1. TALK: !
Becoming a STARTUP EMPLOYEE!
!
Transitioning from BigCo!
Speaker!
Bryan Starbuck! Bryan <at> Empower.me!
CEO & Co-Founder â Empower.me! http://www.Empower.me!
- Former CEO of TalentSpring (Acquired 2010)!
We are an online learning and rewards system gives teens
- Former Engineering Manager!
opportunities to earn extra spending money from parents for
Linked-In: Linkedin.com/in/bryanstarbuck! doing regular chores and accomplishing learning goal.!
!
Video on: http://youtu.be/ixP6omLDV_c!
2. Visualize a Common âEarly Stageâ Startup!
This visualizes the common roles in an early stage startup.!
3 Person Startup! 4 Person Startup!
1 CEO!
1 CEO! 2 Developers (Maybe one is a designer)!
2 Developers (Maybe one is a designer)!
1 Designer or another developer!
!
!
Contactors: Graphic Design, Accounting, Legal!
Contactors: Accounting, Legal!
5 Person Startup! 6 Person Startup!
1 CEO! 1 CEO!
2 Developers (Maybe one is a designer)! 3 Developers (Maybe one is a designer)!
1 Designer or another developer! 1 Designer or sales or biz dev!
1 Marketing person! 1 Marketing person!
Normally few or no âProgram Managersâ. !
Slide 2! ConïŹdential 2012!
4. Developers!
! Make a huge decision for your career:!
! .NET vs Open Stack!
! Envision the stack you want to be using in 8 years from now. Invest towards
that stack!
! Open Stack is still important for .NET developers!
! The âWebAppâ may be .NET, but it will often be surrounded by open stack
components!
! Example: WordPress for blog, Drupal for marketing site, GIT for revision control,
SOLR for full text search on the site, vTiger for CRM internally, AWS,
MemCache, jQuery for UI, etc.!
! The learning involved is signiïŹcant â but great for your career and the success of
your company!
! Iâd recommend focusing your career to focus on a WebApp language and mobile
language.!
! Ruby on Rails & iPhone, or .NET and Android, or Python!
! You can probably hop from company to company based on the language they
use, for the ïŹrst several years!
Slide 4! ConïŹdential 2012!
5. iOS or Android Developers!
! Breaking into a startup job may be harder than you imagine!
! There currently is a huge demand for iOS and Android Developers!
! A great strategy is to learn iOS OR Android!
! This gives you a big advantage to get into a company!
! Donât learn both iOS AND Android in the beginning. It is better to be great at one
plus one WebApp language (Ruby, Python, Node, etc.)!
! The company will want an iOS developer who also knows their WebApp
language. The iOS developer will end up coding on the WebApp (which includes
the backend) in order to deliver data to the iOS app!
Slide 5! ConïŹdential 2012!
6. .NET vs other WebApp Languages!
! .NET/C# can be a ïŹne language to plan your career around for the WebApp
Language!
! The below stats are in the Bay Area startups (Y-Combinator speciïŹcally)!
! Seattle .NET/C# Startups are more common than in the Bay Area!
Slide 6! ConïŹdential 2012!
7. Program Managers!
~= âProduct Managerâ in Startups!
Slide 7! ConïŹdential 2012!
8. Program Manager vs âProduct Mangerâ!
! They are not exactly the same thing!
! At Microsoft, a âProduct Managerâ is in marketing. These kinds of marketing positions
are called âProduct Marketingâ outside of Microsoft!
! Startups often reach 15+ employees before they hire a product manager!
! Seattle has some companies that clone Microsoft. They have Microsoft style program
managers: Expedia, Zillow, RedïŹn, etc.!
Microsoftâš Product Manager!
Program Manager! ! Work heavily with the sales team!
Common! ! Be on sales calls!
! Product Specs!
! Create slide decks for sales teams!
! Cross product-line
! Work on closing big sales!
coordination! ! Often UX designing!
! Big company coordination! ! Work with engineers!
! Need to diagnose problems on
why sales are not closing!
