The document provides guidance on starting a web-based startup. It discusses generating ideas by identifying problems, technological simplifications, and professional gripes. Ideas should be validated by determining if the problem is real, the market is large enough, and the product is achievable. Feedback should be gathered from potential customers as early as possible. The technology used should be something the founder is familiar with and has a large developer community. Revenue models should be implemented from the start. As the startup grows, considerations include hiring employees, raising capital, and eventually exiting via strategies like pivoting, selling, or IPO.

1. How to Start a Web-based
Startup
Isaac Sukin
@IceCreamYou
isukin@wharton.upenn.edu

2. Ego
•5 years of webdev
•20+ open-source projects
•100+ consulting/freelance
•Social communications
•GSOC
•35+ members
•11 countries, 4 continents
•49 awards
•200,000+ downloads
•Entrepreneurship & Innovation
•Information Systems Management
•CS minor & TA

3. Turntable.fm

4. Turntable.fm for Shopping

5. How to Start a Web-based
Startup

6. Why Web-based?

7. That’s what I’m good at
•Low-cost
•Fast time to MVP
•Easier transition to mobile
•Wider reach
•Accessible

8. Almost none of this talk is
specific to web-based startups

9. Bandwagons
It’s a bubble
It’s terrifying
You’ll probably fail
You probably won’t get rich

10. Fun
Responsibility
Autonomy
Learning

11. Let’s do this

12. Idea Generation

13. Idea Generation
• General areas of interest
• Identify:
– Problems
– Technological simplifications
– Workarounds
• Identify solutions

14. Inspiration
• Copy something else
– Cross-application
– Different approach
• Professional gripes
• Easy but tedious
• Existing “solutions”
• Invert cliches

15. Idea Validation

16. The Gauntlet
1. Is the problem real?
2. Is the target market segment big enough?
3. Is the product/service achievable for you to build?
4. Why you and not someone else?
5. Can competitors beat you if you prove this is a good idea?
6. Will people actually pay enough for this?
7. Is this actually what people want, or just another workaround?
8. Why now? Is the market and technology ready?
9. Is the up-front investment achievable?
10. Is the required time frame reasonable?
11. Are there other advantages to just trying it?

17. The Gauntlet
1. Is the problem real?
2. Is the target market segment big enough?
3. Is the product/service achievable for you to build?
4. Why you and not someone else?
5. Can competitors beat you if you prove this is a good idea?
6. Will people actually pay enough for this?
7. Is this actually what people want, or just another workaround?
8. Why now? Is the market and technology ready?
9. Is the up-front investment achievable?
10. Is the required time frame reasonable?
11. Are there other advantages to just trying it?

18. The Gauntlet
1. Is the problem real?
2. Is the target market segment big enough?
3. Is the product/service achievable for you to build?
4. Why you and not someone else?
5. Can competitors beat you if you prove this is a good idea?
6. Will people actually pay enough for this?
7. Is this actually what people want, or just another workaround?
8. Why now? Is the market and technology ready?
9. Is the up-front investment achievable?
10. Is the required time frame reasonable?
11. Are there other advantages to just trying it?

19. The Gauntlet
1. Is the problem real?
2. Is the target market segment big enough?
3. Is the product/service achievable for you to build?
4. Why you and not someone else?
5. Can competitors beat you if you prove this is a good idea?
6. Will people actually pay enough for this?
7. Is this actually what people want, or just another workaround?
8. Why now? Is the market and technology ready?
9. Is the up-front investment achievable?
10. Is the required time frame reasonable?
11. Are there other advantages to just trying it?

20. The Gauntlet
1. Is the problem real?
2. Is the target market segment big enough?
3. Is the product/service achievable for you to build?
4. Why you and not someone else?
5. Can competitors beat you if you prove this is a good idea?
6. Will people actually pay enough for this?
7. Is this actually what people want, or just another workaround?
8. Why now? Is the market and technology ready?
9. Is the up-front investment achievable?
10. Is the required time frame reasonable?
11. Are there other advantages to just trying it?

21. The Gauntlet
1. Is the problem real?
2. Is the target market segment big enough?
3. Is the product/service achievable for you to build?
4. Why you and not someone else?
5. Can competitors beat you if you prove this is a good idea?
6. Will people actually pay enough for this?
7. Is this actually what people want, or just another workaround?
8. Why now? Is the market and technology ready?
9. Is the up-front investment achievable?
10. Is the required time frame reasonable?
11. Are there other advantages to just trying it?

22. Is it a good idea?
• Is the user the one giving you money?
• Do you have experience with and interest in
the topic?
• Are you scratching your own itch?
• Are there barriers to entry for future
competitors?

23. Can it be bigger?
• If it doesn’t pass the questions above, can
you tweak it so it does?
• Could you make more money if you
changed the target audience? (Enterprise?)
• Are you envisioning just the product or an
entire new market infrastructure?
• Is there a better niche for your idea?

24. Concept Statement
[product]
will provide [target customers]
with [desired benefits]
by [delivery method],
which is different than [competitors]
because [new product attributes].

25. Feedback
• Show people what you mean, and ask if
they would pay for it
• Surveys are useful more for uncovering
needs than confirming specific solutions
• Research
• Get people using a MVP ASAP
• Fail fast, but don’t correct without data
• Feedback is not the same as commitment

26. Build It

27. Design
Ship Test
Create

28. Technology
No.
Does it matter?

29. Well, maybe
• Choose something that:
– you know
– you want to learn
– is Open
– has a large developer community
– makes development fast
– lets you get your data out easily later
– aids maintainability

30. Being Technical
• If you’re not technical:
– Non-tech-dependent ideas
– Outsourcing
– Technical cofounder
– Learn tech yourself
• If you need to bring on technical
help, recognize:
– They have options
– They might be doing most of the work

31. Sell it
• Revenue model
• Sell from day 1
• Gather data and use it to change business
decisions
• Build trust
• Pretend to be big
• Customers first

32. Hiring
• Hire when it hurts
• Don’t be greedy
• Be considerate
• Do your research
• Hire engineers
• Brag about numbers
• Know what employees want
• Ask the right questions
• Look in the right places
• Be direct and specific
• Know what you’re looking for
– Passion
– Intelligence
– Creativity
– Communication
– Pickiness

33. Raising Capital
• Capital is an accelerant, raise for the right
reasons
– Extract liquidity
– Push the limits of a product
– Gain access to investors
• Pick the right investors
• You’ll get distracted
• Doing it wrong is the biggest cause of
failure

34. Exiting
• Pivoting
• Selling
• IPO
• Failing
• No exit

35. Q&A / Workshop