Rework

Fried and Heinemeier Hansson wrote a short book of contrarian positions on running a business, drawn from building 37signals, later Basecamp, as a small profitable company that refused venture capital and refused to grow. The chapters are two or three pages each and state a position without qualification.

The arguments include: planning is guessing, so long-term plans should be replaced with decisions about what to do this week; growth for its own sake is a mistake and small can be a permanent condition rather than a stage; workaholism produces worse work and is a failure of prioritisation; meetings are toxic and should be treated as expensive; you should build half a product rather than a half-baked product; constraints are advantages because they force decisions; and you should sell your by-products, meaning the things you learn and build in the course of the work.

The marketing arguments are the most distinctive. They advocate teaching as marketing, showing the work in public, emphasising what the product deliberately does not do, and picking a fight with a competitor's approach in order to attract the customers who share the position. Their advice on hiring is to hire late, hire people who write well, and give candidates real work as the test.

The positions are stated as universal rules but derive from one specific case: a profitable bootstrapped software company with a small team and no outside investors. Much of the advice fails directly for capital-intensive businesses, for companies in winner-take-most markets and for anyone who has taken venture funding. The tone is combative and the absence of qualification is deliberate. The material on constraints, on meetings and on teaching as marketing transfers most widely.

Creator of Ruby on Rails and chief technology officer and co-owner of 37signals, which makes Basecamp and Hey.

Rework rejects the venture-funded growth sequence - outside capital, long-range plans, headcount as a measure of progress - and sets out how a small, profitable software company is run instead, from a firm that has done it for two decades. Remote, published in 2013, specifies the hiring, writing and management practices distributed teams need.

37signals