I went to a lecture recently and the CEO of Runtastic spoke. He said: you don’t “win or lose”, you “win or learn”. 2014 was a year of learning for me. Some of it was good, but some of it was definitely in the “you win or learn” sense of learning.
Collecting on debts
Many customers thought they would just order software from me and worry about paying it later. (The word “later” in the sense of tomorrow in “Alice in Wonderland”, i.e. not that indistinguishable from “never”.)
Here are two approaches I discovered which worked well:
- I developed a website for one customer, and she refused to pay, on the grounds she didn’t need the website any more. I took her to KSV (debt collection agency) and they did manage to collect the entire amount. It took 6-9 months but was pretty painless. I didn’t have a contract with her, but I had emails saying she was happy with the work, and this whole process only kicked off after 3 months of non-payment. I understand, in Austria, f you don’t dispute an invoice within one month the invoice is considered “accepted”. So because she “accepted” the invoice, she had to pay.
- With one other customer, who “definitely” wanted to pay according to him, but “later”, I finally stumbled upon the following approach which was successful. Building off his assertion he “definitely” wanted to pay, I asked him until when he wanted to pay. He said a year thence. I said “OK, take your entire debt, divide by 12, what you’re saying is, you’re happy to pay this on a monthly basis for the next 12 months?”. He couldn’t really say no.
Debts are going well, I hardly have any debt owed to me left. (And even if the customers were to stop repaying, at least I’ve collected a significant portion of the debt, which I wouldn’t have done had I not acted.)
Q1/Q2: Merging then un-merging (catastrophe)
I went into 2014 with two employees (MartinL, DavidZ) and not a great deal of work. And the work I did have, was for customers who were enthusiastic about the word “payment” only when combined with the word “later”.
I acquired a new customer, who were a general software development house, partly owned by their main customer, which was basically run by the same people. This main customer was developing Java Enterprise software, with a huge stack of server-VMs, Maven, ORMs, Spring, C# Windows thick-clients, Lua mobile client, and so on. Not surprisingly, despite having modest functional requirements, it (a) was large and complex software, and, as a consequence, (b) didn’t work. They needed our help. So far so good.
The software development house suggested merging their company with mine. They had 4-5 people, 2-3 customers (incl. this main customer with the Java software). I had 2 people, 3-4 customers. If we merge our resources, all customers would have access to a larger team, all employees would have access to a larger pool of customers. In principle this sounded good to me.
They insisted I become salaried at their company. The new company would continue to have the name of their old company before the merge. I suppose one might describe these as “red flags” in retrospect, that this wasn’t as much of a “merge” as had been originally proposed.
Not only was it a takeover (not a merge), they really were only interested in us working for their main customer. They weren’t interested in my customers (who I’d taken to the company in good faith), nor any employees of mine who were working for my customers (who I’d taken to the company in good faith). The boss even said that MartinL had “produced no value” (because he had only been working hard for months satisfying the customers I’d brought to the “merge”.)
I didn’t negotiate hard for them to pay me for the “merge” because I felt if they hadn’t paid, they hadn’t actually “bought anything”. This meant, from my perspective, I could exit any time I wanted and take all customers and employees who wanted to come with me, effectively un-merging. So that’s what I did.
Q3: Employed at CCA
Q4: Running my business again
I decided to leave CCA and focus on running my own business again. I am still on good terms with CCA and do work for them still, but self-employed and with my team.
I did some training for the first time this year. Three days of Perl and one day of MySQL. Was an interesting experience. Training institute gave me no indication of the experience of the participants. It turns out the three participants were experienced sysadmins. I used my laptop connected to a projector and let them guide me through the areas they wanted to learn about.
I am working in cooperation with SebastianK since Q4 and he has developed software for CCA based on AngularJS as a Single-Page App (SPA), communicating with a Java back-end. Project isn’t delivered yet, but is going well. This is in contrast to our normal stack of Wicket in Java (not SPA).
I have a philosophy of, for each new project, using the stack that seems appropriate for the project, i.e. I don’t have the policy of using the same stack for all projects. If all teams must use the same stack, then the advantage is code-reuse and knowledge-reuse. The disadvantage is, that as the company grows, it gets stuck in a stack which is perhaps not appropriate for the future, as the world outside the company has a habit of changing and moving forward. The more projects use the same stack, the harder it is to change. At some point you just get stuck. We avoid that.
Other than that, MartinL and I supported our old customers (mobilreport, firstbird, Offer Ready), we did a few small website projects (using outsourced designers), and I did few pieces of consultancy (mainly database and Java software optimization).
Other than a certain unavoidable quantity of “learning” which is no doubt ahead of us all, I have the following objectives for my company in the coming year:
- Build up more of a brand, so that people can recognize us (and it gets a bit annoying to refer to Adrian Smith in offers, which has two meanings, my company including all employees, and me as a person e.g. working on-site)
- Build up more of a website, so that people who don’t already know us can find information on me and perhaps decide to work with us
- Not merge with anyone: remain running my business
- Make sure that our customers are satisfied
- Make sure that employees consider my company a great place to work
- Acquire more customers, acquire more employees