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An Open Letter To Business People

159 点作者 davidbalbert超过 14 年前

15 条评论

grellas超过 14 年前
This is a nice piece overall but, having seen founders negotiate their splits countless times over nearly three decades, I would add that such negotiations tend to be more nuanced than equal splits in most cases.<p>Idea people may not be able to proceed without solid technical people but what they do or don't have to give them for their services is always governed by supply and demand. An exceptional technical person who will drive a company will get an equal split (or more) but someone whose skills can be supplied by a good number of people will likely get far less. Strong technical expertise does tend to be <i>hugely</i> important in a typical startup but is only marketable consistent with what people are willing to pay for it in light of other alternatives.<p>So too with idea people. Abstract ideas may not have much value but many of the best ideas come from those "in the field," i.e., who have worked extensively in a given area and have special insights about how, e.g., customer pain points can be addressed effectively. Such ideas can be incredibly valuable and they do not necessarily come from technical people. They can come from managers, from sales people, or from a broad variety of sources - even from those with a technical background who later moved into sales or management and who combine their skill set with their experience to derive special insights. When people like that want to found a company, they may lack the particular technical expertise to execute on the project but they will know enough about the industry to know where to find the best candidates to fill such a role. That may result in a 50/50 deal but it could easily result in all sorts of splits, even if one of the roles is prominent enough to be called "technical co-founder."<p>So, as a technical founder, you should push for as large a split as your personal qualities can command but you should not use any arbitrary formula for determining splits. The rule is and always will be to assess the situation based on the real value each person is contributing and this often leads to a wide range of founder splits that are far from equal yet are perfectly suitable for the persons involved.<p>That said, this again is a fine piece reminding those with technical skills not to sell themselves short in dealing with business people. There are all sorts of hustlers out there who are more than willing to take advantage of you and, if you do not value yourself properly, you will likely fall victim to them. If people really do have valuable things to contribute, however - whether on the business or on the technical side - then the process is not really that adversarial because smart people will know an opportunity when they see it, whether or not they get equal shares in the venture, and they will usually work these things out in a way that is amicable.
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smanek超过 14 年前
<i>A startup without a business plan isn't a business. It's just some code.</i><p>I disagree. Users make it a business - and users don't care if I have a business plan. They just care if the product (i.e., code) makes their lives better.
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rguzman超过 14 年前
I liked the piece a lot and it is roughly right. However, as a technical co-founder, I think a good measure of a business co-founder is whether he tries to solve the technical problems himself. e.g. by learning a bit of php and hacking something together.<p>Not only does that show that he's resourceful and scrappy, but it also makes it more likely that he'll be able to talk about the product coherently i.e. understanding and keeping in mind the constraints that software development has. It calibrates his intuition, if you will.
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ndl超过 14 年前
I have a few things to add to this.<p>Know something I don't. Plenty of people seem to operate under a false dichotomy between code and business, where "not programming" gets treated as a business skill. I consider myself a hybrid hacker/businessman, but stronger on the hacker side for now. If I am to take a "business person" as a partner, I'm looking for that person to do things I couldn't learn easily from a day of reading. This could mean lots of things: truly understanding markets and pricing, being a professional member of a specialized target market, legal and accounting training, unlimited patience for customer support, etc.<p>I see some "business" people making the same mistakes they're supposed to prevent. The stereotype is of a programmer who builds and builds without testing the market, but how many non-programmers try to recruit techs to hack together a totally untested but "revolutionary" idea?<p>Another thing I've gotten wiser to is the use of vague terms, like "leadership" and "networking." To me this comes off as "I wanna be the boss and hang out." If you really are good at these things, try to give some specifics.<p>Finally, if I wanted to have a boss and live in a hole, I'd get a job at X big corporation. This is the point I expect the most disagreement on. I don't want a business founder who will "take over" all of the networking. By deciding to be a founder, I've already bet that I can manage myself better than someone else can manage me.
terra_t超过 14 年前
