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Teague Hopkins

Mindful Product Management

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Management

Feb 21 2013

The Three Biggest Risks to Your Startup

Starting any new venture is risky. Before we can limit or manage the risk, we have to understand it.

Most startup (or new product) risk can be divided into three buckets:

  1. Tech Risk
  2. Market Risk
  3. Ego Risk

Tech Risk

Tech risk is what entrepreneurs (or intrapreneurs, for those starting something within an existing structure) most often think about when starting a new venture. Can I build this thing? Is it scalable? Do I have enough servers? The irony is that, especially for consumer web startups, this risk is usually negligible. Most web startups aren’t doing anything that hasn’t been done before, unless it involves patentable algorithms. It may not be easy, but there’s high certainty that it can be done, given sufficient resources.

Market Risk

Market risk is the antithesis of the idea that “if you build it, they will come.” Do people have this problem? If we can deliver the solution, will people even want it? Can we reach the people who will buy this product? Do people believe that our solution is credible? Entrepreneurs should be thinking carefully about market risk.

Ego Risk

The final type of risk facing any new venture is ego risk – and it’s probably the most important and the least discussed type of risk. Ego risk is the chance that an entrepreneur can’t get out of her or his own way, pay attention to the data, overcome cognitive biases, and avoid falling prey to a reality distortion field.

With so much risk, it’s a wonder any new venture survives (many of them don’t). But researchers and entrepreneurs have worked hard on each of these types of risks, and there are strategies for ameliorating each one.

Tech Risk + Agile

Tech risk is often mitigated with some implementation of Agile methodologies. I sat down with Agile expert Elliot Susel to ask him how entrepreneurs can get started with Agile. Listen to that interview here:  See the Full Transcript.

Market Risk + Lean Startup

Minimizing market risk is the driving force behind much of the lean startup movement. By making a set of small bets in the form of lightweight experiments, entrepreneurs can validate market demand before investing in building a system to deliver a solution or product. Plus, talking to customers often helps entrepreneurs identify problems they had not originally imagined. Sometimes those new problems are more pressing for the customer, and lead to a new product with less market risk.

Ego Risk + ?

Ego risk is the final and most difficult hurdle. There’s no clear-cut answer to this challenge. Religions and philosophers have been focused on ego for millennia. But a meditation or mindfulness practice can be particularly useful in helping us step back from our impulsive reactions to external stimuli (e.g. data that challenges our preconceived notions, particularly if our self-worth is invested in being right, or in one particular self-image.)

Of course, even a zen-master-like separation from the ego doesn’t completely protect us from cognitive biases, nor does a higher IQ or more awareness of these effects. In fact, there is some evidence to suggest a correlation between higher IQ and higher susceptibility to cognitive biases. We don’t yet have any proven methods for overcoming biases, but the Wikipedia page on mitigation is very interesting reading, and a good starting point for learning more.

Written by Teague Hopkins · Categorized: Main · Tagged: Agile, Business, Cognitive bias, Customer Development, ego risk, Entrepreneur, Entrepreneurship, Lean, Lean Startup, Management, Risk

Nov 02 2012

The Founding Trio

Three Feline Founders. Photo by amanky.

Dave McClure of 500 Startups calls it the holy trinity of startup founders. The frequent mantra in the startup space is that there are three primary types of founders: hackers, hustlers, and designers. The prevailing wisdom is that you should have one of each of these on your founding team. But we don’t often talk about what constitutes each of these archetypes.

Hackers

Hackers are not simply code monkeys. They need to be able to do more than just code well. Comfort with ambiguity and an understanding for coding in that context is invaluable for the hacker-founder. Many programmers are happier simply building what they’ve been told to build, but the good entrepreneurs are those who think about what happens when the requirements change – and code as if they will. This means building some things quick and dirty, and accepting that there will be some technical debt incurred in favor of rapid iteration.