! Can hire entry level positions! ! Manage up to management team!
! Work more heavily with marketing teams!
! Think strategically!
! Often create Product Marketing
deliverables!
! Often hire very few per company âš
and only VERY SENIOR people!
Slide 8! ConïŹdential 2012!
9. Transitioning for Program Managers!
! Considering adjusting to one of these focused areas can open up many more
opportunities!
! For example: UX Designers are exceptionally hard to ïŹnd. They can be a great way
to get into startups!
Product Managers!
Often at B2B Startups!
UX Designer!
and Graphic Design could be âš
out-sourced off-shore!
Microsoft!
Program Manager!
âHustlerâ!
Early stage person for business tasks, which often includes
getting sales or biz dev deals closed!
Online Marketing!
This is a very speciïŹc part of marketing that âš
is critical for growing B2C startups!
Slide 9! ConïŹdential 2012!
11. Software Test Engineers!
! Medium sized companies can hire people for a testing department. Very rare in less
than 10 person companies!
! Testing is far more automated. Startups have to automate. !
! Open source testing automation tools are amazing!
! Selenium, Jmeter, Waitr, Load UI, Cucumber, Concordion, Fitnesse, Sahi, Cruise
Control, Hudson, etc.!
! Big startups or medium sized companies often can hire Software Test Engineers!
! New Open Stack development frameworks build the tests next to the product code. !
! So often product software engineers write tests!
! Otherwise the test engineer is often writing test code in the same product source
tree!
! Software Test Engineers may also want to look at these professions when increasing
the range of opportunities:!
! âDevOpsâ (cross between coding and SysAdmin), Technical Online Marketing!
Slide 11! ConïŹdential 2012!
12. DevOps: Development Operations!
! This is a new position!
! It is becoming popular because of cloud computing!
! Cloud computing means most IT jobs are going away in a company to support
the product!
! Companies now want a âDevOpsâ person instead of an IT person. !
!
! IT people spent too much time managing hardware. Hardware is now in the cloud!
! DevOps need to be:!
! Handling all code issues between the product and the Cloud platform!
! The software engineers want to ofïŹoad the work!
! They donât want an IT person. They want the DevOps person who can code!
Slide 12! ConïŹdential 2012!
13. B2C Online Marketing!
! Online marketing is a hard to ïŹnd skill!
! It is also VERY technical and can be a place to thrive for technical people!
! It is not like old-school âMad menâ marketing!
Traditional Marketing! B2C Online Marketing!
! SEO algorithms!
! Arbitrage PPC keyword buys!
! Science of measuring conversion rate & metrics!
! Creative ads for TV!
! Work towards 100% measurable!
! Canât measure ROI!
! Buying 100,000 keywords and optimize with
! Try creative ideas. Results often unknown and not tools and automation scripts!
fully measured!
! Viral marketing equation!
Slide 13! ConïŹdential 2012!
14. Getting a âš
Startup Job!
Slide 14! ConïŹdential 2012!
15. Getting a Startup Job!
! Do you want an âEarly Stageâ startup (near founding stage) or a stable mature
startup?!
! This is an important decision!
!
! For All Startups:!
! Apply to company job openings!
! Enter resume into Monster and CareerBuilder!
! Make a great Linked-In proïŹle!
! Network at Seattle networking events: http://bit.ly/KlBsvR!
! For Early Stage Startups:!
! Go to FounderDating.com and similar match-up services!
! Network at Seattle Networking events!
Slide 15! ConïŹdential 2012!
16. Salary!
! VC funded companies and proïŹtable companies tend to give âMarket Rateâ salaries!
! Market Rate is for startup companies, it doesnât mean it matches BigCo salaries!
! You need to ïŹnd value in the stock !
! VC funded software engineers are often $80k to $120k, and sometimes $140k!
! Early Stage:!
! Lower salary than VC funded companies!
! You need to ïŹnd value in the stock!
! Software Engineer salaries stay high for startups because they are critical and rare!
! All other job titles have more pressure for lower salaries!
