Parker Conrad says founders have been building software wrong
techcrunch.com
techcrunch.com
He’s got a good valuation going selling ideas and figuring out how to implement later though…
I doubt Parker actually personally believes what he's saying here, it seems more like marketing from a company that is trying to sell a platform than it does the thoughtful opinion of an individual.
Breadth is a killer. It requires resources (eng, PM, executive) that are not available in young companies. Where it was pursued, the management imperative to build the broad set of capabilities without resourcing meant that almost everything sort of sucked. It was in one instance the result of a strong founder chasing every shiny buzzword even without a strong business justification.
Go with focus, unless you have proven-strong management and actual big-tech resourcing.
The size that you can grow to while maintaining singular focus is getting bigger and bigger. Parker’s situation is probably different because he was able to raise a bunch of money early on after Zenefits bequeathed him with SV stardom. He had early signs of success because he was able to acquire customers through what seems like an incomparable feature completeness, at the cost of shit UX and buggy software (IME). For example: they literally didn’t file our tax documents despite telling us they did, resulting in thousands of dollars of fines.
I might be overly cynical based on our pretty awful experiences, but feel vindicated because we’ve moved to a smaller, leaner, more focused HR startup named Warp and haven’t had half the issues we did with Rippling.
We were no more getting compared to a spreadsheet or no code tool because of being a single vendor managing end to end lifecycle of a VC/PE firm.
I appreciate his company building but he is no John Carmack. So sit down bud.
Also why Saas are struggling is not because they were focused on something narrow. It's because they were not innovating and pushing the edge of technology and VCs were funding the same type of company multiple times to reduce risk etc.
John Carmack is an absolute legend in multiple ways, but Parker Conrad makes some good points here regarding how to organize a business.
I don't take what he says as gospel, but it may fit in certain situations where you're taking on incumbents, or where there are many players focused on just the small SaSS tools.
I would trust Parker Conrad even less on how to build a software business, especially if ethics and morals matter even slightly to you.
Zenefits Software Helped Brokers Cheat on Licenses: https://news.ycombinator.com/item?id=11083706
ADP Sues Zenefits for Defamation: https://news.ycombinator.com/item?id=9692635
In May 2015, Conrad made the news after he revoked a job offer he made to an engineer who asked for advice on the question-and-answer website Quora about whether he should accept a job offer from Zenefits or Uber.
2016, California finds Zenefits almost entirely out of compliance on insurance regulation.
2017, Tennessee fined Zenefits for "a pattern of" failing to self-report compliance issues. Then California fined them $7M for "disobeying insurance laws".
I'm all for building extensible platforms, with scripting and/or good APIs, but any effort put into something for which there is no definable use case is probably wasted.