Nestoria Interview: Iain Dooley, Working Software
Ed Freyfogle, one of Nestoria's fair founders, recently shared a link to a blog post entitled: “How we didn't launch in 482 days”. Most startup posts – not that that's what this is, it's just what I assumed before I'd read it - rave about how they put everything together in a weekend etc. But this post was about the slow and steady attitude to growing and developing your internet business, and how a tempered pace can actually be seen as a good thing. This lesson is relevant to a lotta folks, so it seemed appropriate to delve further into the story of the poster and find out more about how he came to these conclusions.
His name is Iain Dooley. He founded Working Software instead of writing a thesis for his Mechatronic Engineering/ Japanese course at the University of Sydney, and now lives on the central coast of NSW with his partner and 1 year old daughter.Here's more about what he does:
How would you describe your company and the work you do? Do you consider yourselves a 'startup'?
Startup is a weird word. I would never describe Working Software as a startup for the same reason as I would never describe myself as an entrepreneur: they're both annoying buzzwords that have been co-opted to mean a whole bunch of different things most of which seem to be distractions from the type of work required to create a successful business.Working Software is a small business that has traditionally focused on providing a range of IT services primarily in the area of web based application development in PHP that has varied in size from 1 to 5 employees (there are currently 2 members of the team other than myself). We are working to build passive revenue streams through the development of web based software, most notably Decal and 8Centsms.What are some of the major projects you've worked on?The biggest single project we've externally consulted on was an SMS communications platform for radio stations (Melbourne readers who listen to SEN 1116 may know it as the "SMS machine") of which 8centSMS is a spin-off project. More recently, Decal CMS is the longest running, most complex project we've worked on.Before those I worked freelance on a range of small to medium website projects and a bespoke document management system for an international student residence organisation.Which of these do you consider to be the main 'prong' of your business?There are 3 reasonably distinct "strategic business units" right now: Decal CMS is where all our "web consulting" work goes. We're really trying to get back to our roots with that, focusing on being able to deploy reasonably priced, professionally designed websites for fixed prices using our own product. The reason we're doing that rather than, say, flipping Wordpress sites for a few hundred bucks each is that, along the way Decal CMS matures and we're using that process to (partially) fund the development of Decal into a product that will be available as a DIY hosted content management system suitable for a range of skill levels from the non-technical small business owner/blogger that wants to setup a website themselves, to design and marketing agencies with in-house dev teams. We also have plans for building a marketplace for people to build and sell plugins, or "Accessories" as we're planning on calling them (since Apple recently sued Amazon for the use of the word "App Store"!). Ask me again in 5 years if that worked or not ;)8centSMS is a launching point for any "communications" based work - mostly promotions/campaigns work including premium SMS and web competition entry. 8centsms.com, as well as being a web SMS gateway for personal use, is like the public face of what is essentially a stream of consulting work focused on marketing, promotions or communications. There are a few products emerging from that work which are built on the 8centsms.com platform such as an email marketing tool which allows you to create pages in Decal and send them out from 8centsms.com although we haven't really launched anything yet. It'll probably be another year at least until we have a product ready for general consumption but a couple of our clients have already started using early prototypes.Then there's the straight up and down, by the hour, consulting work which goes a fair way to paying for the costs of developing Decal. This is your basic guns for hire type scenario where we can provide development services in a range of languages, onsite technical support, hosting, system administration, all that jazz.We're actually in the process now of incorporating a couple of different companies to provide equity to the various team members involved and formalise this structure a bit more (up until now Working Software has just been a Sole Trader operation with employees and contractors).How long have you been working on this project? And what have you learned about the process of creating and developing a product during the process?Haha, sorry my previous answer didn't lead particularly well into this question. I guess the "main prong" from a product perspective at this stage would definitely have to be Decal so I'll discuss that.Decal technically dates back to 2006 but it's really only since November 2009 that we've been focused on it. I'd say there are two primary things I've learned.The first is: relax, the market is huge. Of course this doesn't hold true for all markets, but just think about it for a second: if I told you I want to build a company that does hosted content management systems, wouldn't you say