How to Start a Web-Based Startup (IMG version)

How to Start a Web-based Startup

Isaac Sukin

@IceCreamYou

[email protected]

Ego

•5 years of webdev

•20+ open-source projects

•100+ consulting/freelance

•Social communications

•GSOC

•35+ members

•11 countries, 4 continents

•49 awards

•200,000+ downloads

•Entrepreneurship & Innovation

•Information Systems Management

•CS minor & TA

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How to Start a Web-based Startup

Why Web-based?

That’s what I’m good at

•Low-cost

•Fast time to MVP

•Easier transition to mobile

•Wider reach

•Accessible

Almost none of this talk is

specific to web-based startups

Bandwagons

It’s a bubble

It’s terrifying

You’ll probably fail

You probably won’t get rich

Fun

Responsibility

Autonomy

Learning

Let’s do this

Idea Generation

Idea Generation

• General areas of interest

• Identify:

– Problems

– Technological simplifications

– Workarounds

• Identify solutions

Inspiration

• Copy something else

– Cross-application

– Different approach

• Professional gripes

• Easy but tedious

• Existing “solutions”

• Invert cliches

Idea Validation

The Gauntlet

1. Is the problem real?

2. Is the target market segment big enough?

3. Is the product/service achievable for you to build?

4. Why you and not someone else?

5. Can competitors beat you if you prove this is a good idea?

6. Will people actually pay enough for this?

7. Is this actually what people want, or just another workaround?

8. Why now? Is the market and technology ready?

9. Is the up-front investment achievable?

10. Is the required time frame reasonable?

11. Are there other advantages to just trying it?

The Gauntlet












The Gauntlet












The Gauntlet












The Gauntlet












The Gauntlet












Is it a good idea?

• Is the user the one giving you money?

• Do you have experience with and interest in

the topic?

• Are you scratching your own itch?

• Are there barriers to entry for future

competitors?

Can it be bigger?

• If it doesn’t pass the questions above, can

you tweak it so it does?

• Could you make more money if you

changed the target audience? (Enterprise?)

• Are you envisioning just the product or an

entire new market infrastructure?

• Is there a better niche for your idea?

Concept Statement

[product]

will provide [target customers]

with [desired benefits]

by [delivery method],

which is different than [competitors]

because [new product attributes].

Feedback

• Show people what you mean, and ask if they would pay for it

• Surveys are useful more for uncovering needs than confirming specific solutions

• Research

• Get people using a MVP ASAP

• Fail fast, but don’t correct without data

• Feedback is not the same as commitment

Build It

Design

Test

Create

Ship

Technology

Does it matter?

No.

Well, maybe

• Choose something that:

– you know

– you want to learn

– is Open

– has a large developer community

– makes development fast

– lets you get your data out easily later

– aids maintainability

Being Technical

• If you’re not technical:

– Non-tech-dependent ideas

– Outsourcing

– Technical cofounder

– Learn tech yourself

• If you need to bring on technical

help, recognize:

– They have options

– They might be doing most of the work

Sell it

• Revenue model

• Sell from day 1

• Gather data and use it to change business

decisions

• Build trust

• Pretend to be big

• Customers first

Hiring• Hire when it hurts

• Don’t be greedy

• Be considerate

• Do your research

• Hire engineers

• Brag about numbers

• Know what employees want

• Ask the right questions

• Look in the right places

• Be direct and specific

• Know what you’re looking for– Passion

– Intelligence

– Creativity

– Communication

– Pickiness

Raising Capital

• Capital is an accelerant, raise for the right reasons

– Extract liquidity

– Push the limits of a product

– Gain access to investors

• Pick the right investors

• You’ll get distracted

• Doing it wrong is the biggest cause of failure

Exiting

• Pivoting

• Selling

• IPO

• Failing

• No exit

Q&A / Workshop

Business

How to Start a Web-Based Startup (IMG version)