This is an extension of an article I wrote on my Livejournal a couple years ago. Since many Rails developers work for small startups or are themselves starting up a business, I thought I’d update it with some reflections from the past couple years I’ve spent working in a scrappy startup.
Top 10 Startup Lessons
1. There is no better way to ensure attendance at a 7:00 AM conference call than to schedule it yourself, invite your employees, and discuss something important. At my startups, we held a daily briefing. It lasted 15 minutes. We got a lot done in 15 minutes.
2. Skype, GotoMeeting, Vonage, VirtualPBX, and other services are incredibly cheap ways to get big company communications services quickly. And they tend to just "work."
3. Accountants, Lawyers, and Benefits Administrators cost so much because they are worth it. Outsource everything that is not related to growing your business. Corollary: In the startup days, don’t buy anything you don’t absolutely need unless it makes strategic sense to do so. You generally don’t need recruiters, expensive server software, top of the line new machines, or a country club membership to woo clients. You do, however, need the best people you can get, tooling, basic processes, and the facility to encourage innovation.
4. Hire slowly, but fire quickly.
5. Get an Advisory Board Get one. Make sure they are successful people you can trust. You don’t have to know them terribly closely. FOAF is adequate.
6. You can start a business working half days. Whichever 12 hours you want.
7. Small business professional services is about babysitting. Employees, clients, partners, vendors, etc. They all need babysitting from time to time.
8. Everything you learned in B school was wrong, and it was also right. Because you see, it depends. I often found myself asked by my partners for the magic bullet they taught us in B school that would solve problem X. The magic bullet is a myth. They simply made sure we know how to think in B school. Or, at least, I think that was the point.
9. Don’t underestimate the power of your network. But don’t overestimate it either. Or, put another way, start a business, and you will quickly find out who you can count on. Don’t hold it against your friends if they can’t help you. After all, business is business. Friendship ought not be business (even though a version of it is the oldest business model around). And, don’t be suprised if you get a 6-figure contract from someone you had on your 5-th round call list. If that does happen, move that person up in your CRM system. Oh, and use a CRM system. Preferably a free one.
10. There is no reason to shower and change out of your pajamas for a 7AM conference call. Unless it’s a video iChat and you forgot.