App agency Chop Dawg on helping startups build for the long term

Comment

Joshua Davidson of Chop Dawg
Image Credits: Adobe Creative Jam | Philadelphia

Chop Dawg describes itself as an app development agency, but these days that can mean helping startups build and scale software over many years. Founded in 2009 by Joshua Davidson when he was 16 years old, the Philadelphia-based company has worked on the launch of over 350 digital products to date. Clients range from big companies like Six Flags Great Adventure, to startups pet-care company Alpha Paw, to nonprofits like Village Pledge, which is working to eliminate student-loan debt.

We sat down with Joshua to learn more about the company, why it does more than just software consulting, and how startups can best work with it, as part of our new series profiling great startup software consultants. The answers aren’t as straightforward as you might think they would be, but Joshua walked us through a few different scenarios where it would make sense to reach out to them.

Help TechCrunch find the best software consultants for startups.

Provide a recommendation in this quick survey and we’ll share the results with everybody.

What is Chop Dawg and how did you get started?

We’ve been around since August of 2009. So, in dog years we’re pretty old. On paper, we are an app development agency, but we actually consider ourselves to be a technology-based company because we’ve really transcended beyond just traditional mobile apps and web apps. We call ourselves a technology company because we like to look at it, we are very agnostic anywhere that software could be, we try to build and cater for; which is really exciting and fun for us. In our case, we deal with really two types of audiences. So a huge segment of who we work with are early-stage brand new startups and companies, and we help them bring their ideas to life and we do that all under one roof, but then we also work with existing companies that are typically not on a technical nature or missing a piece that requires a technical branch. In essence what we try to do is be like a Swiss Army knife so everything from, if you need everything from us we have that capability to if you just need us for design or if you just need us for programming.

Chop Dawg does more than just building programming — you do marketing and fundraising, you’ll help with and attract media attention. What led you to be more than just programming?

It’s almost like a civic duty. I think that’s the only way I can articulate it. For every technical entrepreneur trying to build a tech product in this day and age, there are 10 non-technical individuals trying to do the same thing. Except for lack of technical insight, there’s usually folks who are seasoned entrepreneurs or know what technology can do and how it can solve for your industry. Their expertise is missing. For example, right now we are working with a music producer who’s trying to solve a huge problem in his industry. He produces for some of the biggest artists on the planet. He can’t build an app, but he knows exactly what type of technology to use and how it could [be used] to disrupt an industry. So it was more than realizing, oh my goodness, there’s this huge segment that’s just not getting help. And if you put yourself in their shoes, well they’re going to reach out to the app agencies. Most organizations are focusing on expertise and knowledge, or just, “OK here’s a bill for what you want to do,” and we wanted to make sure when we started a company like this is our craft. We want to build things that are going to be successful for the long haul. If we can help you with every aspect of this, we’re going to increase your probability of success, and if we can make you more knowledgeable, we can increase your probability for success, and if we can act more as kind of like your outsourced CTO and technical team, we can take away an area that’s already a conceived liability for you.

For us it was like, this makes more sense of this approach. You know I’m not naive. We aren’t cheap because of the service we provide, we pay real people’s salaries, we have everything under one roof, but our job is to produce ROI. Make an asset that we scale for the long term and do it where someone is going to invest money, time and resources into it. You’re going to have the highest probability of success. It just came down to that kind of context. So I like to look at it like it just feels like our ethical or fiducial obligation. In the industry, there’s so much saturation, there’s so much competitiveness, and being around as long as we have, we have seen so many companies come and go. I think the reason we’ve had that longevity is just because we’ve always come in with a partnership first approach — but to be frank, we do that even when it’s not startups and early-stage companies, I just think there’s a huge knowledge gap and we have a lot of things we’ve learned — what to do, what not to do, and we can use that as an area of expertise to help folks we work with.

What makes Chop Dawg unique?

