I like this little story on Quora from Stewart Butterfield, one of the co-founders of Flickr. In response to why the company dropped the “e”, he explains it was because the guy who owned the flicker.com domain wouldn’t sell. But then he goes on to give this extra anecdote:
Bonus story: for a long time when I searched Google for “flickr” I got a “Did you mean flicker?” suggestion. I knew we’d have “made it” when that stopped. Eventually that message did stop showing up … and by 2005 or 2006 the search results page even asked “Did you mean flickr?” when searching for “flicker”. That’s when I knew it was big! (Google seems to have stopped doing that since.)
It would be great to collect the stories from all the founders who saw their products go big about when they knew they had “made it”.
Pando Daily has a good piece about the great promise, and ultimate disappointment, of widgets. It’s good to go back and reflect on a thing they everyone was going to go one way and ended up going another:
Even Valley sage Marc Andreessen* told BusinessWeek in 2007, “The big widgets have the potential to become the new networks.” And I don’t mean to pick on Andreessen — Quincy Smith and Meg Whitman are both quoted in that article too, as is Vinod Khosla who said, “Widgets are a fundamentally important idea. I believe it has the potential to create big billion-dollar winners.” The smartest people in the Valley had plenty of company on this one.
I haven’t written a ton about starting Percolate, partly because I don’t want this to become a place where I just promote what I’m up to and partly because I’ve been so busy I haven’t had a lot of time to write (as I’m guessing you’ve noticed).
Well, now I’m on a train and I forgot my Verizon card at my last meeting and I decided it would be a good chance to get some things down. These are a bunch of random thoughts, as much for my own safekeeping as sharing.
Before I start, a bit of an update on Percolate: We have 15 people, our own office and a healthy roster of Fortune 500 clients. James (my co-founder) and I started the company last January (2011). Alright, onto the thoughts …
One of the funny things about starting a company (and growing it) is the milestones you set for yourself (or discover as you go). There’s the obvious ones (first employee, first client, first check in the bank), but then there’s the less obvious ones like first office (alright, maybe that’s an obvious one) and first employee who relocated to come work for you (we passed that one recently). Every time we hit one of these it’s a moment to reflect and think about how crazy the whole process of starting a company really is.
I’ve written this before, but it bears repeating. I can’t imagine EVER starting a company without a co-founder. I can’t recommend it highly enough to anyone thinking about being an entrepreneur. As far as choosing your co-founder I think there are a bunch of factors that has led to a really strong relationship between James and myself, including: A lot of respect for each other, clear roles (but also enough respect that when we move outside those roles it’s accepted) and an ability to disagree and be stronger for it (I wrote a short post about this but I think it’s hugely important, if you can’t argue productively with your co-founder, you shouldn’t start a company with them). There are lots of others, but those top my list.
There is a fundamental difference between being a person running a company and being an employee. As the one in charge your singular goal is to keep the company evolving (at least it’s true of a technology startup). Stasis equals death. You want your company to look totally different tomorrow than it does today. If you’re an emplooyee, you often want the opposite: You like where you came to work and you want that company to stay the same. I’m not sure how to resolve this disconnect and I never recognized it until starting Percolate.
Recruiting, Marketing & Press
All three of these happen all the time. They don’t ever stop and we’re going to make sure they remain that way even when the team performing these roles moves past just James and myself.
A Little Disagree Is a Good Thing
Teams shouldn’t always agree about everything. Having different perspectives is ultimately what’s going to force things to be stronger. Understanding the roles different folks on the team play (and helping them understand those roles) is really important.
I never did a whole lot of managing before I got to Percolate. I thought it was pretty fine to let people do their job and support them when they needed it. James introduced a bunch of ideas to me around being more active and it’s a strategy we’ve been trying to live as much as possible at Percolate. We set quarterly goals with each employee and meet at the end of the three months to grade them together. We have weekly meetings and do monthly surveys of employee satisfaction. None of this stuff is perfect and hopefully it will all evolve (especially as we continue to grow), but it has really helped me understand the value of a more active management approach.
I’m sure there’s lots more, but that’s what’s coming to mind right now. Hope this is somewhat helpful/interesting.
I’ve gotten in some conversations recently about whether you should outsource PR early in a company’s life. My take is no. We’ve kept PR in-house except for a bit of outside counsel from friends. (After all, what’s the point of having brilliant friends if you’re not going to ask them for advice?) I’m not really sure how to do it any other way, as the company and product are constantly shifting and the thought of having to keep someone else on top of that and expect them to be able to pitch it seems crazy. Anyway, seems as though Chris Dixon agrees:
A fundamental principle of business is that you do things in house that you think can give you a competitive advantage and outsource things that you don’t. At an early-stage technology company this means you do in house: product design, software and/or hardware development, PR, recruiting, and customer relations/community management. Ideally, most of these activities are led by founders. You should outsource legal, accounting, website hosting, website analytics etc. (Unless you are starting a company where one of those activities can give you a competitive advantage, e.g. a securities trading startup would need to have in-house legal).
Rei Inamoto, who’s in charge of creative at the agency AKQA, has an interesting piece on how agencies need to act more like startups. While I don’t agree with everything in there, I have always been interested by the relationship between the advertising and startup world described by Cindy Gallop:
This contradiction, and this identity crisis, however, doesn’t just exist within the ad industry. Gallop points out a core contradiction inherent in the startup space: just about everyone in the tech world hates ad people’s guts. They all believe that advertising is a very bad thing and that ad people are very bad people. Yet, their entire business model in many tech ventures is built around advertising. Take Facebook, for example. The bulk of its $3.7 billion revenue comes from advertising. Google, a company that shunned advertising for many years, built its business around advertising.