Why Silicon Valley VCs giving location advice to founders is complete BS. A technical founder's contrarian take on the "move to SF to maximize luck" myth that's costing bootstrap companies millions.

The cringe-worthy VC advice that sparked this rant:

• Well-known Silicon Valley VC telling founders to "move back to SF"
• Claims "being successful as a founder is about luck, so maximize your chances"
• Treats founders like chess pieces on his board: "You should move here, you should do this"
• Classic example of someone who's never built anything giving expensive advice

Three questions every VC should answer first:

• Have you ever stayed up at 3am debugging code?
• Have you ever chosen between paying yourself and paying your developer?
• Have you ever had customers screaming at you because something broke and you're the only one who can fix it?

Why the "move to SF" advice is outdated and expensive:

• Building SimpleDirect from Toronto, serving contractors across Ohio and Texas
• Customers don't care if you're in San Francisco or Bangkok - they care if the product works
• Single bedroom in SF easily tops $6-8K - impractical stress for bootstrap founders
• Better to start from parents' basement/garage and reinvest capital in business

The 2025 bootstrap reality:

• Cost of bootstrapping has gone essentially to zero thanks to AI
• Building two companies with just 5 people using simple SaaS tools
• AI enables same capabilities whether you're in SF or Wyoming
• Teams in South Asia and Africa use identical tools to SF teams

The venture capital math problem:

• VC funding up 60-70% year over year, but mostly going to AI startups
• If your company name doesn't end with "AI," you're likely not getting funded
• VCs optimize for their outcomes (1-2% annual management fees), not yours
• You're a chess piece in their portfolio, not the player

Personal experience with VC vs founder networks:

• Made mistake of following prominent VCs on Twitter early on
• Real network effects come from knowing actual founders, not attending SF parties
• Morning Slack conversation with founder friend more motivating than any VC meeting
• Technical founders are probably coding at home, not at networking events

The AI bubble reality check:

• Sam Altman himself admits we're in an AI bubble
• When it pops (like dot-com bubble), where will SF-dependent founders be?
• Companies like Amazon survived bubbles by building real value, not chasing hype
• Opportunity exists for builders who think contrarily while others chase trends

The sovereign business model:

• Complete abandonment of venture capital approach
• Building companies like sovereign wealth engine - compound equity forever
• Optimize for decades, not quarters (Berkshire Hathaway model for tech)
• Focus on profitable, sustainable growth without investor permission

Key mindset shifts:

• Stop taking advice from people who've never done what you're trying to do
• VCs have never built bootstrap businesses or chosen growth vs survival
• Your luck comes from solving real problems, not being in same zip code as investors
• Future belongs to founders building global businesses from anywhere

Red flags you're following the wrong advice: Taking location guidance from VCs, believing geographic proximity equals business success, prioritizing investor convenience over customer needs, choosing expensive markets for "network effects."

Bottom line: While everyone fights over expensive SF apartments and chases AI hype rounds, massive opportunity exists for independent builders. Stop seeking permission from Sand Hill Road. Build something real that customers want from wherever you're most comfortable and productive.

New episodes Monday/Wednesday/Friday at 9am EST. Real founder lessons, not startup theater.

Daily thoughts: @TheGeorgePu on Twitter/X

Full episodes: founderreality.com

Email: george@founderreality.com

How guaranteed payment turned my best partner into my worst nightmare. A five-year partnership destroyed in 12 weeks - and the expensive systems lesson every founder needs to learn.

The brutal reality of incentive misalignment:

• Had a 5-year partnership with David, splitting revenue 60/40 (he kept 60%)
• Performance-based system worked perfectly - he was engaged, responsive, calling multiple times daily
• The moment we signed a guaranteed monthly contract, complete radio silence
• From proactive partner to only caring about paycheck status in 12 weeks

The partnership that worked (until it didn't):

• David was industry veteran who could speak to home improvement contractors
• Incredibly generous 60/40 split in his favor on all revenue
• Pure performance model - no sales, no pay
• Regular calls about business development, customer issues, strategy
• He delivered results, we both made money

Warning signs I ignored:

