How to Avoid Hiring a Bad Programmer for your startup

At the beginning of 2016, Inc. Magazine published an online article predicting the best industry opportunities for entrepreneurs in the coming year. The recommended suggestions are as follows: Biometric Scanning Software, Fraud Detection Software, Corporate Wellness, Sustainable Building Materials, Drone Manufacturing, Virtual Reality, Artificial Intelligence and Food Analytics and Tech. This means that out of the 9 industries believed to be the perfect place for entrepreneurs to invest in for the near future, 6 of them were directly tied to software development. It seems that the author was onto something. After all, the tech industry certainly isn’t going away anytime soon. According to Forbe’s 2016 Global 2000 list of the world’s “largest and most powerful public companies”, 9 of the top 50 were tech companies. No wonder entrepreneurs are scrambling to build startups in the tech field.

It is statistics like those shown above that attracts many budding entrepreneurs to choose the tech industry as a career path. However, most business school graduates spent their formative years studying how to build a startup or manage a company, not how to program code. The entrepreneur may have an incredible talent for marketing, managing and maintaining a business, but know next to nothing about how to create the technologies that their new company will rely on. This leaves many potentially successful startups becoming entirely dependent on the ability of the developers they hire, without knowing much about the process. How can someone with an MBA, and minimal knowledge of computers, monitor the progress of software development if they can’t recognize the code? All you can rely on is the result of the final product, which usually isn’t ready to test until after a lot of investments have been made in the individual hired for the project. A lot of entrepreneurs find themselves crossing their fingers and hoping that the months of time and truckloads of investor’s cash won’t be wasted. When a nontechnical entrepreneur ventures into building an app, website or software program, the main challenge can be hiring a good programmer. Startup programmer

Hiring the Wrong Programmer Can Have Disastrous Consequences for Startups
Most startup founders put a lot on the line when developing software products. There’s usually tens of thousands (and sometimes millions) of dollars on the table. That can add up to a lot of pressure to succeed right away. In today’s fast-paced, highly competitive world, it can feel like all new companies are judged on the grand opening. If it falters during that time, it can be very difficult to pick up the pieces. Imagine having everything on the line, mere weeks from launching the product, only to discover that though the UI looks great, there are numerous issues with the code. At that point, you’ve got zero time and often, no more money left to invest in paying another programmer to fix the problem in time. With such fierce competitors vying for the attention of technology users worldwide, there’s likely to be several companies attempting to create a product like yours. One wrong move, and the other startups will quickly swoop in to take your place. A good example of this is failed startup Wesabe. The online personal finance tool launched in 2007 with almost $5 million in funding. Unfortunately, the startup Mint also launched soon after, with software that was easier to use and better designed. Wesabe didn’t get very far after that and officially closed its doors in 2010. Meanwhile, rival Mint sold their company to Intuit for $170 million. While the reason for Wesabe’s demise is still hotly debated, and likely the result of multiple factors, it’s hard to deny that if Wesabe’s programming and design had been better, there might have been a different outcome.

Some Try to Test Out a Programmer’s Skills or Ask Friends for Advice
Non-technical entrepreneurs often use many different techniques to avoid hiring bad programmers. Some people will hire other programmers and developers to recruit good candidates for them and may even temporarily employ them for the interviewing and hiring process. Other times, startups will hunt for talented programmers by searching through open source communities to find the “experts” who have already proven their ability to write outstanding code. These are all excellent strategies that can yield good results. Unfortunately, there’s one big piece of the puzzle that many entrepreneurs miss when trying to find a programmer to bring on board.

Creating Great Software Takes a Team of Professionals
As with most large endeavors, one person can’t do it all. When a single individual takes on too much responsibility, they can become overwhelmed, which creates a lack of focus and helps to develop an environment that isn’t conducive to a high level of achievement. Not to say that a freelance programmer can’t do an incredible job at an assignment or task, but to expect for one person to be responsible for the creation of an entire development project is a dangerous gamble.

In normal technology companies, you have product managers, system architects, systems engineers, UI developers, designers, software engineers, project managers and more. In my ten-year tenure at Motorola, I had the chance to work in two of these functions. If you had hired me at that time, I could successfully perform two of these roles.

My point is that very few single engineers can do these jobs. To qualify as a full stack developer, you often need to be experienced in only 2-3 of these important functions. Once they begin to develop more skills than that, they are likely to either be very expensive to hire or they will have created their own startup. Often, if a startup fails due to technical incompetence, it isn’t because they hired a bad programmer, it’s because they didn’t hire enough people to cover all the aspects needed to develop a successful product.

