Sponsored Content by OutSystems

Making the leap from developer to founder

Developers become developers for many reasons, but they all have one thing in common: they love to build. Long before they do it for a living, developers will write code to solve problems and make products for the pure act of building itself.

At a certain point, every developer has probably built something that made them think they have a potential startup idea on their hands. They must then decide if they want to build something else: a business.

On the Decoded podcast, Philip Thomas spoke with us about making that choice, and how little building code and building a company can have in common. Thomas is Vice President of Product and Engineering at Zyper. Prior to his current role, he founded the developer community Moonlight, which was acquired by PullRequest.

For developers who want to become founders, Thomas says that the ultimate key to success won’t necessarily be the skill that got you started in the first place. Technical founders need to know when to take off their developer hat and when to put on their business hat.

“If you start a business, you need to be prepared to not be writing code anymore within a couple of years. Your value to the company doesn’t come from writing code; your value will come from managing people, from setting vision, from setting the standard of execution, from raising money. Your coding abilities are not necessarily the long term thing you’ll be working.”

Thomas said.

Putting Customers Before Code

When you’re a developer, ideas are a dime a dozen. So how do you know if a product idea is worth pursuing as a business? Instead of spending time refining an idea and building out the code, spend that time understanding the problem you’re trying to solve. Thomas started Moonlight as a no-code prototype that was no more than a landing page built on Squarespace, allowing him to test the idea with customers.

This can be counter-intuitive for developers who are used to writing code and are hesitant to release something until it’s perfect. But one of the most important lessons Thomas said he learned in building Moonlight is that the solution never matters as much as the user’s problem.

“Users will use a completely broken tool if it’s actually solving a problem. The danger isn’t really moving too slowly, it’s moving in the wrong direction, because if you’re moving too slowly that’s something you can fix. But if you’re moving in the wrong direction, that’s really hard to course-correct.”

Finding the Right Focus

To become a successful founder, Thomas offers the four following pieces of advice:

  • Make code a commodity. Too many developers spend their time making their code as efficient and pretty as possible. However, Thomas suggests viewing your code as a commodity that anyone can write, not just you. This will help you spend less time perfecting your code, and more time focusing on users.
  • Take time away from coding. You’re building a business, not just a product. At his startup, Thomas scheduled two days a week where he didn’t touch the code base. “Spend the day talking to customers, doing pricing research, writing sales emails,” he said. “That’s really valuable for a founder to do if they’re technical.”
  • Read, watch, learn. There are millions of books, videos, and blog posts providing startup advice. Learn as much as you can so you can avoid easy mistakes. Don’t forget to go back to review material you read earlier, as it may make more sense the further you get into your startup journey.
  • Become a founder for the right reasons. If you are only becoming a founder to strike it rich, you might be disappointed. “The person I’ve worked with who has the most wealth was an early employee at a big company. My founder friends, for the most part, are my poorest friends,” Thomas notes. For the first few years of your company, you may have to take a huge pay cut as the product generates little to no revenue, employees need to be paid, and infrastructure needs to be built. Embrace the process, not just the destination.

Check out this week’s Decoded podcast to learn more about Philip Thomas’ career arc from developer to founder, along with his advice on finding a co-founder, management skills developers should seek to acquire, and more. Listen now.

More TechCrunch

The watch features a variety of different 3D games, unlocking more play time the more kids move.

Fitbit’s new kid smartwatch is a little Wiimote, a little Tamagotchi

In the video, a crowd is roaring at a packed summer music festival. As a beat starts playing over the speakers, the performer finally walks on stage: it’s the Joker.…

Discord has become an unlikely center for the generative AI boom

After the Wirecard scandal, Germany’s financial regulator BaFin started to look more closely at young fintech startups that wanted to grow at a rapid pace — it’s better to be…

Germany’s financial regulator ends anti-money laundering cap on N26 signups after $10M fine

Among other things, this includes the ability to trace code from source to binary packages across both platforms, single sign-on support and unified project structures.

JFrog and GitHub team up to closely integrate their source code and binary platforms

The company’s public fund disbursement and e-commerce platform makes accepting school tuition and enabling educational enrichment more accessible. 

Tech startup Odyssey goes on journey to help states implement school choice programs

A new startup called Kinnect aims to help people privately save generational memories, traditions, recipes, and more. The company’s app, launched this month, lets people create invite-only spaces where they…

Kinnect’s new app aims to help families record and store generational memories

Spotify has hiked its premium subscription in France by an eye-watering €0.13, in response to a new music-streaming tax.

