[HN Gopher] Mistakes to avoid to build a better 1-person business
       ___________________________________________________________________
        
       Mistakes to avoid to build a better 1-person business
        
       Author : Jthink
       Score  : 418 points
       Date   : 2023-06-22 12:43 UTC (10 hours ago)
        
 (HTM) web link (tinyempires.substack.com)
 (TXT) w3m dump (tinyempires.substack.com)
        
       | newaccount74 wrote:
       | I think most of this advise is very arbitrary. There are a
       | million ways to make money. Choosing a small market vs. large
       | market is not inherently better, targeting businesses is not
       | inherently easier, and finding one customer who pays 10kEUR is
       | not necessarily easier than finding a 1000 customers who pay
       | 10EUR. It's just different.
       | 
       | There are one person companies that are successful with either
       | choices, and the decision which opportunities to pursue should
       | depend on your talents, your personality, your experience.
       | 
       | For example, I personally find it much easier to sell a cheap app
       | to lots of people. I suck at selling big contracts to businesses.
       | I only once managed to close a five figure contract, and that was
       | a consulting job where I was basically an employee.
       | 
       | But I'm not saying everyone should do the same. Figure out what
       | you are good at, and do that.
        
       | ilaksh wrote:
       | > Think smaller markets with bigger budgets
       | 
       | How do you find those and market to them? I actually am trying to
       | make a ChatGPT plugin because people wouldn't pay for the website
       | (partly because it didn't always work great, I am narrowing the
       | focus) and I think this will be a captive audience.
       | 
       | Based on this, I am thinking maybe I should change the
       | description of the plugin (when I get it out) to something that
       | will appeal to web design agencies rather than individuals.
        
       | XCSme wrote:
       | For me, the solution was simple: automate as much as possible and
       | move most of the costs to the customer side (e.g. focus entirely
       | on the self-hosted product instead of providing hosting myself
       | and having to run and maintain servers for thousands of
       | customers).
        
       | Vixel wrote:
       | I can totally relate to these tips. I used to do in-home computer
       | service and I advertised on self made signs all around the city.
       | Got a lot of calls but not a lot of conversions. The minute I put
       | "Business Computer Service" on the signs, I got the same amount
       | of calls and nearly every call was converted into an appointment.
       | And now that they had a reliable computer person, they continued
       | to call. I was able to raise my prices by 40%, hire a few
       | employees, get some funding and eventually sell the business.
       | I'll never forget how adding that one word was liked a magic
       | trick.
        
       | lapcat wrote:
       | I find the article a bit strange. It seems to assume that an
       | entrepreneur starts with the goal of having a 1-person business
       | but has no other ideas whatsoever. That's not ideal.
       | 
       | I have a 1-person business myself, and it seems to me that it
       | starts with an idea and/or personal skills, the two of which are
       | inherently related. There are things that I know, and things that
       | I'm good at. The author advises you to target businesses, not
       | consumers, and perhaps that's good advice in the abstract, for a
       | generic person, but for me personally it feels like bad advice.
       | B2B is not my area, not in my past experience, not what I know.
       | The author says "The opportunities are endless", but that's a
       | curse as well as a blessing. How are you, as a single person,
       | going to make an impact, distinguish yourself from other
       | businesses? You have to rely on your personal strengths, whatever
       | those happen to be, even if they go against the author's generic
       | advice.
       | 
       | My own advice would be this: don't try to start a 1-person
       | business unless you _need_ to. ;-) It 's extremely difficult.
        
       | idlewords wrote:
       | I think this kind of advice is more useful when it comes from
       | someone whose business model has nothing to do with startup
       | lifecoaching. Otherwise it has a tendency to get a little self-
       | serving and divorced from useful experience.
        
         | tptacek wrote:
         | It's a point well-taken, but I went and read this post after
         | reading this comment, and was surprised at how inoffensive the
         | advice was: like, a lot of this would be very high on my list
         | of most important advice to give (rates in particular).
         | 
         | (Obviously we come at this from different directions!)
        
           | idlewords wrote:
           | That's kind of the point I'm groping towards, that the people
           | who earn their living by giving advice tend to give great-
           | sounding advice.
        
       | scientaster2 wrote:
       | Thoughts on this?
       | 
       | > 4. Don't choose a large market
       | 
       | I feel like there's also a case where the opposite is true, e.g.
       | that there's already proof that businesses are willing to pay for
       | solutions in the space. As long as you have a differentiating
       | factor to the big players (ideally via something they couldn't
       | easily shift to), my knee jerk reaction is that it's still not a
       | bad call to launch in the space.
        
