Category Archives: Business

The Value of Listening to Your Clients

I was recently privy to an internally published post-mordem of a SaaS company that shut its doors after multiple years of development and many rounds of angel funding.  Their failure is truly a gift to anxious entrepreneurs out there who believe they are sitting on the next billion-dollar idea.

While I can’t reveal some of the proprietary details of the company or its specific issues, I can tell you some of the important lessons they learned.

LISTEN TO YOUR CLIENTS

I say this as a twelve year web developer: do not let developers drive the priorities of your web app.

The product team in this case wanted to build a private social networking site.  They spent way too much time building out functionality that will always pail in comparison to what Facebook or LinkedIn can deliver.

Their clients had REAL needs.  Needs that seemed to be “one-offs”.  The company didn’t see an opportunity to drive a business from these needs.  So they continued building out a Facebook killer.  What a mistake.

Saddest of all, they had potential for large (paying!) opportunities if they would just latch on tighter to their clients and listen to their needs.  They purged friends and friends of friends for opportunities and churned through each relationship.  To their clients, their company looked like a small child showing a sketch and asking the dad if the picture is a masterpiece.  Of course, says daddy, but I’m not gonna hang it over the fireplace.

DON’T GO LIVE UNTIL YOU’RE READY

While I am religious about agile and iterative development, there is something to be said for putting out a complete message when you go public.  Can you imagine if Apple released the iPhone 1 but it couldn’t make a call?  A lot of companies confuse Agile iterations with production releases.  Don’t rush the project into Beta until you’ve fully explored your ideas.

 


Productivity Tips – Part 2 (going low-tech)

I’ve used a LOT of task tracking software.  One of the best is a product called Things for the Mac.  But even with a tool as great as Things, my list never stays up to date.  I feel bad having actually paid for Things and it usually sits idle on my desktop.

Then, a couple weeks ago, I hit a task tracking goldmine.  I bought a 99 cent composition notebook from Staples.  Remember those black-and-white bound journals we used back in high school for Introduction to Creative Writing?

Also, I’m a gel pen enthusiast.  My favorite pen is called “EnerGel” from PenTel and it is a .07 metal tip gel pen and it rocks. Do you have a pen brand you prefer?

I found going low-tech is a really great way to stay focused on my tasks.  And there’s something psychologically cool about crossing off an item on my list.  I’m serious, try it out.  It’s a huge productivity booster.

Yesterday was one of the busiest days on my blog so clearly this is a topic we’re all interested in. Let me leave you with a bit of sage advice:

They say the early bird gets the worm.  But I say find me a beak covered in dirt and I’ll show you a belly full of worms

- Sap, Oct 2011


What success REALLY looks like

I see a lot of funny images on Facebook and Twitter but rarely does one elicit an entire (mini) blog post, but this one was so good I had to share it with you.  As a consultant, one of the things I must manage (besides development, resources, money) is the expectations of my clients.  Many of my clients come to me w/visions of being the next Mark Zuckerberg or Bill Gates and after four months they’re ready to throw in the towel, often frustrated because their billion dollar idea is starting to look more like…well, work.

This is simple and makes the point much clearer than the paragraph above I think…


Dear Microsoft, please come home…

Like most developers, I’m an Apple junkie.  I’ve got a Macbook Pro, iPad, iPhone, and I wear Steve Jobs’ underwear.  Not really.  But if Apple did come out with some iBriefs I’d probably sport a pair.

That said, I am rooting for Windows 8 in a big big way.  And let me be honest here, my motives are 100% selfish.  The more competition in the O/S space, the more opportunities there are for tech geeks like me.  Microsoft’s absence from the desktop, the web, and the mobile space has let Apple clean up and–the bad part–commoditize the app development space.

I am thankful Apple hasn’t made a big push in the web.  God-forbid, Apple release some sort of iNet or something where you had to have your website passed through some sort of Web Approval process.

What do you think about Windows 8?

I haven’t investigated Windows 8 much but when I saw some of the screenshots let’s just say I wasn’t very excited about jumping back into Ctrl+Alt+Delete world.

