Chances are, as a startup, you need some development work. If you're NOT a developer yourself, consider these rules for developers.
RULE One:
NEVER make the guy developing your product your equity partner. NEVER! If you don't speak the language, be it HTML5, or java, or what the hell else, you're at his or her mercy.
RULE Two:
See Rule One, there are no other rules.
I personally have had more smoke blown up my ass by partners that are developing products for me than I care to discuss. But I have found a solution that I desperately want to share.
A developer is the most important stakeholder in your business. But never have that person develop your product. There's a serious conflict of interest there. If you can afford to, hire one as CTO to handle your development work. Their role is to understand the product, assist with development of the product specs, create requirements documents, assist in development of developer contracts, and critically KEEP AN EYE ON THE DEVELOPER BUILDING THE PRODUCT. If you're cash poor, partner with one for equity.
Considering each part of the developer partner's role, understanding the product is key. If he or she doesn't get it after a meeting or two - LOOSE 'em. They never will get it and can't help you. Some will actually argue that features are needed or not needed based on their $12.95 how-to for startup book, when they are actually guiding you to change the product to suite their development skills. If they can't build an iFrame, they simply argue it's not needed.
Your CTO should be able to assist with development of the product. Again, after two meetings they should be able to not only understand the product but be able to offer unexpected solutions that enhance the product and not change it.
Product specs are critical when outsourcing development. The CTO developer is best suited to do this. This is an accountability checklist for the developer building the product as well as the developer guiding the project for you.
Developer contracts have been around for decades. They point to the requirements document and require deliverables to be paid. Your CTO should have these at his disposal or be able to create one. Of course you'll want your lawyer review this. Your contract with the CTO should list his duties in detail as well.
Finally, both the CTO and Product developer must meet certain personality requirements. Let's be honest, folks who couldn't possibly make it working with the public, children or with normal humans can find work and happiness securely hiding behind the glowing screen. And steer clear of the developer who is an expert at everything entrepreneurial as he read the latest $12.95 How-To build a startup business book. Appropriate folks are out there. So don't let desperation and frustration tempt you to tolerate or, heaven forbid, to partner with one of these guys. If the product is a good one, FIND A STRATEGIST TO ALIGN IT, TO ATTRACT STAKEHOLDERS, AND TO FUND IT.
A side-note: If you already have an impossible developer-partner, and you know deep inside that you do, dump him or her at any cost as soon as possible.
A good startup strategy starts with a great team that includes a developer. If you're not one, take on one as partner or hire one to guide and advise. At George J. Constance, Jr., Business Strategy Consulting, we align your business with the market, key stakeholders and away from the dangerous alliances that can kill even the best ideas.
