Founders at Work

1. Solve Your Own Problem: The Genesis of Successful Startups

I guess my advice is: solve a problem that you have, first and foremost, and chances are, other people may have the same problem.

Personal pain points spark innovation. Many successful startups, including ONElist and Bloglines, began as solutions to problems the founders themselves experienced. This approach ensures that the product addresses a real need and that the founder deeply understands the problem and potential solutions.

Validate market demand. While solving your own problem is a great starting point, it's crucial to ensure that enough other people share the same pain point. Fletcher initially thought he might be too early with Bloglines, but the rapid user adoption proved otherwise. This underscores the importance of testing your assumptions and being open to pivoting based on user feedback.

2. Bootstrap and Stay Lean: Minimize Costs and External Funding

Doing startups like this is so cheap that it just doesn't require a lot of money. I think I put in a total of $200,000. And I didn't do it nearly as smartly as I could have.

Leverage cost-effective technologies. Fletcher emphasizes the importance of using virtual dedicated hosting services instead of buying hardware. This approach not only reduces upfront costs but also provides flexibility and scalability as the startup grows.

Self-funding advantages. By bootstrapping Bloglines, Fletcher maintained control over the company's direction and avoided the complexities of dealing with external investors. This allowed him to focus on product development and user growth without the pressure of meeting investor expectations.

• Utilize cloud services and open-source tools
• Outsource non-core functions
• Prioritize features ruthlessly
• Keep the team small and efficient

3. Release Early, Iterate Often: Embrace User Feedback

The great thing about user-based Internet services is that they don't have to be perfect. You got a bug, you can fix it in 5 minutes. You don't have to worry about upgrading everybody's software installation.

Shipping is crucial. Fletcher stresses the importance of overcoming the psychological barrier of releasing an imperfect product. By launching early, startups can start a dialogue with users and gather valuable feedback to guide future development.

User-driven development. Once a product is live, user suggestions become a primary driver of feature development. This approach not only ensures that the product evolves to meet user needs but also fosters user loyalty as they see their input being implemented.

• Launch with core functionality
• Implement user feedback quickly
• Prioritize features based on user demand
• Communicate updates and improvements to users

4. Focus on Users First, Business Model Later

My philosophy on these types of companies—consumer-based Internet companies—is that you don't need to worry about the business model initially. If you get users, then everything else follows.

User growth trumps monetization. For consumer internet companies, Fletcher argues that building a large user base should be the primary focus in the early stages. A significant user base provides value that can be monetized later and makes the company attractive to potential acquirers.

Flexibility in business models. By prioritizing user growth, startups maintain the flexibility to explore various monetization strategies as they scale. This approach allows for a deeper understanding of user behavior and preferences, which can inform more effective business models down the line.

• Focus on user acquisition and engagement metrics
• Experiment with different features to drive growth
• Build a loyal user community
• Keep an eye on potential monetization strategies for the future

5. Founders Need Diverse Skills: Technical and Product Knowledge

I like to think I have a little bit of product knowledge, which helps me develop these websites. A lot of engineers don't necessarily have that skill set, but they are better engineers than I am, so for those people, if they were to partner up with somebody who was a product designer, I think that probably helps out a lot.

Balance technical and product skills. While strong technical skills are crucial for building a product, Fletcher emphasizes the importance of product knowledge in developing successful websites. This combination allows founders to make informed decisions about feature development and user experience.

Complementary partnerships. For founders who excel in one area but lack in another, finding a co-founder or early employee with complementary skills can be beneficial. This ensures that both the technical and product aspects of the startup are well-covered.

• Assess your own strengths and weaknesses
• Seek partners or early hires with complementary skills
• Continuously learn and expand your skill set
• Foster a culture of cross-functional collaboration

6. Venture Capital: A Double-Edged Sword

I'd done that with ONElist, and I wanted to do it differently this time. It was kind of, "Let's see what I can do." Because I fully believed in the thesis of "these companies can be really cheap to run if you do it with even just a little bit of intelligence."

Understand the implications. Fletcher's experiences with ONElist taught him the complexities of dealing with venture capital. While VC funding can provide resources for rapid growth, it also comes with expectations and potential loss of control.

Consider alternatives. With Bloglines, Fletcher chose to self-fund, demonstrating that it's possible to build a successful startup without significant external investment. This approach allowed him to maintain control and flexibility in decision-making.

• Weigh the pros and cons of VC funding
• Explore alternative funding options (bootstrapping, angel investors, crowdfunding)
• If taking VC money, carefully review and negotiate term sheets
• Build relationships with potential investors before you need funding

7. Scaling Challenges: Be Prepared for Rapid Growth

We were growing so fast with ONElist—a percent-and-a-half a day for the first year or two. We had a million users at 11 months, which in '98 was an amazing thing. We had horrible scaling problems the first year.

Anticipate growth. Rapid user growth can lead to significant technical challenges. Fletcher's experience with ONElist highlights the importance of building scalable systems from the start and being prepared to handle unexpected success.

Invest in infrastructure. While staying lean is important, it's crucial to invest in robust infrastructure and monitoring systems to prevent downtime and ensure a smooth user experience as the user base grows.

• Design for scalability from the beginning
• Implement monitoring and alerting systems
• Plan for redundancy and fault tolerance
• Regularly stress test your systems

8. The Power of Press and Word-of-Mouth Marketing

We got really lucky because blogs in general started to become really big and the downturn was ending, so you had all of these people looking for the next big thing. Also a lot of reporters used Bloglines. They like to talk about things they use, so we got really fortunate in that regard.

Leverage timely trends. Bloglines benefited from the rising popularity of blogs and the tech industry's search for new innovations. Identifying and aligning with emerging trends can significantly boost a startup's visibility and user adoption.

Cultivate media relationships. Fletcher notes the disproportionate amount of press Bloglines received relative to its user base. This highlights the value of building relationships with journalists and creating a product that appeals to influencers in your industry.

• Stay attuned to industry trends and emerging technologies
• Create a compelling narrative around your product
• Target influencers and early adopters in your marketing efforts
• Encourage and facilitate user-generated content and testimonials

9. Startup Life: High Risk, High Reward, All-Consuming

Startups are just so amazingly fun; they are so amazingly stressful. Whether you are an engineer or whether you are a founder, at least for me, it takes every emotion you've got and multiplies it 100-fold. Higher highs, lower lows than any other work experience.

Emotional rollercoaster. Fletcher candidly describes the intense emotional experience of running a startup. The highs of success and the lows of setbacks are amplified, requiring founders to develop resilience and emotional stability.

Work-life balance challenges. The all-encompassing nature of startup life can strain personal relationships and lead to burnout. Fletcher advises starting a company when you're young and have fewer personal commitments, acknowledging the sacrifices often required for success.

• Develop coping mechanisms for stress
• Build a support network of fellow entrepreneurs
• Set boundaries to maintain some work-life balance
• Celebrate small victories to maintain motivation
• Be prepared for the emotional and physical toll of startup life

Last updated: August 20, 2024