth the work.

Angel investors and tiny funds use the same ideas as venture funds, but their smaller scale affects the calculations. If a company can support its growth through exit on less than $2M in angel financing, it must have $25M in revenues before large companies will consider acquiring it.

Aiming for Hypergrowth

A startup's size isn't enough. It must expand fast.

Developing a great business takes time. Complex technology must be constructed and tested, a nationwide expansion must be built, or production procedures must go from lab to pilot to factories. These can be enormous, world-changing corporations, but venture investment is difficult.

The normal 10-year venture fund life. Investments are made during first 3–4 years.. 610 years pass between investment and fund dissolution. Funds need their investments to exit within 5 years, 7 at the most, therefore add a safety margin.

Longer exit times reduce ROI. A 2-fold return in a year is excellent. Loss at 2x in 7 years.

Lastly, VCs must prove success to raise their next capital. The 2nd fund is raised from 1st fund portfolio increases. Third fund is raised using 1st fund's cash return. Fund managers must raise new money quickly to keep their jobs.

Branding or technology that is protected

No big firm will buy a startup at a high price if they can produce a competing product for less. Their development teams, consumer base, and sales and marketing channels are large. Who needs you?

Patents, specialist knowledge, or brand name are the only answers. The acquirer buys this, not the thing.

I've heard of several promising startups. It's not a decent investment if there's no exit strategy.

A company that installs EV charging stations in apartments and shopping areas is an example. It's profitable, repeatable, and big. A terrific company. Not a startup.

This building company's operations aren't secret. No technology to protect, no special information competitors can't figure out, no go-to brand name. Despite the immense possibilities, a large construction company would be better off starting their own.

Most venture businesses build products, not services. Services can be profitable but hard to safeguard.

Probable purchase at high multiple

Once a software business proves its value, acquiring it is easy. Pharma and medtech firms have given up on their own research and instead acquire startups after regulatory permission. Many startups, especially in specialized areas, have this weakness.

That doesn't mean any lucrative $25M-plus business won't be acquired. In many businesses, the venture model requires a high exit premium.

A startup invents a new glue. 3M, BASF, Henkel, and others may buy them. Adding more adhesive to their catalogs won't boost commerce. They won't compete to buy the business. They'll only buy a startup at a profitable price. The acquisition price represents a moderate EBITDA multiple.

The company's $100M revenue presumably yields $10m in profits (assuming they’ve reached profitability at all). A $30M-$50M transaction is likely. Not terrible, but not what venture investors want after investing $25M to create a plant and develop the business.

Private equity buys profitable companies for a moderate profit multiple. It's a good exit for entrepreneurs, but not for investors seeking 10x or more what PE firms pay. If a startup offers private equity as an exit, the conversation is over.

Constructed for purchase

The startup wants a high-multiple exit. Unless the company targets $1B in revenue and does an IPO, exit means acquisition.

If they're constructing the business for acquisition or themselves, founders must decide.

If you want an indefinitely-running business, I applaud you. We need more long-term founders. Most successful organizations are founded around consumer demands, not venture capital's urge to grow fast and exit. Not venture funding.

if you don't match the venture model, what to do

VC funds moonshots. The 10% that succeed are extraordinary. Not every firm is a rocketship, and launching the wrong startup into space, even with money, will explode.

But just because your startup won't make $100M in 5 years doesn't mean it's a bad business. Most successful companies don't follow this model. It's not venture capital-friendly.

Although venture capital gets the most attention due to a few spectacular triumphs (and disasters), it's not the only or even most typical option to fund a firm.

Other ways to support your startup:

• Personal and family resources, such as credit cards, second mortgages, and lines of credit

• bootstrapping off of sales

• government funding and honors

• Private equity & project financing

• collaborating with a big business

• Including a business partner

Before pitching angels and VCs, be sure your startup qualifies. If so, include them in your pitch.