Why do we always hear about non-technical cofounders looking for technical co-founders, rather than the other way around?<p>Is this like some singles bar where 80% of the people are male?<p>I for one would like to find a hustler who really knows how to hustle.
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joshklein超过 14 年前
The author makes the assumption in this relationship that the technical co-founder is a talented hacker who has read all of Paul Graham's essays, maybe a Steve Blank book or two, and is well connected in the startup tech scene, all while the business co-founder is just some marketing shmuck. The characterization is unfair; there are plenty of marketing shmucks, but they should be compared against socially inept code monkeys, not this superstar technical co-founder (say, the kind that read Hacker News).<p>A great "business person" doesn't just flip open a roledex and start dialing for dollars once the technical co-founder has laid a magical golden software egg.<p>And hopefully, a technical and non-technical co-founder can find a way to work together where they don't perceive their partner as a parasitic dead-weight.
alain94040超过 14 年前
Pretty good explanation. A couple of tweaks: 50/50 is a bad split, because it will lead to paralysis, argument, flying chairs, and eventually bankruptcy.<p>Second, the advice here is to not pitch the idea when you first meet potential technical co-founders. I disagree: I think sharing the same passion is key, so you definitely should tell me that you plan to revolutionize the music industry (a bad example, I know...). Small talk won't get me, the developer, interested.
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Apreche超过 14 年前
Wrote basically the same thing a month ago.<p><a href="http://comments.apreche.net/166/no-you-need-a-technical-co-founder/" rel="nofollow">http://comments.apreche.net/166/no-you-need-a-technical-co-f...</a><p>The one thing that I don't understand is how people are willing to be paid in equity. Do you people not have to pay rent? Are you living in your parents basements with someone feeding you?<p>In the words of many a Taxi driver "NO! You pay me cash now!"<p>Lottery tickets don't keep the lights on.
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mattmaroon超过 14 年前
The problem is you don't need a technical cofounder, you need a good technical founder. Just because someone is at a meetup or on Github doesn't mean they're a good technical cofounder.<p>Finding a technical cofounder isn't too difficult. If you can't sell your idea to one developer you probably can't sell it to customers. Finding a good technical cofounder is very hard.
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locomoto超过 14 年前
This piece gave me a couple of red flags even before I started into the article - primarily the adversarial premise in the title and implied put down of "business people". Remember the time when your VP or manager walks into the room and begin with "you people need to ..."?<p>As a tech founder, I realize how many aspects of technologies and competencies I need to get right to move the startup to somewhere near a profitable business. There are very few super techs who "know it all". There are legal techies, business techies, hardware techies, etc and probably will look down with similar disdain that a "coding techie" who just don't get it. That attitude is not going to be conducive to building relationship all around.<p>I would suggest looking at any proposition that comes your way as what a good angel or VC would - ask the right questions, be helpful, do your due diligence, say no politely and walk away if it does not interest you. We techies must educate ourselves how to evaluate a startup proposition and be helpful where possible to build our network because the network may yield answers in our "next" startup.
chadp超过 14 年前
Maybe the title should read, business focused entrepreneurs with no money. If I am a entrepreneur and I have money, I will not be looking for a "technical co-founder". I will hire technical teams to build and iterate the product to my liking and specification, with their expert input of course (which I can choose to accept or not).
netcan超过 14 年前
I listened to a Mixergy podcast earlier this week where the founder (a "business founder") started by doing some customer development, getting a prototype developed (paying to get it done, raising a round and then going to find co founders. Andrew (interviewer) assumed this meant a higher equity portion, but Rafael said it was close to an even split. The logic seemed to be that he could get better co founders this way.<p>To anyone who sees themselves in David's (the poster) position: How would you feel about coming on board at this stage? How would you feel about coming on board at this stage minus the investors?
T_S_超过 14 年前
Before embarking on new venture, everybody should watch the "Treasure of the Sierra Madre", a great movie, directed by John Huston, starring Humphrey Bogart. There you will see that the real problems begin once you have a whiff of success.<p>Oh forget it. Go see the "The Social Network" if you want to see that. Give a huge majority of shares to your technical cofounder and try to stay on his good side.
marionogueira超过 14 年前
btw, a good technical cofounder isn't "just" a good programmer (or even a great one)... actually, he doesn't even have to be the best programmer on the team
QuantumGood超过 14 年前
Guy says he doesn't value the "vision guy" that much...has he looked at the photo he's using? It's not even sized properly. Simple, simple fix: <a href="http://i.imgur.com/o73DX.png" rel="nofollow">http://i.imgur.com/o73DX.png</a>