Category: Entrepreneurship

  • User Experience Testing with Skype Screen Sharing

    Skype Technologies S.A. logo
    Image via Wikipedia

    One of the simplest, cheapest, and most effective user experience and product testing things you can do is with Skype screen sharing. It works so well because the person on the other end shares their screen, and with Skype you can’t take control of their desktop, so you can only watch what they do. The key is to ask them to accomplish tasks on a generic level (e.g. create a new blog post) and sit back and watch them work. You’ll be amazed at what you notice and value you gain from the questions they ask — they don’t have the same tunnel vision you do being so passionate about your application.

    Here are some quick tips for user experience testing with Skype screen sharing:

    • Don’t share your screen with them — make them share their screen and walk through things on their own while you watch
    • Ask them to accomplish tasks and take at least 60 seconds after they get stuck before helping — them getting stuck and trying different options is great UI feedback
    • Once you’ve had them go through different tasks, then take them through the product and go over the most important features describing the functionality — this is a cathartic exercise in that talking through it out loud with someone who hasn’t seen the app before helps you personally see new issues
    • Do this with a new person on a weekly basis and then move to monthly as the product matures

    One-way Skype screen sharing is the digital equivalent of one-mirrors for user testing — only it is free and significantly easier. My recommendation is for entrepreneurs and product managers to incorporate this into their product development process.

    What else? What are some other tips for user experience testing with Skype screen sharing?

  • Leadership is not Speaking Over Others

    Buckhead Triangle, Buckhead, Atlanta GA.jpg
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    Back in 2004 I was at a prospective customer’s office in Buckhead down by the old Roxy Theater pitching our product with my lead developer. As an excited entrepreneur I was talked a mile a minute going through the minutia of every little feature in the application. The lead developer, proud of his creation, would answer some of their more detailed questions and I would interject with my spin on the response. This continued throughout the meeting and by the end I was proud of myself for answering all their questions. Little did I know me speaking over the developer and cutting him off was disrespectful and poor leadership.

    Later in the week the developer approached me and told me what I had done and how frustrated he was with me. Wow, it was a big wake-up call for my lack of respect and leadership. From my point of view I was passionate about the product and wanted everyone to know how much I loved it. I was a poor leader. I didn’t respect his contributions and his passion for our product. I quickly apologized for what I had done and learned a lesson that I still keep with me to this day.

    Leadership is not speaking over others. Leadership is being respectful and valuing the contribution from team members. When a team member speaks now, especially in front of a client, and I have the urge to say something that I think might sound a tad better, I bite my tongue and remember that everyone needs to contribute, not just me.

    What else? What are your thoughts on leadership and letting everyone speak?

  • External Requests for Your Time

    @stammy inspired today’s post with his tweet:

    http://twitter.com/#!/Stammy/status/69912461033213952

    Once you’ve been fairly active in the tech startup scene for a few years the number of external requests for your time will grow, especially as you help more and more people. Of course, time is your most precious resource. I emailed a high quality introduction to a friend about an entrepreneur that was moving to his city and my friend promptly emailed back that he’s not taking any intros until he launches his startup (which was in stealth mode, which is another story). There’s nothing wrong with that approach as it shows priorities.

    Here’s how I handle external requests for my time:

    • As a general rule, I only do one morning and one evening event per week (I get lots of requests to attend local events).
    • Panels or speaking engagements are usually accepted as long as I don’t have to travel and they are about entrepreneurship or technology.
    • Entrepreneurs asking for help I’m happy to spend 10 minutes on the phone as long as they have a warm introduction. 10 minutes truly is enough time to see if I can help or offer advice, and I’m happy to talk longer if I can add value (50% of the time it is all of 10 minutes and done because their time is as valuable as mine and I have nothing to offer).
    • Entrepreneurs that have been qualified by a much smaller group of people I’ll meet in person at my office or over breakfast/lunch upon initial intro.

    This system is by no means comprehensive but works well for me to keep a balance between my own entrepreneurial pursuits and giving back to other entrepreneurs and the community.

    What else? How do you handle external requests for your time?

