Over the past couple weeks I have been introduced to a number people in finance interested in transitioning to technology startups. As I was about to copy and paste a paragraph into the second email I realized it is time for another blog post! My quick suggestions below:
1) Research on what exists or soon will exists
Do you have an idea for the next big thing? Before you quit your job and devote your every waking hour to building it take a few minutes to search Google to see if it already exists. You’ll often find something does but it hasn’t taken off. Make a list of all the products that are similar to what you envision (I’d even recommend using them for a while) and try to identify what you like, what you don’t like, and what you would do so you would succeed where others have failed.
2) Find a great programmer or become one
If you are a programmer yourself, fantastic. You might want to get smart about the technology to facilitate rapid progress so if your idea passes the research test you can get it built. If however you are note a programmer you have three options:
- Learn to code
- Recruit a programmer as a cofounder
- Pay someone to build it
I have done all three and recommend finding a co-founder who can share the vision and work with you to bring it about. The problem with #3 is that it is incredibly difficult or those without technical skills to manage the development of a high-quality technical product. If you cannot do any of the above then you have to go one iteration out… find someone to help you find a great programmer. The principle is the same. To succeed your idea will eventually need to be built.
3) Find a way to fund the first 3-6 months of development
Before you move out to SF to start your new life, make sure that you can afford to give birth to your idea. The best way to do this is to get into an incubator. They can provide a little bit of money, mentoring, connections, and a community to help you start a strong company. That said, incubators are now more selective than most B-schools so you shouldn’t count on getting in. Alternatively consider working on the side while staying at your current job, moving in with your parents, or simply living off savings for a while. Whatever path you choose, it is likely that you will be making less money than you did before for at least a couple of years. Even if you get funding it is likely that you’ll take a pay cut from your finance job.
4) Learn how to learn fast
I am a big fan of the Lean Startup movement and would recommend you get smart about Lean startups as well. For your startup to succeed you need to discover a scalable business model. The lean process of rapidly moving through cycles where you build, measure, and learn (repeat) is a fantastic way to validate your ideas. Many of my recommendations to prospective Astrid employees are directed at this process.
5) Learn how to prototype (or find someone who can)
Even if you can just build it, it doesn’t mean you should. You or someone you have recruited to join you should be able to create quick, but intelligible hand-drawn mockups. I’ve found no faster way to get feedback than to put something on a piece of paper and show it to people. For the entire rapid design process check out the design sprint Google Ventures does with their portfolio companies – simply brilliant. Henry Tsai, head of UX at Astrid has written a post using Powerpoint to prototype and how to use TaskRabbit to get user testers fast with TaskRabbit.
6) Consider joining a startup first
While founding a startup has been an extraordinary experience, I would highly recommend joining a funded but early-stage startup for a couple of years before you jump in. On a small team, you will likely have the opportunity to learn all of the above without much of the risk associated with founding a company. You’ll learn a lot more than you would in a couple of years in business school, you’ll get paid (note the “funded” qualification above), and if the startup makes it big you may find you want to stay. The one caveat is that if you do join an early-stage startup, find something you love. You likely won’t have the time to work on side projects and keep up with the pace of most early-stage companies.