Communication skills are also critical for hacker-founders. To achieve company success beyond personal success, you need to be able to communicate a vision to other technical team members and to translate for your non-technical co-founders. Likewise, some comfort with project management is valuable. Finally, any good programmer should understand how their outcomes tie to the success of the business. For programmers working for others, this is the way you communicate your worth; for hacker-founders, this is how you prioritize, test, and iterate for your startup.

Hacker-founders are not the only ones who need these skills, but the reality that there is far less supply than demand for excellent technical co-founders may tempt many non-technical folks to overlook these gaps in their search for a technical co-founder. If all you’re looking for is a code monkey, don’t make them a co-founder; just hire them on a contract basis until you can attract someone who has the complete package.

Hustlers

Hustlers are usually the business development specialists in a startup. It is important to note that this is not the same as an “ideas person.” Ideas people are thinkers; hustler-founders are doers. In a startup, anyone who fails to contribute anything beyond ideas is dead weight and should be cut loose at the earliest opportunity. Hustlers are the ones making deals happen, talking to customers or partners, raising funding to extend the runway, and generally removing obstacles for the rest of the team. Hustler-founders need to be resilient in the face of an endless stream of “no” and tireless in their pursuit of opportunities to promote the company.

Designers

When we talk about designer-founders, most people think about web design or mobile app design, but these are not the most important skills. What startups really need is UX designers, not graphic designers. This point gets lost because many designer-founders have both sets of skills. But make no mistake: this role is not about making your product pretty. It’s about making your product enjoyable and effective. Designer-founders should have extensive experience with problem solving and a disciplined approach to understanding the customer’s problem and designing for the customer’s interactions and experiences with the solution.. Designer-founders might approach this task from perspectives including design thinking, lean startup, user experience design, ethnographic research, or some other school of thought. The important part is that the designer-founder focuses on creating an complete end-to-end experience for the customer, not just the gloss that covers it.

A little of column A, a little of column B…

Few roles fit squarely into one of these categories without overlapping with the others, and any early startup employee needs to be prepared to tackle any challenges that arise. However, if your founding team has the right mix of skills to cover each of these three areas, it will give you a better chance of overcoming challenges and ultimately building a sustainable company.

Written by Teague Hopkins · Categorized: Main · Tagged: Business, Customer, Entrepreneur, Entrepreneurship, Lean, Lean Startup, Management, Project management

Sep 10 2012

Attracting and Hiring Talent

You’re trying to hire highly talented individuals to bring your dreams to reality. You’re trying to set up some kind of process so that you won’t spend a de-motivational amount of time sifting through resumes full of typos, doing preliminary technical interviews with folks who can’t FizzBuzz their way out of a paper bag, and pulling your hair out.

While you’re setting up your forms and tests and screens, it’s worth considering what kind of hiring company you want to be. Once potential employees get to the interview stage, you can be as selective as you want, but what I’m talking about here is the process leading up to that final interview. You have 2 options.

Photo by sebastien.barre

Option One: Make your process hard so that only people who want to be there will make it through the process. The only ones you’ll actually have to deal with are the ones who are thrilled to be there and willing to go through the gauntlet to get to you.

Option Two: Make your process straightforward and easy so you don’t turn off those really talented people who won’t bother to apply if the process looks arduous (e.g. passive job seekers). You’ll end up with a lot more folks at the interview stage, and some of them might be extraordinary talent.

There’s not a right answer, of course. The point is that you’re better off making an intentional choice than haphazardly falling into one bucket or the other. Think about it.

Written by Teague Hopkins · Categorized: Main · Tagged: Culture, Management, Tests

Sep 28 2011

The Startup Primer

[box]Welcome to the Startup Primer – a collection of 55 articles about the challenges of startups. If you are launching your startup, preparing to start, or if you’re already on the way to living the entrepreneurial dream, you need to read these articles.[/box]

Table of Contents

  1. Before You Start
  2. On Founders
    1. Just for Non-Technical Founders
  3. Team
    1. Starting the Team (Co-Founders)
    2. Building the Team
    3. Keeping (and motivating) the Team
  4. Boards and Advisors
  5. Marketing
    1. Social Media
  6. Product

