Nat Friedman

Instant Company

Starting a company in 2011 is great. Back in 1999, when we started Ximian, the only tools a small startup could afford for their internal infrastructure were mailman and perl. It was ugly.

In 2011, the best tools on the planet cost $25/month, billed to your credit card. In just a few minutes you can have better infrastructure than most fortune 500 companies. It’s incredible.

So part of my first three weeks as CEO of Xamarin has felt like a trip to a toy store. Everyone loves window shopping, so here is a list of some of the tools we’re using to run our startup:

Google Apps. Mail, calendar, internal wiki, and shared document editing. Cost: $5/user/month.

Github Bronze. All of our code is stored in github’s private repositories. We love github. $25/month.

Asana. This is our task management tool and it’s fantastic. It’s the only distributed task system I’ve ever used that’s as fast as typing into a text editor. Asana is a new startup from Dustin Moskovitz, the founder of Facebook, and their product is in Beta. Our team loves using it and we predict great things for Asana as it rolls into launch.

Stripe. Stripe is a payment system designed for programmers. They have a beautiful API that’s so simple you can integrate it into your site in less than ten minutes. If you’ve ever had to use Paypal Payments Pro, you will have a deep appreciation for stripe. They don’t require a merchant account and their JavaScript API allows you to transmit credit card information directly from the customer’s browser to stripe’s servers without redirecting the user to a stripe.com page. This reduces your PCI compliance burden without hobbling your payment workflow. Stripe will power our online store and future transaction systems. These guys are in beta too. They’re going to take over the world.

Themeforest. When I first discovered themeforest I thought it would be a wasteland of machine-generated CSS and generic templates. But the site is full of hand-coded, cross-browser gems for $15-30 a pop. There’s no substitute for high-end design, but if you need to get a decent-looking site up quickly, it’s your best bet, and far cheaper than it should be.

IRC + bip. We’re a distributed team, and having a place we can all hang out together online is very important to us. We wanted to find a for-pay, hosted group chat system that we loved, but campfire was too laggy, HipChat didn’t allow you to signin multiple places, and we didn’t feel we could trust a free solution like Convore. In the end we setup ngircd on a low-end, dedicated linode, configured to force SSL. A lot of us use bip as a proxy to maintain a persistent connection and show a backlog when you reconnect.

UnlimitedConferencing. For phone conferencing, we setup a $49/month account with unlimitedconferencing.com. We don’t pay a per-minute fee and international people can dial-in over skype to save money on long distance. It works fine.

Assistly. To handle incoming support requests from our future customers, we’ve looked at TenderApp, ZenDesk, and Assistly. We settled on Assistly after a support tech who’s worked with all three told us she prefers Assistly because it’s faster and easier to use. $69/support agent/month.

Linode and Rackspace. We use linode to setup quick Linux servers, and Rackspace for Windows servers. They’re cheap, reliable, and fast. If you need more power, a dedicated server from somewhere like 1and1 will do the trick. It’s surprising how far you can go on a $30/month linode. I’ve been using Linode for years and love them.

EFaxScanner Pro for iPhone, and PDFPen. It’s a dwindling fact of life that you need to send and receive faxes to do business. These three items have eliminated fax machines for us. We use EFax to forward incoming faxes to an email address. You can also use it to send faxes online. PDFPen is a mac app that blew me away when I took a JPEG and converted it to an OCR’d PDF in just a few seconds. You can also use it to mark up and to edit PDFs. And you can use Scanner Pro to convert a phonecam photo into a PDF that looks like it came off a scanner. You can even fax it directly from the phone (for a fee). It’s been a lifesaver.

BizSpark. BizSpark is Microsoft’s program to give startups free licenses to basically any piece of Microsoft software, including access to MSDN. If you plan to use any piece of Microsoft software, it’s a great program.