Slide 16! ConïŹdential 2012!
17. Microsoft level 68 Salaries!
! Microsoft offers incredible salaries for level ~68!
! These salaries are unique and almost never occur outside of Microsoft!
! Staying at Microsoft and often be âš
the best solution!
! Startups (Early-stage or late stage) âš
almost never can match the salary!
Slide 17! ConïŹdential 2012!
18. Donât ask for 150% of the company in Stock!
The following scenario happens with some BigCo employees:!
âMy salary at BigCo is $190k per year. At a $80k salary
for 3 years, I need it made up in stock.!
!
That is $110k per year.â!
âThe company at the very early days is
valued at $500kâ!
âThat means you own 66% of the companyâ. And
Iâm going to hire 3 people like you.!
âI need to guarantee I make money, even given the
company is sold only for $10 million. I need to make sure I
get my cash back from my reduction in BigCo salaryâ!
âI need to ensure that, even with only a 5%
chance the company is acquired.!
âGiven that we need to raise capital ($1.5m at $2.5m pre
and then $5m at 7m pre), means you own 240% of the
companyâs non-investor sharesâ. And I need to hire 3
people like you!
Slide 18! ConïŹdential 2012!
19. Stock Ownership!
! Focus on only joining a startup that can reach $300 million in revenue or higher!
! This is why Google, Microsoft, Facebook, eBay and other employees are well off!
! Here is a SECRET:!
! Startup employees make less ON AVERAGE than BigCo employees who are
great savers and 401k investors!
! Startup founders make less ON AVERAGE than BigCo employees who are great
savers and 401k investors!
! You MUST join a startup for the love of the freedom to create companies from
the ground up. And for removing the friction that comes in big companies.!
! Join for the LOVE of the work. And only join startups that can reach a HUGE market
size!
! Do the stock calculations because your business model can reach $300 million in
revenue. Donât join startups that arenât going after a $300 million+ market opportunity.!
Slide 19! ConïŹdential 2012!
20. Questions on Stock Options!
! How many TOTAL outstanding shares are there?!
! If they wonât answer this, then worry.!
! I think there are integrity problems if they wonât answer. !
! It often means they hire people who donât understand. Your ownership is then
approaching 0%.!
! If people VEST, do they keep their shares when they leave the company!
! Almost always yes (if I pay off the strike price)!
! A few companies take them back!
Slide 20! ConïŹdential 2012!
21. The Startup Mentality!
The mentality at a startup is radically different than BigCo:!
BigCo! Startup!
Strengths and Focus:! Strengths and Focus:!
! Organizing big groups â for an advantage! ! Very focused -- Solve one problem very well!
! People specialize by job title! ! Very little overhead & politics!
! Huge support staff (ïŹnance, HR, admins, etc.)! ! Employees have to span several job titles!
! Have proïŹtable existing products to fund new products! ! Little to no support!
! Time deadlines are artiïŹcial! ! Deadlines and results are do-or-die!
! Failure results in a âre-orgâ! ! Raising capital is needed!
! Career holdback is politics and visibility! ! Long-hours, incredible dedication, risk taking and no
bureaucracy are a weapon against BigCo competitors!
! Successfully growing revenue equals survival!
Slide 21! ConïŹdential 2012!
22. Next Steps (1 of 2)!
! Get involved in the Seattle Startup Community:!
! Network Events: http://bit.ly/KlBsvR!
! Tip: Attend each event once. Then you will meet people across Seattle!
! The Eastside Incubator is great: Eastsideincubator.com (Across from MSFT
main campus)!
! Attend at least 60% of events in SEATTLE instead of the Eastside!
! Too many people on the Eastside never plug into the main seattle startup
community!
! Join Bryan Starbuckâs mailing list for âLearning and transitioning between
Microsoft & Startupsâ: http://bit.ly/Nwm9RR!
! Join STS mailing list: http://bit.ly/Mqf7Mc!
Slide 22! ConïŹdential 2012!
23. Next Steps (2 of 2)!
! Always be Learning:!