Therefore, the best way to avoid hiring a bad programmer for your startup is by hiring a development agency. A professional organization will likely employ several individual architects, engineers, designers and developers who are experts in their respective specialties. Rather than relying on one person to wear ten different hats, you can invest in a team that will work collectively to produce a product that your startup can be proud to launch.

The Best Books for Entrepreneurs

We live in a world of rapid growth and continuous innovation. Depending on what side of the fence you stand on – this can be a good or bad thing. However, for today’s entrepreneurs there’s one indisputable fact. Self-education and lifelong learning are absolutely essential to success in the new economy.

Abraham Lincoln once famously declared, “All I have learned, I learned from books.” If you want to stay ahead of the curve and grow in mind and in practice – do it the old fashioned way and download these ebooks onto your Kindle cloud as soon as possible.

Here are some of the books I found useful from both tactical and strategic perspective as an entrepreneur. In your startup journey, you will have tough days when you question everything. I hope these can help you traverse them.

startup founders

Books for entrepreneurs

The Lean Startup by Eric Reis

If you are starting without external funding you should read this book before you start recruiting developers and finding cofounders for building your product. Starting a business in a world that is constantly shifting takes creativity and innovation. The old model of production makes it difficult to keep up. New entrepreneurs need to pivot, adapt and execute with efficiency in order to thrive in the modern marketplace. This is the playbook for doing exactly that.

The 4 Hour Work Week by Tim Ferriss

Most people wouldn’t mind being millionaires. However, is it the money that people really want, or the lifestyle? This book will show you ways to be part of the New Rich, and help you design a life of true freedom. One primary tool you get from this book is testing and iterating. Without mastering that concept, please don’t waste your time.

Good to Great by James Collins

There are a lot of good companies that exist in the world, but few can be called great. Many settle into the comfort of goodness and never make the leap forward to true excellence. In Good to Great, James Collins analyses how successful businesses have risen from the dredges of mediocrity and became remarkable.

The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers by Ben Horowitz

There are many aspects of owning a company that business school usually skims over. Running day to day operations as a founder, CEO or manager involves many unpleasantries that don’t get talked about in many lecture halls. The Hard Thing About Hard Things is the textbook for the real life hurdles you might come across along the way.

The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail by Clayton M. Christensen

Henry Ford once declared, “If I had asked my customers what they wanted, they would have said a faster horse.” Success in business depends on satisfying consumers. In most industries, advancements are happening at breakneck speed. Failing to incorporate new technologies can mean the death of your company. Clayton M. Christensen has great advice on when to stay committed to popular models, systems and technologies – and when to move forward.


The Founder’s Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup by Noam Wasserman

Countless successful startups have ended in failure. Noam Wasserman explains how common missteps in the creation of a new venture can lead to it’s eventual demise. The Founder’s Dilemmas will help you make wiser choices at the very beginning so your business can flourish for the long haul. This is not exactly a book for entrepreneurs. But if you are going to disrupt the Trillion dollar market and wondering why nobody else is doing it, you might see some pearls in it.

Slicing Pie: Fund Your Company Without Funds by Mike Moyer

Equity division among founders is a difficult decision. Slicing Pie gives you framework to use to address this uncomfortable task. Mike Moyer gives advice on how to get cashflow for your business by leveraging equity and how to divide that equity among business partners and investors at various stages of a company’s life cycle.

Founders at Work: Stories of Startup’s Early Days by Jessica Livingston

Jessica Livingston tells the stories of legendary founders. Find out what it was like to create a company like Apple and Paypal in the earliest stages, from the people who made it happen.

The Startup Owner’s Manual: The Step-by-Step Guide for Building a Great Company by Steve Blank

The Startup Owner’s Manual has been used by ivy league schools and international organizations to help create successful businesses. Steve Blank takes you step by step through the process of building a profitable company.

Startup CEO by Matt Blumberg

Matt Blumberg has been a CEO for over a decade. He wrote this book to help other first time CEO’s run their businesses successfully.

The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything by Guy Kawasaki

One of the most trusted names in entrepreneurship wrote The Art of the Start to help anyone put big ideas into practical action.

The Tipping Point: How Little Things Can Make a Big Difference by Malcolm Gladwell

What makes a business or idea leap from the sea of obscurity and into the public spotlight? Malcolm Gladwell explains the phenomenon of the tipping point, and how small actions can push a message in front of the masses.