Before You Start

  • A startup is an organization formed to search for (not execute) a repeatable and scalable business model – http://bit.ly/f5qcGv
  • So you want to do a startup, eh? – http://slidesha.re/iQrovv
  • 5 things you should know before starting a company – http://bit.ly/ql9xcj
Top

On Founders

  • How Great Entrepreneurs Think – http://bit.ly/fbewnn (Hint: Effectual Reasoning)
  • How Running A Business Changes The Way You Think – http://bit.ly/qVzb8W
  • The Anatomy of an Entrepreneur: 47% of successful entrepreneurs have at least a Master’s degree – http://t.co/kj4WICE
  • 5 Surprising Traits Of Successful Entrepreneurs – http://huff.to/nuHzPu
  • What’s The Most Difficult CEO Skill? Managing Your Own Psychology – http://tcrn.ch/gOxnNf
  • 13 Things You Must Do Every Week As A Startup CEO – http://bit.ly/gLuaCK
  • Before product-market fit, find passion-market fit – http://bit.ly/qvczRJ
  • “The notion that working longer hours is correlated to better business results is a pernicious social pathology” – http://bit.ly/peikcO
Top

Just for Non-Technical Founders

  • Tips For Getting Started For The Non-Technical Web Entrepreneur – http://bit.ly/juR4ZG
  • How to pull your weight as a non-technical co-founder – http://bit.ly/ne66h1
  • Please, please, stop asking how to find a technical co-founder. “You don’t find a technical co-founder, you earn one.” – http://bit.ly/j9K54Z
Top

Team 

Starting the Team (Co-Founders)

  • The Co-Founder Mythology – http://bit.ly/ksqNiA
  • How to pick a co-founder – Venture Hacks – http://bit.ly/fwZddI
  • 10 Questions to Ask Yourself Before Picking a Business Partner – http://bit.ly/pXfVxr
Top

Building the Team

  • The Best Resources on Hiring for Founders – http://bit.ly/jCikuW
  • One of the best essays on recruiting a high performing team for your startup – http://bit.ly/fYcqj9
  • What to look for in a UI designer – http://bit.ly/ecXnfM
  • Hiring Developers: You’re Doing It Wrong – http://bit.ly/gbNFxs
  • Why Engineers Distrust Business People – http://bit.ly/lS4rVk
  • How Designers Want to be Contacted – http://bit.ly/p9dPQN
  • Don’t Hire Senior People, Hire People Who Punch Above Their Weight Class – http://read.bi/ibVrw6
Top

Keeping (and motivating) the Team

  • Reminding your team “why?” can double productivity. Why does your organization exist? – http://bit.ly/fn4MYk
  • Bored People Quit – http://bit.ly/ofhvwn
  • Do it Without Titles – http://bit.ly/pNqAF3
  • 5 Reasons Why Your Business Should Embrace The Virtual Office – http://bit.ly/oTBAJj
  • Caring – http://bit.ly/mItMB6
  • Three Signs You Have A Management Problem, And That Problem Might Be You – http://read.bi/eBBwxZ
  • How to Build a Bootstrapping Culture – http://bit.ly/gNmzdL
Top

Boards and Advisors

  • It’s Time to Reinvent the Boardroom – http://bit.ly/pVShG9
  • The Benefits Of The Perfect Independent Board Member – http://t.co/8P5juNX
  • How to ask for help – http://bit.ly/kSx2gH
  • Don’t hate on VCs; Generalizing is dangerous – http://awe.sm/5Ilib
Top

Marketing

  • 17 Mutable Suggestions For Naming A Startup – http://bit.ly/pfGuNZ
  • The New Rules of Branding Your Business Online – http://bit.ly/egoqGS
  • The 5 Minute Guide To Cheap Startup Advertising – http://bit.ly/ih8O24
  • “My Friends” is Not a Market Segment – http://bit.ly/lT04Qy
  • How Engineering-Based Marketing can “beat the stuffing” out of Traditional Marketing – http://bit.ly/pZD9cb
  • Do Not Build Your Startup Messages for Your Grandmother – http://bit.ly/oYB01O
  • Email Is (Still) Important And Here Is Why – http://bit.ly/q2oVOg
  • When failure is cheap, why not give it a go? – http://bit.ly/gqLlBx
  • The real reasons why startups go into stealth mode – http://bit.ly/gW3dsV
Top