Ravix Group. One of the things we learned from Ximian is the value of signing on a part-time CFO from day one. At the very least you want a controller to keep your books in order and setup payroll and insurance, or you’ll have a big cleanup process later on. A higher-level finance person can also be very useful in helping you think through cap tables and convertibles notes and online billing and taxes and so on. We interviewed a bunch of individuals doing part-time CFO consulting for various startups. Their fees varied from a $6,000 monthly retainer plus 0.25% of post-series A equity, to $125/hour flat. In the end, we got some great references from Ravix Group, a firm that do outsourcing of financial and HR tasks for startups. They have a deep team and can assign various individuals to your tasks as appropriate. We’ve only just started working with them but it looks great so far.

Ropes and Gray. There’s no substitute for a great lawyer, and we have one of the best firms in the country with Ropes and Gray. Our team there is incredibly responsive, works weekends and late nights, and knows their stuff. Like working with a CFO, having a great lawyer has some benefits you might not expect: in addition to their legal expertise, they see a lot of deals, and can tell you what’s “market” and what isn’t. We never would have raised our Series B financing at Ximian without Ropes and Gray, and we’re happy to be working with them again.

I’m sure there are some other great products out there, but this is our list. Hopefully it’s helpful to someone who’s just starting to do the research. It really is a wonderful time to start a company.

17 June 2011
Show comments
  1. Just one question, why not use Skype directly for conf calls ?

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    1. Some non-employees don’t use skype. Also, skype is less reliable than a telephone call. Entering a conference code with skype seems to work about half the time.

      Reply

  2. This is an excellent list – thanks for sharing! We use many of the same tools ourselves and have been very happy. I thought I would add two very useful services/products to your list. Note that I’m not affiliated with either company in any way, I just have been very happy with the ease of use and value they provide.

    1) Paycycle, now owned by Intuit: Makes payroll and associated tax filings, payments, etc so easy that you don’t even need to outsource it. Also integrates with Quickbooks and Quickbooks online.
    2) Olark: Olark allows you to provide a ‘chat with us’ feature on your website where visitors can chat with you and ask questions about your product. It is great for gathering information on how you can improve your website, which questions people have most, and learning about why some people who visit your site don’t end up signing up. I think end users like seeing that they have the option to chat with you even if they don’t use it – it is just nice to know that ‘someone is there’ to answer your questions. It does take time to respond to questions, but I think the insight you get from it is invaluable. At $24 or so per month, it is a great deal, too.

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  3. Great writeup, I love seeing what tools other people are using, it always opens my eyes to new things along and confirms that I’m not the only one using what I’m using.

    The only criticism I have is I hate when services are plugged that I can’t even access. Like Stripe sounds neat, I’d love to know more about it yet all I get is ‘sign up here for more info’ box.. I’ve submitted my name to so many of those in the past and never hear anything from them, it’s so aggravating to hear of a new service I’d be interested in and then find out it’s not available.

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  4. Great stuff. Love to hear business hacks.

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  5. Great list – good to see new names on the list – and that ‘cool’ stuff is still being built.

    Thanks for the BizSpark plug :D

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  6. Thanks for the list. There are indeed many great products we already use, but I also learned about some new ones (Stripe, Themeforest).

    I see you also ended up using IRC. I just wanted to let you know, that we’ve created something IRC could have been if it was invented today: http://www.flowdock.com/tour/irc

    Flowdock doesn’t have the problems you found from Campfire and HipChat, and it integrates with Google Apps, email, Github, continuous integration tools, wikis, project management tools etc. It’s also the only tool categorizing real-time discussions with #hashtags, so you’ll always find what was discussed.

    – Otto

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  7. Great List, we use a bunch of these already.

    Another cool tool for recruiting, if ever you ever need help is VidCruiter. It allows you to pre-screen and interview applicants while you are working on your business, allowing you to focus on the quality of the finalists. Plus you get to show off your company culture at the same time.

    -Sean

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  8. Hey Nat, interesting list. How did you decide to use Stripe, and how did you even find out about its existence? We use Braintree where I work now and it seems to be really nice, with great documentation and APIs in the language we’re using (Ruby). When I go to Stripe’s front page I just think “okay… why should I use this instead of Braintree?” and I would just leave immediately, except I figure you know something I don’t and I’m curious what it is. :)

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  9. Great read. Thanks.