  • Prioritizing Time for New Research and Development

    1958 Edsel: Lousy Car But Great Planter.
    Image by bill barber via Flickr

    Two weeks ago I had separate conversations with different entrepreneurs about how they prioritize research and development in their companies. Each conversation was brought up independently but the respective entrepreneur lamented how as their companies had grown the speed with which new features were released slowed down — it was now hard to make time for R & D. Customers were requesting enhancements to existing features, the architecture team wanted to improve back-end items, and the support team wanted to make certain processes easier.

    One entrepreneur was thinking of going to an 80/20 model where engineers spent 20% of their time on new features and 80% of their time on existing requests. The other entrepreneur was thinking of dividing the engineers up into different teams where one team would only be new features and the other team would working on existing functionality. There’s no easy answer.

    Here are a few best practices when prioritizing time for new features:

    • Continually re-iterate that every hour spent on a new feature is taking time away from some other change, and that that is OK
    • Remind all stakeholders that you can’t make everyone happy but that by having a strong vision and opinion for the product you’ll minimize time spent on features that are too narrow in focus
    • Work with sales, marketing, support, operations, and engineering along with soliciting input from customers and partners during the time allocation decision making process

    Prioritizing time for new R & D relative to other requests is hard. The best thing to do is to make the necessary time, over communicate, and deliver great results.

    What else? What other thoughts do you have on prioritizing time for new research and development?

  • Flashpoint – Great Y Combinator Clone at Georgia Tech

    View of the Skiles walk way from the Georgia T...
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    This week Georgia Tech announced their awesome new Y Combinator clone called Flashpoint. I first learned about the idea two months ago when I had lunch with Merrick Furst at my weekly spot (Houston’s across from Lenox Mall). Merrick described the next generation entrepreneurial environment as a Y Combinator-like program running right on Georgia Tech’s campus for people inside and outside the community. There’s no better education for an entrepreneurially-minded person to learn about building a startup than to actually roll up their sleeves and start building. Georgia Tech now has that.

    Two and half years ago myself and a group of local entrepreneurs started a Y Combinator clone for Atlanta called Shotput Ventures. Our goal was and is to help improve Atlanta’s startup community through mentorship and seed funding. We’ve invested in nine startups already and have money to invest in several more. Go ahead, learn about applying to Shotput.

    Flashpoint is great for the Atlanta startup community and Georgia Tech — I can’t wait to get involved as a mentor and I’m confident it will be successful. Sign up online to be notified when Flashpoint starts accepting applications.

  • How Fast is Too Fast to Push Out New Features

    CAMP PENDLETON, Calif. (June 3, 2010) An F/A-1...
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    We like to push out new features fast. Very fast. On a typical day we might push out four updates of our software to production. Now, we don’t do continuous deployment but I’d like it if we did. Do we make mistakes? Yes. The great thing about our mistakes is that they are small, because we push the changes out in bite-sized chunks. With small mistakes come small issues that we can fix quickly. The more complex the change the more complex the fix.

    We do a combination of code reviews, human testing, unit testing, functional testing, and continuous end user experience monitoring. This doesn’t catch everything but it catches the vast majority of issues and always ensures the core system works. We find that customers prefer fast product innovation with minor hiccups to much slower product innovation, and still have minor hiccups. To err is human, and we’re comfortable with that.

    My recommendation is to move fast and build that into the core competency of the business. Startups win by staying closest to the customer and moving fast.

    What else? What do you think about pushing out features fast?

  • A Strategy Session to Close the Deal

    Fernando Alonso on start grid for start practi...
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    Earlier today I was talking to one of my star sales reps and he was telling me about a new tactic that he was using to help close business: a strategy session. The idea makes perfect sense. After engaging with a prospect, doing web demoes, and helping them feel comfortable with the process, you ask for them to purchase your goods or services, but they are still on the fence. In lieu of going straight ahead and asking for their business, certain prospects need a painted picture of success, which is where a strategy session comes in.

    Here’s how the strategy session might work:

    • Ask the prospect for one hour of their time to do a strategy session
    • Provide three common best practice plans for your goods or services and have them choose one
    • Take them through a series of questions around the chosen best practice they want to execute (e.g. increase PPC ROI through specialized landing pages with auto-responders)
    • After you finish the phone call, send them a completed worksheet with all the information and execution plans
    • Ask for their business and the opportunity to make them successful with the output of the strategy session

    Strategy sessions are a great way to dig deeper during the consultative sales process, build trust, and ensure alignment of prospect goals.

