Does a Business Guy have a Place in Software Startups?(tonywright.com)
tonywright.com
Does a Business Guy have a Place in Software Startups?
http://www.tonywright.com/2008/does-a-business-guy-have-a-place-in-software-startup/
14 comments
I have one friend who is a "business guy" but I wouldn't start a business without him. His value is priceless. Admittedly he won't be building the product with you but the contacts he makes, the meetings he manages to arrange and the time spent getting other people excited about the product make it a lot more enjoyable to work on since you know there are others out there just as excited as you.
The real "business guys" are the ones who shield you from the outside world so you can focus on the technology and can find and make the connections with others that you're too busy hacking to do. Unfortunately these people are often grouped in with the "idea guys" you all to often see online saying "I have a great idea, build it for me and we'll split the profits 50/50" but then don't actually contribute anything to the process besides the original idea.
Business guys good, Idea guys pointless.
The real "business guys" are the ones who shield you from the outside world so you can focus on the technology and can find and make the connections with others that you're too busy hacking to do. Unfortunately these people are often grouped in with the "idea guys" you all to often see online saying "I have a great idea, build it for me and we'll split the profits 50/50" but then don't actually contribute anything to the process besides the original idea.
Business guys good, Idea guys pointless.
Yaw, FWIW I was going for a thesis of "For all the people pouring hate onto the biz guys, it's a bit more complex than that".
Regarding the "shielding from the outside world" idea: For a pre-funding startup, I don't think there's much outside world to shield you from-- certainly not 10-12 hours a day of it. There are some products that can benefit from sales effort on day 1. Most (especially consumer plays) really can't. For the first 3-4 months, what is a biz guy gonna do, other than sell?
I should also add that I truly GET the value of a biz guy. Every company I have build has required that evolve (or devolve, if you want to be a hater!) from builder to biz guy. I've played the biz role for more of my adult life than I've played a development role.
Regarding the "shielding from the outside world" idea: For a pre-funding startup, I don't think there's much outside world to shield you from-- certainly not 10-12 hours a day of it. There are some products that can benefit from sales effort on day 1. Most (especially consumer plays) really can't. For the first 3-4 months, what is a biz guy gonna do, other than sell?
I should also add that I truly GET the value of a biz guy. Every company I have build has required that evolve (or devolve, if you want to be a hater!) from builder to biz guy. I've played the biz role for more of my adult life than I've played a development role.
"There are some products that can benefit from sales effort on day 1. Most (especially consumer plays) really can't."
Admittedly selling(to customers) isn't always needed on day one but having someone working on building relationships with other companies and arranging cross promotion, etc is definitely valuable no matter what stage you are at.
Admittedly selling(to customers) isn't always needed on day one but having someone working on building relationships with other companies and arranging cross promotion, etc is definitely valuable no matter what stage you are at.
If you have a demo or a UI prototype, even just a click-through, someone (other than the designer) should be running tests with users.
If you're planning on outside funding, someone should be working on that well before you need it. (You start raising round N before you close round N-1.)
If you're planning on outside funding, someone should be working on that well before you need it. (You start raising round N before you close round N-1.)
In any company, startups included, you need a fellow who understands the market, does sales, and can keep the books. It helps to have a fellow who can organize things and keep folks directed. These are considered business skills rather than technology skills, though, they're not beyond most hackers to pick up. I'd suggest that the best position is where the hackers are the business guys, or visa-versa. If you're smart enough to get an MBA, you should be able to learn at least a little comp sci, and if you know comp sci, a book on marketing and finance shouldn't be beyond you.
Good to see a balanced perspective; the role of actually selling the product seems to be often overlooked.
To give an example "closer to home" for most readers, one of the Reddit cofounders was non-technical, and was responsible for a big part of reddit's success and eventual acquisition by Conde Nast.
To give an example "closer to home" for most readers, one of the Reddit cofounders was non-technical, and was responsible for a big part of reddit's success and eventual acquisition by Conde Nast.
While this certainly sounds great, it's really about the lack of a business model that fuels the lack of a need for a business guy.
If you have no business model, then you don't need somebody to execute on that.
And for those who would say "all you need is users and the business model makes it self" think about your daily activities that go above and beyond necessities and ask yourself if the product your consuming had an original business model.
Maybe not absolutely necessary for a "web 2.0" company that is about eyeballs and users, but for a lot of companies , including software companies, it's not about the "business guy" but the business model.
If you have no business model, then you don't need somebody to execute on that.