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  10. Thank for sharing. I’m not crazy about TenderApp myself (what I’m using ATM). Next time I have to make that decision, I’ll probably try Assistly. Also glad to hear about Asana, somehow I’m never satisfied with my issue trackers.

    Here’s a suggestion for team chat: I’ve been using TalkerApp for around a year. I love it maybe you would too!

    Disclaimer: it was created by two of my friends :-)

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  11. Great list Nat, thanks for writing it! I am looking forward to finding out more about Stripe for sure.

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  12. Thanks for sharing this nice list. Especially asana and themeforest are new to me.

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  13. Nice to see what others are using :)

    I might have missed something about Asana, but I’m assuming you’re not settling for GitHubs issue tracking system ? So what are you using ?

    And if you’re still looking, Redmine (http://www.redmine.org/) is a nice issue tracking suite, with “close issue on commit”.

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  14. This is cool! Thanks for sharing it.
    Themeforest is awesome.

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  15. Themeforest is great. Recently switched to CSSilize. It’s cheap ($35), has wonderful built in pms, svn…

    For outsourcing oDesk is also great.

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  16. Great list, Nat. My first startup is taking a lot longer than yours, but I’ll keep this list in mind for when I have a new project.

    One thing that might be helpful, if you are so motivated, would be to put together a similar resource list on the management side — investment and options structure, board of directors, care and feeding of VCs, what sort of CEO to/not to hire, etc. This is where I see most of my friends’ startups fatally wound themselves before they even get started — they exhaust their option pool before hiring their developers, they put a flashy sales-guy CEO in charge (at the behest of the VCs) who blows all their funding on golf games with companies they’re not ready to talk with yet or aren’t appropriate at all, they agree to obscene preference structures etc.

    On the other hand, that’s a lot less fun to write about tools that actually help you get stuff done.

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    1. “On the other hand, that’s a lot less fun to write about than tools that actually help you get stuff done.”

      Sorry, up too early.

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  17. Nice list. Best of luck with Xamarin.

    How does one get funding for a start up?

    Do you have a suggestion on how to write up a business plan for someone who could fund the venture?

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    1. Check mashable there are people that will write one for you. And i beleive it is the idea really not the quality of the plan so do not waste too much time on it. If you have a good plan i can get you money easy,, but angel list and a few other resources available for that. chk twitter nivi angel list and it will lead you to a few more companies that help starters. But there really is no need these day everything is free or cheap. unless you have a google of a plan and are looking to score a huge check during a lunch meeting.. but look around there are many many sites apps platforms etc that warrant investors but they are not looking for it..

      @angellist @nivi @techstars @founding ..Founder Institute @SocialLoans and there is more I should be the resource master I have it alll no joke.. I turned away investors as well but if you really want to be stuck to that forever let me know. I’ll hook you up, I just muscled through a year and I am ready to rock, dnt think id do it again though Bologna sucks!!

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      1. Michael, I am interested in all you spoke of in your comment here. I am also doing a new start-up, but I am an unusual entrepreneur for these times, having done a few start-ups in the early days of the PC, when Apple II and TRS-80 and such were “mainstream”. Hard to believe, isn’t it!

        I have a new technology which is mostly software but which also will require a bit of hardware because it needs more horsepower than many systems can spare. I have not finished the business plan yet, at least, not for this company, though I do have a general plan I have worked on as the technology was being developed. As you say, it isn’t something to waste too much time on if your “product” is good, which mine is. In fact, I guarantee it will improve your experience with the internet, the cloud, wireless, etc.,; wish I could announce it but I can’t as patents are still being done. One other item I am a bit nervous about is where and how to find the right CEO. I had some bitter experiences in my previous companies in that area, including making the mistake of trying to do too much myself. I cannot just shop around and grab a CEO; I will want someone who fits my profile etc. I have not done that for so long I am sure it is not the same as it once was – I am VERY sure of that! In fact, there isn’t much which is the same, thank goodness. What I could have done with the internet, with the apps and resources described in the post you responded to, and the funding now available from people who know something about the markets etc.!!! I would be the VC now instead of the one shopping around again when I could be the father of most of the people I will work with and compete against! I guess I’m lucky I am still that “young of mind”.