I think the biggest thing at this point is our track record itself. We’ve been around since the early days, and we have maintained relevancy. If you asked one of our partners, that’s what we call our clients, I think what they’re going to tell you is that longevity allows us to tell people not just what to do, but that we know why to do it that way, and how to be more pragmatic — save time, save energy, but also know what not to do. From being around so long, we’ve probably made every mistake you can possibly think of. Which is an advantage. Once you know that lesson, we can also help folks avoid that mistake. I think the third piece and this is more my personal bias that says this, more than anything, but I genuinely do believe it. We are industry agnostic, we’ve worked in almost every industry you can literally think of. I mean professional cuddling is really in our portfolio at this point. We’ve done it all. What’s cool is you start learning that there are trends and playbooks that work in different industries that can be brought to an industry not done before. It’s such a saturated market a lot of folks really are focusing on, and I just don’t think they focus with the right intention. For us, like I think most people on our team if they could work for free to do it for free would, but you know, the reality of living in a capitalist society. We come in with that, have a background like this is the craft level we do and we get to build things we’re proud of and work with people we really love working with.

What trends are you seeing right now in the industry?

I think the first thing is using AI. I think, as a user, we expect our products to just do things intuitively for us more than ever before. Social is in almost everything at this point. It’s crazy to think that we’re building social base functionality in even internal apps for organizations. There is not a single app I can think of that we’re building right now that doesn’t have some form of social element involved, which makes perfect sense to me as being social beings, making technology being an extension of ourselves and just more industry niche-based products at this point. One more trend of notice is that there’s a cliche in business called “riches in the niches,” but I think you’re really starting to see this now in the app world, where instead of one app eats the entire world, so to speak, there’s a lot more companies that are focusing on just owning a niche and being absolutely best at it and then having minimal competition — no competitors, things like that.

Has the pandemic affected the trends that you’re seeing?

The thing it has impacted is a lot of folks, who I feel like probably would have been a little bit more hesitant to go build apps and software, are now going in. I think it’s just jump=started the industry, like “Oh snap, we might never have a full office again,” our customer base or user base is less probable to come out, or they have a different type of learned behavior now because of a year living through Zoom and not leaving your home. So there is no direct trend as far as like, here’s these type of apps and software coming. I think the trend is more you’re seeing organizations and companies and ideas come out that maybe would have taken a couple more years to make that jump. While I can’t share who they are because of an NDA, I talked to a nonprofit yesterday, who, if it wasn’t for the pandemic, they would have never been entertaining, “we need to build an app that does X, Y and Z.” It’s a nonprofit. For them to talk about an app and saying we’re gonna invest 1,000s of dollars is pretty staggering. But I think that’s the pandemic, in a nutshell. Where it’s forcing folks to have a whole new playbook or approach that didn’t exist before.

Have you seen a lot more companies, outsourcing their tech and getting more comfortable working with you since remote work has increased?

There’s been a plethora of Fortune 500 companies who reached out to us. I’ve noticed some are companies who I think cut back at costs or were like, we’re gonna let go of our development department for this segment, let’s say it was React Native, but we still have React Native needs so we’ll begin offshoring it, or outsourcing it or finding a team for hire for a specific engagement. I think that’s definitely become a big thing.

Then I think what you’re seeing too is a lot of folks are realizing what a benefit agencies are. You know, there’s one thing I talk to partners all the time about and it’s there is merit to when you want to hire internally and grow a team in-house, but there are also times where having an agency — having a partner like that makes perfect sense too. For a lot of our partners, where it makes sense is that it’s pay as you go. If you don’t need us for a year, you’re not on the hook for multiple developer salaries, a project manager salary, a UI, UX designer salary, a QA salary. You can control your coffin. The liability is more on our shoulders at this point than it is on them; there’s always risk in business, to build a successful business, but if you made the wrong hires and you’re building a new company, or running a company — that is completely on you versus you hire an agency that falters, they’re legally liable to provide what is contracted and we’ve been obligated to do it right. So there’s also that perspective.