Delivering Happiness: A Path to Profits, Passion, and Purpose by Tony Hsieh

Tony Hsieh is the founder of Zappos. In Delivering Happiness he shares how he built his billion dollar business around the concept of creating a great “Company Culture”. Generating money is important to a company’s prosperity – but making a positive impact on the lives of millions is the truest definition of success.

Reality Check: The Irreverent Guide to Outsmarting, Outmanaging, and Outmarketing Your Competition by Guy Kawasaki

A lot of entrepreneurs get wrapped up in industry fads and build businesses on principles that won’t last long. This book tells founders how to avoid the bandwagons and gravy trains of passing trends and build an innovative business on solid ground.

This book list will help entrepreneur’s at any stage in their career. Whether you’re just beginning or have started several businesses, it’s important to keep reading and learning to stay ahead and continue to grow. If you feel there should be other books in this list, let me know.

What is wrong with incubators and why are we starting a new one?

When Bill Gross created Idealabin 1996, during the early days of the internet boom, startup incubators were a fairly unique concept. Incubators differ from research and tech parks. Incubators are strictly dedicated to startups. Most tech parks do not offer any business assistance services. Business incubation has jump started our economy in many cases. Now accelerators and incubators have multiplied and are found all over the world. In the most recent count,it was determined that there are more than 6000 accelerators and incubators out there. In theory, they do a great job.

In our local market, 1871 is a thriving incubator. It is the pride of Chicago city government and the startup ecosystem. It helped to convert the fly over county into a startup destination.

Incubators advise entrepreneurs on how to build a startup. In most cases, they need help in planning and very specific items. Advice is useful, but more importantly, a helping hand goes a long way. So we decided to start an incubator which actually build startups instead of advising.

All of these incubators are accelerators who target startups with an existing team. Recruiting the right team is the biggest challenge for a first time entrepreneur.

So the main question becomes, how do you recruit a tech co-founder when you have only an idea? If you are able to find funding or paying customers, you might be able to recruit a quality tech co-founder. But,thisis a catch 22.

You have a couple of options.

You can try to hire a developer from a local development company or find a freelance employee or search on Craigslist. In most cases, these donot fare well. This is primarily because your developer builds exactly what you architect. Unless you spend years building apps, not sure how qualified you are for the architecture and if you have the high level skillset necessary.

We created CodeVentures as mix of a development agency and an incubator.It is our mission to build startup companies, not just apps or products. It is our goal to help you build a lasting business. We would like you to think ahead and not only come up with an application or product, but determine if you can build a business. Are there multiple products that you will be able to launch?

I, personally, will act as the tech co-founder for the startups we choose.I will also work closely with our developers to create your vision of the startup and turn it into reality. Of course, we will use the best technology stack available. We do this for a minority equity stake in the startup.

How do I choose which startups to partner with?
Since we are an equity partner in the startups, we want to select the companies with significant potential.Your success is our success. One question we ask ourselves is if we build a great product and are able to gain some traction in 6-12 months, what is the likelihood of receiving VC funding? Or at least large angel funding in order to scale the business?

We are located in the Chicago area and prefer to work with team members who we can meet with face to face, at least occasionally.

Here are some of the questions I would like to be answered when upon our initial point of contact:
-Have you validated the customer need? If not, how can we validate it without spending an entire year building the product?
-How much research you have done so far on the pain points?Also, how are existing solutions addressing it, if there are any existing solutions?
-Once we build the product or MVP, what is your exact plan to acquire customers? Who will call the potential customers and sit down with them?

With over 10 years of business experience, over 60 engineers, over 2000 projects delivered, and greater than 10000 successful clients, my team have become a leading hybrid agency. We normally deal with web applications, marketplaces, social applications, SaaS, mobile apps, wearable tech, enterprise applications, and IoT. We might not be the most optimal fit for mobile or web games including animation.

So, if you have a startup concept to make this world a better place and all you are missing is a solid tech partner, CodeVentures may be the solution that you are searching for. Let’s talk.

The hitchhikers guide to part-time non-tech founders

Is it possible to launch a startup while working somewhere else? It’s a question that many new founders face. You have new business ideas – ones that are most likely related to your current job or interests. Unfortunately, most people with these thoughts do not take action and the contemplation of starting a business never amounts to more than a dream.

While this is an unfortunate truth for the majority of potential entrepreneurs, a handful of them do actually take the plunge and become successful, full-time entrepreneurs.

When I started my software development company, I had a full-time position at Motorola. It took me a few years of working on my own business part-time (and gathering enough courage) to leave my regular paycheck and commit to my own business full-time.

