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    Technology

    Building Infinite Red

    The founders of Infinite Red share stories and insights into creating and leading a software consultancy on the edge of tomorrow.

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    Latest Episodes:
    This podcast could have been an email Mar 12, 2020
    Show notes

    • How Infinite Red Improved Remote Video Meetings With a Few Hand Gestures

    • Virtual Meetings Have Types
    • Link to tweet about Invision using the hand queue system developed at Infinite Red



    AI is going to change everything; let us explain Feb 25, 2020
    Show notes

    Connect with the owners on Twitter!

    • Todd Werth: @twerth

    • Jamon Holmgren: @jamonholmgren

    • Gant Laborde: @gantlaborde


    Getting Paid: Why is it so hard sometimes? Feb 19, 2020
    Show notes

    Connect with the owners on Twitter!

    • Todd Werth: @twerth

    • Jamon Holmgren: @jamonholmgren

    • Gant Laborde: @gantlaborde


    Helping Clients From Zero To One Feb 11, 2020
    Show notes

    Episode Links
    • Startup Package blog post.

    • Interested in learning more about our Startup Package? Head over here!
    Connect with the owners on Twitter!

    • Todd Werth: @twerth

    • Jamon Holmgren: @jamonholmgren

    • Gant Laborde: @gantlaborde


    Foundations and Pillars Feb 04, 2020
    Show notes

    Connect with the owners on Twitter!

    • Todd Werth: @twerth

    • Jamon Holmgren: @jamonholmgren

    • Gant Laborde: @gantlaborde


    Ch-ch-changes Jan 28, 2020
    Show notes

    Connect with the owners on Twitter!