• Angry Sunday morning emails: "WHERE ARE THE FREAKING LEADS?"
• Increasing discontent despite generous compensation
• Had tried guaranteed payments with him before in 2020-2021 - didn't work
• Became pushy about wanting monthly retainer after years of success

The switch that flipped:

• Signed guaranteed monthly agreement in May after persistent pressure
• Immediate complete behavior change - like turning off a light switch
• Zero proactive outreach, zero customer care, zero business development calls
• Only communications: "What's the status of my pay?"
• Customers couldn't reach him - he'd just say "call George or support"

The painful irony:

• We'd recently been terminated by lending partner for not delivering results
• They had performance expectations, we couldn't meet them, they cut ties immediately
• Here I was paying someone who completely checked out for 5 months
• My empathy and difficulty saying no became expensive business liability

Four systems changes I'm implementing:

1. Mandatory probation periods - Test 30-90 days before long-term arrangements
2. Delivery-based compensation - No deliverables = no payment, period
3. Regular check-ins with clear expectations - No more "figure it out as we go"
4. Trust but verify - Empathy-first leadership with verification systems

The hard truth about systems design:

• Your systems determine your results, not your intentions
• If you reward showing up, that's what you get
• If you reward results, that's what you get
• I created a system that rewarded doing nothing - got exactly that

Key insight: Real stability comes from consistently delivering value, not from having a signed contract. The fault was mine as founder - I designed incentives that pushed away from behaviors I wanted instead of toward them.

The expensive lesson: Most people rise or fall to meet the expectations and systems you create. As founders, we determine our own destiny by the systems we build. Next time, I'm designing systems where the only way to win is actually doing the work.

Red flags you're making the same mistake: Paying for promises instead of performance, guaranteed payments without proven sustained performance, ignoring past failed attempts at same arrangement, letting empathy override business judgment.

Bottom line: Guaranteed payment without accountability is a recipe for disaster. Structure agreements that align incentives with success. Your system determines your results - choose wisely.

New episodes Monday/Wednesday/Friday at 9am EST. Real founder lessons, not startup theater.

Daily thoughts: @TheGeorgePu on Twitter/X

Full episodes: founderreality.com

Email: george@founderreality.com

Three years ago I was so desperate I asked a successful founder friend for a job. He said no - and saved my entrepreneurial career. Here's why the loneliness stage almost broke me and how I got through it.

The brutal reality of choosing a different path:

• While friends got $60K-120K jobs with benefits, I was making what they earned in 1-2 months
• Dating became weird - explaining you're "building something" at 22 sounds like unemployment with delusions
• When people at parties asked what I do, I'd freeze before explaining a business that wasn't making money yet
• Co-founders left for steady paychecks while I questioned everything

The three psychological stages every solo founder goes through:
Stage 1: Excitement (6-8 months)

• Felt like Neo in The Matrix - could see what others couldn't
• Every idea had potential, every late night felt productive
• Making early revenue while friends complained about assignments
• Choosing freedom while everyone else chose security

Stage 2: Self-Doubt and Isolation (3-4+ years)

• Friends graduated to real jobs, steady paychecks, clear career progression
• Social isolation hits hardest - you're the outlier still figuring things out
• My lowest point: asking that successful founder for a job in 2022
• Parents encouraging me to get employment
• The loneliness isn't just being alone - it's doubting you made the wrong choice

Stage 3: Self-Acceptance

• Not a magical date - it's about being in full agreement with your path
• Understanding you control your own destiny completely
• When friends complain about jobs now, I feel grateful I chose differently
• The loneliness is gone because I'm not lonely - I'm independent
• People respect and even envy the confidence in your choices

What shifted me out of Stage 2:

• Started taking care of myself - sleep, workouts, food tracking
• Stopped comparing myself to friends and co-founders
• Being true to myself instead of trying to be everything while being nothing
• Realizing I'm not built to be a good employee (tried internships, didn't work)

Key insights for each stage:

• Stage 1: Enjoy it, but Stage 2 is coming
• Stage 2: This is temporary but you have to do the work - take care of health, find your people
• Stage 3: Full agreement with yourself, no more seeking validation

Red flags you're in the brutal stage: Freezing when people ask what you do, feeling envious of friends' steady paychecks, questioning if you made the wrong choice, social isolation affecting dating and friendships.