        Please let me know more about how to fund a startup, where your sources may be located (all in silicon valley or ???), and so on. I know this is a broad request, but I’ll be happy with whatever you wish to say; I’ve been hunkered down doing the technology and would like to get back into life again. I am confident that I will be OK with it all once I get back into the loop, and that my prior experience may even make some VC’s or Angels etc. comfortable, if that is something to be desired! Just from surfing the internet, I see where your statements about funding are correct; there is plenty available for good companies.

        Thanks,
        Larry Holmes

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  18. Nat,

    What about logos? Have you found any good sites that let you browse and buy pre made logos and then just change the text?

    There are a ton of “well create your logo” sites but I want one like themeforest where I can just buy a pre made one.

    Thx,

    J

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  19. I use skype and it has been working awesome! We share files, screens, group chat and collaborate through IM when we are at our normal jobs and on different schedules. We still managed to keep it free. I also used a secret group in facebook for a somewhat organized wall of our links and to collaborate, use event invites for meeting times etc. and keep fb developments and new releases in order rather than being in 8 different computers. We have wordpress rt in fb along with twitter ads a store as a practice private group. it seems solid now and about ready to roll out. Works well now in foxracing on fb..

    Also what is your favorite app for fb fan pages?? iwipa seems ok but I have seen many since does anyone have a strait answer for that so I can get to work much appreciated!

    I NEED TRANSFER FANS TO FAN PAGE SOLUTION anyone??

    group to fan page I have this is our last vice or treasure we must find. I know it exists but fb keeps it quiet so they can clean house and get rid of the many jailed or deceased or non active accounts I am sure now i shall hunt for the next 48 hours and then we are ready to rock n roll with this great team i have assembled over 6 months. no start up money no angel list no help all in the midst of the changes it was brutal, but it is definitively time to make the donuts in this industry!

    I have another live chat software I think works great, http://www.boldchat.com. I also enjoyed this article I also love to find new things and test you never know what you may find new because we can not know it all these days that is a fact. mj

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    1. I also use Skype for group chat, free voice calls and for file transfer. On top of that I have Skype-In as an inbound phone number that forwards to my mobile in a different country. I can be logged into the same Skype account from multiple machines and I usually keep it up on 2-3 machines. I love the ease of switching between chat and voice that Skype offers.

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  20. Nat,

    This is a great list, and we certainly appreciate your love of Assistly.

    We are addicted to Google Apps. The ability to have a group of people all on skype and simultaneously editing a real-time text doc is mind-blowing. We have meeting and keep notes real-time, edit web site copy, build specs.

    We use skype extensively. One of the best features is the ability to create a group chat and leave it open all the time. This allows for impromptu brainstorm and water cooler sessions with full history.

    I’ve also become a big fan of VuRoom multi-party video conferencing for skype. http://vivu.tv/vivuweb/products/vuroomskype/. I have a design team in London that I meet with daily over vuroom + skype and it has really enhanced our working relationship with 3+ people all in different locations.

    I am also a total fanboy of Google Analytics and Optimizely. Optimizely is hands-down the smartest and easiest a/b/multivariate test suite out there. And it’s priced really well. GA is a beast, but it’s also a data monster. I’ve tried 20+ analytics tools and for all of GA’s faults, I still keep going back to it.

    I also found some good advice here: http://www.quora.com/What-are-some-useful-SaaS-software-as-a-service-tools-for-small-businesses

    Matt Trifiro
    SVP Marketing, Assistly

    Reply

  21. I’m surprised at Github. The Bronze plan only allows 10 private repositories. You can get by on only 10 repositories?

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    1. So far we can. We’ll probably be upgrading at some point.