    • Todd Werth: @twerth

    • Jamon Holmgren: @jamonholmgren

    • Gant Laborde: @gantlaborde


    The Exciting World of Lawyers and Accountants Jul 19, 2018
    Show notes

    In this episode of Building Infinite Red, Jamon, Ken, and Todd touch on the exciting world of lawyers, accountants and bookkeepers, as well as a variety of finance-related topics such as cash flow and different types of accounting. Be sure to listen to the end of the episode as Jamon shares the vision for Season 2 of Building Infinite Red. Show Links & Resources YNAB – You Need A Budget Saturday Night Live Highlight: First CityWide Change Bank Episode Transcript TODD WERTH: Hello, everyone. Today we were talking about which topic to talk about, and we had the idea, how can we come up with a topic that's extremely boring, that no one wants to talk about, but actually is super important? So, we're going to talk about lawyers, accountants, bookkeepers, finance, and other things. Basically, how to start a business and still feed your family. Let's start off with you, Ken. If I were starting in business and you and I are sitting in the airport and I knew you had started one and I asked, "Hey, Ken. What should I worry about first off when I'm starting a business?" What would you say? KEN MILLER: I would tell you to go find a good accountant and a good lawyer right away. You don't need to pay them to set up the business for you. You can do that yourself or you can use a service like LegalZoom or something like that. But you need to have somebody who is familiar with the kind of business that you're planning to do. We have a great lawyer who happens to specialize in digital agencies. I've got an accountant that I've personally worked with for many, many years. It's not the cheapest, like you want your accountant to be good. A bookkeeper is sort of a different matter since your accountant is not doing your day to day books, and you don't necessarily need a bookkeeper right away because you're probably not going to have a lot of transactions right away. To be honest, I found it was helpful for me to just do it personally for a little period because then I understood what was going on better. JAMON HOLMGREN: Ken, what's the difference for those who may not know between an accountant and a bookkeeper? KEN: Well, I'm told bookkeeper is a little bit old fashioned, but it's still very descriptive. Your accountant, aka your CPA, your Certified Public Accountant, that is someone who will do your state and federal and maybe even international taxes for you. They may or may not have people who will keep your books and stuff. Now, bookkeepers, they're the ones who will record transactions coming in and going out basically, so that your books are an accurate reflection of what's happening in your business. Todd, do you want to interject? TODD: Yeah, just real quick. Sorry to be pedantic, but my wife's an accountant. Bookkeepers often are not accountants. Some of them are just people who started doing books at their company and continue to do it. When you get to accountants, you have two types of accountants: One is CPA, which is a tax accountant; and then there are other accountants who specialize in corporate stuff, like my wife. She went to college for it and is highly trained. KEN: That's the kind I recommend you get, is the kind of who is trained in accounting practices. JAMON: First of all, what's the more modern term for a bookkeeper? Is there? KEN: I think Heather liked the term, what was it? Financial assistant, something like that? JAMON: Okay. TODD: I think that's what she said. Heather is my wife, by the way. JAMON: And then secondly, what does an accountant give you that a financial assistant does not? KEN: Well, A, They are literally certified by the state. And B, They have experience in tax law. JAMON: CPA does, but they're more corporate accountant. They're going to bring more like ... It's my understanding that they can bring more strategic ... KEN: Yeah, they can be more strategic help, they can help you design your practices for paying people, for collecting money, because there's just a lot of i's and t's that need to be dotted and crossed. JAMON: Yeah, that makes sense. TODD: Yeah, not to keep on interrupting about accounting. Sorry, my wife's an accountant. JAMON: We're gonna play a little game. How many times will Todd mention that his wife is an accountant? TODD: All CPAs are accountants. Not all accountants are CPAs. My wife has absolutely no interest in being a CPA, she never did, it had nothing to do with her job. However, if you need ... One of the things she specializes in is international accounting. So, a bookkeeper is someone who enters data, basically. They're gonna get bills in from the outside via mail, they're gonna enter those into the bookkeeping system, or the accounting system, they're gonna pay invoices, whatever. They're a clerk. An accountant is more like a programmer. They investigate where things went wrong, they figure out the best ways to do things. If you have a half million dollars in pounds in the UK, and you need to transfer in the US as US dollars, how do you go about that? There's very different ways. Some are very expensive, some are not. So, that's ... An accountant spends a lot of time doing strategic-type accounting stuff, as opposed to data entry, which is more what your bookkeeper does. JAMON: Yeah, so when I started ClearSight back in 2005, one of my early employees, his dad was a controller, which is like kind of an accountant, but it's specifically to a- TODD: That's really interesting, Jamon. Did you know my wife was an accountant? JAMON: I did not know that, Todd. I hope you remind me again. A controller is basically, it's a type of accountant that's kind of high up in a company and focused on ... Basically, in charge of the company's finances, and ... So, he was a controller and I went to lunch with him and I asked him for advice. And the first question he asked me, this was kind of interesting because I did not expect this, he said, "How's your accounts receivable?" And I was like, "Uh ... I know what that is, but what do you mean by 'how is it'?" And he kind of helped me think through my terms, like how long until the payment was due, and was I taking money upfront? Which I wasn't, weirdly, I wasn't taking money upfront. I was just doing the work and hoping I'd get paid. TODD: Hoping is the key term. JAMON: Hoping, yeah. And more than once I didn't get paid. And that sucked, especially when I wasn't getting paid very much. KEN: That's definitely one of the harder things to learn when you start doing this, is if you've only ever worked at a company, you don't realize how much effort goes into just getting people to actually pay you, right? 