Thursday, May 26, 2011

An Ode to Non-Technical Entrepreneurs

I'm a non-technical startup guy. When selecting my major, I was given the choice between an engineering path and a business path. I opted for business because I like the thrill of hustling and as a kid I was always figuring out how to put extra money in my pocket in addition to my weekly allowance.

I'll admit that I have some irrational fear of programming. After a weekend spent on w3schools.com learning HTML and CSS, I pathetically bumbled my way through setting up and editing a wordpress site. And along each step of the way, I could hear the proverbial ghost of every programming nerd who had their lunch money stolen in high school sneering at me. Like the IT guy from the SNL skits, I felt that no matter what I was doing someone, somewhere was having a vindicated laugh at my expense. Again, irrational. But admitting you have a problem is the first step, right?

However, I will be starting to learn Ruby on Rails with a group of other non-technicals at school so I am relieved that misery will have company. I must admit that not knowing a programming language is the equivalent to not knowing Word or Excel a decade ago. I feel that in order stay relevant, I'm going to need to just get over my childish fears and start being able to have some basic programming skills so that I can have an intelligent conversation with my future engineering guys when.. you know.. I'm COO of a 50M startup.. someday.

With all that being said, here are my thoughts about the unsung heroes of startup world: the operators. The VP-of-get-shit-done guys (and gals). I also have something to get off my chest:

I am sick and tired of hearing about someone farting a new Web 2.0 company every 30 seconds and presenting it at some overblown conference where everyone's tweeting and retweeting the same crap like it's the next Facebook or Groupon or totally pushing the edge of augmented reality. Creating a new way to send a text message is not interesting. We have text messaging. And stop calling is a mobile communications platform.

I love reading VC blogs as much as the next guy but just once I want to hear someone say, "I'm investing in the social layer because anything that requires hard goods and inventory makes me sick to my stomach."

Don't get me wrong, I would love to get investment from Mark Suster or Ben Horowitz, but it seems like unless you are an internet-based company or green-tech startup you have a snowball's chance in hell of getting any attention.

Last time I checked, the water bottle I drink out of isn't composed of C++. My jeans aren't written in Java and the individual apple I ate this morning came from a tree, delivered by truck, sold by a real person and did not have a "post to Facebook" function on it.

The point I'm making is that there are a number of things that the twitterverse takes for granted that gets a little more difficult once you step away from your screen:

1. Try getting the door slammed in your face - getting to product to market-feedback is easy when you are shielded behind a username and have a delete key at your disposal. It's a lot harder when you are in the person's office, having the conversation in real-time, looking for non-verbal cues to gauge what you should say next and personal rejection to stomach (coz they aren't buying the product, they are buying you - ask any salesperson what I'm talking about). I would love for Eric Ries or Steve Blank to try and talk as flippantly about "sell, design, build" after attempting it in the real world: cold-calling for three weeks and then going on a 1 week sales meeting bender. Month in and month out.

2. A new product is not necessarily innovative - I am thankful for the tech industry, the innovations in business models over the last decade are pretty novel. And while they might be saturating the industry, they have yet to be implemented in existing industries. Want to see a highly disruptive opportunity that will make VCs craploads of money? Find a team that is employing the freemium model with hard goods (it's the future). I personally know a team (pair of undergrads) that is tinkering to find a way to give road bikes (quality ones) away for free and still have the firm make money.

3. "Hard" entrepreneurs are operational gladiators - going "lean" is a lot harder when you are dealing with inventory and not a lot of cash. You have to be more intentional about your actions and you aren't afforded the privilege of being completely at the beck-and-call of the market, sometimes you got to move product and hustle. That being said, any freedom that the firm has to pivot is the result of operational prowess. Striking a balance between organizational agility and efficiency when working with hard goods, takes a REALLY smart person (Google: "G Score") with the cahones to even attempt it in the first place.

I'm not advocating that "hard" entrepreneurs are better than technical, "soft" entrepreneurs or that the Web 2.0 surge hasn't benefited the nation. I'm simply attempting to shed light on the fact that there are number of entrepreneurs who are quietly hacking away at innovative non-technical problems in "mature" industries. It requires someone with well-rounded knowledge and competency in areas that are "boring" and "non-sexy": accounting, operations management, and sales. And it will be these entrepreneurs who will take the learnings from the tech industry and apply them to the rest of the world (yes, there is a world outside of Stanford's walls).

And here's my strong claim: while we spent our endowment on Facebook and Twitter, China doubled down on it's clean tech investment. China is working on gaining mastery of a hard problem, cheaply producing things that tend to be expensive. The US is mastering the art of coding an app over the course of a weekend.

In the coming years, "hard" entrepreneurs are going to be more critical if the US wants to remain an economic player in the world. Maybe we should start thinking about providing them with the support mechanisms that technical entrepreneurs have been enjoying for the last decade. Places like the Foundry are a good start and we'll be reporting AUTM numbers for our first year soon. Hopefully, it will serve as an example of what is necessary to support entrepreneurial development in a non-technical realm (hint: it doesn't involve money or resources).

2 comments:

Howard said...

Why Ruby? Why not php or java or even Python? Just curious why you decided on that one. I too must learn to become a code monkey and am wondering which will best serve me. If your group is looking for some additional support or resources go to a user group (http://utruby.org/) to find a guru or two.

Lavie Sak said...

Great blog, sir.