I bootstrapped a $10 million company and need serious help
Two years ago I started Social Print Studio as a little design company. We have been able to make a name for ourselves in the world of photo printing. We have many repeat customers, some large corporate clients, and growing six-figure monthly revenues. Things are going well and we have a strategy to compete directly with major players the field and really take the company to the next level. Problem is that we turn down massive opportunities everyday and executing our strategy has been a huge problem due to our lack of technical and managerial skills.
We are just a group of friends who got in over our heads. We have no network and are having trouble scaling. We are looking for a CTO or solid lead web engineer, someone with solid marketing experience, and maybe even a new CEO. We want to grow this thing huge, are ready to make bold moves, and we want to have the right experience on the team so we can do things right. Craigslist recruiting is not cutting it.
This is our cry for help. If you want to come work with us to build and grow the company 10-100x in the next couple years... Whether you are an engineer, designer, marketeer, or know someone who is... please get in touch. Now is the time, we have some amazing opportunities and really want to push amazing work.
please get in touch directly: Ben@socialprintstudio.com @benjaminlotan on twitter
ps. we are in San Francisco.
Published in 2013, this chronicle by @benjaminlotan details the mechanics of building a profitable, self-funded business without venture backing. Key verified financial milestone: $10 m.
The community focused on B2B customer acquisition channels, cold email vs SEO distribution, and balancing full-time employment with side-project development.
Hi Ben,
First, I can completely appreciate your mentality. When the software company I founded was at about $650,000 in annual revenue, I was convinced that it was time to bring in a seasoned leader who knew how to take the business to the next level because I, as a first-time entrepreneur, had certainly not done it before.
In retrospect, that mentality was a mistake. The truth is that you understand the business better than anyone else and there is no magical skill or talent that someone else can bring to the table that will so fundamentally improve things.
Do not make the mistake of thinking that if you transfer responsibility to "better" executive that they can do a better job. That person will bring their own strengths/weaknesses to the table. They will need to rely on a team to make up for their handicaps just as you are looking to do.
In this situation, I recommend the following:
- First, clearly identify exactly what issues are vexing you. If it seems like "everything" or "things are just overwhelming" then make a list of just the most important issues.
- Then pick 1 or 2 or 3 that you can actually focus on solving. You can't do more than that at once, but imagine how much impact fixing your top 3 issues will make on the business! In fact, you should try to quantify how much money you are losing or missing out on by not resolving these issues to give yourself a sense of what you should budget to solve them
- Then block out or delegate everything else, and focus 100% of your creative energies on how you can resolve these issues. Use any and all resources available to you, including friends, consultants, or even Hacker News ;-) If you don't even know where to begin on an issue, then find an expert for THAT ISSUE (which is different than finding a new CEO).
- Then keep at it, keep refining your ideas, listen to your intuition, and push through until you make progress.
I made the mistake of thinking other businesspeople were "better" than me or more talented than I am. The truth is you just need to know what your strengths/weaknesses are. Then lean on the team around you or new people to help you fill in the weaknesses.
Hope this helps,
Josh
Agree with everything that is being said here regarding the executive seats, don't give those out and keep control.
In addition to some executive coaches, who will help you grow personally, it seems you need some good advisors who can help you with the problems that you're facing. Some of these could have experience with technical issues you're facing, while others could have managerial and supply chain experience. It wasn't clear from your website if you have any advisory board or not.
NOTE: there is a very big difference between board of directors and advisory board, what you need at the moment is advisory board, don't give out board of director seats unnecessarily unless you raise a VC round of funding or go IPO :).
By getting a good set of advisors you will be able to fill the immediate gap in your skills/experience that you're facing and may even decide if any of those (or their referrals) need to be hired, if at all, for executive positions.
Now how you find advisors is non-trivial so I will advise you to look for people with experience in your industry and domain, and contact them. Even if their companies seem to be mildly competing at times, you'll be surprised how many people will meet with you over coffee and might have recommendations. If you decide to have a person come on as an advisor, don't give them any compensation till they start providing value. If someone comes on very strongly and will only help if compensated, then perhaps that is not the right person.
Good Luck!!!
Wow! The quantity of bad advice in these comments is shocking, if not down right disturbing.
If Intel, GE, or Mircosoft hired a consultant to advise them on the right move, the vast majority of people on HN would scream bloody-murder and speak about it as a perfect example of big-business and its stupidity. What hypocrisy!
Ben, the reality is that you clearly have moved past Steve Blank's description of a start-up; you have found a working business model. Now, the challenge is to find out if that business model is something that can last for 5 years or 50. No one on this board has run a successful company for 50 years. Thus, everyone, definitely including myself, is well out of their league.
However, since entering the old school world of finance, I have realized that there are many men and women who are twice our age who would be able to give you great advice. You need adult supervision and that is OK. You don't know how to hire an executive (i.e. adult supervision). Thus, you should first find someone who can help you find adult supervision. A great place to start is in the 'boring' industries: finance and manufacturing. Find a wise advisor who can help you find an executive to lead.
You are no longer a start-up. Running a post-start-up company like a start-up will kill it as quickly as running a start-up like a Fortune 500.
Ben, first, you are NOT in over your head, you are simply questioning whether or not to grow your company to some preceived "next level" by looking for funding to take on major players in your field.
Why not continue to innovate your successful bootstrapped business?
The most important thing for you to consider is whether or not you actually want to compete with the major players in the field. It sounds like you are doing well managing your boutique operation, and frankly, based on what you've provided it sounds like you are killing it. Boutique operations often destroy their larger competitors, and are far more nimble to have the next best thing that becomes popular and doesn't require "funding" to generate revenue.
Yes, you could hire a new CEO to help track down funding and manage all the acquisition inquiries that you've received. But, if you have a successful bootstrapped business that is generating profits, why would you want to deviate from your current course?
i'm running a $2 million and growing company, and i can say that if you're doing $10 million dollars in 2 years (TWO YEARS) and think you have a "lack of technical and managerial skills" you are being intellectually dishonest with yourself, and possibly being disingenuous to your audience here.
from what we've seen and what we've heard, basically starting at $1 million/year in revenues, you will hit a serious new set of problems (some call these inflection points) at every doubling thereafter (i.e., 2M, 4M, 8M, 16M)
obviously there are exceptions (some businesses are simply born to be able to handle massive amounts of revenue in a flat manner) but basically, every time a business doubles, the problems change. this doesn't mean you're incompetent, or that you lack skills.