Starting an Internet-Based Business

[Pittman09]

I am in the beginning stages of creating an internet-based business. I have identified a need to fill and know I can provide better services than the competitors. The business is similar in scope to LinkedIn, helping two groups of people who need each other to connect so both parties benefit. Social media will be incorporated into the website to help one group of people market themselves to the other group, while a subscription-based service will offer extensive marketing tools.

Yesterday, I had a meeting with two programmers (because I have little knowledge of programming/web development) who are very interested in helping to build this, one of which has 20 years experience working with Intel. I told them that all I can offer is equity in the company as I have just finished school and do not have a steady income yet. (My plan is to get a job while this is being built in order to pay for the cost of anything we need in the future, and in the meantime, study my industry and plan the marketing and execution strategy for when we launch). The programmers told me that it is a pretty complex idea as it is similar to LinkedIn, so it is hard to tell how long it will take to build a working model.

I have been working on this concept for the past three years as I was completing my degree, and have failed to execute three times as I was not finding the right people to build this. However, after meeting with these programmers I feel that one of them is definitely the right fit. He was laid off from Intel and really wants to pursue an opportunity working with a start-up, and may also be able to bring some of his colleagues to the team.

I want to share my story with this community as I am sure there have been many people here who have been in a similar situation. Anyone who could offer any advice to me as I continue forward would be much appreciated.

Also, should I start learning programming/coding, or continue to delegate those tasks and focus on what I know best? (In hindsight, I should have learned programming when I started three years ago, however, I didn’t want to waste time learning it when I could find someone to build it, but here I am).

Thanks for taking the time to read this.

 

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[conquer]

1st goal should be to test the viability of your idea

Have your developers build an MVP/demo

Host a landing page to gather email sign ups

Use paid ads to drive traffic

Get users to try MVP once they sign up

Get their feedback and tweak your product

If you get very little response, maybe the idea isn't viable and you saved a lot of time and resources.

 

[Pittman09]

1st goal should be to test the viability of your idea

Have your developers build an MVP/demo.

I agree. That is the goal I haven't reached yet because I did not find the right people to build this. Time will tell if the programmer I have now is the right fit. I appreciate the advice!

 

[marklov]

1st goal should be to test the viability of your idea

Have your developers build an MVP/demo

Host a landing page to gather email sign ups

Use paid ads to drive traffic

Get users to try MVP once they sign up

Get their feedback and tweak your product

If you get very little response, maybe the idea isn't viable and you saved a lot of time and resources.

That's right on the money.

 

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[Amazonian_Chimp]

How is your idea better than LinkedIn?

 

[NetBorn]

How is your idea better than LinkedIn?

I'd love something to replace LinkedIn , had to say it.

 

[Pittman09]

How is your idea better than LinkedIn?

I'm not creating a competitor for LinkedIn. My idea has a completely different market, but I want to have some of the same functionality that LinkedIn has.

 

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[Amazonian_Chimp]

I'm not creating a competitor for LinkedIn. My idea has a completely different market, but I want to have some of the same functionality that LinkedIn has.

What market does your site intend to target? How is that different from LinkedIn's current clientele.

 

[Pittman09]

What market does your site intend to target? How is that different from LinkedIn's current clientele.

I won't get into specifics of the target market. The point of this thread was to share my story and to see if anyone had advice to share about building a website of this scale.

 

[TonyStark]

Microsoft just bought LinkedIn for $26.2 billion.

 

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[JokerCrazyBeatz]

Microsoft just bought LinkedIn for $26.2 billion.

Lmao I just seen this on the news , sheesh

 

[Pittman09]

Lmao I just seen this on the news , sheesh

Took them almost 14 years to get there, but it all paid off. Amazing.

 

[tux]

Hi there, glad to see you are pursing your idea!

As an experienced developer I'd like to share you a little detail from my end of the spectrum to help you find developer that really matches your goals and business.

First off, I would have to agree with the rest by saying you should start with a simple easy to use MVP that only includes the main features and your USP. Doing so will eliminate wasted time for you, and the developer that is putting his experience and time on the line for the idea. If the MVP doesn't work out the way its expected, you can save yourself months of hard work, and still keep a good relationship with the developer without resentment on his end.

As a developer I'm always extremely wary about equity offers, especially with businesses that are software / application based. It seems with these offers I do all of the "hard" work while the CEO is in limbo awaiting for me to finish, which doesn't feel like a partnership rather an outlet to complete his/her goal.

In all honesty I wouldn't give up a piece of your company in the beginning to a developer when you are in the very early stages until you have a proven idea. I would find a cheap(er) developer to help you build you the MVP and once you get traction and validation, then start looking for someone to come in for equity.

Good developers don't waste their time on the unknowns, and if they do they will quickly burn out, especially with a project lasting months with no pay.

Best of luck!

 

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[NetBorn]

Hi there, glad to see you are pursing your idea!

As an experienced developer I'd like to share you a little detail from my end of the spectrum to help you find developer that really matches your goals and business.

First off, I would have to agree with the rest by saying you should start with a simple easy to use MVP that only includes the main features and your USP. Doing so will eliminate wasted time for you, and the developer that is putting his experience and time on the line for the idea. If the MVP doesn't work out the way its expected, you can save yourself months of hard work, and still keep a good relationship with the developer without resentment on his end.

As a developer I'm always extremely wary about equity offers, especially with businesses that are software / application based. It seems with these offers I do all of the "hard" work while the CEO is in limbo awaiting for me to finish, which doesn't feel like a partnership rather an outlet to complete his/her goal.

In all honesty I wouldn't give up a piece of your company in the beginning to a developer when you are in the very early stages until you have a proven idea. I would find a cheap(er) developer to help you build you the MVP and once you get traction and validation, then start looking for someone to come in for equity.