I think the third thing is you’re also seeing, more than ever, folks trying to get things done as quickly as possible. Where a benefit comes into more established agencies is when you have a methodology they’ll actually be quicker to move because you can jive and you have the resources, you have the process nailed down, you know what you’re doing versus when you’re building a team, rebuilding a team doing it internally, you still have to figure these things out too and figure out how to work well together. But again, there’s no such thing as absolutes. No way. When we talk to people, it comes down to what aligns with your business goals, objectives and, you know, like, I feel like agencies short term can be more expensive but long term saves you so much more money, and that comes from our position but, it comes down to what they’re trying to do and trying to accomplish.

At what point do you think is the best time for a startup to come and work with an agency?

There’s different dynamics for it to make sense. I’ll give you a couple different examples because I don’t know if there is just one smoking gun to work with agencies.

There would be a situation like, I have very limited funds, funds to the point where I can’t go and even build a team internally or hire a major agency to build my own product, and I’m trying to get enough of proof of concept because I want to possibly fundraise with it, or I possibly want to go in front of potential users and get preorders or get interest, or I want to hedge my risk before I even build it. Well then maybe doing a non-functioning prototype where you design the app with an agency, start to finish. We don’t touch a line of code, we use a tool like Figma to create the illusion of a working app that can make a lot of sense because one, let’s say, God forbid you find out people are not interested or you can’t raise money off of it. It’s significantly better to find that out, spending the least amount of money than it is to go all in and go do something.

Then we also get folks all the time who will reach out to us and they’ll say, I’m interested in doing an MVP, minimum viable product, and working with an agency can actually make a lot of sense in that regard if that’s the context they have.

But I will say, I’ve turned down quite a few folks who reach out to us, even if they have the financials. One of the reasons is folks who might have the money, but you can clearly tell they haven’t put any effort into market research, understanding ideas and maturing the vision. The first thing I like to tell folks is you need to know that you are committing yourself to this thing; you’re building a business. This isn’t a hobby that you’re willing to make just the next five years of your life.

Then there are folks that reach out to you or they have an idea, but you can tell the idea is still not fully fleshed out. It’s almost like they came up with a key feature, but they haven’t fully well rounded it yet. So one of the things I encourage like, do you understand your market? Do you understand your competitors? Do you understand the logistics of running an app? Because even when you’re done with the agency [it] doesn’t mean your app cost is gone. There are servers, there are APIs, there’s a third party you may have to pay for marketing, customer support, legal insurance, like just all the logistics. Have you put proper follow through to understand it?

There are different contexts when people reach out to figure out what’s a good fit and it’s going to be, yes, you’re ready to make this investment versus again, I look at like like a fiduciary duty like, I get to do that; you might have the money but you’re gonna end up with an expensive toy.

It’s not like “Field of Dreams,” ‘if you build it they will come,’” that’s not how it works. I think if you’re looking at the sign to work with agencies you have, I don’t want to say a business plan because frankly I never had a business plan, but you understand the industry you’re getting in, you understand a clear vision of what you’re doing, you understand the pragmatic approach of how you’re going to roll it out. You know who your customer base is going to be, how you’re going to get to them. You have an idea of what your cost is going to be to operate it, and you have an idea of projections on what it’s going to take to break even, become profitable, to scale for the big picture. And if not that, at least have an idea enough like, I want to go to fundraise, or I want to get preorders so I can fund it, like a strategy or even a non-functioning prototype can make sense to hedge your risk.

So it’s a mixture of those things and this, if in a given day I talked to five, six companies that reach out to us. I’d say three to four fall in the bucket of that they need to go back to the drawing board and really take more time and careful consideration. It kind of comes into going back to a question you asked earlier like “what makes us different?” I think because we’ve done this for so long, I learned a lesson early in my career. What happened when you try to fit a square peg in a round hole, like how disastrous that is even if everyone has the right intention. So it’s like finding the right fit. And to be frank, there’s even another question that comes out of this and what is the right agency partner for people too.

