The Web Startup Success Guide

440 Pages·2009·11.13 MB·English

by  Robert Walsh

FROM DEVELOPER TO FOUNDER
“This book is a fantastic resource for anyone doing
a web startup or a software startup.”
—JOEL SPOLSKY
The Web Startup
Success Guide
BOB WALSH
FOREWORD BY JOEL SPOLSKY,
CEO OF FOG CREEK SOFTWARE

THE WEB STARTUP
SUCCESS GUIDE
Bob Walsh
The Web Startup Success Guide
Copyright © 2009 by Bob Walsh
All rights reserved. No part of this work may be reproduced or transmitted in any form or by
any means, electronic or mechanical, including photocopying, recording, or by any informa-
tion storage or retrieval system, without the prior written permission of the copyright owner
and the publisher.
ISBN-13 (pbk): 978-1-4302-1985-9
ISBN-13 (electronic): 978-1-4302-1986-6
Printed and bound in the United States of America 9 8 7 6 5 4 3 2 1
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This one is for Sake, who for nearly
23 years was a very good boy.

Contents at a Glance
FOREWORD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
ABOUT THE AUTHOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii
ABOUT THE TECHNICAL REVIEWER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xv
ACKNOWLEDGMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xvii
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xix
CHAPTER 1 INTRODUCTION: WHAT WAS IS NOT WHAT IS . . . . . . . . 1
CHAPTER 2 VALUE IS THE CORE OF YOUR STARTUP . . . . . . . . . . . . . 25
CHAPTER 3 SO MANY PLATFORMS, SO MANY OPTIONS . . . . . . . . . . 49
CHAPTER 4 TOOLS AND GROUPS FOR STARTUPS . . . . . . . . . . . . . . . 99
CHAPTER 5 MONEY: RAISE, MANAGE, MAKE . . . . . . . . . . . . . . . . . . . 145
CHAPTER 6 SOCIAL MEDIA AND YOUR STARTUP . . . . . . . . . . . . . . . 209
CHAPTER 7 CLARITY MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
CHAPTER 8 GETTING IT DONE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297
CHAPTER 9 SIX WISE PEOPLE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341
CHAPTER 10 WHAT’S NEXT?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 399
INDEX. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407

Contents
FOREWORD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
ABOUT THE AUTHOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii
ABOUT THE TECHNICAL REVIEWER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xv
ACKNOWLEDGMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xvii
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xix
CHAPTER 1 INTRODUCTION: WHAT WAS IS NOT WHAT IS. . . . . . . . . 1
Please Insert Chip into Brain. . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
What’s Changed Since Micro-iSV: From Vision to Reality . . . . . . .2
The New Online Economic Reality and Your Startup. . . . . . . . . .3
A Ridiculously Short History of Software Startups . . . . . . . . . . . . .3
So, What’s a Startup? And Why Would I Want to Be One?. . . . . .8
Startup Flavors—Take Your Pick . . . . . . . . . . . . . . . . . . . . . . . . .9
When Is the Right Time to Jump?. . . . . . . . . . . . . . . . . . . . . . . .14
Neil Davidson, Business of Software Conference. . . . . . . . . . . .15
Don Dodge, Director, Business Development at Microsoft . . . .17
Recap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
CHAPTER 2 VALUE IS THE CORE OF YOUR STARTUP . . . . . . . . . . . . . 25
Value and Problems, Problems and Value. . . . . . . . . . . . . . . . . .25
Beginning at the Beginning Is Just a Beginning . . . . . . . . . . . . . . .25
Wally’s Startup Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Implications of Wally’s Startup Law. . . . . . . . . . . . . . . . . . . . . . .33
Have a Great Startup Idea? Hmm. Maybe Not. . . . . . . . . . . . . .36
Where Do You Find Problems?. . . . . . . . . . . . . . . . . . . . . . . . .41
Ten Startups Not to Do, and Why. . . . . . . . . . . . . . . . . . . . . . .43
Recap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
viii Contents
CHAPTER 3 SO MANY PLATFORMS, SO MANY OPTIONS . . . . . . . . . . 49
Then and Now . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
Everybody Wants to Be in the Platform Business . . . . . . . . . . . .50
Evaluating Platforms: A Checklist. . . . . . . . . . . . . . . . . . . . . . . . .51
Software As a Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53
Saas Enterprise Reality Check: Rick Chapman, Softletter. . . . . . .56
Platform As a Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59
Loving Google App Engine. . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
Microsoft’s Azure Services and Mesh Platforms. . . . . . . . . . . . . .64
Social Networks As Platforms. . . . . . . . . . . . . . . . . . . . . . . . . . .69
Mobile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
Andrey Butov, Antair Corporation . . . . . . . . . . . . . . . . . . . . . . .76
Eric Chu, Google Mobile Platforms Program Manager . . . . . . . .79
Hybrid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80
Jeff Haynie, CEO, Appcelerator . . . . . . . . . . . . . . . . . . . . . . . . .83
Peldi Guilizzoni, Balsamiq Studios. . . . . . . . . . . . . . . . . . . . . . . .85
Open Source/CMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89
Mac Desktop and Windows Desktop. . . . . . . . . . . . . . . . . . . . .91
Scott Morrison, Founder, Indev . . . . . . . . . . . . . . . . . . . . . . . . .92
Gwen Hilyard, Cofounder, Brisworks . . . . . . . . . . . . . . . . . . . .96
Recap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97
CHAPTER 4 TOOLS AND GROUPS FOR STARTUPS . . . . . . . . . . . . . . . 99
Back in the Day . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99
Tools for Startups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100
Subscription Startup Communities . . . . . . . . . . . . . . . . . . . . . .119
Rob Walling, The Micropreneur Academy . . . . . . . . . . . . . . . .120
Gene Landy, IT/Digital Legal Companion Author
and Attorney. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127
Startup Organizations and Groups Online and Off . . . . . . . . . .128
Shaherose Charania, Women 2.0 . . . . . . . . . . . . . . . . . . . . . .132
Startup Groups Near You—Offline and On . . . . . . . . . .133
Large Vendor Programs for Startups. . . . . . . . . . . . . . . . . . . . .139
Recap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143
CHAPTER 5 MONEY: RAISE, MANAGE, MAKE . . . . . . . . . . . . . . . . . . . 145
Follow the Money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .145
Raising the Money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146
Understanding the Funding Ladder. . . . . . . . . . . . . . . . .147
You Are Not Alone . . . . . . . . . . . . . . . . . . . . . . . . . . . .149
The Basics of the Funding Game. . . . . . . . . . . . . . . . . . .151
The Art of Raising Angel Capital, by Guy Kawasaki . . . . . . . . . .151
The Top Ten Lies of Entrepreneurs, by Guy Kawasaki. . . . . . .161