Startups

When is it time to quit (and when is it time to stick)?

Just read a GREAT interview with Seth Godin, who is about to launch a book entitled, “The Dip: a little book that teaches you when to quit (and when to stick)“.

For the record, I don’t think it’s time for Jobster to quit (or for me to quit Jobster). Recently, I’ve been asked to direct the product vision for our subscription recruiting application, which is used by hundreds of customers ranging from the enterprise on down. The application has evolved over a few years and has a wide array of features and initiatives. I’m eager to attack each of these with as little bias as I can to see whether they are providing the value we need ‘em to be. I think there are some features in our subscription app that need a little extra love and there are some that aren’t getting used that probably ought to get removed (with the ultimate goal of increasing our user’s value).

If a VC walked up to me tomorrow and said, “Here’s a pile of money. We need you to do something great in the recruiting space, and you’re going to have to compete with the likes of Monster.com,” I’d see that as a real opportunity. Monster and their ilk are well past the point where they are capable of startup-style innovation, and (more importantly) have a lot of revenue to risk if they shifted directions. And, beyond the competition that’s out there, there is an army of recruiters and small-biz hiring managers who are REALLY frustrated with the solutions that are out there.

While the opportunity is clear, it remains to be seen whether Jobster has the recipe to capitalize on that opportunity (though I’m pretty optimistic about it).

Jobster has some tremendous advantages over a “brand-new” startup. We’ve got a team of talented people already in place, solid infrastructure, and a lot of wisdom about the industry. And we have a pile of customers that are using our tools.

The one disadvantage we have is the same one that Monster and the more established players out there have. We have business model that’s bringing in revenue. We have years of legacy code that we have to deal with. We have tons of features, initiatives, and business processes in play, some of which are really valuable, but ALL of which demand attention and resources.

One of the key things that Jobster (and ALL startups) need to be willing to do is quit. We need to be willing to quit initiatives that aren’t working and quit ideas that no longer make sense. People can be adamant about holding on to their beliefs– Startup teams need to be doggedly agnostic about their beliefs (did you know that Flickr started out as an online game? How’s THAT for quitting).

And, most importantly, we need to be willing to quit ideas in a complete enough way that it frees up resources and eliminates the opportunity cost that Godin talks about.

“Smart quitters understand the idea of opportunity cost. The work you’re doing on project X right now is keeping you from pushing through the Dip on project Y. If you fire your worst clients, if you quit your deadest tactics, if you stop working with the people who return the least, then you free up an astounding number of resources. Direct those resources at a Dip worth conquering and your odds of success go way up.”

Great quote.

RescueTime Preview Site… I’m Tapping. Are you Listening?

In the midst of house hunting in the Seattle area, I somehow have managed to launch a little marketing site for RescueTime (my current side project). It shows a few screenshots, answers a few questions, and allows folks to sign up to hear about it when we launch (via a quick-n-dirty PHP script).

I’d love to hear from folks about their thoughts on the site. Is the messaging clear?

I feel like we web geeks need to be constantly aware of the “curse of knowledge” we have about our own industry and the products we create.

The idea of the “curse of knowledge” as it relates to web geeks is one of the most compelling ideas I heard at SXSW, in a presentation by the authors of “Made to Stick“. I’m going to quote Harley Stagner, who has the distinction of being the #1 google result for the query “tappers and listeners”. Congrats Harley!

They told the story of Elizabeth Newton, who in 1990 earned her Ph. D. with an experiment involving “tappers” and “listeners”. In this experiment the “tappers” received a list of well-known songs that they had to tap out on a table to the “listeners”. The “listener” had to guess the song being “tapped.” Out of 120 songs only 2.5% were guessed correctly. What made this noteworthy was the fact that the “tappers” were also required to guess how often the “listeners” would guess a song correctly. The “tappers” guessed 50% when the reality was 2.5%. Why such a huge margin of error? The “tappers” had what the Heaths referred to as the “Curse of Knowledge.” When they “tapped” a tune it was impossible for them to tap it without hearing it in their head. Their prior knowledge of the song title made it impossible for them to imagine the “listener” having no such knowledge.

That 47.5% discrepency is the best damned illustration of the curse of knowledge that I’ve ever seen.

