photo by (nz)dave.

The history, continuous evolution, and vibrant entrepreneurial culture of the Silicon Valley region solidifies it as the global epicenter of information technology, internet, and software. The trillion dollar ecosystem of technology companies, investment funds, and skilled workers creates a near conclusive justification for starting a tech start-up in the valley.

We currently live in Petaluma, a small city of around 50,000-60,000 people in southern Sonoma county, but are feeling the pull of Silicon Valley.
Petaluma is certainly a nice place to live:

• slightly lower housing costs then other Bay Area counties (beautiful craftsman and Victorian homes)
• lots of parks and open space
• a lively downtown with a few nice restaurants, coffee shops, and nightspots
• lots of great food, farms, and wineries

But if you are literally 1.5 hours from the global technology epicenter, and your city is not known as a tech startup hotspot, what sense does it make to be located there?

My recent thinking has been following along these lines:

• Most professionals that live in Petaluma commute to S.F - and would be very interested in ditching the daily parking lot that is known as Highway 101 from Sonoma into SF to work.
• A talented developer / exec in Silicon Valley is weighing her options at 5-6 startups and 1-3 large companies, all of which are likely better funded than PF.
• In Petaluma, at least we would be unique with our no salary + lots of work + equity job postings.
• Sonoma County is a service-based economy so many of our initial customers could be harvested locally.

flickr photo credit: Omnia Mutantur

While it is quite well known that starting a business is hard work, it is not until you have been going at it for a while (six months in my case) that the realization really hits you. Its not that the work is boring, or feels like any work you have done at your day job, its just that there are so many moving pieces and a constant barrage of opportunities, technical details, and market developments that can leave you feeling overwhelmed. Just to think, if it like this now (pre-launch, pre-customers, and pre-pre-revenue), it is going to be 10x more hectic when the venture is live.

Shifting to Reality
Over the holiday months we were working hard behind the scenes on a partnership deal that has added significant technical talent to the team and we are now able to really begin developing the PF application. With this partnership in place, I’ve changed my overall focus from the business plan / market research mindset, which is concept based, to developing the PromoterForce product, which is tangible, and a heck of a lot more work.

What I’ve noticed is that the bplan focus is based on so many assumptions and “what ifs” that it puts the entrepreneur in a almost dream like state of mind. “Of course its going to work”, because IT does not exist and all you have to lose is the hours you spent reading, writing, and thinking about the future. Dreaming and business planning are super important, you just have to make sure that you are more focused on bringing your vision to reality then explaining the concept.

Team Building
I was reading a post at the Union Square Ventures blog, titled Founders and Management, where they provide some excellent insight on what they look for in entrepreneurs from an investor’s perspective, and why it is so important for startups to have a talented group of people on the team. Paul Graham from Y Combinator also covered this issue in his paper, The 18 Mistakes That Kill Startups. Reason # 1 - Single Founder - Paul explains that having only one founder is a vote of no confidence, if the entrepreneur cannot convince a few other people to join her mission how can she expect to build a company. The folks at Union Square take a similar stand, but also add that there is always an exception to the rule.

As of today, PF has one strategic partner, who is bought into the business and has put some of their valuable skin into the game, which is encouraging (vote of confidence). What we are lacking is a co-founder, which is a bit concerning. I’m 100% confident we will be able to attract other talented team members, but the process is pretty daunting at such an early stage, and with product development in full swing, I’m consciously trying to not worry about it too much. Much like venture capitalists, team members will start gravitating towards a business when it gains some traction in the market.

From an entrepreneurs perspective the need for talented team members is all about sharing the immense workload involved in building a world class company. With so many unknowns the value of a second opinion, and occasionally being called on your “bullshit” is an invaluable resource. So as we continue to develop towards our goals, we will be keeping our eyes wide open for a few special people that show keen interest and brings unique skills and passion to the project, when he/she comes along, we are going to pounce, until then we will simply KIM (keep it moving).

Technorati Tags: management team, co-founders, startup

Why We Promote
Simply put, we promote because we have experienced something special. So many of our daily experiences end in mild dissatisfaction, or full fledged mediocrity. When we get a rare taste of true service it makes a lasting and powerful impression on us.

Every mediocre customer experience doesn’t cause us to stop using a service or tell others just how poorly a company is at delivering. However, the truly differentiated experience, where you are honestly impressed by the company, it’s people, and it’s products, is pretty remarkable.  I honestly feel an amazing kinship to companies that deliver above and beyond.

Natural Selection
As a satisfied customer I want to let others in on the fabulous experience, so I keep my ears open, and jump in with a recommendation when the opportunity presents itself. Over the course of a few months I may have told 15 or 20 people about the company, which may have led to 3 or 4 new customers, and another 5 or 6 qualified prospects. If you multiply that activity by 10 or 15 people, you can clearly see the impact promoters can have on the company’s and their less then stellar competitor’s bottom lines.

Rise to the Top
The idea that the very best businesses should rise to the top is perfectly fine with me, the high standard of excellence set by the leader serves as benchmark that competitors and new entrants will be measured by. I think quality of service will become the new benchmark by which we judge a business. The last decade has been all about low cost, and millions of choices, but when low cost means poor service, down trodden employees, and a simple lack of care, it doesn’t really attract me. Call me crazy, but I will happily pay a premium for the best service because it makes me feel like I got something special.

flickr photo credit

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