One Year Anniversary at FeedRoom

Today is my one year anniversary at FeedRoom and WOW! it seems like a lot longer. They say that time flies when you’re having fun and they don’t lie. Over the last year I’ve learned a lot about the business and a lot about myself.

Here are some things that I either learned or that were reinforced in the last year:

- You shouldn't do anything on your own. For a project or product to be successful you must build a team that works together quickly, smartly and with a common purpose. I've always been a very independent person in both my professional and personal life. Over the last year I've realized that you can accomplish great things with the right people behind you.

- Don't be shy. It's like the MTA says: If You See Something, Say Something. If you don't speak up, who will? When a problem needs to be addressed you should bring it up to the right people, even if you don't have a solution readily at hand. Apply the first point and build a team to address the issue.

- Always watch the bottom line. The economic environment over the last year has been rough, to say the least. If you're building out a solution or product, identify the market need and opportunity early. If there isn't a market, don't build it.

- Innovate often. FeedRoom was a pioneer in online video - if anyone tells you that they were first, it's marketing spin, because the fact is that we were there long before them. That's pretty cool, but it presents challenges. Over the last 18 months this company has reinvented itself from a culture and software prospect to enable itself to innovate. I've been lucky to take part in that transformation and I can see, first hand, that the benefits it allows.

- Don't be afraid of management. This goes back to the Don't be shy point, but it's worth eloborating. If you have an idea, put it in front of management. Tell them why your idea is great and offer to help make it happen.

- There is such a thing as a stupid question. Who ever said that there are no stupid questions is stupid. It's good to be curious, I encourgage those questions, but if something has been documented... go read it and retain the information. Nothing is worse than someone that asks the same question over and over. I have been guilty of this from time to time, but I'm learning to research before asking.

- Be completely confident. If you think you have a great idea stand behind it until the bitter end. Passion is completely necessary and if you don't have it, well, it probably means that your ideas aren't that great to begin with.

I work with the best people in the business and we have the best clients in the business. Because of that, I love my job and I don't think that very many people can say that. Thanks to everyone that have made the last year a great one.

Venture Capital Bootcamp

If you're an early stage startup and you think you may be looking for VC funding at some point, you may want to register to attend this free event: Venture Capital Bootcamp.

Presenters will discuss a broad range of topics regarding the venture capital fundraising process, such as strategies to secure an initial meeting with a venture firm, how to best present your idea, financing strategies and alternatives, overview and timing of the process, identifying and negotiating key business and legal points of the deal, and how to position the company for a successful liquidity event.

This event is part of Internet Week and takes place at Columbia University. Again, it's free, so why not - go learn something about VC funding.

Update: You can find a recording of this event here: http://www.markpeterdavis.com/getventure/2009/06/vc-bootcamp-livestream.html

Do Clients Ruin Software Companies?

Someone told me recently that Marc Benioff, the founder of Salesforce.com, turned down a large client in Salesforce's early days because he didn't feel like the product was ready. He took a huge (I assume calculated) risk, but Benioff didn't want that client to impact the software roadmap in front of him. He had development goals and no one was going to stand in his way - not even large contracts.

Now, I have no idea if that's true or not; someone told me the story in passing, but it got me thinking.

How do you balance the vision for your company with the vision your customers have for your company? I've spoken to a few seasoned vets about this and most answer: That's a good problem to have. I'll agree that it's not as bad as many problems to have, but I'll argue that it's not a good problem to have either.

Clients, especially big ones, know that they can have a direct impact on your development roadmap and will not hesitate to exercise that power.

I believe that you'll find yourself in this situation for any combination of the following reasons:

1. You're soliciting clients too early;
2. You're targeting the wrong customers;
3. You built the wrong product; and/or
4. The market isn't ready for your product.

You're soliciting clients too early
Whether your self funded, angel backed or venture backed you need to plan a reasonable amount of time and effort to reach what I, unlovingly, call baseline. I hate the concept of baseline because it seems so limiting, but in this case limits are a good thing. When you started your company you likely put together a business plan that clearly outlined objectives and markets. I'm not saying that it can't change along the way, but have a reasonable goal in mind and give yourself enough time and resources to reach those goals before you bring clients into the picture. Customers will pee in the pool before you've even had a chance to fill it with water.

You're targeting the wrong customers
If your customers are constantly pushing you to make unplanned changes to your core product then you are talking to the wrong customers. Just because a prospect has timeline and budget doesn't automatically mean that they should be your client. When you take money just for the sake of onboarding clients you are doing a great disservice to your company, your vision and your other clients. Over the long term, you will pay in multiples for this common mistake.

You built the wrong product
Okay, so you're sure that you're talking to the right people. There's no doubt that you've got your ideal customer in the bag, but they're still insisting on core changes to your product, what does that mean? You built the wrong product. Somewhere along the line you either strayed in the wrong direction or, more likely, you misunderstood the need for your product to begin with. It's time to take a step back, look at your product and the market need and make a very difficult decision: do you march forward, kick your clients to the curb and stand behind your product as it is or do you start over? This is not a good situation to be in. Talk to your employees and your investors and find a way out.

The market isn't ready for your product
You've got the product, you've got the customer interest, but something doesn't fit. Somewhere along the line, there's a gap. Being two steps ahead of the market is great, but don't get too far ahead. Being too far ahead is no better than being ten steps behind. You are not ready for clients - you need to dial back a few notches and make sure you have a market.

There are exceptions of course, but I believe that there are very compelling reasons for early stage companies to stay far away from selling their product. If you do it right it will pay off big in the end and you'll be able to focus on growing your company and developing great software for all of your future clients.