    What else? What are your thoughts on using a strategy session to close the deal?

  • A Killer Feature or a Killer Collection of Features

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    This one’s a tough one because you won’t know until you’re successful but the best products have a killer feature or a killer collection of features. The distinction here is terribly important as some products only need one killer feature (e.g. automatically identifying companies on your website) while other products need a collection of features that when combined make it a killer product (e.g. any one feature of Basecamp isn’t nearly as useful as the collection of features).

    A killer collection of features is one of the main reasons we see feature creep in products as well as startups in stealth mode for an extended period of time — the entrepreneur/product manager believes it needs substantial functionality to be useful. These are the most common startups that die because they take so long to validate.

    A killer collection of features is more difficult for several reasons:

    • The functionality takes longer to build resulting in a greater chance of running out of money
    • With more functionality comes more friction to adoption and understanding
    • The chance of adding useless features grows while the chicken and egg problem of needing happy customers without a killer collection of features grows

    My recommendation is to think hard about your killer feature or your killer collection of features necessary for success. The latter is much more difficult to achieve but is more commonly found.

    What else? What other thoughts do you have on killer features vs killer collections of features?

  • Economics of a Roll-Up Strategy

    Organic growth
    Image by catchesthelight via Flickr

    This morning I had the opportunity to talk with an entrepreneur that is starting the process of doing a roll-up for his market. After boot-strapping his company for the past 15 years he’s achieved a bit more than $10 million in annual revenues. Now, he’s made good money being the sole owner of the business and but he was ready for a new challenge: $50 million in annual revenue in five years through acquisitions and organic growth. His thinking is that his firm will be significantly more valuable to an acquirer with greater scale and more comprehensive offerings.

    What are the economics of a roll-up strategy?

    The current company, with $10 million in revenue, might have 10% margins (e.g. make $1 million/year profits), making it worth 4-5x profits (so, $4-5 million in value). Potential acquisitions are other firms in the space with lower revenues and are valued mostly based on profits, but also based on longevity of profits and growth rate. Thus, a firm with $2 million in revenue, 5% margins, and $100,000 in profits might be acquired for 10% of the equity of the combined entity even though revenue is 20% of the combined entity.

    Why would the smaller company do this? As profits increase, company value as a multiple of profits increases due to the potential for greater economies of scale and sophistication of a potential acquirer such that a company with $5 million in profits might be worth 7-8x profits ($35-$40 million in value). So, for the smaller company, their same $100,000 in profits might be worth double (e.g. going from a 4x profit multiple to an 8x) due to being part of a large company. This happens all the time.

    Roll-ups are extremely difficult and the best acquisitions happen with aligned corporate cultures. The economics make sense for entrepreneurs that are ready to hitch their wagon to someone else’s train and believe that the opportunity for success and the weighted expected outcome is higher.

    What else? What do you think of the economics of a roll-up strategy?

  • Pods in R & D at salesforce.com

    The intersection of Market St. and Davis St.
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    A friend of mine from college joined salesforce.com (yes, all lowercase is the proper spelling — it’s a late 90s dot com thing) right after he finished business school and has been there for several years. At last year’s Dreamforce conference I was asking him about their engineering department and how they structure on-shore/off-shore software development. He said all the R&D is done in San Francisco in a pod-like setup similar to yesterday’s post on pods at Rackspace.

    Here’s some info on pods in R&D at salesforce.com:

    • There are roughly 28 different teams/pods
    • Each team focuses on a specific module or piece of a module in the product
    • The pods have one product manager, roughly five engineers, and a QA person
    • Each pod does a daily stand-up scrum meeting led by the product manager
    • The large number of product managers allows each of the small teams to stay close to the customer and minimize the telephone game where details get lost in layers of bureaucracy

    The pod approach makes it easy for salesforce.com to scale their R&D by adding more and more pods as the business grows while staying agile and innovating quickly.

    What else? What do you think of the pod approach to scaling R&D?