Initialized Capital

I'm lazy today, so I just grabbed this article which describes office space in the bay area for startups [0]. Their talking all the way up to about $70 per square foot. Peopleware says 100 sq ft per person, so that's up to about $700 per month per employee (or $8400).

I honestly don't think that's crazy money, but you also have to plan for growth. This makes things a lot harder. If you think you are going to grow from 4 developers to 20 in the next couple of years, then you need to make sure you have access to space. Moving offices is usually traumatic, so it's a cost you need to balance.

TBH, I've only ever experienced that much space once in my career. Normally I've had about 60 sq ft and I've had much less in some jobs. My experience is that the extra space is definitely worth it. There shouldn't even be a question about it.

I think the problem is more that it is hard for the people-with-purchasing-power to understand that productivity in knowledge workers can very dramatically. Spending $10K per year on working conditions can easily save you $100K in salary (given current SV salaries) -- you can go with a lower head count and achieve the same amount of work.

But it's not just that. I'm a big proponent of small head count. The communication overhead for large teams can be crippling. When you look at trying to increase production by improving code quality -- it's practically impossible with large teams. If you never speak to half your team mates, there is…

> After launch, MobileMe was widely panned, full of embarrassing bugs. Jobs gathered employees in an Apple auditorium and asked them, “Can anyone tell me what MobileMe is supposed to do?” And when his team started to answer, Job snapped, saying, “Why the F doesn’t it do that?” He spent the next hour berating the group, saying they had tarnished Apple’s reputation and that they should all hate each other for having let each other down. He then fired the head of the team and replaced him on the spot. Steve wasn’t happy at all. He clearly felt very deep shame and took it out on his team”

https://medium.com/initialized-capital/how-founders-must-channel-shame-51baab69ca45

Can you imagine “Apple Intelligence” being this bad under Jobs?

Contrast that with Cook…

“where can we put more ad units that make the product worse”

“Let’s ignore Phil Schiller’s advice, the judge’s court order and make the experience of paying outside of the App Store as shitty as possible”.

“Let’s keep our base model Macs at 8GB for over a decade to save a little money and get people to pay for upgrades”

I really hate Tim Cook.