Bottom line: The path of building something unconventional is lonely by design. But that loneliness teaches you things about yourself you cannot learn any other way. Your finances have nothing to do with these psychological stages - it's all about self-acceptance and controlling your own destiny.

New episodes Monday/Wednesday/Friday at 9am EST. Real founder lessons, not startup theater.

Daily thoughts: @TheGeorgePu on Twitter/X

Full episodes: founderreality.com

Email: george@founderreality.com

Taking care of your health isn't selfish when you're building a company - it's the most important business decision you'll ever make. Here's why I completely changed my approach after losing my mentor.

The wake-up call that changed everything:

• Lost my mentor Rob unexpectedly at 60 - two weeks after he said he'd be back from a trip
• Family member diagnosed with late-stage cancer during routine check
• Realized I was treating my body like it was invincible while building companies
• If I burn out my body, I don't get to finish the work

My unhealthy founder habits (sound familiar?):

• 10-12 hour days, feeling guilty about taking lunch breaks
• Eating whatever was convenient - takeout, random snacks, no sugar tracking
• Treating workouts like performance theater for social media
• Sleeping whenever, waking whenever, ignoring my body's signals
• Believing health optimization would take "too much time"

The myth that nearly killed my progress: Thought being healthy required becoming a fitness expert, tracking every calorie, and spending hours planning. Complete BS.

My simple system that actually works:

1. Workout 5-6 times per week (40-45 minutes, non-negotiable)
2. Understand your calorie maintenance - mine's 2,500 calories daily
3. Cut sugar aggressively - no syrups, minimal sweets, aware consumption
4. Eat until 7-8 full (never stuffed) - no calorie tracking needed
5. Limit takeout to 2-3x per week - choose healthier options when you do
6. 7-8 hours sleep minimum - tracked with Apple Watch for awareness

Game-changing realizations:

• Working out replaced meditation - physical exhaustion quiets my racing mind
• Better sleep = clearer thinking = better business decisions
• I have energy AFTER work now for things that matter
• AI (ChatGPT/Claude) makes workout and meal planning incredibly simple

The entrepreneur health paradox: We think taking care of ourselves is selfish or weak. But if you ignore warning signs, you won't be around to see your company succeed. Your health IS your business strategy.

Don't be perfect - be sustainable: I still eat pizza sometimes, work late occasionally, have bad sleep days. Difference? I'm paying attention and treating my body like it matters long-term.

Bottom line: Rob's passing wasn't just sad - it was a wake-up call. Your future self will thank you for starting today, even with an imperfect plan.

New episodes Monday/Wednesday/Friday at 9am EST. Real founder lessons, not startup theater.

Daily thoughts: @TheGeorgePu on Twitter/X
Full episodes: founderreality.com
Email: george@founderreality.com

Most founders obsess over product-market fit while completely ignoring audience-market fit - and it's killing their businesses before they even start.

I spent 5 years building SimpleDirect into a profitable company serving contractors, only to realize I'd chosen the worst possible audience for sustainable growth. Every customer had to be personally sold. No viral loops. No organic growth. No network effects.

The audience selection problem:

• Built for contractors who don't create content or share tools online
• Customers loved the product but kept it secret from local competitors
• Growth required expensive, time-intensive sales calls for every single customer
• Competitors with $50M+ funding could outspend us on aggressive phone campaigns

What scalable distribution actually looks like:

• Instagram e-commerce: Customers naturally screenshot and share products they love
• SaaS tools: Founders discover new tools through Twitter recommendations from other founders
• The difference: Your customers become your distribution channel, or your business stays linear forever

My distribution framework - what 5 years taught me the hard way:

What I should have asked first:

• Does my target audience create content online?
• Do they celebrate wins and share tools they love?
• Who do they tell when they find something great?
• Can this business compound or will it always be linear?

What I ignored (and paid for):

• Chose great customers who couldn't amplify the product
• Focused on product quality over audience network effects
• Assumed traditional B2B sales would scale indefinitely
• Never considered how customers would naturally share

The Network Effects Test for any business: If your customers won't or can't talk about your product online, you don't have a scalable business - you have a consulting business disguised as a product.