something like "you're an idiot. That marketplace is utterly packed and there are so many free solutions that you can't possibly compete". (I wouldn't say idiot...)Well, there sure are a lot of competing products, but at the same time the market is just immeasurably large, and we need such a small portion of that market in order to be profitable that I'd say that the chances of being a sustainable business are significantly increased.Not only is the market huge and growing, but people change all the time. They get sick of what they're using for one reason or another, they go looking for something else, they find you, you do your best to retain them as a customer for as long as you can. So what this really means is that all the stress and pressure you place on yourself to launch immediately for fear of "missing the boat" is bullshit. No-one cares that we didn't launch Decal last year. No-one cares that we're only launching a subset of what we consider to be the eventual goal of Decal.I think this is a phenomenon that is greatly intensified in the web development sector. As others launch competing products and stories fly past you on a daily basis about which companies have received $X,000,000 in funding it seems as though you could never possibly keep up, but "launch day" is just the first day of the rest of your business.The way I've started thinking about it is this: if we had managed to successfully launch last year, wouldn't I still hope to be in business at this point? Then, if we had launched last year, wouldn't I expect that some new competitors would have emerged by now? And wouldn't I be concerned about the threat from those new competitors and therefore be driven to innovate to retain my market share, however meagre that market share may be? The answer to all of those questions is yes, so it just seems so silly to me now that I was really hung up and stressed out about launching "on time" when there was no real deadline. Of course you need to release a product as quickly as you can but deciding how and when to launch probably shouldn't be driven by your fear of missing the boat in an ever changing market place. Basically, first mover advantage is nonsense.That leads me on to the second point: releasing software. Your software needs users. Software without users is a theoretical exercise. Decal is probably different from a lot of other "web startup" ideas where it looks like people were sitting around throwing darts at a wall full of buzzwords to come up with something they can put online and see what happens. Decal has been developed at every stage for Working Software clients, so we've always had users for it and the features have been largely driven by that, and by our own needs as web developers.I think this is a great way to build software (and I'm not the only one *cough* 37 signals *cough*) - to scratch your own itches. Decal has two groups of users: the end users that manage the content, and the people who deploy the websites (developers/designers). Because we were running out of time and money, our focus now is on releasing a product purely for the "end users". It's not our ideal product, but releasing SOMETHING that we can sell and that will be useful to people (we hope!) is more important than holding onto it until we're sure it's perfect and it does everything we want it to.So whilst I'm certainly not in the camp that can proudly proclaim to have "launched a startup" in his spare time over the weekend using the latest trendy web application framework, I've always been very focused on figuring out how we can pare back our expectations of the product to get something into the hands of the public. It doesn't have to be perfect, but it should be robust and reliable and I believe that so long as it shows a promising trajectory, people will start to take notice and come along on the journey with us towards the product we eventually hope to build.What are some of the main hurdles/ challenges you've been faced with?Well, Decal is a really challenging project because we're solving a problem in a unique way that involves a lot of R&D. That type of work is so unpredictable that the traditional notion of estimating time or having deadlines becomes sort of irrelevant. I guess you could say the biggest challenge has been trying to build a product and make money in the face of such uncertainty. If you imagine that the entire process is like a fruit tree always growing and developing. You have to cultivate the tree, but every now and then you have to hunt down some
fruit, pick it off and say "alright, we can sell that, put it on the truck". You have to learn to recognise those bits of fruit that you think you'll be able to sell in order to continue cultivating the tree. (Nice analogy.)Do you think your location in Australia has made any difference in the development process? Apart from being able to work in your backyard... The Working Software Team in 2010Haha well actually I think there are two main advantages to being in Australia: one is that we have an excellent social security system. It seems counter intuitive but I think that "socialism" in that respect is fantastic for fostering business innovation. A lot of innovation happens in very small businesses and I've heard it said before that small business plays an ever increasingly important role in the Australian economy (no doubt eclipsed by mining though ...)If I were living in the United States, for example, then health care would be connected to my job. I'd be far less inclined to take risks, especially