It's often said that starting an Internet company is like raising a
baby: it's exciting and fun, but you get no sleep. As a business consultant
to Internet startups, I am, to continue the analogy, the nanny. I come
in, tell you that hiccups are normal, slap some new diapers on the kid,
and help you plan for its future. From my work with the many companies
that I've helped raise, I've discerned some important myths that need to
be shattered:
1. We're the only ones doing this on the Web. You may have the greatest idea, and you may have never seen anything
like it on the Web, but expect that there are up to ten other companies
out there doing the exact same thing; you just haven't heard of them yet.
To combat this, try to find an edge: go above and beyond your original
idea and keep brainstorming, with yourself (in the shower or while driving)
and with others close to the project.
2. It's OK, they signed an NDA. Nondisclosure agreements are a wonderful security blanket, but be careful
about who you work with and who is privileged enough to know the entire
plan. Limit the number of people you trust prior to launch. If you have
signed NDAs with multiple vendors and potential partners, clients, and
employees, it would be nearly impossible to trace the source of a leak.
The most volatile contacts are potential employees; if you don't hire them,
they'll end up at another Internet company. They don't need to know the
exact product until you make them an offer.
3. We don't need no stinkin' revenue model. Publications like the New York Times have predicted that soon after
the turn of the millennium there will be an incredible surge of nostalgia
for the 20th century and that tradition will come back into style. I believe
that this will also apply to business: it will be increasingly important
actually to make a profit to be successful. So before your programmers
write a single line of code, you'd better know how you are going to make
money, and how much money that's going to be. If you don't know, you're
going to have problems raising capital.
4. We're going to have a million users by year-end. Planning for scalability is excellent and always encouraged. But you
should also have a budget, and not just to satisfy the investors who are
monitoring your spending. The technology and marketing departments should
plan the flow of user access based on the advertising and marketing strategy.
Unless you're going to run an ad during the Super Bowl, you probably don't
have to worry about a million people accessing your site simultaneously.
5. The front end isn't as important as the back end. The one thing that can break a Web site is a lack of professionalism.
The front end will determine whether users will trust you enough to click
through to the back end. Mantra: get a great graphic designer and at least
one great HTML coder. And remember, they aren't necessarily the same person.
6. We have to launch all the features as soon as possible. Don't compromise the quality of the application because you think you
need to show it to the world tomorrow. Your first launch should be a preview,
or beta, site that shows investors you are serious and actually working
on the project. Depending on what type of application you're developing,
this preview site can most likely be up in six to eight weeks. It will
have limited functionality, with hints about what's to come. Version 1.0
will launch with what you consider the core features of your application
and include announcements of future functionality. Roll out new features
on different dates; you show the public that you are constantly updating
the site, which encourages them to return on a regular basis. It also retains
programmers.
7. We don't need to test our site; it's perfect. All parents think their child is the most beautiful in the world. Even
if everyone you know agrees that your site is the best out there, you must
get a professional outside opinion. Most likely, there will be bugs and
broken links or graphics that you just can't recognize because you are
too close to the project. Have an independent testing facility do a thorough
evaluation of your site. There are firms that will test for navigation,
usability, and even load capacity.
8. We'll hire a help desk person later. I've seen executives answering user email because they didn't plan
for a support department right from the beginning. Your site should have
an experienced user support specialist on board and trained before the
first user comes to your site. Good customer service will contribute immensely
to the user loyalty of your site.
9. Programmers will make it in by 9 a.m. Programmers are nocturnal creatures: they do their best work at night,
when there are no phones ringing, everything is quiet, and no one is playing
pinball or asking them to help set up their network connections. Night
is when programmers can get into their flow, when they have uninterrupted
brain time. Make your programming shift from noon to 10 p.m., or have two
shifts for programmers to choose from. Hire a network engineer or desktop-support
specialist so no one is bothering the programmers with tech-support questions.
Make sure the programmers work in a closed-off room, not out in an open
space. And stock up on Mountain Dew!
10. Everyone will put in 90-hour weeks for meager wages and a lot
of stock. This may be the biggest downfall of any Internet startup. Face it,
employees are your most valuable asset, and it's a competitive world out
there. Every startup wants the best programmers, the best vice president
of marketing, the best chief technology officer. That's why recruiters
are cleaning up. For every programmer interviewing with your company, there
are several other companies salivating for a chance to make her an offer.
The "opportunity" to strike it rich with stock options isn't as appealing
to Internet employees nowadays; many have already lived through 90-hour
workweeks and never want to return. Yes, if employees are motivated enough,
they will work weekends, but make sure they are happy and have a life outside
of the company. If they don't, they will burn out and find a place that
will offer them those things.
.
Source: Jennifer
Moss, Red vHerring, February 2000
Jennifer Moss is the founder and CEO of Moss Mallory Interactive, which
specializes in Internet startup business consulting.
Ms. Moss's startup clients have included eToys, Futurestep.com, and Zkey.com.