Now my company is devoted to helping entrepreneurs execute dreams by creating online businesses from the technical side. During this process, I’ve realized that the majority of our customers are taking the same steps I did: starting a business while working regular hours somewhere else.

After researching this topic, it shouldn’t come as a surprise that the failure rate is higher for founders that are not working on developing their business full-time. Because of that most traditional startup ecosystems – Venture capital ,Angels, accelerators and incubators- will not take weekend warriors seriously. However, there are pros and cons to both scenarios and some have found success juggling both.

• Marco Arment developed Instapaper while working full-time on Tumblr. He has since stopped working at Tumblr and works on Instapaper full-time. In April of 2013, Instapaper was acquired by Betaworks.
• Joshua Schachter started Delicious while he was an analyst at Morgan Stanley.
• Mass Relevance is a social engagement platform, which was started as a part-time venture called Tweet River. The hard work and determination of the founders, Eric Falcao and Brian Dainton, made it a thriving business. They recently raised a $5.5 million dollar Series A.

In these cases, the founders were weekend warriors also equipped with a technical background.

How can you realize your startup plan if you are not a technical person? There are a few options. You can always learn how to code, but if you already possess a decent skill set to launch a company, learning how to code is probably not high on your priority list.

Instead, you can walk a path similar to Kevin Rose when he started Digg.com, way back in 2007. Try to find freelancers to program your idea and create a prototype. Before you go and find programmers though, you will need to create architecture for your application. Without this, things may not turn out as you had hoped.

At this time, you may also consider looking for a technical cofounder. There are number of channels to take advantage of. Local meet-ups as well as a number of founder-matching websites are available. But before you start looking for a technical cofounder, you should decide if you really need one.

Sometimes people assume they need a technical cofounder regardless of the type of startup business. In many cases though, a technical cofounder is not actually needed and a web developer or programmer will suffice. This is especially true if you are considering developing a lightweight application. Since it is much more economical to hire a freelancer, this should some as good news.

There are also many organizations that would be willing to partner up with you to create your startup in return for equity. In the Chicago area, there are a few accelerators and incubators who can help founders from the technical side. Platform Venture, Wavetable and Ensemble can help with creating MVP in return of equity or discounted rates.

The key to this option is that you need to convince your development partners that the idea is fundable. Many developers will look at this option as a seed investment in your startup. But before you approach a developer or accelerator, you must review questions surrounding one key point – what exactly you will contribute to the success of startup?

Who will be acting as the product manager and defining progress as it is developed? Who will be calling initial customers to sell it? What can you bring to the table for marketing and PR? Do you have funds to use for initial marketing, ads and services initially? Also be prepared to answer a crucial question: At what point would you be comfortable quitting your main job and working on the startup full-time? If your contribution to the business is the idea alone, good luck.

There are ways to create a tech startup while you are working somewhere else full-time, but you have to be creative about it. Creating a startup is hard; especially when you do it with minimal funding and work on it part-time. Others have tried and succeeded down this path, but many have failed. Examine your own personal skill set, current and future business needs, as well as your available options to develop the best plan that will see it through.

MobOffer – Social Demand Agregation

Why are Groupon and Living Social loosing popularity? Customers sent to businesses via daily deal sites are price buyers and not loyal customers. Once the rush of customers wears off, many businesses never see these people again. Deals can be used to increase awareness, but retaining customers is a different story. Another problem is anticipating demand. In the process, some businesses find themselves falling short and running out of product or time in order to handle the sudden surge of business due to the deals. In turn, this can create a lot of unsatisfied customers that will not only never come back, but be more likely to complain and give bad reviews if the product or service was lacking during the rush.

What is the business model was tweaked to cater to demand instead of supply? We have done just that with our latest venture – MobOffer.

We created MobOffer as a platform to exhibit the power of group buying. Instead of determining daily deals like Groupon or Living Social, users decide which deals the site should offer. Using a convenient MobOffer button (like Pinterest), users can add products from any website to a MobOffer Wish List. Users can invite others to join a list and aggregate demand for requested items. Once the demand is large enough, MobOffer requests merchants to offer a deal as an opportunity to make greater short-term sales that they can prepare for.

Moboffer was developed in a distributed server cluster using PHP and mySQL. The Facebook app, with its clever open graph integrations, improves the virality of the offers and the items.

Know any products you would like a deal on? MobOffer was recently made live for you to install the button and try it now. Create your own wish list and get started. Be sure to let me know your thoughts!