Getting in on a Startup - Bidnez Gurus HALP

[Minute]

I'm about to move to Cali in July & a friend of mine out there wants to get a web application startup going. They have an idea that I believe has potential & has already secured the patent. So they have the idea, I'm bringing the money (a little over 200k), but that's about all we have at this point. For revenue stream we're going to go the route of advertising. We're going to have some perks for a membership thing, but that's not going to bring much.

So what's the next step?

I'm thinking we need a front end programmer for the web interface. I figure this will probably be a freelance guy at first. Hourly employee but with only this little bank to start on we're probably not throwing any benefits at anyone. Was gonna try & find me a college nerd trying to make some bank but still on his parents insurance or something.

Any/All suggestions are welcomed.

[Freecare Spiritwise]

Next step in my opinion is get someone on board who lives and breathes technology, or is that your buddy? He's a back end programmer and hopefully all-around technologist? Otherwise you'll be making high level technical decisions about your company with no expertise to back it up. You'll have your low level programmers making long ranging decisions above their pay grade. Maybe if you were a hair salon you could have your hired gun decide for example how to host your web site, or what your underlying technology is going to be, like if your web applications infrastructure built on LAMP or .NET. But if you are a web application company, you'd be blowing it by not having someone who understands web applications on board from day one. If your buddy is not that person, I would start by finding that person.

Then, I would figure out your tech roots before you do anything technical like the web site. You should look at your web site in the context of what you want your intranet/internet infrastructure to be as a whole, both now and going forward. I wouldn't be so quick to pull the trigger on it.

So, I personally would start with your infrastructure. You are a web application company, so obviously you are going to be running a lot of web applications. So, what is the iron that's going to be running all those apps? Are you going to run your own servers, rent someone elses or just run all your apps in the cloud with something like AWS? It probably makes the most sense for your company web site to live with all the other thingies you have connected to the web.

Just a few random thoughts while I'm waking up drinking my coffee. But yeah, I think that a technology company needs a CTO/CIO from day one.

[Minute]

Next step in my opinion is get someone on board who lives and breathes technology, or is that your buddy? He's a back end programmer and hopefully all-around technologist? Otherwise you'll be making high level technical decisions about your company with no expertise to back it up. You'll have your low level programmers making long ranging decisions above their pay grade. Maybe if you were a hair salon you could have your hired gun decide for example how to host your web site, or what your underlying technology is going to be, like if your web applications infrastructure built on LAMP or .NET. But if you are a web application company, you'd be blowing it by not having someone who understands web applications on board from day one. If your buddy is not that person, I would start by finding that person.

Then, I would figure out your tech roots before you do anything technical like the web site. You should look at your web site in the context of what you want your intranet/internet infrastructure to be as a whole, both now and going forward. I wouldn't be so quick to pull the trigger on it.

So, I personally would start with your infrastructure. You are a web application company, so obviously you are going to be running a lot of web applications. So, what is the iron that's going to be running all those apps? Are you going to run your own servers, rent someone elses or just run all your apps in the cloud with something like AWS? It probably makes the most sense for your company web site to live with all the other thingies you have connected to the web.

Just a few random thoughts while I'm waking up drinking my coffee. But yeah, I think that a technology company needs a CTO/CIO from day one.

All good points, just not sure we can afford a CIO at this juncture. Might have to look to investors, and that blows. We might be able to grab one just getting started, but that's risky too.
I wouldn't say either of us lives & breaths technology. I work in it & code but it's proprietary software & nothing web based. Also I don't even do that anymore as I just manage groups of people now. I'm basically a well paid sheep herder.

[Kulaf]

Step 1 should be.......don't use your own money.

[Minute]

Step 1 should be.......don't use your own money.

Meh, taking other peoples money means they want a say in things.

[Arathena]

Step 1 should be.......don't use your own money.

Meh, taking other peoples money means they want a say in things.

One would expect that a person that's managed to accumulate several hundred thousand dollars would have a reasonable comprehension of risk, and the possibility of not getting the money back out of the venture.

And my gut would tell me that Freecare is right - Someone has to be informed and able to make high level technical decisions. It also occurs to me that you might want to write up a formal business plan, and search for the right people to bounce it off of, and see if its sustainable; its basically risk management, but you need to know exactly what the fuck you're selling, who you hope to sell it to, and exactly how much of it you need to sell to break even, and if the population of who you hope to sell to is any kind of match to how much you need to sell.