99% of the time it isn't out of any malice, it's not people trying to mess with you, it's just their processes are also run by humans. Maybe they're a small company, maybe they're a big company and something got lost, or things didn't get signed off correctly, right? There's just a million little things that have to be kept track of. And so, whoever is doing your day to day accounting, be nice to them. TODD: Yes. KEN: Be nice to them because you really need to trust them to be on top of what they're doing. TODD: You do not want to piss off an accountant if you value eating, for sure. Cause they won't do anything wrong, but they will sure drag their feet on your particular account. One other things I wanted to add, especially with larger companies or companies that have accounting departments, accounting is never personal, okay? And Ken said they probably don't want to mess with you. They may not want to mess with you, but they may actually have a policy not to pay their vendors, which seems absurd but it's true. So, in other words, if you're sitting in an executive meeting at a company that has 5,000 people, and your cash-flow ... you need some cash or whatever. The directive to the accounting department could be, "Only pay the vendors with the highest interest, the top 25% of them. Do not pay anyone else." And so, it's not ... they're not trying to get to you, it's just business. KEN: I think it's also very tempting when you're ... If you're a creative person and you're getting into business and you wanna be able to be a partner to your clients, and that's all very laudable and we wanna do that and we strive to do that. But at the end of the day, when you're negotiating a contract, you have to take it seriously. You have to take what it says seriously because there may come a situation where it's no longer you and the friendly person you're talking to, it's just you and the contract and someone unfriendly. Or you and the contract and someone not unfriendly, but as Todd says they're just ... implementing a policy. It's a lot harder to do something about it than possible which ... It really highlights how important the relationship is, as well. So, you need to have a good contract that actually reflects what you and your counter-party actually mean. And you have to keep that relationship good all the way through. JAMON: Absolutely. We had a client a while back that wanted to use their own contract, which is not uncommon. I mean, we have our own kind of Master Services Agreement that we'll send over, but in this case they had their own, they wanted to send it over. And this sort of brings it back to having a good lawyer, because in this case, something fell through the cracks and we signed it without sending it over to our lawyer. And this was a big mistake because- TODD: Big mistake. KEN: Big mistake. Did we mention it was a very big mistake? TODD: My wife, who's an accountant, by the way, said it was a huge mistake. JAMON: Oh, she is? Oh, that's interesting. But what happened was the project started off really well, and it went very well through the first month. And then, abruptly, we don't know what happened because the whole way through the client was telling us we were doing good work. Even after things went weird, he was telling us that we were doing good work, which really didn't make sense. But he wanted out of this contract, or he wanted to hold our feet to the fire. And we realized, and we sent our contract over to our lawyer, and Ken ... Wasn't his response something like- KEN: He said it was the most punitive contract he'd ever seen. JAMON: And he said that it was designed to be used as a weapon. TODD: Yes. That's what he said. JAMON: Which was not a great place to be in after we had already signed this thing. TODD: Against us, by the way. Not for us. KEN: Yeah. JAMON: So, luckily this particular client ended up taking a route ... It wasn't an easy route, but he took a route out of our contract that let us off the hook, essentially, with some work from Ken. So, thanks Ken. But we made it through that one, but not everybody would. That could be a really big problem. So, having a good attorney, which we did, and actually using him, which we did not, is really important when you're putting these contracts together that you're talking about. And then, of course, there's a certain amount of teeth to it, so they will pay you. KEN: We designed our standard contract to be, we think, really, very fair. JAMON: I think so, yeah. KEN: And so, if a client wants to use their own contract, we now ... It always goes to the lawyer. It doesn't matter what it costs. And he's very reasonable with how he charges for that- TODD: Sorry to interrupt. That's a good rule. If you don't feel that it's worth paying your lawyer the $300 an hour, or whatever your lawyer costs, it goes up from there, trust me, because this project isn't big enough, then don't take the project. And that sounds harsh, but if you can't pay your lawyer to look at the contract, then don't sign the contract. It's not worth it to you. KEN: If it's a small project, we don't accept- JAMON: Yeah, and that's why we have a standard contract, because the lawyer drafted it. And so, we can send it over and we don't have to pay him every time. Of course, it costs more to have him draft it, but then if they sign it then we know that we're good to go. But if they want their own contract, you need to have it reviewed by your attorney. And if you don't know of an attorney, you can ask around on social media and stuff, you can generally get some recommendations. TODD: One thing I do wanna say, though. And this is often somewhat shocking to people who have never ran a business, who worked for other people or other corporations throughout their career. The world for you as a business owner, is very different than the world for you as an employee. If your employer doesn't pay you, you can go to the labor board, and the government will come in and they will sue that company and they'll get that money for you. Because of that, your employer's gonna pay you. KEN: And your wages are legally privileged. So, if they're in bankruptcy, you get your money, not necessarily the very first, but it's a very high priority. It's a very high priority debt. TODD: Correct. If you have a personal contract with ... between two people or between two companies, or between you and a company, there are no such protections whatsoever. You will get paid if the person who's paying you wants to pay you. If they don't pay you, there's no government agency you're going to go to who's gonna help you- KEN: Well, there's the courts. JAMON: The court, basically. TODD: ... other than the courts. And if you're talking about a $10,000 bill that they owe you, you are not going to court for that. You can try to go small claims court, that kind of thing. But the reality is you're not going to go to court for that. And people know this. And there's a lot of people ... And you're like, "Well, you know, I did this contract with Bob, and Bob's wonderful. I mean, I love Bob. He spends his time saving orphan kittens on the weekends." That's great, but Bob's company was just bought by Joe, and Joe is a complete jerk. And Joe now has all your contracts. And Joe used to be a lawyer, bless his heart. And Joe knows that you're not gonna do anything when he doesn't pay your $10,000, so he just refuses to pay you. JAMON: By the way, this is not a hypothetical, this happened to me. TODD: And so, we changed the names, obviously. But Joe does that, and there's really nothing you're gonna do and you're just gonna lose that $10,000. You can try to do collections and irritate them into paying you. But here's the raw fact, if they need you for something they will pay you. Meaning if you still have work to do, they will pay you because they need you. Be very weary of the end of a working engagement when they no longer need you. KEN: This is not to say that everybody is like this. There's plenty of extremely honorable- TODD: Like Bob, Bob's one of them. KEN: ... companies out there. Yes, there's many, many, many great, wonderful, honorable clients who pay what they owe, and they would never screw you. TODD: Correct. KEN: But there's more people out there who, like I said, not necessarily even out of malice, sometimes just out of laziness, kind of don't get around to it. TODD: Another example is if you get a contract where you take liability for stuff that you really have no control over. So, you're like, "Well, Bob's not gonna sue me. Bob's a great guy. He has the same values as I do." But Bob gets su…

