Skip to content

Big companies Quote by Paul Graham

“If you want to make money at some point, remember this, because this is one of the reasons startups win. Big companies want to decrease the standard deviation of design outcomes because they want to avoid disasters. But when you damp oscillations, you lose the high points as well as the low. This…” quote by Paul Graham
Download Open image
““If you want to make money at some point, remember this, because this is one of the reasons startups win. Big companies want to decrease the standard deviation of design outcomes because they want to avoid disasters. But when you damp oscillations, you lose the high points as well as the low. This is not a problem for big companies, because they don't win by making great products. Big companies win by sucking less than other big companies.” - “The place to fight design wars is in new markets, where no one has yet managed to establish any fortifications. That's where you can win big by taking the bold approach to design, and having the same people both design and implement the product. Microsoft themselves did this at the start. So did Apple. And Hewlett- Packard. I suspect almost every successful startup has.” - “Great software, likewise, requires a fanatical devotion to beauty. If you look inside good software, you find that parts no one is ever supposed to see are beautiful too.” - “The right way to collaborate, I think, is to divide projects into sharply defined modules, each with a definite owner, and with interfaces between them that are as carefully designed and, if possible, as articulated as programming languages. Like painting, most software is intended for a human audience. And so hackers, like painters, must have empathy to do really great work. You have to be able to see things from the user's point of view.” - “It turns out that looking at things from other people's point of view is practically the secret of success.” - “Part of what software has to do is explain itself. So to write good software you have to understand how little users understand. They're going to walk up to the software with no preparation, and it had better do what they guess it will, because they're not going to read the manual.””

Paul Graham

About This Quote

Source Essay: Hackers & Painters, Paul Graham, 2004

Startups succeed by embracing risk and bold design, unlike big firms that seek to minimize variance and avoid disaster.

In simple terms: Startups win by taking big, risky design moves; big companies play it safe.

Key Takeaway

Embrace bold design and risk to create standout products.

Themes

risk design innovation competition startup big companies

Mood

ambitious strategic reflective

Type

philosophical inspirational practical

When to use this quote

  • launching a new product
  • entering a new market
  • designing user‑centric software
  • structuring collaborative teams

Key Concepts

variance reduction design markets market entry user empathy software clarity

Questions to Reflect On

  • How can a startup balance risk with sustainable growth?
  • What design choices can differentiate a product in a crowded market?
A Different Perspective

Big companies can dominate by incremental improvements, making it hard for startups to sustain advantage.

4.6 out of 5 (8 ratings)

More by Paul Graham

Explore all 94 Paul Graham quotes

More Big companies quotes

Browse all 124 Big companies quotes