Spotify hikes subscription price in France by 1.2% to match new music-streaming tax

The European Union has taken the wraps off the structure of the new AI Office, the ecosystem-building and oversight body that’s being established under the bloc’s AI Act. The risk-based…

With the EU AI Act incoming this summer, the bloc lays out its plan for AI governance

Solutions by Text, a company that gives people a way to pay their bills and apply for loans via text messaging, has secured $110 million in new growth funding. Edison…

Bootstrapped for over a decade, this Dallas company just secured $110M to help people pay bills by text

Owners of small- and medium-sized businesses check their bank balances daily to make financial decisions. But it’s entrepreneur Yoseph West’s assertion that there’s typically information and functions missing from bank…

Relay raises $32.2 million to help smaller businesses manage their cashflow

When other firms were investing and raising eye-popping sums, Clean Energy Ventures took a different approach. It appears to be paying off.

How Clean Energy Ventures avoided the pandemic bubble and raised a $305M fund

PwC, the management consulting giant, will become OpenAI’s biggest customer to date, covering 100,000 users.

OpenAI signs 100K PwC workers to ChatGPT’s enterprise tier as PwC becomes its first resale partner

Tech enthusiasts and entrepreneurs, the clock is ticking! With just 72 hours remaining until the early-bird ticket deadline for TechCrunch Disrupt 2024, now is the time to secure your spot…

72 hours left of the Disrupt early-bird sale

Avendus, the top investment bank for venture deals in India, confirmed on Wednesday it is looking to raise up to $350 million for its new private equity fund.  The new…

Avendus, India’s top venture advisor, confirms it’s looking to raise a $350 million fund

China has closed a third state-backed investment fund to bolster its semiconductor industry and reduce reliance on other nations, both for using and for manufacturing wafers — prioritizing what is…

China’s $47B semiconductor fund puts chip sovereignty front and center

Apple’s annual list of what it considers the best and most innovative software available on its platform is turning its attention to the little guy.

Apple’s Design Awards nominees highlight indies and startups, largely ignore AI (except for Arc)

The spyware maker’s founder, Bryan Fleming, said pcTattletale is “out of business and completely done,” following a data breach.

Spyware maker pcTattletale says it’s ‘out of business’ and shuts down after data breach

AI models are always surprising us, not just in what they can do, but what they can’t, and why. An interesting new behavior is both superficial and revealing about these…

AI models have favorite numbers, because they think they’re people

On Friday, Pal Kovacs was listening to the long-awaited new album from rock and metal giants Bring Me The Horizon when he noticed a strange sound at the end of…

Rock band’s hidden hacking-themed website gets hacked

Jan Leike, a leading AI researcher who earlier this month resigned from OpenAI before publicly criticizing the company’s approach to AI safety, has joined OpenAI rival Anthropic to lead a…

Anthropic hires former OpenAI safety lead to head up new team

Welcome to TechCrunch Fintech! This week, we’re looking at the long-term implications of Synapse’s bankruptcy on the fintech sector, Majority’s impressive ARR milestone, and more!  To get a roundup of…

The demise of BaaS fintech Synapse could derail the funding prospects for other startups in the space

YouTube’s free Playables don’t directly challenge the app store model or break Apple’s rules. However, they do compete with the App Store’s free games.

YouTube’s free games catalog ‘Playables’ rolls out to all users

The tech layoff wave is still going strong in 2024. Following significant workforce reductions in 2022 and 2023, this year has already seen 60,000 job cuts across 254 companies, according…

A comprehensive list of 2024 tech layoffs

OpenAI has formed a new committee to oversee “critical” safety and security decisions related to the company’s projects and operations. But, in a move that’s sure to raise the ire…

OpenAI’s new safety committee is made up of all insiders

Time is running out for tech enthusiasts and entrepreneurs to secure their early-bird tickets for TechCrunch Disrupt 2024! With only four days left until the May 31 deadline, now is…

Early bird gets the savings — 4 days left for Disrupt sale

AI may not be up to the task of replacing Google Search just yet, but it can be useful in more specific contexts — including handling the drudgery that comes…

Skej’s AI meeting scheduling assistant works like adding an EA to your email

Faircado has built a browser extension that suggests pre-owned alternatives for ecommerce listings.

Faircado raises $3M to nudge people to buy pre-owned goods

Tumblr, the blogging site acquired twice, is launching its “Communities” feature in open beta, the Tumblr Labs division has announced. The feature offers a dedicated space for users to connect…

Tumblr launches its semi-private Communities in open beta

Remittances from workers in the U.S. to their families and friends in Latin America amounted to $155 billion in 2023. With such a huge opportunity, banks, money transfer companies, retailers,…

Félix Pago raises $15.5 million to help Latino workers send money home via WhatsApp

Google said today it’s adding new AI-powered features such as a writing assistant and a wallpaper creator and providing easy access to Gemini chatbot to its Chromebook Plus line of…

Google adds AI-powered features to Chromebook