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Carlton: Well, there s a security feature built in where they get a CD key or unlock code, and so when I issue a code they get two unlocks, because I assume that most people are going to install it on their desktop and on their laptop And if they try to install it on another machine, it won t work Smolin: OK Carlton: So they have to call me and ask for another code So if it s the person that purchased the program, I will give them another unlock I wasn t so much concerned about one person giving it to a friend Although you know I d much rather have the friend buy it I was concerned that I m shipping it to China, you know I m shipping it all over the place Smolin: You d sell three and find 300,000 installations Carlton: Exactly.

Why would they want to come work at my company where everything is constrained So it s not as simple as hanging out a shingle and saying, Here s our small company; we have $15 million a year in revenue and we re profitable; now we need a manager The people you are likely to attract, by definition, are people who couldn t get a job at General Electric We were having trouble because the handful of good people who wanted to work at startups were all dazzled by the names of the venture capitalists They d say, If you don t have backing from Kleiner Perkins, we don t want to work for you.

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We talked to a headhunting firm, and the guy was candid with me and said, Look, we can t recruit a COO for you because anybody who is capable of doing that job for a company at your level would demand to be the CEO And I thought, That s kind of crazy How could they be the CEO They don t know the business or the customers How could we just plunk them down In retrospect, that was pretty good thinking; look at Microsoft: it took them 20 years to hand off from Bill Gates to Steve Ballmer He needed 20 years of training to take that job Jack Welch was at GE for 20 years before he became CEO Sometimes it does work, but I think for these fragile little companies, just putting a generic manager at the top is oftentimes disastrous.

There was no way we could have hired first-rank businesspeople in that environment There were too many companies that were low-risk and had more assets that were hiring the best people All we were going to get were the second-raters We d get first-rate programmers because we had a company where programmers were the stars and we already had great colleagues for them, so we were going to attract great programmers, just not great businesspeople Because we were not GE or Microsoft, we were not a place where a great businessman rationally would have wanted to work We did get one good guy, Cesar Brea, who had done a lot of software consulting at Bain He came by the house to check us out because he had heard about us from a friend of a friend and was looking to work at a company instead of being a consultant.

Smolin: So how did you pick your development language You were an Access programmer at the time, yes Carlton: Yeah, that was what I was programming in Smolin: Have you programmed in other languages Carlton: All database languages like dBase, Paradox, Q&A Smolin: From the time that you decided you wanted to do this project until you were ready to install it at the first Beta test site, or the first customer, how long did it take Carlton: I turned into this like maniac where I couldn t sleep I was coding all the time I d be coding at night And I d wake up in the morning and I d just start again it consumed me, because I could see it I couldn t stop thinking about it or working on it Probably about four months Smolin: Four months of development, then.

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