Sometimes I feel like even the best web UI designers are busily tapping away, confident that the users they are building for are “hearing” the same song that’s in their heads.

Anyhoo, if you get a chance, check out the RescueTime site and tell me what song you’re hearing.

5 Things that Will Keep Your Aging Startup from being Nimble

(this post is prompted by 3 things. One, a friend of mine just dramatically shifted strategy on his 2-person startup… for the better. Two, Jobster is dealing with these challenges– and dealing with them reasonably well. Three, I just read some related thoughts on Andy Sack’s blog.)

My advice is this: If you’re going to scrutinize your startup idea, do it early and do it often.

Starting up a company is (as I’ve said before), pretty much laying down a bet on a hypothesis. As many startups learn, their hypothesis might be just plain wrong. Or perhaps their hypothesis isn’t nearly right enough to to justify the time, effort and/or funding that has gone into it.

So it’s time to punt on your idea and go with another one. This is one (if not the only) true advantage that a startup has over larger and better-funded competitors– the flexibility to change strategy and tactics at the drop of a hat.

The thing about shifting your idea in a new direction (whether it’s a big shift or a small one) is that it gets exponentially more difficult to do as your idea and company ages. Here are a few reasons that shifting is hard in a mature company:

-Codebase. Codebases have momentum, and they don’t often go away (or go in a different direction) without a fight. It’s oftentimes a lot easier to build something new than it is to shift a codebase in a new direction, but development teams are often loathe to give away their hard-won coding victories.

-People. People get passionate about ideas. The more people you have and longer you’ve pursued a given idea, the more likely you are to have someone importantly vehemently opposing going in a different direction. In short, any shift generally results in SOMEONE having their feelings hurt.

-Customers/Audience. Just because your product isn’t as world-changing as you need/want it to be doesn’t mean that you don’t have loyal and happy customers. If you’re going to shift direction, what do you do with your customers? How are they going to feel when your focus is (at least partially) shifted in a new direction?

-Investors. Investors and other shareholders know darn well that shifting strategy is ALWAYS expensive, even if it’s a relatively small shift. The more you’ve sunk effort, time, and cash into an idea, the more people will tend advocate for a “stay the course” attitude (even though it’s sunk costs).

-Cruft. Cruft is all the crap that your company accumulates that makes it go slower. It’s a database server that acts up from time to time. It’s a middle manager that schedules lots of meetings that never seem to lead anywhere. It’s slapdash code that a developer whips out and promises himself that he’ll fix down the road. It’s old hardware and old Windows installs that start misbehaving. Every day that passes, a little more cruft gets introduced that gums up the works.

All of these reasons get a heckuva lot more painful as a company gets bigger and older.

At Jobster, we’ve recently shifted our strategy in some new (and amazingly cool) direcions. Our attention is split between a few initiatives (which, in itself, is a challenge). While I think we’re moving forward at a brisk pace, I can’t help but ask myself “What if we started moving in this direction 2 years ago?” I’ve only been with the company for 10 months, but I tend to feel that the only thing keeping us from finding our muse earlier was a dogmatic attachment to the correctness of own ideas. We should have been more critical. We should have asked more questions.

We’re not alone in this.

Andy Sack, one of my favorite bloggers and CEO of Judy’s Book, has recently been blogging about his experience shifting his company from an online user-generated-review site to a local affiliate/shopping site (here’s his first post, here’s a longer and more interesting followup). Andy’s company is also about 3 years old and he seems to be experiencing similar challenges (and a few of the same frustrations) that come out of shifting late-in-the-game.

I’m sure Andy is wondering the same thing with the same 20/20 hindsight that I am.

“What if we’d shifted our strategy in this direction in our first week? Our first month? Heck, our first YEAR?”

Why Every Geek Should have a “Side Project” (and why bosses should love ‘em for it)

About 8 months ago, a software idea hit me that I really wanted to work on. Like all ideas, it was based on a hypothesis. In this case, the hypothesis was “if understanding how you spent your time was braindead easy, you’d be a lot thoughtful about how you spent (and often wasted) your time.”