    Full show notes at the publisher

    Business Successes and Failures Jul 12, 2018
    Show notes

    In this episode of Building Infinite Red, Jamon, Ken, and Todd answer a question from the podcast channel in the Infinite Red Slack Community about what they have learned and observed from businesses over the years who have succeeded or failed. Episode Transcript CHRIS MARTIN: We had someone reach out on the podcast channel with an idea for an episode. He said: "You three must have watched a lot of businesses starting up/establishing themselves and subsequently succeeding or failing. What have you learned or observed from those businesses? In your view, what made them successful or otherwise?" KEN MILLER: That is a great question. The first thing I would say is no one, literally no one can predict which company is going to succeed, especially like in a big way. The startups that we have been part of in our careers or, have worked for as clients, the ones that are trying to hit it big, there's no one who can predict that. That said, we do see mistakes, we do see things that will hinder success or prevent it. One of the big ones I would say is having the wrong amount of money. That doesn't necessarily mean having to little although, that's by far the most common version, but sometimes having too much. I've seen startups that had so much money that they just wasted it and never had any discipline, and they crashed and burned. So, having too much money surprisingly, can be a problem. Having too little is much more common, you don't hear about it as much, because they tend to fizzle in a very quiet way. There's a fairly frequent thing that we will encounter which is the self-funded entrepreneur who comes to us and says, "Hey, can you do this for $50,000?" The answer is almost always no. Any interesting app is likely to be more than $50,000. But more than that, if your only source of funding is your own life savings, or yours and your parents' life savings, that's a big red flag. Because it means that you have no room to move or develop or anything. If all you have is $50,000 to spend, and it's your life savings, and you want to build the business. I'm not saying don't do it. But what I am saying is you need to use that $50,000 to validate your idea more than you need to build an app or a website or whatever it is that you're looking for. That can take a lot of forms, right? But take that $50,000, quit your job if you have a job, go interview customers, go do things that don't cost money that let you validate your idea. And then you can go find people who can help you. We are famously bootstrapped here, and the reason that we're able to do that is because consulting is a very easy thing to do the first one. Because it's just you, and you go out and get a contract and you grow from there. A lot of businesses, that's not true. And if you need investors, because your idea has enough going on that you have to build something, then use the money you have to start that process rather than blow it all on an app that then can't grow because you've run out of money, Todd. TODD WERTH: If the kind of business you want to build is $10,000 to actually build it, and then $50,000 is a great amount of money because then you can build it and iterate on it and have extra funds. The problem is something like an app that typically costs $100,000 or more is not only do you need the initial cost of it, you need all the capital to run that business and modifying and really adapt it to what you find the market actually wants. That being said, there's nothing wrong with starting out bootstrapping. However, it is a little bit of a red flag if you haven't convinced anyone other than your mother to give you money for your idea, because if you can't convince one person, it's going to be hard to convince all the users to give you money to use for said business. JAMON HOLMGREN: To play off of what Ken said earlier, I think that a lot of it is you want enough money that you're not making decisions based on fear, basing it on desperation. But you also don't want to be in a position where you just don't care. Where who cares if you blow this money because it's not your money and whatever. You need to have some level of skin in the game, so to speak. KEN: Yeah, I would say that the ideal that we look for is whatever budget we think we need to build the most focused version of your app, we would love to see that you have two, three times that total somewhere. Not because we want to spend it for you, but because you're going to need it for something. And it's a measure of your health as a startup. Even more ideal than that is, you have that much in hand, and you know what you're going to do to get more when you need it. JAMON: Moving beyond the financial side of it. Another thing that I've observed in my 13 years of doing consulting work is when the stakeholder, generally speaking, the founder CEO, but not always, feels that they have all of the answers already. And they just need to build this thing. Just get someone to build it, get someone to design it, build it, put it out there and the money will flow. That's extremely rare. Very, very rare. TODD: I bet it doesn't exist at all. JAMON: I would tend to agree. One of the things that we say, as we're going through the sales process with a particular new client is, if your app does not change during the process, if what you conceive of as being this app at the very beginning does not change, then that's probably a failure. You're probably not listening to your clients, you're probably not ... Or your customers, or your users. You're probably not listening to the experts you're surrounding yourself with, which would hopefully include us. We've been through this quite a few times, and if you're not willing to say, "Hey, I don't know everything. I need to learn some of these things. Then that's a problem. Of course, conversely, we do expect people to bring some level of expertise in the domain that we're talking about. So, you should have some ... I'm not going to go and just start a business making farming equipment or something. I've never run a farm, I don't have any clue what it would take. So, having no experience whatsoever in the domain can be an issue as well, and you're not going to be able to just rely on other people to fill in all of those gaps. But, I think that there has to be a happy medium where you do have some domain expertise, you have some things in mind, you have a framework to make these decisions. We also understand that you don't know everything, and that you're going to need to gather information and evolve your view of what the app is going to be during the process. TODD: Another one that's very common, you see it right up front with people. Either they're telling you their story about their business, or I've worked with them, or whatever, is they don't really care that much. They act like they do, but they don't really. Meaning, they put a few hours in a week or a month or something, and they show up every once in a while. You get this a lot with people who are extremely wealthy maybe. It's a side thing for them, they're playing around and they just don't really care. It's pretty true that the person who cares about your business the most is you. There will be no one who cares about it more than you. So, if that's not true, there's a big problem. That being said, a lot of successful people don't have a lot of funding, maybe they bootstrap it at the beginning. They don't take for granted they know everything. They asked for help. They try to learn. They accept the fact that they're going to have to be salespeople and finance people, and operations people and everything. Even if something applies to a particular person that we've already mentioned or are going to mention more, they may have other features that totally overwhelm that meaning. If you're particularly a good salesperson, you can be pretty bad at business and still be successful. That's just a fact. If your idea's so compelling that even though you're a horrible salesperson, when people hear it, they're like, "I want to give you money for this, because it sounds amazing." Then that person knows enough to hire someone who can execute well like us, Infinite Red. I'm not good like Jamon is with the plugs ... those people can be very successful as well. KEN: To flip this around to a more positive script. To some degree, we approach the clients that we take like an investor would to some degree. An investor is going to do more due diligence than we would obviously, but we're looking for: Do they have adequate access to capital? Do they have a high degree of commitment? Do the founders get along? Are people in agreement about what the vision is if there's more than one person involved? By the way, we have plenty of projects projects with established companies and it's totally different. Because then, a budget is a budget, et cetera, et cetera. This is talking startups. These are all things basically like, if you have all of those pieces, and a deep understanding of, and relationship with their target customer. If you have all of those, then it's between you and the market. That's ... you have all of the tools that you need at that point to succeed or fail on the merits of the idea. It is very hard to predict what's going to happen with the market. And that's the part that no matter how good you are, you might still fail. The commitment helps. You hear the word pivot applied to startups because what happens is, they have all the other pieces; they have access to capital, they have a committed founding team, they are working very hard. What the market tells them is that their idea is wrong basically. The thing that they thought that they wanted to build, turns out, they misunderstood the market, the market changed, something happened, and then they're like, "But as we were deep in the muck of figuring that out, we saw this other thing and we're going to run at that now." TODD: You'll find your subconscious as very creative and very strong and very secretive. What I mean by that is, if subconsciously, a person knows that their business model and their revenue model doesn't actually work or they fear it doesn't work. They haven't actually looked into it, they'll come up with super creative ways to get away from or not do those plans. When you ask them for it, they can either avoid it, sometimes become hostile. Whatever secret fears you have, sometimes just sabotage yourself by avoiding those particular things. If you find that you're just very anxious about doing a business plan, you don't know why. It may be because your subconscious thinks that if you did it, you're going to realize that even best case scenario, this business does not make money. JAMON: That's why one of the questions we ask during the sales process is, what are your biggest fears with this process? Because it tends to let them come up with the answers to that without us being hostile about it, or anything like that. We're on their side, we're trying to solve those problems as much as we can. I had a client back in the ClearSight days. We did a bunch of work for him, and he was this incredible engineer. Came up with just some amazing stuff. But he loved to invent. He wasn't super big on running the business. He didn't really enjoy a lot of the parts of running a business. He brought onboard a series of CEOs to run the business over a period of many years. At one point, it just became obvious to me that that this was really hurting his business. Because all he wanted to do was work on the product, and he didn't want to necessarily work on the business itself. The stuff he was building was amazing. It was awesome. I really loved it. And he was a very good person. He always paid his bills to us, always appreciated us, but that blind spot, I think it really hurt him. TODD: Yeah, that gentlemen, I don't know who you're referring to, but that gentleman needs to accept the fact that a business person is super important, and they need to find theirs to be a co-founder with them. JAMON: I think a big part of that is just seeing it as a business and not just the product itself, which actually is a big failing of a lot of people that think of building apps, they think of the app. They think of the product, they don't think about the business itself. It's hard because business, there's a lot to it. We're doing a whole podcast series on it right now. There's a lot to talk about, and there's a lot to learn, and there's stuff we're still learning. It's definitely having a characteristic of thinking more holistically about the whole business and being willing to just dive in and learn things that you haven't done before. All of those types of things, but that's a positive characteristic. There are a few other negative characteristics that I've seen over the years. One actually is, over-confidence and over-optimism. Now, I tend to be a very optimistic person. I'm very confident. TODD: Are you talking about me Jamon? JAMON: Sometimes. TODD: I'm very optimistic that you're insulting me right now. JAMON: But then again, sometimes it's me, and Todd has to ground me. Now, Ken's always grounding both of us at the same time like an anchor in some ways. TODD: That was mean. That was very mean. JAMON: We're dragging this thing ... No, I'm joking. There's one gentleman that we worked for a long time ago, and he was very optimistic that the funding was going to come through. So, he had us do a whole lot of work. The funding didn't come through, and that put us in a tough position. That was a lesson that we had to learn, but it certainly put him in an even worse position, because now he owes his vendors money, and it's not ready to go yet. So, the Elon Musk sort of thing. Although he seems to have access to bottomless levels of cash. KEN: Elon Musk has easily inherited the reality distortion field from Steve Jobs. JAMON: Yes, exactly. KEN: And put it to shame to be honest. JAMON: Right. That sort of thing can kill you if you're not Steve Jobs or Elon Musk. KEN: Yeah, and actually, anybody who comes in acting like Steve Jobs or Elon Musk, which usually means being an asshole and playing fast and loose with the facts, which is not what I'm saying that Jobs and Musk are doing. I'm saying that that's what the people who think that they're right tend to do. That is a massive red flag. TODD: They're pale clones of the original, and probably only cloning the worst parts. A couple of quick hits here. One is, if you don't like your customers, or worse, you hate your customers, huge problem. Your business provides value to customers. If you hate your customers, or loathe them or don't want to interact with them, and you'd be like well, "Todd, that's ridiculous, who would do that?" You would be surprised how many businesses hate their customers. That's a problem, you really should look for customers that you enjoy servicing, you enjoy providing value to, it gives you a lot of personal, and the company and a lot of gratification for sure. The second one is, when you describe your product or your business to someone, if they think it's awesome, and it's really good, and when can they get their hands on it, that's, that's a good sign. Anything below that from mild praise to praise m…