And for those who would say "all you need is users and the business model makes it self" think about your daily activities that go above and beyond necessities and ask yourself if the product your consuming had an original business model.
Maybe not absolutely necessary for a "web 2.0" company that is about eyeballs and users, but for a lot of companies , including software companies, it's not about the "business guy" but the business model.
As a business/idea guy I hope I'm needed. I have a a stack of programming books on my desk, I actually look at code to try to get my mind around what is going on. But I don't program. What I do bring to the table is experience, an understanding of why an application needs to exist and why current solutions don't exist. I just saw that Angie's List just received a good chunk of funding. That site's founder is not a hacker, but obviously has been instrumental in its success.
I think it's absolutely necessary to have someone in the group with some business/marketing/networking abilities. As developers, I would think that most of us could have easily built Facebook, but it doesn't mean that we'd all be able to make it what it is today.
Being able to program the idea is key, but it goes hand in hand with pushing it out the door as well.
Being able to program the idea is key, but it goes hand in hand with pushing it out the door as well.
You know that old meme (a very popular one around here) that goes:
1. statement x
2. statement y
3. ????
4. Profit
Well, number 3 is where your business guy comes in.
Without a business guy on the team, be it you, or someone else, it's just a hobby.
1. statement x
2. statement y
3. ????
4. Profit
Well, number 3 is where your business guy comes in.
Without a business guy on the team, be it you, or someone else, it's just a hobby.
In all these conversations, I still don't see any of the "business" folks saying:
"I'm a business guy, so while my hacker partner is spending 18-hours a day in the basement, I'm doing this:
* X
* Y
* Z"
"I'm a business guy, so while my hacker partner is spending 18-hours a day in the basement, I'm doing this:
* X
* Y
* Z"
Not that I'm a strictly a business guy (I straddle product manager and hacker roles), but there are quite a few things, depending on the product/service, that need doing that aren't directly related to building the product:
* The "idea" stuff, also known as product management- defining features, writing requirements, market analysis to make sure you're going to achieve product/market fit, etc. Developers can/should have a say in this, but it's not always a match for all developers' skillset.
* Bizdev - lining up distribution, partnerships, and customers-- talking to them to make sure their needs are being met in the product, and making sure there is sufficient revenue/incentive to keep everyone happy
* Keeping the books, writing the appropriate bizplans/marketing plans/etc if bringing on investors is on the horizon
* Engaging outside resources - legal, accounting, office, contract workers (designers, developers, whatever core competencies aren't on staff already)
* Project management/cat herding
* The "idea" stuff, also known as product management- defining features, writing requirements, market analysis to make sure you're going to achieve product/market fit, etc. Developers can/should have a say in this, but it's not always a match for all developers' skillset.
* Bizdev - lining up distribution, partnerships, and customers-- talking to them to make sure their needs are being met in the product, and making sure there is sufficient revenue/incentive to keep everyone happy
* Keeping the books, writing the appropriate bizplans/marketing plans/etc if bringing on investors is on the horizon
* Engaging outside resources - legal, accounting, office, contract workers (designers, developers, whatever core competencies aren't on staff already)
* Project management/cat herding
Technology is making the "business guy" less important (not unimportant, but less important). Why? Because it unchains the hacker with a little people skills from his terminal.
With modern languages, frameworks, automated testing, debugging, and IDE's, some hackers can produce much more per unit time. Or produce the same amount in less time. And then go out and talk about it with the time saved.
Sure, business guys often bring something to the table, but so can unchained hackers. Just like women threw away their aprons to join the workforce, hackers can now set aside their keyboards to sell.
Don't forget, a lot of hackers are "business guys", too. Now, it's a little easier to see the forest when you can cut down trees faster.
With modern languages, frameworks, automated testing, debugging, and IDE's, some hackers can produce much more per unit time. Or produce the same amount in less time. And then go out and talk about it with the time saved.
Sure, business guys often bring something to the table, but so can unchained hackers. Just like women threw away their aprons to join the workforce, hackers can now set aside their keyboards to sell.
Don't forget, a lot of hackers are "business guys", too. Now, it's a little easier to see the forest when you can cut down trees faster.
For the hacker, one thing to remember is that often the business guys (or gals) strength might actually be in "doing business" allowing you to concentrate on what you love. For the business guy you need to remember that you are employing people for a skill that you don't have and that there's no place for arrogance or posturing within the business - work together and compete against the competition
Where would Apple be without Woz, where without Steve Jobs?