Choosing Wisely | 3 Tips from Dan Flanegan (Butter App)

An old friend of CoEfficient Labs, Dan Flanegan is the CEO and co-founder of Butter, the social media app taking the world by storm. As an expert in product development, he advises several startups—and joined us for an episode of Demo Day to provide some stellar advice to budding entrepreneurs. Here are some of our key takeaways from Dan: 

1. Choose your job deliberately. 

We’re all tempted to take the first opportunity that comes our way—and those seeking to join the startup-sphere are no exception. But the startup label shouldn’t be enough to convince you that it’s the proper place to propel your career.

Instead, be deliberate in your job search. As Dan advises, “find somewhere with opportunity for growth and with great mentors, people you can model your career and skill sets against, but where you have autonomy to go off and sink or swim on your own.” 

Your job should provide you with the freedom to make decisions and allow you to iron out your own problem-solving skills. If you’re somewhere you’ve enjoyed the opportunity to grow, but sense that that period has closed, it might also be time to seek your next challenge. Perhaps you’re ready to start a business of your own?

2. Choose your investors wisely.

Similar to the eager young jobseeker, a new founder may jump at the chance for their first investor. Yet Dan suggests that founders “be incredibly wise when picking who’s going to invest in your company, and who’s going to own a piece of your company.” 

While building his first company, Dan felt like he needed to raise money to keep the business going, the vision alive, and employees paid. But the investors he found had no understanding of the domain. They weren’t able to offer meaningful insights into how he could improve his business. 

More investors also meant that suddenly Dan wasn’t just responsible for his personal & team goals but the external demands of investors. 

Find investors who understand the need your product seeks to fill, so that when you talk with them or they connect you with someone else, it’s going to push your company forward, not force you to stagnate.

3. Choose your name & maybe choose it again. 

Butter is a social media app in which users post a photo to the community, with the tag “What do you think of my ____” and then have it rated 1-10. But before Butter, Dan’s company was called GetMeRated.

When Dan entered MuckerLab, people didn’t understand what his company did. Did they rate restaurants? Home Improvement? Cat videos?

Meanwhile, Biz Stone (one of Twitter’s co-founders) had a startup called Jelly, leading Dan’s team to toss around the idea of calling their app Peanut Butter. They finally settled on Butter— it sounded like something you could stick on your surfboard (the hallmark of California businesses). After the name change, Dan found that when he’d talk to people and say “We’re Butter,” half of the people would respond with “I’ve heard of you”…even if they hadn’t. 

The first name you settle on might not be the one that everyone eventually knows. Be willing to pivot when you find a name with proper stick.

Want to Learn More?

Dan talks maximizing your time in accelerators, learning from each pitch, and more in this amazing episode of Demo Day. Listen now on Apple Podcasts, Spotify, or our Demo Day Website.

As always, reach out in the comments below & let us know what you learned from our convo with Dan!