! Also focus on making sure to learn the best cutting edge techniques from Silicon
Valley. Blogs are great for this.!
! Hacker News is a MUST READ every day: http://news.ycombinator.com/!
! Build a great list of blogs for learning!
! The Founders Institute is a great organization in Seattle. There is no reason NOT to
join, if you are creating your own company!
Slide 23! ConïŹdential 2012!
25. More talks on MSFTees to Startups!
Other available talks online:!
Deciding on the
Creating your own Startup! Development Stack!
Video: http://bit.ly/KMFX3v! Video: http://bit.ly/LVY1E8!
Slidedeck: http://slidesha.re/NtqZza! Slidedeck: http://slidesha.re/HbyLaK!
Slide 25! ConïŹdential 2012!
26. Next Steps for Learning (1 of 3)!
People often ask how to learn more. Here is the best way:!
ABSOLUTE Must Read! Strategic Thinking or Execution!
Venture Deals On Amazon! Innovatorâs Dilemma On Amazon!
By: Brad Feld! By: Clayton Christensen!
! !
! Crossing the Chasm On Amazon!
Art of the Start On Amazon! By: Geoffrey Moore!
By: Guy Kawasaki! !
! Blue Ocean Strategy On Amazon!
! By: W. Kim!
! !
The Lean Startup On Amazon! !
By: Eric Ries! Good to Great On Amazon!
! By: Jim Collins!
!
Maverick On Amazon!
Other! By: Ricardo Semier!
!
!
The Ten-Day MBA On Amazon! The Four Steps to the Epiphany On Amazon!
By: Steven Silbiger! By: Steven Blank!
! !
Founders at Work On Amazon! Inspiring Excellence On Amazon!
By: Jessica Livingston! By: Michael Schutzler!
!
!
!
ABSOLUTE Must Read!
Slide 26! ConïŹdential 2012!
27. Next Steps for Learning (2 of 3)!
People often ask how to learn more. Here is the best way:!
Marketing! Other!
The 22 Immutable Laws of Branding On Amazon! Founders at Work On Amazon!
By: Al Ries! By: Jessica Livingston!
! !
! !
Full Frontal PR On Amazon!
Startup Weekend On Amazon!
By: Richard Laermer!
By: Marc Nager!
!
! !
Positioning: The Battle for your Mind On Amazon! Donât Make Me Think On Amazon!
By: Jack Trout! By: Steve Krug!
! !
The Strategy and Tactics of Pricing On Amazon! !
By: John Hogan!
!
!
Purple Cow On Amazon!
By: Seth Godin!
!
!
ABSOLUTE Must Read!
Slide 27! ConïŹdential 2012!
28. More Learning (3 of 3)!
! (My) Bryan Starbuckâs Blog on Company Building:!
! http://bit.ly/StarbuckBlog!
! Dave McClure â Marketing Model for Startups: !
! http://500hats.typepad.com/500blogs/2007/06/internet-market.html!
! http://vimeo.com/26277733!
! http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version!
! http://www.slideshare.net/dmc500hats/startup-metrics-101-367863!
! More from Dave McClure:!
! http://www.slideshare.net/dmc500hats/why-not-to-do-a-startup!
! http://www.slideshare.net/dmc500hats/do-marketing-its-not-evil!
! Presenting to Investors:!
! http://www.slideshare.net/dmc500hats/how-to-pitch-a-vc-aka-startup-viagra-how-to-give-a-vc-a-hardon!
! Strategic economics of SaaS https://salesforce.adobeconnect.com/_a13852757/buildingasuccessfulsaasco/!
! Startup Marketing: http://howtolaunchastartup.com/2011/06/20/21-must-read-resources-for-start-up-marketing/!
! 57 Things Iâve Learned Founding 3 Tech Startups:
http://betashop.com/post/1417413108/57-things-ive-learned-founding-3-tech-companies!
ABSOLUTE Must Read!
Slide 28! ConïŹdential 2012!
29. THE END!
Thanks for Listening!
Slide 29! ConïŹdential 2012!