A few words for people with an idea for a tech startup
You’ve all heard of this person who had a great idea for an
app that will change the world and now they’re the owners of this huge corporation,
or of the one who made an exit and now owns their private island, travelling
the world and drinking champagne from crystal glasses.
Well this story is very nice, no doubt, but it isn’t real.
Or at least, it doesn’t paint the whole picture. The truth is that running a
startup isn’t all rainbows and unicorns – it’s a long, and many times
frustrating, process and between having the idea and becoming very successful, you
will have to go through many stages, do a lot of hard work, and have very
little sleep. It will be hard to get investment when you most need it, and when
you finally do find an investor – you will never be happy with the deal you’ve
got. It will also be hard to find suitable partners, and even harder to find loyal
employees – you will need to check on some of them, you will need to motivate
some of them, and you will need to fire some of them. Some of them will leave
at the worst time possible. You will also sweat your guts out before you master
a process that attracts clients, and you will have to chase some of them to get
paid. You will work endless hours, you will be depressed and exhausted, then
thrilled and energised, then depressed again, like a rollercoaster journey you
didn’t sign up for.
I see people with an idea and sparkling eyes, calling
themselves entrepreneurs, asking for free advice and services while blowing
their savings on shiny startup events and entrepreneurs-only ‘networking’ 5-star
skiing holidays. They’re using buzzwords they hardly understand, telling everyone
they meet about how well they are doing, and about customers that don’t exist and
financial success they don’t have. This is not what startups are about.
A successful startup is made of an idea (not necessarily a
good one), a good execution of it, some great marketing, well-connected
partners, and the right management coordinating it all, making sure everything
goes according to plan and to budget. There’s also a component of luck but this
article will not cover that; you may want to contact a spiritual leader, a
fortune teller, or a medium - whatever works
for you.
This article will go over the process of creating a
technology solution from a CTO’s point of view and will explain what is
required of you as a founder for the process to succeed. To be able to do so, let’s
first explain what a CTO is. A CTO is a chief technology officer
– the person in charge of all the technology in your company. A CTO will many
times have background in development as well as management. Some CTOs will
agree to do the development themselves, some won’t – but it’s important to
understand that CTOs have much greater responsibilities than only writing the
code.
To count a few of those responsibilities, they should:
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| Decide on technologies to use – both code and database-wise.
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| Plan the architecture.
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| Decide on the servers to use (not just going with Amazon Web Services as a default).
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| Hire, manage, train, nurture and sadly sometimes fire developers.
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| Make sure the developers write the code in the right way.
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| Decide if the help of other tech professionals is required – Designers, Database (DB) Admins, User experience (UX) designers, Server Admins, and many others.
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| Communicate with service providers.
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| Choose hardware and software for the internal use of the company.
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| Explain everything that is important for the CEO to make decisions.
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| Predict costs, timetables, problems that may arise.
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| Consider and cut costs, so the tech aspect doesn’t drain the company funds.
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| Make sure that the tech side of the company works as efficiently as possible in respect to the financial state and personnel.
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A CTO is a C-Level executive, not a developer. They need to
understand business, finance, and must be able to solve tough managerial
problems. If your CTO can’t replace you as CEO for a month or two while you’re
away, they are not a CTO.
I believe that starting to work on the technical side before
you are ready is a waste of my time and your money. I also choose to work with
people I believe have a chance to succeed, so you need to make sure you have
the right qualities, and that you completed stage 1 of the process, which we
will discuss shortly.
The chapters we will cover in this guide:1. Intro - A few words for people with an idea for a tech startup
2.
The qualities you should have to become a founder of a tech startup3.
An overview of the stages in the startup's life
4.
Stage 1 – Pre-MVP5.
Stage 2 – MVP6.
Stage 3 – Marketing, sales and networking7.
Stage 4 – Pitching to investors8.
Stage 5 – Measuring, analysing, and getting feedback9.
Stage 6 – Scaling and expanding or pivoting 10.
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