given the birth of my first child and having to support a family. Since we're guaranteed a basic level of healthcare and, if worse comes to worse, housing and unemployment benefits, the risk factors are dramatically mitigated and I feel secure in being able to try and build a business which might in turn provide employment for many people for years to come. So that investment in people and society is, I think, a very important part of Australian culture and something we should consider sacred.The other advantage is in having a very understanding and lenient tax department. I've been very cash strapped for the past year or so and the ATO have been fantastic in letting me pay things off via special arrangements (although I think this may have been leniency to keep things running during the rebound from the GFC, needless to say I'm not taking it for granted :)Some of the drawbacks include a drastically tighter market for early stage venture capital funding (although that may be a blessing in disguise!), a much smaller market of early adopters compared with the U.S and fewer options for accepting online payments.Do you use anything, or contribute anything to, the Open Source community?I run everything on open source software (FreeBSD and CentOS operating systems, MySQL database, PHP) and a few years ago I attempted to take the web development world by storm with my revolutionary PHP framework RocketSled which was launched to the sound of crickets chirping and never heard from again. To be fair I didn't really keep up much of a release cycle. We still use RocketSled in production now but I'm not planning another release.Since then I've been kind of preoccupied but there are a few little bits and bobs coming out of the work that we're currently doing that might be suitable for open source projects so when we get the chance we'll publish those.I was involved in the inaugural Google Summer of Code and released a piece of software I called Koto which was a rapid application development tool that bound a Ruby interpreter to the QT framework. I could never work out how to use autotools though so the install process was pretty prohibitive. To my knowledge one other person apart from my project supervisor installed it - a German guy who blogged about it with the title "That's real RAD!". Unfortunately I can no longer find that blog anywhere :) Do you think the best developers are 'sharers and collaborators' or lone wolves?I don't think you can judge how good a developer is by either of those characteristics. Well ... I should add that I don't really care for the term "good developer" because "good" there is pretty ambiguous. As a small business owner I'm interested in developers that make my business money. More than any other skill a developer may possess, communication is the most crucial. The ability to read, write and understand, research and learn independently are the most valuable skills.That being said there is always value in peer review and "coding outside the vacuum", so to speak, but I wouldn't, for example, not consider hiring someone because they didn't have an active github account displaying all their various open source achievements.When I hire, the two most prominent things on the job ad are that I need someone with impeccable English skills, and someone who knows their way around a Unix command line. If you find someone who knows Unix you can be sure they're an independent learner and good at reading instructions so that's a very good start!What keeps you inspired?Building things is pretty fun. When you actually see something start to come together it's exciting. The part up until that point can be mentally devastating. I think I agree with my 2nd year Mechatronics Professor Steve Scheding who said "I hate coding, but I love having coded". I hate building products, but I love having built them.Money is also a particularly strong motivator for me. I want to build a profitable business but preferably do it with a product or service that I'm proud of.And what products/ apps. or ideas do you love and wish you'd come up with yourself?To be honest almost everything I see I have come up with in some form, and I don't think that's particularly unique. Web developers all have a backlog of about a billion ideas that they'd like to build some day. As for things I didn't think of before I saw them, like Twitter for example, it's hard to be envious. I mean, it would be sort of like getting jealous of someone who won the lottery. It's so improbable that you'd stumble across something so simple that would turn into a global phenomenon that it's just not even worth bothering to think about really.And lastly is there any product, site, or app. that you'd love to see that technology hasn't quite created the possibility for yet? If so can you tell us about it and what it would do? (If you're concerned about giving away great ideas, then feel free to say something quite far out.)One idea I had a couple of years back was to setup Premium billing (similar to SMS) based on IP address for selling online mobile content. This would require mobile operators to provide an API that allowed me, as the content provider, to map an IP address back to a mobile account and then send them a billed message. Apparently Indian mobile operators pass the user's mobile number in the web request headers so maybe someone could launch that service over there.If no-one's done it by the time Decal and 8centsms.com either succeed or peter out into oblivion maybe I'll give it a shot :)

















