The Business Stuff

August 25, 2009

Marketing.fm

Since I began working at USV I have heard the importance of backing a team of technical co-founders that can code and iterate fast. I believe in this thesis and have seen its importance up close and personal.

I also feel there is a time and a place for the Business person to come in. This is usually a person who either codes a little bit, or none at all, and provides some business development, management, sales, leadership experience to the team.

businessguy1

My friend Jon Steinberg recently wrote about exactly this new breed of person in his post Hackable Business Development.

People on the business side of internet software, constantly bemoan their inability to code. I’ve been guilty at times of the frequent refrain, “My kingdom for the ability to code.” However, I’ve found over the past year that the emergence of APIs coupled with eLance (or oDesk or one of the other contractor platforms) have made this expression of exasperation largely hot air.

For $500 and four weeks of late night emails to eLance developers, you can basically spec and build simple, rough apps that knit or build upon open APIs to create things that are interesting and potentially valuable. To be clear, you can’t build complicated apps or the next Salesforce.com on this kind of shoestring, but you can achieve the kind of learning, vetting, and experimentation that is left undone if you don’t.

I call this process Hackable Business Development.

Read the rest at his post…

I believe in this process more than ever. I personally have written about my own SandBox projects and web services and feel that although I an not a web engineer I am a qualified project manager in those areas.

My friend Spencer Fry from CarbonMade even has this job of “non coder” and has a great list of responsibilities and tasks over at Hacker News and a great discussion also ensues based on a company struggling with the coders + business person situation.

This includes things like finance, payroll, inbound advertising requests, outbound communications, fundraising, marketing, social networking, strategy, and many many more.

I think the technical co-founder is as important as it ever was. The ability to iterate fast when feedback or problems come in and get something working out the door fast is invaluable. The alternative and drawback to Jon’s example is that putting together a project spec. and executing it correctly takes time.

I do however think this is one of the best way to get something to market quickly. Using the basic principles of the MVP (minimum viable product) and Customer Development Process you can learn quickly from this path.

In the end you will always need a CTO – but the business stuff is always essential.

I have been spending some late night emailing sessions myself getting a few things created and the learning behind this project management process is totally worth the time and small dollar investment.

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  • http://www.evbart.com evbart

    The balance between tech genius and business savviness is always the hard part. The best tech product in the world does not always win, and business guys can't aways sell vaporware :-)

    You need a strong technical foundation to get a minimum usable product out the door, but I think you also need someone outside of the office stirring up interest and potentially making sales.

    Here's a post I did about the importance of sales in an early stage tech company, based on a speech by Alastair from Huddle.net

    http://evbart.com/2009/04/sales-the-super-secre…

  • http://www.marketing.fm EricFriedman

    Love this list – its great to get these written and in front of everybody in
    the organization. I think its a tough balance and even tougher choice of
    who to bring in. Hopefully these types of posts and lists help out others.

  • http://www.jonsteinberg.com jonsteinberg

    Eric-
    Thanks for calling out something that was unclear in my post. No every product is suited to 4 weeks and $500 and JUST some late night email. We've all been involved in projects that require much more than this.

    I guess what I'm urging is rapid prototyping in lieu of writing 10 pages of prose. This may end up being build and burn code. There are also projects that require steady design and ongoing incremental developing.

    But thanks for the post it adds a layer

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://twitter.com/gstam Garrett Eastham

    Agreed. Often times the biggest “psychological” barrier is the “oh shit, you can really do that” moment, at least in my experience. It even gets in the way of brainstorming ideas with other co-workers as well because I have an understanding of the technology capabilities in my mind and am thinking a few steps ahead.

    I like to use powerful frameworks to do heavy lifting here: Django and Rails. But perhaps what would be even more interesting is if the sales team had some dedicated light-weight developers dedicated to “fleshing out” ideas from the front lines.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.marketing.fm EricFriedman

    Getting to the dev. or demo point is key. Sometimes its a psychological
    barrier people can't reach. I think pushing folks to get there helps them
    find out if they have a viable idea or not, and get to the next thing much
    faster.

  • http://www.superiorpromos.com/ Promotional Products

    Interesting topic. I think that it is necessary to have the business side and the tech side covered, but if you can find someone who is able to do both that is awesome.

  • maryswanson

    Great article! Thanks for sharing with us. I'll be sure to send this to my friends since it's valuable to understand why in business, it's always important to have someone who understands the business development aspect, and someone who understands the tech aspect. Without either one, the business will fail. Can't wait to finish reading Jon Steinberg's post! :) Have you thought about creating a http://bit.ly/4bybHr poll for your readers? I find them pretty useful and also fun for voting!

  • http://amandapeyton.com amanda peyton

    Eric,

    Great post and something that I think about constantly.

    Though technical co-founders are more likely to be “doers” because they have the skills to make changes to the product themselves, I find that a better way to look at founding teams is not by the composition of technical vs. non-technical but by the number of “doers” on the team.

    There are technical founders that are slow to build and inefficient, just as there are business-minded folks who talk a lot of hot air and are generally useless. I find though that one's capacity to “get stuff done” is not necessarily related to an on-paper skill set.

    Iterating comes in many forms – and there's at least *some* that are non-technical.

    That said, I'm still teaching myself to code little by little.

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  • http://www.jonsteinberg.com/2009/12/hackable-business-development-lunch/ Hackable Business Development Lunch | Jon Steinberg

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