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5 Things I Wish Someone Had Told Me (about starting a company)

I had the opportunity to talk about Bluyah at last night’s Seattle Tech Startups event.   I have to be honest.  I really hate “public speaking.”  Granted, it gets a bit easier each time I get up and do it, but if I didn’t have to do it, I’d be that much happier.  That said, I love talking with people about our service, our long-term vision and what we’re attempting to accomplish with Bluyah.  It almost makes the “public” part of it all bearable.

At the STS event someone asked me what our biggest challenge to-date had been.  I talked a bit about our troubles with user-generated XML, as well as the more general challenge of reaching the “right” people at the “right” companies who could help us gain “traction” in a market saturated with big players with even bigger pockets.

Later that evening, while talking with @freelock and @justinsaul over a couple of drinks, I realized that what I should have said is this:

1. No one will ever be as excited about your [product, service, business] as you are.

In hindsight, this should seem obvious.  But it wasn’t to me in the beginning.  I saw myself as an evangelist who’s mission was to convert the uninitiated into faithful followers.  In reality, it’s been more like being a shepherd trying to herd a flock of ambivalent geese through an obstacle course.

There are those that will nod approvingly and head in the general direction you’ve pointed, but you know in your gut they’re not fully committed and probably don’t even know themselves why they’re headed in the direction they’re headed.  These are the “yes” folks: Yes we want that feature (even though we didn’t ask for it); Yes we will be a referral customer (even though we haven’t fully adopted the service); Yes we love the service (until our free trial runs out).

Then there are those that will fight you every step of the way, regardless of where you’re headed.  These are the “no” folks: No we will not use your service (even though we’ve repeatedly told you we desperately need a solution eerily similar to what you’re offering);  No we will not lend you money or invest in your idea (even though we find it very intriguing and really want to talk with you when sales reach $500k); No we do not think the market is in need of a shakeup (maybe because we just don’t like change).

Finally, there are those who could care less about what you’re doing.  You’re not Twitter, Facebook, developing iPhone apps, and/or have ever had a write-up in TechCrunch, so you’re …. (yawn) …. just not that interesting.  It doesn’t matter if you’re curing cancer or making data transformation easier for non-techies - you’re just not sexy enough for a second look.

Realize this.  Get over it.  Then move on.

2. Everyone expects something from you.

Employees expect a paycheck.  They don’t care that revenues are in the toilet.  They have rent to pay, food to put on the table, and if you’re not delivering there are plenty of companies in town who will.

Partners expect a boost in revenues.  They only partnered with you in the first place because they expected your service/product to get them more sales and/or customers than what they had before.  They’re not in business to be your friend or mentor or helping-hand.  They’re in business to make money and if you’re not helping them do that, they will move on.

Advisors / Mentors / Consultants expect a return on their “investment”.  Granted, that investment may just be an hour of their time every month or so - but they view their time as having value (which it does) and they expect a dividend for providing that time (which they should).  If you’re lucky, that dividend could be a nice bottle of wine and a thank you card.  If you’re “normal” that dividend is probably going to be something along the lines of an equity stake in your business.  And if it’s something more than that, you’re probably being taken advantage of.

Understand this.  Accept that everyone will put a higher value on their contribution to your vision than you will.  Don’t fight this.  Discuss it openly and honestly.  Haggle for the lowest price you can get.  But at the end of the day, understand that you will always pay more (in many ways) than what you had hoped or planned to pay.

3. Never implement a feature for a “potential” customer

I kick myself for having to even write this one down.  But I speak from experience.  Unless a potential customer is showing up with cash in hand and saying “build this for me and all I have here is yours” you should politely pass.  Or better yet, convince them that all they desire is theirs once they become a customer.  And then delay as long as is humanly possible.

The second part of this is “the customer is not always right.”  Most of the time they are, but not always.   The customer cares about themselves first and your business vision a distant seventy-eighth or so.  They only use your product or service because it makes their life better in some way.  Never lose sight of this.  If you’re not making their life sexier/better/richer/more fulfilling they will move on to someone who can satisfy those need.

All of the feature requests a customer gives you are going to be about them and their needs.  They don’t care if adding this feature will cause 99% of your other customers to be targeted by incoming ICBMs as a result (and why should they?).  They want their feature — and they want it now.

It’s a balancing act, sure.  But at the end of the day you have to ask yourself if satisfying an individual customer’s request is going to make your service/product better for all customers.  If it is, great.  Go for it.  But if it’s not … well, this is where the art of business comes into play.

That said, be prepared to do backflips on-demand for those customers who are your bread and butter.  If they say jump you should be asking “Is this high enough?” before they’ve finished speaking.

4. Keep your eye on the prize

It’s very easy to get distracted.  We do a lot of consulting work and other  ”necessary” duties in order to keep the lights on, the paychecks coming, and the servers (as virtual as they are) up and running.

Be prepared for this.

But don’t let it distract you from your ultimate goal.  And if it does starts distracting you, find a way (and quickly) to  get back on track.  Maybe that means you rethink your marketing strategy (or restructure your initial product, like we did).  Maybe for you it means forgoing the hip downtown office in exchange for a founder’s dark basement.  Or maybe it means letting an employee or two go.  Or maybe it simply means staying cognizant of the distractions as they appear and bluntly saying  ”NO”.