Good developers don't waste their time on the unknowns, and if they do they will quickly burn out, especially with a project lasting months with no pay.

Best of luck!

Man, exactly what many developers experience - someone comes with idea, but not any idea of doing a plan and making an effort. Only nice thing is that such people made me research more on the theory, find good books and sign up here. Otherwise ... real clever developer would want to see something clever on your side, too.

Not long ago I was in a situation that the "CEO" gave huge salary in a startup that didn't actually had even clear idea about a product ... so a friend and I asked about equity + plus money and that was it ... The guy was too focused on the dream of making it big so he didn't want to share And he failed later of course ...

 

[Pittman09]

Hi there, glad to see you are pursing your idea!

As an experienced developer I'd like to share you a little detail from my end of the spectrum to help you find developer that really matches your goals and business.

First off, I would have to agree with the rest by saying you should start with a simple easy to use MVP that only includes the main features and your USP. Doing so will eliminate wasted time for you, and the developer that is putting his experience and time on the line for the idea. If the MVP doesn't work out the way its expected, you can save yourself months of hard work, and still keep a good relationship with the developer without resentment on his end.

As a developer I'm always extremely wary about equity offers, especially with businesses that are software / application based. It seems with these offers I do all of the "hard" work while the CEO is in limbo awaiting for me to finish, which doesn't feel like a partnership rather an outlet to complete his/her goal.

In all honesty I wouldn't give up a piece of your company in the beginning to a developer when you are in the very early stages until you have a proven idea. I would find a cheap(er) developer to help you build you the MVP and once you get traction and validation, then start looking for someone to come in for equity.

Good developers don't waste their time on the unknowns, and if they do they will quickly burn out, especially with a project lasting months with no pay.

Best of luck!

Thanks for the advice. I understand that some people looking for a developer may just sit back and wait for all of the hard work to be done, but I am not doing this. I designed mockups of what I want the website to look like and am currently creating wireframes for each individual page and documenting how everything on each page will function. Although I may not be experienced with programming, I am helping in any way possible to make the programmer's job easier. So far, we are working great together and I am learning a lot about web development along the way. It is possible that he may burn out, but he sees the vision of this company, and as long as he believes in it, I am sure he will build it.

 

[NetBorn]

Thanks for the advice. I understand that some people looking for a developer may just sit back and wait for all of the hard work to be done, but I am not doing this. I designed mockups of what I want the website to look like and am currently creating wireframes for each individual page and documenting how everything on each page will function. Although I may not be experienced with programming, I am helping in any way possible to make the programmer's job easier. So far, we are working great together and I am learning a lot about web development along the way. It is possible that he may burn out, but he sees the vision of this company, and as long as he believes in it, I am sure he will build it.

The mockups and wireframes sound like deja vu, too. Did you check ideas like Lean startup, anything that will give you more perspective than focusing on the product itself.

 

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[Pittman09]

The mockups and wireframes sound like deja vu, too. Did you check ideas like Lean startup, anything that will give you more perspective than focusing on the product itself.

Are you asking if I am focusing on other aspects of the business such as marketing and how I plan to get users on the site?

 

[NetBorn]

Are you asking if I am focusing on other aspects of the business such as marketing and how I plan to get users on the site?

Generally yes, also those are not users on a site but customers to your service. Maybe no need to overcomplicate things, but you must think on your perspective, imagine if Facebook was considered as a website by its creator.

 

[Pittman09]

Generally yes, also those are not users on a site but customers to your service. Maybe no need to overcomplicate things, but you must think on your perspective, imagine if Facebook was considered as a website by its creator.

True enough, thanks for the insight! I am going to read The Lean Startup now.

 

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[tux]

Thanks for the advice. I understand that some people looking for a developer may just sit back and wait for all of the hard work to be done, but I am not doing this. I designed mockups of what I want the website to look like and am currently creating wireframes for each individual page and documenting how everything on each page will function. Although I may not be experienced with programming, I am helping in any way possible to make the programmer's job easier. So far, we are working great together and I am learning a lot about web development along the way. It is possible that he may burn out, but he sees the vision of this company, and as long as he believes in it, I am sure he will build it.

No problem at all, just wanted to make you aware of the possibilities from the other end. Wishing you the best of luck!

 

[Pittman09]

No problem at all, just wanted to make you aware of the possibilities from the other end. Wishing you the best of luck!

Appreciate it, all the best to you as well!

 

[Evil_Jester]

After my struggles with making websites, I've asked myself these questions and it helps immensely:
1) What is the simplest version of the website I can make, so that I can test it properly?
a. How can I design it so that I can outsource the coding easily?
2) Can I test it within 2-3 months?
3) Specifically, what is your revenue plan?
4) Make 5 steps/goals for your business
a. Make 5 small action steps for each big goal.

Also, you should know basic html/css. It's easy to learn.

 

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[NetBorn]

cally, what is your revenue plan?
4) Make 5 steps/goals for your business
a. Make 5 small action steps for each big goal.

After my struggles with making websites, I've asked myself these questions and it helps immensely:
1) What is the simplest version of the website I can make, so that I can test it properly?
a. How can I design it so that I can outsource the coding easily?
2) Can I test it within 2-3 months?
3) Specifically, what is your revenue plan?
4) Make 5 steps/goals for your business
a. Make 5 small action steps for each big goal.

Also, you should know basic html/css. It's easy to learn.

That may be true, and if you had people to help, or knowledge, time, some money it is must have, but still ...
We are still talking "website" and not people that would use that service (which goes like to point 0 in that plan). I'd like to give example ... You want to sell corn in the subway ... just ask 10 people in there if they can imagine eating corn there, maybe more questions ... if not corn ... something sweet ? What price would they pay ... how much time they have to buy it even if they wanted it ...