Non-technical founders should hire fractional CTOs, pay hourly, and only include the possibility of equity if things align. I offer this to startups and it tends to work well, especially early and for the startup, when the need for technical work ebbs and flows with time. For example, I helped a company last year design and launch their platform over a few months. I billed hourly and helped architect and build the system. As they hit different milestones their need for my help diminished - i.e. I haven’t billed more than an hour or two over the last few months. This doesn’t mean the project is over, especially since there are many plans about to start back up, but it does mean they get the cost benefit of paying for technical need that aligns with their business. A company’s technology platform needs to work specifically on the core idea early on, and continually expanding doesn’t make much sense until the business model and PMF is solid. Yes, the modern world is obsessed with ARR, but that’s just not reality and forcing consistent spend with an actual cofounder, on a business that uses technology rather than being a technology business is a mistake. Now, I don’t know if there are others like me out there as I hear this is rare, but it’s absolutely what non-technical founders need to succeed.
If there was an award for “where startups waste the most money”, it would 100% go to… outsourcing to software development agencies ?? Non-technical founders think: “I know the customer, I know the problem, but I can’t build the solution” And someone says “Just hire a dev agency, launch a MVP, raise money, and then hire a CTO” Worst advice ever! Never use a dev agency to build your MVP. Here’s why: 1. It takes forever Dev agencies don’t care about your startup like you do. They have other clients, other priorities, and zero skin in the game. Your MVP will take forever. 2. Investors hate it Early-stage investors want founders who can build and iterate quickly. Dev agencies make you slow, and unless you’re growing really fast (which is rare), investors won’t touch you. 3. It drains your cash MVPs rarely work the first time. You’ll need to iterate fast, but dev agencies will charge you for every iteration or bug fix. By the time you realize this, your money is gone, and so is your runway. Dev agencies don’t care if you succeed. Their goal is invoices, not your growth. If you’re serious about building a startup, find a technical co-founder. It’s hard, but it’s worth it. Dev agencies are just a trap for desperate founders. Don’t fall for it. #HarshRealities