One thing I tell folks all the time is that we’re a remarkably collaborative company … our partners are meeting with us every single week. We are having Slack or real-time conversations during the week. They’re going to be putting in several hours a week to work with us, on top of what we’re doing, and they have to be ready for that and to be involved and be able to pay attention and be able to context switch. There’s a lot of things that happen, we even do orientation week before we start our project where we literally spend a week before the project begins training the partner on how to be the best partner possible, how to pay attention to understand everything. That’s definitely a big component in that regard. Companies reach out to us, or individuals, like I just need someone for the next three months to build this and come back and say, “Here you go.” That just doesn’t fit in our DNA. It’s not how we’re going to be successful. Or the approach we take from design and development QA might not align with the type of approach that they’re looking for. So, it doesn’t even mean these people are bad or it doesn’t mean they don’t have great ideas but this is part of even finding a good cultural fit from like a methodology perspective. Us as an organization, we’re a salary-based agency, so we don’t bill by our week or month, we really take the time to figure out in advance what we are doing. I’m a big believer in you should know exactly what it’s going to cost and take in time, and what’s needed for expectations setting to get that goal. I just think it’s a really big thing, ethically for us to do the right way. But again, these are all pieces, there’s not one solution out there that fits for everyone.

What else should we know about Chop Dawg?

I think the set rate is a big thing for our partners, just because everyone’s been in a situation, doesn’t matter if you’re in this business or not, where you’re halfway through your budget and you find out you’re not even a third of the way through the project. It’s kind of one of the worst things in the world. I personally never liked the weekly or monthly billing model because I feel like it incentivizes the service provider to take as long as possible, versus everyone having the same incentives; the same goal. Accountability was always a big thing to me as we created a culture and the DNA as an organization; everyone should be in the same alignment with the same goals, and then have the same transparency and goals and alignment within that.

As a company, we purposely are constantly just trying to be better and better at what we do. Even today, with my CEO hat on, I’m constantly like, “How can our process improve? What new technologies can we adapt? What do new design trends, technology trends can we be leveraging?” I think that’s probably one of the things I’m most proud of. The fact that we just have an amazing team that I know is like genuinely bought into helping people and it’s cool to see where once upon a time we started just need like, 50 plus people and you see them, build a career here, have families, have kids, buy a home, like have the company create something bigger than itself. I think the third thing is this constant quest. We always feel like although we’re great at what we do, there’s so much room for improvement. And how do you have that lens to constantly just reevaluate nonstop, how to be better, because I feel like that’s our, again, our fiduciary and ethical duty for who we work with and who we work for, to constantly push the envelope to just improve.

More TechCrunch

Ahead of the AI safety summit kicking off in Seoul, South Korea later this week, its co-host the United Kingdom is expanding its own efforts in the field. The AI…

UK opens office in San Francisco to tackle AI risk

Companies are always looking for an edge, and searching for ways to encourage their employees to innovate. One way to do that is by running an internal hackathon around a…

Why companies are turning to internal hackathons

Featured Article

I’m rooting for Melinda French Gates to fix tech’s broken ‘brilliant jerk’ culture

Women in tech still face a shocking level of mistreatment at work. Melinda French Gates is one of the few working to change that.

11 hours ago
I’m rooting for Melinda French Gates to fix tech’s  broken ‘brilliant jerk’ culture

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

A new crop of early-stage startups — along with some recent VC investments — illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to…

VCs and the military are fueling self-driving startups that don’t need roads

When the founders of Sagetap, Sahil Khanna and Kevin Hughes, started working at early-stage enterprise software startups, they were surprised to find that the companies they worked at were trying…

Deal Dive: Sagetap looks to bring enterprise software sales into the 21st century

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI moves away from safety

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

2 days ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

3 days ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK

Kudos uses AI to figure out consumer spending habits so it can then provide more personalized financial advice, like maximizing rewards and utilizing credit effectively.

Kudos lands $10M for an AI smart wallet that picks the best credit card for purchases

The EU’s warning comes after Microsoft failed to respond to a legally binding request for information that focused on its generative AI tools.

EU warns Microsoft it could be fined billions over missing GenAI risk info

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies

OpenAI has reached a deal with Reddit to use the social news site’s data for training AI models. In a blog post on OpenAI’s press relations site, the company said…

OpenAI inks deal to train AI on Reddit data

X users will now be able to discover posts from new Communities that are trending directly from an Explore tab within the section.

X pushes more users to Communities