    Full show notes at the publisher

    Experience or Education? Jul 05, 2018
    Show notes

    In this episode of Building Infinite Red, we talk about the importance of education and experience when starting out in software development and how things change when you move from making your products to running your business. From books and online resources to bootcamps and higher education programs, Jamon, Ken, and Todd share their stories, insights, and opinions for every level of professional. Show Links & Resources Lambda School Austin Allred on Twitter Epicodus Airtable Episode Transcript TODD WERTH: Today's topic is education. I actually don't recall what this topic's about. Ken, do you recall? KEN MILLER: Yeah. Well, it's this question that kind of comes up periodically about developers and CS degrees and that kind of thing. I think there was a Twitter thread a little while back in Jamon's feed, because Jamon's feed is the only feed that matters. TODD: That's a fact. Yeah. KEN: Yeah, do you remember who that was, Jamon? JAMON HOLMGREN: Yeah. The question was, "I have 10 years experience developing sites, but I have no formal education. What are your thoughts on experience versus education? Been thinking of getting a front end development tech degree from Treehouse, but I'm not sure if it's worth the time and money." Yeah. That is a question that does come up fairy regularly. KEN: For that specific question, I think the answer is no, it's probably not worth it, right? If you have 10 years of experience, and you're going to go take basically a practical degree, don't bother. JAMON: Right. KEN: But there are definitely nice things about getting a real CS degree, but getting a job is not necessarily the best reason to do it. JAMON: Right. KEN: If that make sense. TODD: I would totally agree with that. Well, just to start out, the three of us, Jamon nor I have finished college, nor do we have any CS degrees. I learned to program on my own when I was a child, probably started when I was 12. And then I started programming professionally when I was about 24, and then I learned basically on the job. Ken went to Harvard and got a CS degree there. Jamon, you are similar to me, right? JAMON: I was pretty similar to you, yeah. TODD: Yeah. So what I usually tell people, A, now, when I'm hiring people and I'm not representative of everyone, so it's quite a bit different, I do a cursory glance of their resume, maybe. That's less relevant to me than what they can do. In my opinion, developers is a portfolio job, which means the work you've done is hugely more important than any kind of education. Now, obviously if you do have a CS degree, I do find people want CS degrees, they understand some concepts that you maybe don't use day-to-day, and when they do come up, they have a much better understanding of that. Sometimes it's easier to teach them new ideas, because they have the analogy in their mind already. So it's definitely worth it. I would say, my short answer and I'd love to expand on this further in this podcast, but my short answer is you need to learn what you need to learn in order to produce work product, which means develop software, develop websites, develop apps. And everyone has a different way of learning. For some people, school is the best way. For me, school always bored the hell out of me to be honest, and it wasn't the best way for me, but there's no exact right way for everyone. It's just however it works best for you. JAMON: Yeah. And I think that part of this is how much access and opportunity you have, because certainly college is one fairly proven path toward gaining an opportunity to access the job market, to get enough skills that you're hireable out of the gate, and then to access the job market and actually get a little bit of exposure, whether it's through an internship or something like that. So that plays into this as well, if your dad was a software engineer or something, and he has contacts that you can talk to and maybe get some opportunities, then maybe you don't need that, maybe you don't need to go down that road. But there are few other factors here as well. Some of them are personal goals, like what type of programming, like Todd was saying, what type of programming you want to do, how much debt you're willing to take on, how much you can take on. And then also, in some cases, very specific cases, the prestige of the university can be a factor because it certainly opens doors for Ken that Todd and I don't have. TODD: I do want to interject real quick before you jump in, Ken. Going to university has many, many benefits that have nothing to do with getting a job, and those are a super valuable if you have the opportunity. They're worth it. But specifically about a job is what I was talking about. KEN: As a life experience, college is great. If you have the opportunity, you should probably do it. Getting a job as a programmer per se is not a good reason to go to college in my opinion. Now, if what you want to do is get a job at Google, or one of the places that is well-known for preferring CS graduates, especially from elite schools, then you should do that, you absolutely should do that. You're going to have a much, much, much harder time doing that. But also, more to the point, Google has I think fairly reasonable case for it in certain ways, because they are actually dealing with the high level intense CS concepts more than your typical programmer job. TODD: Correct. KEN: Now, I think where the problem comes in the market is that if Goggle does it, then we should do the same thing and then we'll be successful like Google. And the vast majority of companies out there do not need that. And I can also definitely tell you, from my own experience, from the people that I've watched, is that getting a CS degree, they're teaching you the fundamentals of how computers work. In Harvard's case especially. They're very much on the theory stuff. But even a more typical CS degree is very much about the background, the hopefully unchanging fundamentals, and not so much how do you design a build system. Todd? TODD: Yeah. I want to rant a little about a CS degree. CS, I'm sure all of you know is computer science. It is really that, it's computer science. Scientists don't make things. They discover things, and they ponder about things. For example, a physicist and a chemist may work together to make some sort of new alloy, but they're not going to design an airplane. That's what engineers do. If you get a computer science degree, you learn the science of computers. You could actually get a computer science degree, and correct me if I'm wrong Ken, and not learn to program at all. KEN: That would be pretty rare. You do have to know some programming in order to do a lot of the things that they teach you- TODD: But you could do like abstract programming that doesn't actually work. Like, say you're developing an algorithm. It's not- KEN: Yeah. I would say that would be pretty atypical, but there's definitely classes that don't require a lot of coding. TODD: I'm exaggerating to make a point. KEN: Some of it is straight up math. Yeah. TODD: Right, which is different than engineering. KEN: Well, and a good engineer should understand the science obviously. Yeah. JAMON: And I think one of the things to know is that, in my career certainly, and I'd like to hear from both you, Todd and Ken, I haven't noticed a huge market difference between the software engineers that I work with that have degrees, versus those that do not. I often don't know which of them have degrees and which do not. It's not always a strong correlation between their ... or it hasn't been a strong correlation in my career with performance. I think there's some characteristics that are positives for people that come from a CS degree