[Freecare Spiritwise]

I think trying to do the web site now is putting the horse before the cart. And what actual content could the web site have, if you're a technology company who hasn't decided on their technology? First things, first.

My thought is before you do anything technical, you should have someone like me sitting in a room with you, peppering you with technical questions that will undoubtedly make you uncomfortable. Lately I've been really busy, otherwise I'd offer to sit in a room with you. No time to fly around, but maybe a few hours over the phone and email from time to time would be possible. There's a link in my sig that leads to my resume and awards and such.

But either way, I would start with someone who's more of a tech mentor (Dd too?), hash out some of your technical requirements, and then get you pointed in the right direction with things like the web site and other corporate tech infrastructure. You'll be so much happier running your business when all that stuff is seamless from day one. And being a technology company, you'll impress more potential clients and customers if all of your company's technology looks both deliberate and elegant. I look at most companies' technological capabilities and there's usually a long, painful and awkward story as to what got them there. I hardly ever see anyone sit down and roadmap all that shit out. Nope, just keep slinging spaghetti code until enough thousands of lines of it stick, and get a few clients to pony up for it before they find out what exactly they bought into and get cold feet

[Minute]

All well & good, but Dd costs big cheese. May be able to catch someone just coming out of college at a decent price. Or maybe try to import a foreigner on the cheap.

[Kulaf]

Step 1 should be.......don't use your own money.

Meh, taking other peoples money means they want a say in things.

One would expect that a person that's managed to accumulate several hundred thousand dollars would have a reasonable comprehension of risk, and the possibility of not getting the money back out of the venture.

And my gut would tell me that Freecare is right - Someone has to be informed and able to make high level technical decisions. It also occurs to me that you might want to write up a formal business plan, and search for the right people to bounce it off of, and see if its sustainable; its basically risk management, but you need to know exactly what the fuck you're selling, who you hope to sell it to, and exactly how much of it you need to sell to break even, and if the population of who you hope to sell to is any kind of match to how much you need to sell.

Tell that to Curt Schilling.

[Freecare Spiritwise]

Sweet, a non-web-savvy web-based company looking to cut as many corners as possible. Sounds like a recipe for success

[Minute]

Trust me. If I had a bajillion dollars to hire guys right outta MIT I'd do so. If you don't have the means, you have to try & do what you can. It's possible we might find someone with said skills interested in getting in on the projects ground floor.

[Ddrak]

Forget the tech side. You won't live or die on that (and I'd be happy to review any tech stuff you send my way for nothing, as would half the board).

Real problem is a solid business case. Imagine a client came to you for personal training and was all worried about what supplements to buy but just had a training plan of "maybe I'll run a few miles now and then, and some aerobics a few days". Given that you're obviously trying to do this as cheaply as possible and don't want to bring in outside help, jump on Amazon and read a bunch of business books. Treat them exactly the same way you do a PT issue because it ain't that different in mental focus and discipline. No room for sloppy thinking and that's how you'll fail. Unless every tactical step is solid, your startup is likely to fold.

Good first book: http://theleanstartup.com/

If I'm telling you stuff you know, please disregard.

Dd

[Embar Angylwrath]

What sets you apart from all the others?
What do you offer that provides value?
Why isn't anyone else providing what you provide?

Answer those questions in that order.

Post them here.

[Minute]

Forget the tech side. You won't live or die on that (and I'd be happy to review any tech stuff you send my way for nothing, as would half the board).

Real problem is a solid business case. Imagine a client came to you for personal training and was all worried about what supplements to buy but just had a training plan of "maybe I'll run a few miles now and then, and some aerobics a few days". Given that you're obviously trying to do this as cheaply as possible and don't want to bring in outside help, jump on Amazon and read a bunch of business books. Treat them exactly the same way you do a PT issue because it ain't that different in mental focus and discipline. No room for sloppy thinking and that's how you'll fail. Unless every tactical step is solid, your startup is likely to fold.

Good first book: http://theleanstartup.com/

If I'm telling you stuff you know, please disregard.

