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Livingston: I read that you initially started out as a consulting company and you would do the real startup project at night, even though you hadn t figured out exactly what you planned to do. Winblad: Yes. We did that because no one had any money. There wasn t a Y Combinator around to even give us $6000. In fact, I exhausted all of my savings on the incorporation fees and was about $500 short, which I had to borrow from my brother, who was in high school. But he had a job. He was the only one who had $500 to borrow from that I knew. So we had to find a way to cover ourselves.

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Assuming your application requires more than just some minimal information, but involves the storage and reporting of a large number of data items, you need to organize them into separate groups or collections in a logical and efficient way. The whole subject of effective database design is beyond the scope of this book. However, let me introduce one concept, perhaps the most useful concept in the whole subject: database normalization. From Wikipedia (http://en.wikipedia.org/wiki/Database_normalization): Database normalization is a technique for designing relational database tables to minimize duplication of information and, in so doing, to safeguard the database against certain types of logical inconsistency. When multiple instances of a given piece of information occur in a table, the possibility exists that these instances will not be kept consistent when the data within the table is updated, leading to a loss of data integrity. A table that is sufficiently normalized is not vulnerable to problems of this kind, as its structure prevents it from holding redundant information in the first place. Couldn t have said it better myself. Really. Let me give you a practical example to clarify what might otherwise seem to be a fairly pedantic definition. Suppose, going back to the customer order table, we have the fields shown in Figure 2-2. This table is painfully un-normalized. Every order will have the customer s name, address, and phone number repeated. Now suppose the customer changes their phone number. Your program would have to go through each record in the order table, find that customer, and update their phone number.

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We see a lot of entrepreneurs that do this That they actually find a way to earn some money, but they don t they find a way to separate that from the business itself Where entrepreneurs try to mush the two together like, Well, let s compromise the real business to sort of get more money in versus let s find a way to get money to cover the real business and leave it uncompromised But they have to perform some unnatural acts to get started, which is what we did We were chosen under a Request for Proposal bid to build a student accounting system for a vocational school in the state of Minnesota, which helped us focus on what we were going to do.

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We had to really say, OK, how good s our accounting knowledge which had nothing to do with student accounting; this was grading systems tied to student accounting It was really a one-off It also told us how we could underestimate a project, how we would manage a project, how we would manage engineers, how we would manage our own time And we got paid for learning on the job All of us owe a lot to the person who took the risk on people who looked like children, who had no work experience other than the the other three guys had been at the Federal Reserve Bank longer They were each about 4 years older than me, so they had 3 and 1/2 years of work experience and I had 13 months We were overly thoughtful about what we would do.

When it came down to what special skills do we have, we went back to that accounting class and in fact opened up my college accounting book and said, Let s start programming this from scratch and build accounting systems for smaller computers..

Livingston: Was this before personal computers were even out there Winblad: They were coming really fast. Hobbyist computers already started

Further, suppose that a feature or function is added later that once again needs the customer phone number. So the phone number gets included in yet another table. No problem, as long as the programmer remembers that if a phone number gets changed in one place, it has to get changed in ALL places in the database that it appears. Which they won t. Guaranteed. In other words, this is a problem. Figure 2-3 shows a better approach.

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