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    2. Hi.

      why all blog-development-related, fall down with GitHub?
      They no offer private repositories.
      BitBucket.org , they offer infinite private repositories (for free) and 5 collaborators (you can pay for more collaborators), you need use Hg (Mercurial), but is the almost shit that Git.

      grettings

      Reply

  22. This is a really great list.

    One thing which we found helpful for reCAPTCHA was pingdom. Having a sanity check for “is our server up” is really helpful. We still had to set up Cacti and Nagios for other types of monitoring — hopefully somebody has figured out how to make those things go away.

    Might be a bit biased here, but I’ve also found Facebook groups to be surprisingly useful. Internally we have a bunch of groups ranging from social, a place for miscellaneous banter to groups for specific products. It’s a nice medium that I think encourages people to share stuff when they might not send out an email about it, etc.

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  23. p.s.: please keep this list up to date with other stuff you find. I have a feeling I’ll be pointing people at this page.

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    1. Ben – Thanks! And good idea. I already have a few things to add.

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  24. Great list. I was aware of many of these companies (I used to work for one of the principals at Asana), but hearing specific recommendations from someone who’s been around the block a few times is extremely helpful.

    As Ben said, I’ll be revisiting!

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  25. I’m working on a start up that will be using your new products (can’t wait for Xtudio; please make it VS cross-plat!). This list is great but it’s frustrating to see that many of these services are in private beta. I feel like many awesome services are out there but you need to be in the “know” to use them.

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  26. To the sysadmin on this web server – Nat – unfortunately your server is being used as a source of phishing spam email! I received an email today that came from ac@nat.org which had a link to another hacked site with a bank account phishing email.

    I would strongly suggest that you check your mail MTA settings/configs, and clean it up for security with improved settings and remove the ability to email relay so as to prevent it being misused.

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  27. Hi Nat,

    Great list, we use a few items already from your list, and will definitely look into the other services you recommend. You’re right about the joys of start-ups today, as my entrepreneur buddies have constantly been referring tools to me that they find online. Everything’s either very cheap, or free.

    My start-up has a tool that I believe will be pretty useful for the iOS developers out there. It’s always difficult to test and debug iPhone apps, so we’ve created a crowd-sourced platform where testers around the world, with different devices, networks, habits can test your apps. This helps make sure that Apps are in 5-star condition before you submit it to the app store. In fact, we’d love to hear your thoughts on this service as well: http://www.pay4bugs.com/client/mobile-ios-app-testing

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  28. Very good list. So good that almost gets me make up my mind to do a start up.

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  29. Hey, thanks a lot for this list!

    What is that “internal wiki” you mentioned regarding Google Apps? I couldn’t find a Wiki feature anywhere…

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  30. Awesome your using Linode, their API is pretty good for server building/automation. We use it too.

    We decided against using Google Apps for our email, too much if a privacy issue. We prefer to use our own Atmail http://atmail.com/ server on our Linode instances, much better control for us without the fuss of Google.

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  31. There’s a new startup http://grove.io/ that now offers hosted IRC service with web ACLs and archiving.

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  32. You might want to take a look at HyperOffice if you want multiple tools in one. Doing multiple things with multiple tools can cause the problem of “cloud sprawl”.

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  33. hey there and thank you on your information – I have definitely picked up something new from proper here. I did however expertise several technical issues using this website, as I skilled to reload the site lots of occasions prior to I may get it to load properly. I had been puzzling over if your web hosting is OK? Now not that I’m complaining, but slow loading circumstances times will very frequently impact your placement in google and could damage your quality score if advertising and with Adwords. Well I’m including this RSS to my email and can glance out for a lot more of your respective intriguing content. Make sure you update this again soon..

    Reply

  34. Along with the spirit of keeping this list updated with neat finds, at the khan academy, we use https://trello.com/ for ad-hoc and more organized ordering/prioritizing/reminding/etc. It’s nice, i have a board that i keep for myself and internal projects have their own boards for bugs, release features, etc. It has just enough features to make it interesting but not so many that you feel constrained by it.

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  35. bip? :)

    I’d suggest to have a look at Quassel.
    It’s a distributed IRC client, you host a core on a server (similar to bip) and use a quassel client to connect to your core.
    It feels more comfortable than a bouncer.

    Reply


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