Managing Technology in a Startup
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Date: 18 April, 2008 - 07:03

Earlier this week, I sat on a panel at American University titled "Starting your own Business: Trials and Tribulations". While all of the panelists work in startups, have managed in startups, and have often founded startups, I found myself as the sole technologist in the bunch... speaking to a bunch of MBA grads and budding entrepreneurs.

Update on 27 Apr: I forgot to link to the great pictures taken by the Jobmatchbox team.

Disclaimer: With all due respect, what I describe can easily happen someone without an MBA, I've seen but I'm talking patterns here. ;)

One of the things that often - not always! - drives someone to business school is the desire to start their own company. The flexibility, the power, the excitement, the big idea that they have. No, seriously the *big* idea. Somewhere along the way, the get all the pieces that go into making it happen... they learn about the marketing, the strategy, the presentations, the research, and all the other little bits and pieces.

What's missing is that they don't work closely with a technologist or two and begin to treat the technology as an afterthough. Admittedly, in many businesses, this is appropriate. If you're selling the best hamburger ever or making signs or running a franchise, most of the time, your technology can be an afterthought.

But if you're building a social network, creating a new ad network, building a mobile phone platform or any number of other things, the technology is the core to what you're doing.

That has some major implications. It means:

  • First, you have to consider it from day one. You have to know how it fits with what you're doing. What goes into it, what doesn't, and get an idea of your budget (time, $'s, etc).
  • Next, you need a technologist in the mix to figure out the boundaries. You need to know what is and isn't possible and how to approach the process... more importantly, you need to know how to approach things, schedule things, and what "It's 90% done!" really means. ;)
  • Next, you need a technologist in the mix to filter the candidates. When you don't know what you're doing (fact, not judgement), you need someone who does to find the right people to hire and filter out the posers.
  • Finaly, you don't outsource it. I don't mean offshoring, but that could be included. I mean the people who know your product - because they're building it! - should be part of your organization.

Failure to have a serious tech person involved causes some terrible decisions.

For example, I recently tracked the progress of an angel-funded startup:

  • First, since they lacked any technical background, the sole developer-turned-investor promptly developed the entire application... in ColdFusion.
  • After that caught on fire and sunk into the swamp, they decided to rebuild it in .net... er... Rails... er... PHP. Their "technologist" didn't have any experience in any of them and was therefore open to anything.
  • Next, since they developed their "architecture" (aka PHP), they began recruit for PHP-types. Since none of them had any experience whatsoever in PHP, they hired the first PHP'ers that could pass the single-round phone screen.
  • Finally, they called the ColdFusion version of the application a "reference implementation except for the wrong parts" and didn't bother writing the spec as a result.

Fast forward a few months and inside reports say the team is in shambles, the project is months late, and major portions of it are being rebuilt from the ground up. These issues are not unique to any particular background or skill set... They happen equally easily to anyone who underestimates the technology.

If you ever find yourself - or anyone on your team - saying "don't worry about the technology", immediately stop and worry about it. Don't let those issues get glossed over and definitely check to see there's a plan for figuring them out.

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Swallowing the technology pill...

Keith,

You make some very good points. I would point out that there is a difference between a product demo and a product though. A lot of startups outsource the first iteration (or parts of it) of their web based product(s) to an outsource firm and/or an offshore firm so that they can get something up and running that will be a vehicle for the post Angel or Bootstrap phase of their business. As a result they have a working product, users and benchmarks that they can use to sell what it is that they are doing to their investors. In many cases this means their initial product (demo version) may be in .net/php/coldfusion/whatever their tech budy knew (or they knew personally).

With respect to recruiting, I think you've also got to consider that the initial technologies who is hired or brought in as an equity employee without a technologist to screen them. This is where it takes some time on the part of the founder(s) to learn how to interview. They should most definitely talk to other co-founders and ask them about how to interview, but they should also take the time to talk to and/or retain a recruiter who can help them sort through the good, the bad and the ugly when it comes to candidates for their internal roles. People coming out of college usually involve peers and friends so they are usually pretty well off in this department because they are already vetted. People who have been in the real world for a while should visit a local bookstore and pick up a copy of 'Hiring The Best', it is an easy book to read with some helpful insights.

Last, but not least, they should start with something simple that will work. If a startup founder's ideas are too broad or general then they are going to run into a situation where they are stretched too think ino matter how much money or technology expertise that they have.

Some points, but I think you're off...

You note:

"A lot of startups outsource the first iteration (or parts of it) of their web based product(s) to an outsource firm and/or an offshore firm so that they can get something up and running that will be a vehicle for the post Angel or Bootstrap phase of their business."

While you are 100% correct that many startups do this, I think it's the fundamentally wrong way to go.

This is when the risk is the largest. This is when the spec is the softest. This is the primary time that if something is going to go screwy, it can damage things fundamentally and for a long time to come. This is the time where you need yor key players to be close and "smackable" if something isn't right.

Later on, once the foundation is in place, things are solid, and the early decisions are made correctly, it's much safer to spread things out. Because it's harder to do major damage. Not impossible, but harder...

And I mean "smackable" in the least violent sense possible. ;)

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