background versus others who maybe come from a bootcamp background, or Todd and myself maybe learned out of a book basically and experience, but in my experience it's not something that is ... there may be differences, but they're not significant. TODD: I think it depends on the situation. When you teach people you notice it more. For experienced people, people who have a decade under their belt, no, there's no different. For new people, someone who comes out of school with a CS degree will understand concepts, and I think it's easier to teach them to be honest, in that way. Real quick, I personally started ... well, I started programming privately, but that was just me programming games and that kind of stuff, stuff I enjoyed personally. But professionally, I started building software. So I started out as a builder, a maker, over the years formed myself into an engineer, and then during that, got interested in the CS stuff and learned that stuff too. So I got to the same result, just in a different path. KEN: That's totally true. You can absolutely learn all this stuff on your own later if you're that kind of person. I think what the reliance on CS degrees doesn't really take into account, is that 90% of programming out there is essentially business automation, for a loose definition of business, but it's basically business automation. I mean, yes, okay, there's sort of a sector on high performance computing, or scientific simulations. Honestly, the one that in some ways benefits the most from formal education, believe it or not, is games, because there you need the linear algebra and the harder math, and your performance constraint in ways that mean you're more likely to be coming up with novel algorithms than you are in your typical business program. Jamon? JAMON: It's surprising how rare it is to encounter those types of situations in typical applications, like mobile applications and web. You just don't really run into it. KEN: Right. So, the kind of people who are going to excel at your, like I said, very typical business automation, style programming, user interface design, et cetera, et cetera, are actually going to be people who sometimes were not computer people before, because they're going to have more connection and empathy with the target users. And that ends up making more of a difference to the success of software projects in many cases than your facility with the computer itself. TODD: Yeah. Let me give you a real example from myself, because I started out very practical, and then later got interested in the CS concepts and stuff. Just purely for my own interest and stuff, and that did help to a point in my engineering career, but I did a project circa 2001 or something like that, and we would display, as a website, and we would display a map for the user, and they click somewhere else on the map and we had to calculate, based on the pixel difference between where we knew they were and where they clicked, the difference in direction and distance from the original spot. Now, this required spherical geometry, and the earth actually is not a sphere. It's a little bit like a football actually, to a slight extent. In this case, someone who had a more CS background may have jumped into this easier. I actually had books on my shelf, like college algebra, and college geometry and stuff like that, and I would review these things. And I learned how to do it. It was a successful project and it was very fun, but that's an example because I came from a practical place I had to look that up. Now, on the flip side, I've worked with people with PhDs in computer science, and no offense, bless their hearts, but they would work for two weeks and accomplish literally nothing. And then you'd ask them, "Was that done?" They were like, "I didn't know it was urgent." Well, it was an hour task. That's two weeks ago. And I think they're on a different academic time, because they spent so many years in school, it's just a difference. KEN: Which is, again, not to denigrate the usefulness of them. They're just useful in very specific circumstances and not as general programmers. Jamon? JAMON: I kind of see it as, to use an analogy, like when you're lifting weights, if you lift weights in a way that is very functional, they call it functional, where it's almost like you're lifting a box or ... yes, Todd? TODD: Jamon, for our listeners who may not be familiar with this concept, can you explain what lifting weights is? JAMON: It is this theoretical thing that supposedly some people do. TODD: Can you do it inside of your own home? JAMON: I do now. I built a gym actually. But yes, you lift weights for health. And one of the ideas is that you do this sort of functional strength, where it's something that actually builds up the muscles for lifting boxes, and carrying children, and moving things. So it's very much like you're doing those types of movements, but just with heavier weights. It just makes you stronger in those ways. And then there's other things where you're isolating specific muscles in a way that you would never really do in a day-to-day basis. And university can sometimes be more like that, where you are exercising those muscles, you are making them stronger, but you're not doing it in a way that necessarily replicates what you do in real life. And I think both are necessary. If you just do functional strength training, it will get you so far, but you won't ever hit certain muscles because, like we talked about intense performance or whatever, you might not actually be using those aspects of your brain in a day-to-day basis. But they are good to have for when you need them. So I think that's a decent analogy of what we're talking about here. I think that one of the criticisms that I've had of some of the higher education programs, is that they don't do particularly great job of replicating the real world of what people will actually be doing once they actually get into the job market. You can create a binary tree algorithm, but can you move this button over four pixels to the right? Which is often your first task when you get to work. TODD: Yeah. And I would say that it really depends on the person. In an idea world, if money is no constraint, time is no constraint, yeah, of course I would love to go to university and stuff. But on the flip side, I'm a very practical person and I like to build things, I like to make things. So maybe I went for a few years, but maybe if I would have went that route I wouldn't liked it as much. I would have preferred to just jump in and start getting things done. I think for me ideally was 18, I started doing it, actually doing it for three or four years, and then go to university for maybe two years, and enjoy learning all the concepts I didn't learn. That would have probably been pretty cool for me. JAMON: I realized we're kind of leaning more heavily on the criticism side of this, but one of the criticisms of universities is that they optimize for rewards, like extrinsic rewards. Like, I got this degree, I got this piece of paper, or I did what was necessary to get an A. Where learning to accomplish something to actually expand your mind is a little bit of a different thing. When I started my business I needed to build a website, I had a website to build, and I didn't know how to do it. For me, when I was learning from a book, it was very, very applicable. Like, okay, in order to make a menu, I need to know how to do these things, and it was very, very applicable. Very, very directly applicable. KEN: Well, I'm going to make the positive case ... TODD: Please. KEN: ... for going in and doing it. One is, fair or not, it does open doors. TODD: Correct. KE…

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    Fears and Anxieties of Running a Business Jun 28, 2018
    Show notes