What if you were in charge of Windows development?

If I were in charge of Product Development at Microsoft, here’s where I would take Windows:

  • Unix-based – Apple gambled big when they scraped OS9 in favor of a BSD-core’d OSX.  But it paid off and proved once and for all that DOS was an abbreviation for DinOSaur.
  • Mobile – Synching an iPad, iPhone or other device to a Mac is so insanely simple that any new device Apple creates is EXPECTED to be a great user experience.
  • Hardware Certification – Microsoft cannot enter the personal computer space.  They are strictly a software company and I appreciate that.  But, they have GOT to create some sort of certification process so PC Manufacturers like eMachines (remember those?) and Compaq can’t create garbage computers that give their software a bad name.  Microsoft should set the bar high and slap a MICROSOFT APPROVED HARDWARE certification on every PC.
  • Office Upgrade – Tell ‘Office’ to lighten up – MS Office has become a beast.  Get back to lightweight productive office apps with built-in sharing and collaboration.
  • Get Cloudy -  I should be able to save any file to a cloud that can be accessed by my clients in Mumbai.  Open up SharePoint/MS Project and build your O/S around it and give BaseCamp a run for its money.
  • Be Cool - the MS brand has lost its cool.  Find your message to the consumer, make it really contract and repeat it.

How to start a software company

I wrote this article for the developers out there who want desperately to free themselves of the shackles of corporate bondage and start the next Groupon/Facebook/Twitter/etc.

Full disclosure: I am not a billionaire.

As President Obama said regarding facing the tough reality that Washington had to cut spending, “It’s time to eat your peas.”

Peas = You are probably not/nor-would-you-want-to-be a CEO

I met with an investor friend of mine and asked him bluntly, “What do you look for in a CEO when you invest in a company?”  His answer was honest and incredibly simple.

CEO’s are highly connected individuals.  

CEO’s are the best speakers in the room.  They have ties to all the guys with checkbooks.  They are virtuoso’s as painting a vision in technicolor so every investor leaves the room feeling as though they just struck California gold.

Look at Steve Jobs.  The ultimate CEO of the 21st century.  I recently watched Jobs make a room full of Cupertino elected officials drool as he laid out his vision for the Apple corporate office remodel.

CEO’s are good at communication.

We developers tend to be too direct with our words.  This sucks!  You are a moron!  We have a hard time sautéing our thoughts in butter so they can be served to gourmet eaters.

So I’m not a CEO, so now what?

If you have assessed yourself properly and decided you don’t want to spend the rest of your life shaking hands, giving speeches, and raising capital–congratulations!  You, like Skynet, are now self-aware.  You are leaps and bounds ahead of your peers.

A normal company track operates like this.

1. Cast a vision

2. Raise capital

3. Hire the right folks

4. Execute

Since we’ve established you are not  CEO, that means 1-3 are not your bag.  You are the one who makes stuff happen.  You are #4.

Let’s be practical

Your path to success if likely going to be open source.   There are several advantages to this: you don’t have to deal with employees, marketing strategies, or branding discussions.  You just work…refine…shape your ideas until what’s left resembles a stew of brilliance.  When the pot is cooked, the business folks will flock to your side.

Now, you may be thinking, how am I going to be a billionaire if I share my source code with the world?  Well, there are a small handful of billionaires in the world–most of them didn’t get there through software.

These are the headlines you want to see in five years

- eBay Acquires Magento for 180 Million Dollars

Magento was an open source e-commerce framework that started in Eastern Europe.  It has since evolved into a corporate solution.  Users could download and use the free version or they could buy the corporate license.  After a few years Magento acquired sales people, developers, until their eventual acquisition.  Sure, they’re not billionaries, but surely 180 million in cash will provide enough paper for you to dry your tears on the missed billion.

Now what?

Go to SourceForget.net and create your first open-source project.  I’ll write more on what to do next.  But you are responsible for creating the first FUNCTIONING release of your project.  So build build build…nobody wants to work on something that’s broken.  Make it look hawt!


Follow

Get every new post delivered to your Inbox.