Friday 26 July 2019

Book Review: The Hard Thing about Hard Things

A lot of people talk about how great it is to start a business, but only Ben Horowitz is brutally honest about How Hard it is to run one. For a down-to-earth of start-up life, The Hard Thing About Hard Things makes the perfect antidote. The author gives a wart and all view of what it’s really like to be in charge of business weeks away from running out of cash, threatened by the loss of its biggest customer or outflanked by a competitor with a better product.

In the book, the author draws on his own story of founding, running, selling, buying, managing and investing in technology companies to offer essential advice and practical wisdom for navigating the toughest problems business schools don’t cover. A lifelong rap fan, he amplifies business lessons with lyrics from his favorite songs, telling it straight about everything from firing friends to poaching competitors, cultivating and sustaining a CEO mentality to knowing the right time to cash in.

Horowitz spends the first few chapters establishing his own story, from growing up in Berkeley, to meeting his wife Felicia in LA, and then the unfolding of his career. He gives the reader an inside view into his humble start as an engineer at NetLabs, and his beginnings working for his future venture and business partner Marc Andreessen.
Horowitz really delves into the story behind Loudcloud, and then Opsware, which was born of Loudcloud. It’s in this moment in time Horowitz appears to have had the bulk of his education as a CEO, manager, and founder. Loudcloud, and Opsware, and this by no means was an easy road. In fact, the way Horowitz describes the journey, it was an epic disaster at some points. He recalls in the book that Loudcloud was running out of money and the company decided to IPO because private investors wouldn’t invest any more cash.

On the roadshow, Horowitz says he was sure the company would go bankrupt. And in the midst of all this and his travel, his wife Felicia had a serious health scare, as outlined above. These sorts of hardships are the reason why he spends so much time on the actual journey versus the outcome, which was that HP acquired Opsware for over $1 billion in 2007.

Horowitz also delves into the next chapter of his professional life as a venture capitalist. Here he covers the history of founding A16Z with Andreessen, the reason behind the firm’s focus on hiring former founders as VCs and its replication of the CAA agency model in the VC world. He goes into detail around how he and Andreessen have segmented the firm into networks, which include large companies, executives, engineers, press and analysts, and investors and acquirers.

The book follows his story as it happened and leaves you with a real sense of how to approach problems. They say your success is defined by how many hard conversations you're willing to have, and this book gives you the mindfulness to recognize the situations you need to step up and some of the tools to do it. The Hard Thing About Hard Things is invaluable for veteran entrepreneurs as well as those aspiring to their own new ventures, drawing from Horowitz’s personal and often humbling experiences.

Get it here on Amazon

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