Social Media

  • How to Use Social Networking Sites to Drive Business – http://bit.ly/eIoANf
  • 5 Tips To Make Your Startup’s Twitter Account Stand Out – http://t.co/YUI03lc
  • Why I Will Never, Ever Hire A “Social Media Expert” – http://read.bi/kwh0b3
  • Gary Vaynerchuk: “99.5% of the people that walk around and say they are a social media expert or guru are clowns” – http://tcrn.ch/kctz9Q
Top

Product

  • How to start your startup in 4 steps – http://bit.ly/l4KuQZ
  • Never say “no,” but rarely say “yes.” – http://awe.sm/5Iix1
  • Personas: The Foundation of a Great User Experience from @uxmag – http://bit.ly/hivV32
  • Crash Course: Design for Startups – http://bit.ly/g8Chci
  • Business Objectives vs. User Experience – http://bit.ly/dYDnZk
  • Good Software Takes Ten Years. Get Used To it – http://bit.ly/gavKUj
  • Launch your site too soon – http://bit.ly/kyUsdX
Top

Special Bonus: Equity and Funding

    This primer is not intended to be a comprehensive resource for those seeking investors but these articles should give you a starting point for exploring your options.

  • Intro to Stock and Options for Startup Employees and Founders – http://bit.ly/U5Ro6z
  • Where to Look for Different Amounts of Funding – http://bit.ly/lSsHfp
Top

[button color=”#61BFD6″ link=/contact-us]Get Guidance for Your Project[/button]

Written by Teague Hopkins · Categorized: Main · Tagged: Business, Culture, Entrepreneur, Failure, Management, Marketing, Productivity, User

Sep 07 2011

Moving to the Cloud

For most organizations, maintaining servers is not a core competency, but there are concerns with moving hosting and other services to the cloud. One of the most common concerns we hear from small businesses is the reliability or security of cloud hosting services. Several high-profile outages have made it obvious that cloud services are not infallible.

However, it is a mistake to assess cloud services on an absolute scale. Small businesses should ask themselves whether cloud service providers can do a better job keeping the servers running than they can. Almost always, the answer is yes.

If it has ever taken you longer than 24 hours to recover from a server outage, it’s probably time to move to the cloud.

It is impossible for most small businesses to match the ability and experience in server management of providers like Amazon and Rackspace. Additionally, those providers have several advantages that come from the scale of their business. If hardware fails, they have a larger pool of backups to use as substitutes than do small businesses. They can make better use of resources by spreading the cost of features like diesel generator backup and redundant connectivity across many hosted solutions, enabling them to offer more resilient systems at a lower cost than their customers could achieve independently.

What are the telltale signs that an organization should move to the cloud?


A literal cloudNot all small organizations need to move to the cloud, and there are factors to consider other than reliability and cost. However, if it has ever taken you longer than 24 hours to recover from a server outage, it’s probably time to move to the cloud. If your server uptime is worse than 99.9%, it’s probably time to move to the cloud. If you don’t know what your uptime is, server hosting is probably not a high enough priority and should be outsourced, usually, by moving to the cloud.

In addition to increasing reliability and lowering costs, there are some operational advantages from moving to a cloud-hosted solution. The potential to scale capacity quickly is one such advantage, and is of particular value to startups and other organizations expecting rapid growth. The process of spinning up an additional cloud server is significantly faster than installing a new physical server of your own, and does not incur the fixed costs of purchasing new hardware. As a bonus, if that increase in usage turns out to be a spike instead of sustained growth, spinning down that cloud server is just as easy.

Photo by Horia Varlan

Written by Teague Hopkins · Categorized: Main · Tagged: Business, Centralized computing, Cloud computing, Management, Security, Virtual private server, Web hosting, Web hosting service

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