Why this matters for Founder Reality: This podcast and my Twitter growth taught me how content-driven distribution actually works. I'm learning in real-time what I should have built into SimpleDirect from day one.

The bottom line: In 2025, if your customers don't share your product online, you're building a brick-and-mortar business in digital clothing.

My new approach: Distribution first, audience second, product third. Always ask who will naturally amplify this before building anything.

Choose your audience like you're choosing your business model - because you are.

New episodes Monday/Wednesday/Friday at 9am EST. No startup theater, no highlight reel - just real founder lessons.

Daily thoughts: @TheGeorgePu on Twitter/X
Full episodes: founderreality.com
Email: george@founderreality.com

I went from 14 employees down to 5 people two years ago. It was the best business decision I've ever made. We're more profitable, faster, and I actually enjoy work again.

The brutal reality of scaling too fast:

• 14 people = 7 hours monthly just doing one-on-ones
• Communication paths explode exponentially with team size
• You start "finding tasks" for people instead of having natural work flow
• I failed the Sunday Night Test - dreading Monday mornings because of management overhead
• Multiple developer groups created shadow societies within the company

What I learned the hard way:

• Adding people doesn't multiply output - it multiplies complexity
• When you need performance reviews to know what people are doing, you're already too big
• The moment you're allocating tasks instead of having organic work flow, you're 1000% on the wrong track
• Cash position broke with 14 people - couldn't make payroll

My small team framework now:

1. Founder takes new tasks first - test with AI and existing team before hiring
2. Use contractors over employees for non-core work
3. Apply the "keep one person" test - who would you fight to retain?
4. Sunday Night Test - if you dread Monday, something's wrong

The 5-person reality:

• No performance reviews needed (I know what everyone's building)
• No daily standups (we just hop on Slack when needed)
• Faster decision-making, better culture, actual family feel
• AI handles what used to require hiring 3-4 additional people

Red flags you're hiring too fast: Time drainage from management processes, failing the Sunday Night Test, having to create work for people, losing the startup culture feeling.

Bottom line: Your competitive advantage isn't team size - it's team efficiency. Sometimes fewer people doing more is exactly what your startup needs.

New episodes Monday/Wednesday/Friday at 9am EST. Real founder lessons, not startup theater.

Daily thoughts: @TheGeorgePu on Twitter/X
Full episodes: founderreality.com
Email: george@founderreality.com

AI has killed every competitive advantage for software founders except one: distribution. If anyone can build your app in a week, your code isn't your moat - your crowd is.

The brutal reality I'm seeing as a software founder since 2019:

• My first MVP took 8 months to build (April 2019 → January 2020). Today? That same product could be built in a week, maybe less.
• Feature parity happens instantly - competitors screenshot your app and rebuild it overnight
• We're in the "infinite builders era" - anyone with Cursor can ship an MVP
• I've abandoned AI tools we built (SimpleDirect Chat) because the space got too crowded too fast

What AI hasn't democratized: Your personal story and distribution.

The 2025+ founder playbook I'm using:

1. Build audience first - before you even have a product
2. Solve distribution, not just the problem - your unique voice matters more than your unique code
3. Earn referrals through authentic relationships - not ad spend
4. Bootstrap with high margins - you don't need huge teams anymore

My content journey reality check:

• Started tweeting in 2021 with zero followers after a friend said "build a founder brand"
• Bought the book "Founder Brand" but didn't read it for 4 years (just read it last month)
• Built a 20K+ contractor Facebook group by posting construction memes daily (yes, really)
• Learned that people buy from people they know and trust - not faceless brands

The uncomfortable truth: Less than 1% of people choose entrepreneurship. Your founder story is already unique - you just need to share it consistently.

Why most founders are too late: If you have a product now and you're just starting to think about content, you missed the window. Start building your founder brand while you're still building your MVP.

My framework: Authentic relationships scale differently than ad spend. Show your expertise before selling. Be uniquely you - because in an AI world where anyone can code, your personality and perspective are the only things that can't be replicated overnight.

New episodes Monday/Wednesday/Friday at 9am EST. Real founder lessons, not startup theater.

Daily thoughts: @TheGeorgePu on Twitter/X
Full episodes: founderreality.com
Email: george@founderreality.com