    In this episode of Building Infinite Red, Jamon, Ken, and Todd touch on the fears, anxieties, and struggles of running a business. They share stories and thoughts on starting a business, managing stress, how success and failure impact focus, the difference between venture capital and other sources of funding, fear of missing out, and the importance of knowing what you stand for. Show Links & Resources YNAB: Personal budgeting software Four Yorkshiremen by Monty Python Episode Transcript TODD WERTH: So I thought a good topic today, one of the reasons because I'm personally interested actually, hear what Jamon has to say and Ken has to say, and of course I'm sure they're interested to hear what I have to say. But the topic is when you start a new business or you're an entrepreneur doing multiple businesses, or anything of that particular area. What are some of the biggest fears, anxieties, apprehensions, that you might have you know before the process, during the process, whenever? I find this very fascinating, because I imagine a lot of people, well maybe some people who are listening are experiencing these right now and A) it'd be great to hear someone else express the same thing so they know that they're not alone in this, and B) it's kind of interesting to think about yourself. It kind of, it's not something you typically sit down and think about, so if you two don't mind, that'd be a really interesting subject for today. KEN MILLER: Sounds good. JAMON HOLMGREN: Yeah. Well I think back to when I started by business. It was 2005, and I was working for a home builder at the time, so I had a, you know, decent job. It was an office job. I was doing I think cad design and marketing for this builder. Not really doing programming. But I decided that one of the things that ... well I had, prior to this time, I had thought, you know I'd be really nice to own my own business at some point. It'd be something that I would aspire to. And I think that part of that was my dad owning his own business and knowing a lot of entrepreneurs kind of played into that. I thought it would be an interesting thing. I've always been a little bit independent. Want to kind of set my own course. So I started thinking about doing this and talking with my wife, and at the time I had a six month old baby. That was my first kid, my son, who is now 13 years old. Around actually this time of year is when I decided that I was going to do this. What helped was an opportunity that came up. So the apprehension of how do I get my first customer was sort of already taken care of. My uncle had a bunch of work that he needed done, and he asked me if I wanted to do it kind of on the side, or as a business, and that gave me the confidence to pull the trigger and say, let's so this. Because I had a built-in customer right away. But I do remember the first month sending my bill over to him, and it was only eleven hundred dollars, and that was all I had earned that whole month was eleven hundred dollars. And that was a wake up call to me that, hey I can't just expect the money to come in, and that was definitely ... I sat up and noticed. TODD: Yeah, that's really interesting. So when you started ClearSight, that was your first company, correct? At that time? JAMON: That's right. Yeah, ClearSight. There were other points along the way where I was sort of I got kind of gut-punched. Many times along the way. One was when ... my first business was doing websites, but it was also doing CAD designs, so I had essentially two business, and the CAD design part of it, you know designing homes, designing remodels, those sort of things eventually dried up, because remember that was during 2008, 2009 the housing recession kind of came along and that impacted the designers first, because we were the first ones in the process. People stopped taking money, equity out of their homes to do remodels. They just stopped doing it. So basically the whole market dried up. I remember my uncle told me, "I don't have any work to send you anymore." And I had a few accounts myself, but they were pretty slow too. And I kind of sat at home for a few days and felt sorry for myself. But in typical Jamon fashion, I was like, well I guess it's time to go do this myself, so I went out and literally started knocking on doors at offices and stuff and handing out my business card. Wasn't too successful at that, but it was at least doing something, and then things turned around eventually. TODD: Since you had a new baby at home, and obviously you're married, and you're trying to support them. JAMON: Right. TODD: Did that add any worry to you at that time? JAMON: Yeah, for sure. It certainly did, because any worry that my wife felt was reflected back on me because I feel very a sense of responsibility that I need to be making sure that we're not losing our house. Making sure that we can keep food on the table, things like that. So that was a lot to process. My health definitely suffered because of it and a few other things, but there was a lot of stress involved with that. I think that if I were to go back now, knowing what I know now, I could very much have probably pulled out of it much faster. I could have found a better path, but you live and learn. TODD: I'm sure there's more to tell about that story, but I'm curious to hear your thoughts Ken. KEN: For me the biggest worry was always money. Right? I mean, since I came out here to Silicon Valley, I had the dream. I had the Silicon Valley dream for sure. I wanted to start my own company. And to a certain degree, the Silicon Valley dream as sold is not sold accurately. Right? It's sold as this sort of fantasy. And the truth of the matter is you have to have more resources than is reputed in order to do the Silicon Valley way effectively. You need to know VCs or people who know them. It helps to have affluent parents who can bankroll you not making any money for years and years and years. I'm luckier than most on all of those accounts, and even I found that very intimidating, challenging. And especially living in the Bay Area, once you have established a life in the Bay Area, the idea of not taking a salary for a couple of years is utterly terrifying if you don't have a big pile of money. In fact, I wasn't really able to do this until I had a little bit of a windfall from the Yammer acquisition to lean on. Basically just enough to let me barely scrape by for a year for which I'm still very grateful 'cause I probably wouldn't be here today if I hadn't had that. And there were some scary fricking moments. There've definitely been a few extremely close calls financially. So I don't ... that fear I think was justified and surmountable. Let me put it that way. Right? You can definitely figure that one out, but I'm not gonna lie. It can be super scary sometimes. For me, the biggest mental shift that got me where I am now is that I had always had in my head this sort of venture capital model, because that's what I knew. Right? Because that's the kind of company I'd worked for. I saw how that process basically worked. But it always felt wrong to me. Right? Like, I was always like, what's so wrong with profit? What's so wrong with actually making a business that can support itself fairly early on? And I think it was the Paul Graham post that was like, the difference between a start up and a small business. And a start up is specifically optimized for hundred S growth or nothing. JAMON: Right. KEN: And that's what venture capitalists want for the most part. Right? No venture capitalist wants you to be one of the nine or ninety-nine that don't make it. JAMON: Mm-hmm (affirmative)- KEN: Nevertheless, the model is set up that way. The model is set up so that only one in ten or less have to make