Re:Quitting the Rat Race
by krisroadruck on Tuesday January 17, 2023 @06:38PM
(#34421108)
I'll try to answer this as fairly as I can by starting with the things that lined up to make it possible for me:
- I've been working in my industry for over 12 years and have amassed a decent sized network and twitter following along the way
- My wife makes good money and was supportive of me taking a hit to pay while I got things going (I didn't draw any money from the biz for the first 6 months, enabled by the next thing on the list)
- I had a close friend be willing to give me an essentially risk free, low interest loan of $30K to get things going. Enough to cover me for those 6 months. Loan was structured to be forgivable if business failed in the first 2 years, 5 year terms @ 5%, with no payments or interest accrual in the first year. Obviously a loan like this is a rarity, but if you are sitting on some savings that could be a good stand-in.
- I ran a business once before many years ago and learned a lot of the hard lessons that time (taxes/accounting/entity structure/hiring)
- I do digital marketing & WordPress dev - which means the service I sell is also a skillset most founders need (ability to market their service, set up a website). I'm also pretty comfortable selling to both a technical and non-technical audience, and I'm comfortable pitching directly to and managing the expectations of C-suite folks.
All of that combined is a pretty great place to "start from zero". Success wasn't guaranteed but I certainly wasn't going about things the hard way.
Anyway to get first few customers I started being pretty active in places where people who might need my services gathered - Slack communities, subreddits, et cetera. I tried to give insightful advice where good answers could be given in a few paragraphs. I offered to look at peoples issues directly or to solve really small problems for free + an ask to consider me for larger projects or retainer work, or to just say nice things if someone was asking for the types of services I offered.
I also pitched 2 customers who normally would have been below my going rate/retainer size as basically a "I need some case studies, someone has to go first, you'll get a bit of a deal if it's you". Once I had those first 2 customers as a base and a nice referral pipeline as a result of them and the presence in those communities I was able to grow from there.
Once I had around 4-5 steady retainer clients and a bit of padding in the business account (about 4ish months in?) I started hiring help. I had a lot of previous experience hiring and working with international teams so I leveraged that to save some cash early on by hiring in the Philippines, Romania & South Africa. By the end of year 1 we were a team of 4 (myself included). Total revenue was around $200K, of which I managed to pay myself around $60K before taxes.
At the end of year 2 there is about 8 of us now including our first full time US hire. Year two was just shy of $600K in revenue and I was able to get myself back into 6-figure territory compensation wise, give everyone raises + Christmas bonuses, and still keep several months of runway in the business account. I don't expect the biz to make me a multi-millionaire any time soon (and that's not the point anyway), but things feel pretty stable at this point and growth remains strong. Results probably not typical.
Anyway to get first few customers I started being pretty active in places where people who might need my services gathered - Slack communities, subreddits, et cetera. I tried to give insightful advice where good answers could be given in a few paragraphs. I offered to look at peoples issues directly or to solve really small problems for free + an ask to consider me for larger projects or retainer work, or to just say nice things if someone was asking for the types of services I offered.
I also pitched 2 customers who normally would have been below my going rate/retainer size as basically a "I need some case studies, someone has to go first, you'll get a bit of a deal if it's you". Once I had those first 2 customers as a base and a nice referral pipeline as a result of them and the presence in those communities I was able to grow from there.
Once I had around 4-5 steady retainer clients and a bit of padding in the business account (about 4ish months in?) I started hiring help. I had a lot of previous experience hiring and working with international teams so I leveraged that to save some cash early on by hiring in the Philippines, Romania & South Africa. By the end of year 1 we were a team of 4 (myself included). Total revenue was around $200K, of which I managed to pay myself around $60K before taxes.
At the end of year 2 there is about 8 of us now including our first full time US hire. Year two was just shy of $600K in revenue and I was able to get myself back into 6-figure territory compensation wise, give everyone raises + Christmas bonuses, and still keep several months of runway in the business account. I don't expect the biz to make me a multi-millionaire any time soon (and that's not the point anyway), but things feel pretty stable at this point and growth remains strong. Results probably not typical.