5. You will be forced to choose between work and family - and there’s only one right answer.

The cliche goes: “A happy wife is a happy life.”  It may be cliche, but there is a mountain of truth to it.  If your significant other absentmindedly mentions that he/she never  sees you for dinner anymore, you had better resolve the situation quickly.  If your kids start to refer to you as “that guy” as you’re headed out the door in the morning, then you had better take stock of your priorities.

No matter what you believe, or what other’s have told you, your business is rarely so fragile that  it can not suffer some minor neglect now and again.  There are probably a half-dozen other companies out there trying to do something similar to what you’re doing.  And if you’re any good at it, the competition will only increase.  Being first to market is not going to change this.  Time to market is not your enemy in these situations.  The first person out the gate doesn’t necessarily win.

As Howard Aiken once said: “Don’t worry about people stealing your ideas. If it’s original, you’ll have to ram it down their throats.”  In other words, if what you’re doing is worth anything, it’s worth doing right.  And that means taking the time to do things sanely, without burning yourself (and your family/co-worker/friends) out in the process.  Take the time to enjoy the process because it’s going to take time to get it right.

Alyssa Royse wrote a fantastic post concerning the arbitrary (and oftentimes insane) deadlines we place on ourselves in the course of running our businesses.  It’s recommended for anyone at the helm of a company.  And it should be mandatory reading for any IT person who still believes releases must go out every Thursday come hell or high-water.

Hope this helps.


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  • BA
    Now these are some very interesting words! I especially like the parts where you say that customers aren't always right. I agree on that, they don't care how you're gonna make money. I also like your references to your family/friends. There should always be a good balance between your personal and private life. Nothing is more important than your loved ones. Not even an exciting iphone app or so.
  • aletafullenwider
    I shouted when I read #3. I've worked for a small company that would routinely do this. They spent so much money and time for these one offs. Then the potential customer wouldn't buy the product. The entire company's morale spiraled downward due to the constant emotional roller coaster we were subjected to (initial excitement at new project, frustration as some part of the functionality didn't work, exhaustion as we tried to make unrealistic deadlines, anticipation when the 'meeting' happened, and then extreme disappointment when they said no).

    Is it a surprise that out of a company of about fifty that 11 of us lost our jobs in late 2008/early 2009? Nope.

    thanks again!
  • chinmi
    #1 #1 #1 #1 :-)

    And what's so hard about this is that you just can't be sure why.

    Is it because they just don't truly understand your idea? Or because they are actually right, and you yourself are just too emotionally tied to your product to remain objective? Is it because the market hasn't found you yet or because the market just doesn't exist? Are you a visionary or just delirious?
  • fredsource
    Glad to hear that someone is popularizing my (in)famous motto "happy wife happy life." This prioritization got me through the hard times ...
  • J Kuria
    great post! I've learned 1 and 2 so thoroughly the past year!
  • Great post. Need to print these rules and put them up on the wall.
  • elyes
    Lots of courage to go against mainstream flow:
    "The customer isn't always right."
    "Releases must go out every Thursday come hell or high-water."
    "The first person out the gate doesn’t necessarily win. "
    And lots of good sense:
    "No one will ever be as excited about your business as you are."
    " Everyone expects something from you."
    Thanks a bunch !
  • Nicely said.
    Home life is often forgetting in startups and business dealings and takes 2nd place.
  • DIYStartup
    I want to add one more in here, it is based on personal experience.

    A lot of people will tell you to found a company along with others. YCombinator´s Paul Graham tells you to do this. Now while it is good to reflect your ideas, discuss them and confront yourself with other people, I can not confirm that they have to be your co-founders.

    If you can afford employees, do so, and DONT AT NO PRICE let the work be done by co-founders. Most of them will be not mature enough to run a company. Many of them will have a blurry vision of how hard it can be to earn money. Most of them will have no clue about how a market works. And last but not least: it is very unlikely that you will be able to convince people you know very well (at a professional level) to join your company, because: they will either already be working in an own company or making good money and carreer if they are skilled.
    So usually the "co-founders" you get are people who are in high doubt to have no talent or skill whatsoever needed on the market, or who just at this moment at least dont WANT to work. I had my pleasure with people who just dont know how to meet deadlines, I had my pleasure with people who thought that by moving a little finger millions will drop out of the sky. And I had my pleasure with the ones who thought that "Building a ftartup if fo muff fun".

    My message to you is: get some capital, and HIRE people. Discuss and reflect with skilled partners and friends, who are most likely not free at the time you want to start your startup.

    And last but not least: do as much as you can by yourself.

    I´m eager for comments on this one :)

    Cya folks
  • dennykmiu
    Great article, really enjoy it.

    My own experience is that entrepreneurship is a solitary business. As a Founder/CEO, we don’t really have any peers. In retrospect, I wished I had listened more to my own instinct. It turns out that entrepreneurs are different (but not unique) in that we are better in parallel processing and we can do free association better than anyone else. Like hungry dogs in the wild, we are a unique breed. Sometimes we forget or we choose to ignore that differentiating difference. Whatever you do, don’t lose your confidence in yourself and for goodness sake, don't dumb down and don't allow yourself to be domesticated. There is no guarantee that just because you keep trying, you will necessarily succeed. But if we fail because we have elected not to trust our instinct, then we are screwed for eternity.

    Good luck.

    http://www.startupforless.org
  • Great post. In my previous start up I had to learn #3 and #5 the hard way. @fredsource - yep happy wife happy life
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