Friday, September 16, 2011

The CEO & CTO must interact

Startups typically have a CEO and a CTO who trust each other. Dangerously, in the early days the CTO role is sometimes played by a consulting firm. It is important for the CEO to check on the "CTO": 
  1. stack (aka tool set): Is the stack evolving? Which big sites are powered by it? Can you pay for support? Would TBHs want to work w/ it? This can be a big barrier to hiring.
  2. architecture: Is it scalable? What if the site is overwhelmed? How is an attack deflected? How are analytics handled? What happens if cloud costs rise and you need to in-source hosting?
  3. usage: How are errors handled? How are backups done? Where's the source code? How are upgrades handled?
It is equally crucial that the CTO check on the CEO:
  1. Is the cap table too generous or stingy?
  2. Is the sales forecast on track? Missing business milestones is a red flag.
  3. Is the expense forecast on track? Excessive legal fees are a common burner.
  4. Never run out of money.