Dd

Thanks Dd. We've interviewed a girl who did a fairly successful site with only a front end & back end coder. She did the rest herself. She isn't super cheap, but I think we can fit her in the budget & she's excited about the project. Still talking to peeps, but things are looking up.

What sets you apart from all the others?
What do you offer that provides value?
Why isn't anyone else providing what you provide?

Answer those questions in that order.

Post them here.

A lot of this is vague because the patent lawyer is up my ass about not saying anything about the project. So I'm trying to be all CIA with it.

1. There aren't any all others. The service we're looking to put together. I was only able to find 1 contender & they only offered a portion of what were are hoping to.
2. Convenience & structure to a fairly chaotic process.
3. Not sure. I've seen sites do things to make it convenient for their customers, but only within the realm of their domain.

[Embar Angylwrath]

If you believe in your product/service... and I mean REALLY believe in it, others will too. You strike me as smart and savvy, and that, coupled with your belief in your offering, will advance your company.

Some random thoughts...

Spend money in marketing. Its the net that catches the fish. Doesn't matter how good your offering is, if people don't know about it, you're sunk. Start-ups tend to under-invest in marketing, and it kills them. Right now, SEO dollars are a great investment if you have a company that knows what its doing.

There is nothing... nothing... in business that should trigger an emotional response. Its business, not your identity. People who get caught up with mixing business decisions with self-worth end up losing both.

Do more of what you're good at and less of what you're not so good at. Business isn't the place to focus on your perceived personality deficiencies. However, if you recognize you have a trait, or you lack a trait, that can bring the company down, pass the responsibilities dependent on that to someone else.

Cash is king.

No one will take you seriously for a few years.

Every no you get means you're closer to a yes.

Risk big win big. Risk small win small.

You don't go to jail anymore for failing at business.

Fail fast, fail often. Failure is learning tool, not a reflection on you or your company.

If you close a large proportion of sales, you're priced too low.

Being involved in a start-up can consume you. Being consumed means you'll just end up as shit later.

[Kulaf]

Some advice from Steve Jobs:

[Garrdor]

Brell Capitalists ITT

[Freecare Spiritwise]

I think that most people that are making lots of money on the Internet are coupling good content with great Search Engine Optimization (SEO) and marketing. I'm routinely having blog posts hit the first page of Google searches for my "niche." And as Google evolves their analytics, they get even better at figuring out what's really good content and what's just pretending to be good content, and ranks the genuinely good content up. I think that's where I'll be in 5 years: suckling at the teet of Google and Amazon, with no one else to answer to. Which is also eating my own dog food as far as my philosophy about copyright and IP. I also have a free app on download.com.

The beauty of the "secret" of SEO is that just knowing the secret doesn't help you these days, because you can't maximize your SEO if Google / the public has no interest in your content. If you want to be a bazillionaire, figure out what search terms are being dramatically under-served, put great content there and then properly monetize it.

While the fantasy of having teams of outsourced assholes grinding out junk content before Google can whac-a-mole it, in a never ending game of make me rich, is compelling, I think that just some having good content and pushing the SEO envelope is going to be good enough for that little property on a lake somewhere

[Ddrak]

The cool thing is just having one page that has awesome SEO helps your entire site.

Dd

[Freecare Spiritwise]

The cool thing is just having one page that has awesome SEO helps your entire site.

You're talking about the world famous page 8?

I'm just having a good time playing around with some of this stuff and figuring out some of the marketing side as well as the technical side. It's going to be a deliberately low-stress future because web sites still get bazillions of hits even when you're on vacation for a month.

Oh, and you almost can't talk about an Internet startup without also thinking about youtube in addition to social media, SEO, and so on.

So there's what's going to be my Internet bidness secret: lots hard work, a deliberate, comprehensive marketing and business strategy, lots of fun playing with my niche hobbies and a passable attempt at cracking Google's SEO analytics with my sister the semi-retired mathematician. Even with just a fun blog that I do because I enjoy, my Amazon affiliate conversion rate has been steady at 25%. FYI, this is basically an Amazon store where I have no inventory and no customers, and I make probably a higher margin than the store which does actually stock and ship the product. If the product they bought is returned, they will reverse the commission within 60 days, but nobody yells at me; they just subtract it. Not much money yet, but the trend line is looking delicious.