Unlike a lot of ideas, the feature-set required to test this hypothesis was simple enough that I (with a few friends) could set about to build it without interfering with my day job. So we did (should launch in beta form sometime in May).

One of the concerns as we moved forward was the perception that the executive team at Jobster (my employer) would have. Was I giving up on Jobster? Was I hedging my bets trying to participate in two startups at once? Would I cut-and-run the instant my side project took off? The answer is to these questions was an unqualified “no”, but I wasn’t sure I could count on the rest of the senior management team to feel the same way.

As I started being more aware of these concerns, I began to see that a lot of our heaviest-hittin’ technologists had projects on the side. Phil Bogle, our CTO, is the mastermind behind Beyond411. Morgan Schweers, one of our esteemed coders, has an ebay auction monitoring and sniping tool that has a dedicated following. Mark Swardstrom (though he recently left the company), works on a rails content management system in his off-time.

So, are side projects like these (and mine) a bad thing from an employers perspective? Absolutely not. Here are half a dozen from-the-hip-thoughts:

  • It flexes muscles you probably don’t use much. Oftentimes, the larger your company, the more specialized your role. Coders spend all day coding. Worse yet, they often spend all day coding using a very small set of technologies. Have a side project and all of a sudden you are using a MUCH bigger toolbox. And, if your side project has aspirations of revenue, you all of a sudden start thinking about…. (wait for it)…. Business. Marketing. Sales. Design. While I think specialists are incredibly valuable, having a passing understanding of the tasks and challenges that other folks on your team face will make you better at what you do.
  • It allows you to play with some bleeding edge stuff (if you want). You can try out technologies, interface ideas, and more without the risk you’d have in a more established company/product. You might just stumble onto something that would be valuable in the “real world”.
  • It adds to your “shelf life” as an employee by keeping you from burning out. Seems counterintuitive, but it’s the truth. Web geeks love technology. When they go home, they futz with technology. If they don’t have a side-project of some flavor (ANY flavor, really), they will futz with the same stuff they futz with at work. Work on ANY project/technology for 14 hours a day and you’ll burn out quicker. Work on something new/different when you get home, and it keeps you fresh. Of course, ideally, people would find a different hobby, get some exercise, spend time with other people, etc…
  • Side projects almost never “make it”. They almost never turn into a full-time job. Starting a company is extraordinarily difficult, and success is rare. Stats vary, but only about 20% of first time businesses last 5 years or more. This chance gets pretty close to ZERO when the founder is only working on it on off-hours. Most realistic people aren’t aiming for the home run when they dive into side projects.
  • It might make a little bit of money. This is great for the geek– extra money is always fun to play around with. It’s also great for the boss– the more financially comfortable someone is, the less likely they are to start entertaining job offers based simply on the payscale.

As web technologies become cheaper and faster to develop in, it’s only natural to see more and more ideas fall into the “we can pull this off in a few long weekends” category. It will be interesting to see how many web geeks dive in… And how their bosses react.

“Release Early, Release Often” vs. Seth Godin

Wow. Two posts in a row that link to Seth Godin. Does that make me a fanboy?

In his post “In praise of a blank page“, Godin is essentially saying, “if it isn’t REALLY good, don’t ship it and refuse to market it.” I’m interested to see if this stirs up a hornet’s nest among the “release early / release often” folks.

We at Jobster tend to subscribe to the release eary / release often methodology. Alan Steele, our resident Duke of Products, often uses the chainsaw metaphor– if an initiative isn’t going to be finished by our target release date, we need to start lopping off features/complexities until it will. This obviously results in shipping a helluva lot of software, but sometimes results in releasing software that isn’t quite ready for prime-time. With an iterative development cycle, this is fine– you can always come back to it in the next 6-week cycle… Though sometimes, if a feature is in the “decent-but-not-great” category, you DON’T come back to it.

At Jobster, we do a pretty decent job of having the discipline to iterate on our previous efforts. But with new initiatives in play, there is always tremendous competition for resources. Inevitably, some code that we promised ourselves that we’d rewrite doesn’t get rewritten. Some UI that we know is a little bit clunky doesn’t get rebuilt… Sometimes, a feature is “good enough for now”.

So which is better? “Release now” or “release something perfect”?

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