it. And so once I realized, oh no all along I wanted to make the lifestyle business, basically, the small business. TODD: I just wanted to point out that especially in Silicon Valley the term lifestyle business is a semi-derogatory term. KEN: Pejorative, yeah. TODD: Yeah to refer to a normal, actual business. KEN: Exactly. TODD: And I always found that amusing when they said lifestyle business it was insulting you, because you make a profit. I always thought that was funny. KEN: Yeah, right. It's sort of like the Silicon Valley model is for people who would rather be a billionaire or nothing. Right? It's kinda like a shot at a billionaire is worth way more to them then a pretty good path to a millionaire. Once I realized that that was the exact opposite of me, I was much happier and I could actually work towards something that mattered. Right? And not even the millionaire part, right? It's like, if that happens, that would be awesome, but it's more creating the environment that I wished that I'd had. JAMON: When it comes to fears and those types of feelings, do you ever feel maybe that you are missing out on those wild rides? KEN: Do I have FOMO for the- JAMON: Yeah, a little bit of FOMO. KEN: Sometimes. JAMON: FOMO being, of course, fear of missing out. KEN: Yeah, living here especially. I think that's inevitable. JAMON: Right. Because we're not set up for just rocket growth at Infinite Red. KEN: I've been at enough companies that ended up making everybody thousandaires or worse. Right? Or negative thousandaires in at least one case. I had a friend, he seemed like he was living the dream. This was way back when in the first boom. Right? He seemed like he'd lived the dream. Right? He was just an engineer at a start up and he was suddenly a millionaire overnight. And then within six month, he was a negative six hundred thousandaire with a gigantic tax bill. JAMON: Oof. KEN: The whole model has kind of lured a bunch of people into the stock option thing. This is what I'm talking about specifically. I think there is absolutely a place for the venture capital model, but the stock option compensation model that a lot of people have done, is kind of a raw deal in a lot of ways, but that'd be a whole other topic, so- JAMON: Yes TODD: Just real quick, I own tons of stock and stock options that are worth absolutely zero- KEN: Yes. TODD: But, if I ever run out of toilet paper, I am set. JAMON: So Todd, you started a business well before Ken or I, and you know I actually I don't know if I've ever heard the story of your very first business and how you went from being a software engineer at a company to owning your own business, and I'd like to hear about that from the perspective of the topic of this episode which is about fears, and uncertainty and things like that. TODD: Yeah. Yeah. That's great question, so I've owned three businesses. This hopefully is my last one here at Infinite Red. My first one was in 1999. We started, it was three of us, it was also a consulting company like Infinite Red which lasted for nine years. It was a little bit different. Real quick, we did mainly enterprise, not start ups, larger companies, that kind of stuff. And our model was kind of to be subcontractors. So we had a lot of relationships with other consulting companies. One of the things we did, is we did really hard things well. So all the other consulting companies, like especially at that time it's gonna sound funny, but you'd have companies coming to us saying, "Look, we're doing most of the project, but they want something on the web, and we have no idea how to do that." And we did. And we knew Visual C++ and we knew all sorts of things. And so we specialize. We were higher priced because of that, and we'd come in and do the fun parts, in our opinion, which was really great. This is circa 1999. That one wasn't ... there wasn't too much anxiety from it. It was a small company, so later I'll talk about most of my anxiety at Infinite Red come from my worry of the 25 families I'm responsible for. JAMON: Right. TODD: It's not so much myself, because I do not have affluent parents. Well, most of my relatives are dead now, but I never really worried about money. I mean worst case scenario, I can be a developer. I'm pretty darn good developer, and I can make good money at that. And I moved out of the Bay Area, so for me my lifestyle is much cheaper than it used to be. So I don't worry about that so much, but I do worry about everyone's families who work at Infinite Red. My first company, we didn't have that. It was all just high level people. There was three to six of us, depending on the time. And we kind of just slipped into it. We had our first few big customers before we even started. So that wasn't really stressful at all. The second company, which came after my first company, I went back and worked for companies, for other start ups as an employee, and that's how I met Ken. Ken was my boss. And I was doing that mainly just 'cause after nine years running your company, I was just kind of tired, and I wanted to be an employee for a while. And I did that for about three, three and half years. And Ken, sorry boss, it was super relaxing, easy. You work like seven and a half hours a day or whatever. KEN: This has been noted on your permanent file. TODD: You know, regular jobs often are pretty lax compared to start ups. As an aside, I was in a pizza parlor once, and I saw a sign behind the wall. It was obviously the pizza parlor was owned by a person, it wasn't a chain, and the sign said, the only thing more overrated then running your own business is pregnancy. Which is true, if you do it for low hours and high pay, you really should rethink that, but there are lots of great reasons to do it. Any who, my second company was venture capital backed company which means we didn't use our own money. It was intentionally designed to do the hockey stick which means go from zero to very high very fast, and we had investors. And we had to pitch to venture capitalists and angel investors, and we had all the kind of normal Silicon Valley stuff. And that lasted for about a year and a half, and I cherish that experience, because it taught me a lot about that process from the inside. It was completely a failure which is fine. The fears in that, once again, were not personal, because as I did right after that, I went and got a job with Ken. JAMON: Right. TODD: And I made plenty of personal money. And because we weren't investing our money, the VCs were, there really wasn't a lot of anxiety there. I would say the main anxiety there was performance. Meaning it's kind of depressing when you're failing, and sometimes you have a great success. We did one month, especially. And we were shooting to the moon for a whole month, and it was super exciting. So it was just kind of a roller coaster of anxiety for that kind of business. Yeah, Jamon? JAMON: I think it's really interesting to hear you and Ken talk about the idea of, well I can just go get a job as a developer. Because for the longest time, I didn't feel that I had that option. Whether that was reality or not, I don't know. I was basically, I kind of thought of myself as just building websites. I just built websites for people, and I didn't really think of myself as a software engineer. I just happen to be someone that happened to built websites. TODD: Knowing you Jamon, and the quality of engineer you are, you are completely wrong. You could have totally got a job, but I get why- JAMON: Yeah. TODD: -from your perspective you felt that way. KEN: Yeah, well and it's a matter of ... it highlights how important just knowing the scene is. JAMON: Right. Yeah, totally. KEN: If you know the scene, yeah…

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