         | detourdog wrote:
         | I focus on very small markets with specific needs not met by
         | industry norms. The problem I see today is that the big box
         | stores are replacing what had previously been regional retail
         | buyers.
         | 
         | The homogenization of big box board rooms needs vs. Regional
         | cultural needs has narrowed the manufacturing focus to the
         | average. My theory is that just in time manufacturing will move
         | to the "garage stage". The retail price of American high end
         | refrigerators and stoves may not reflect the cost of materials
         | and quality of thought that went into the object. My plan is to
         | develop a platform of appliances that is more efficient than
         | existing offerings but available in specific sizes. Think of it
         | like ordering custom furniture. The result could be a
         | refrigerator that fits the space exactly using the finish
         | materials of choice.
         | 
         | I have spent too many decades thinking about this but I have
         | finally have my small run manufacturing facility (FabLab) set-
         | up. I think it will be another 2 years before I get a product
         | out the door.
         | 
         | This is an epicenter of the thinking. I personally think they
         | are overcomplicating some aspects. I'm sure at a school of
         | higher learning it needs all times of overthinking.
         | 
         | https://cba.mit.edu
        
           | all2 wrote:
           | Let's say I buy a condo with one of your made-to-fit
           | appliances. Will you be available to refinishing it?
           | 
           | Also, I'd love to hear more about your fabrication and design
           | pipeline. This kind of work sounds utterly dreamy to me. I
           | used to work in hardware as a SWE and loved the mix of
           | programming and hardware work. I've also longed to start a
           | business, but am somewhat at a loss as to what even to do.
        
             | detourdog wrote:
             | I haven't worked out all the details that is why I
             | headquartered myself in an 8 unit mixed use studio
             | apartment. My initial plan was to work out each appliances
             | details in batches of 10. If something were to sell out I
             | could make more. Once I got my CNC I realized I had
             | outgrown my barn.... found an old model school. Spent all
             | my development money to flip the plan. I would create 7
             | Studio apartments to cover my expenses and act as my market
             | testing.
             | 
             | Currently I'm focused on my own 7 Apartments. Every big
             | leap in living started by adding a new service to the
             | kitchen.
             | 
             | fire, running water, electricity,....
             | 
             | Controlling the default installation for 8 kitchens should
             | provide with a rare design freedom.
             | 
             | Finally I think I will be writing manifestos on technology
             | and design. I have set myself up to only need to produce
             | artifacts.
             | 
             | view.cogs.com
             | 
             | I have been at it since the 90s. I have answers to your
             | question but I dont want to get into it here.
        
         | rco8786 wrote:
         | I think both you and the author are kind of dancing around this
         | point:
         | 
         | It's fine to choose a large market, as long as you niche down
         | your specific offering with a differentiating factor specific
         | to that niche which, in effect, shrinks your market.
         | 
         | A solo biz can't reasonably compete with Salesforce in the "B2B
         | CRM" market. But a solo biz can prosper in the "B2B CRM for
         | personal injury law offices with < 10 employees in the US", as
         | a totally made up example.
        
           | detourdog wrote:
           | I see what you mean. I call that a small market because it is
           | tightly defined niche.
        
         | m3kw9 wrote:
         | I think he's saying large markets can cause you to scope creep
         | as you want to reel in more and will need scaling which is
         | usually difficult with one person business
        
         | rfreytag wrote:
         | If you target a niche in a large market then you are targeting
         | a small market. Create serial MVPs targeting those niches until
         | you find product-market fit.
        
       | gnicholas wrote:
       | > _On the flip-side, you could just have 1 single B2B client
       | paying $10k per month for a service and make 10x the amount, with
       | lower running costs and no churn._
       | 
       | Why does he assume there would be no churn? The churn would be
       | binary and catastrophic if it happens.
       | 
       | Separately, I've found some businesses are hesitant to do
       | businesses with a small/solo startup because of the risk it
       | entails. Some of them wanted me to put our code in escrow in case
       | something happened to me personally. Some are just hesitant to
       | business with a smallish startup, whom they figure might not
       | exist next year. B2C customers don't seem to care about this as
       | much.
        
         | cultofmetatron wrote:
         | yea seriously.. 1 B2B client paying 10k/month is just a job
         | with extra steps and all liabilities on you.
        
         | Jemaclus wrote:
         | Generally speaking, B2B involves contracts which guarantee
         | business for a certain period of time. Churn won't be zero, but
         | it's not going to happen on a whim, like a B2C Netflix
         | subscription would. You can lock in 10K/mo for 12 months and
         | have that guaranteed income, while 1000 users at $10/mo might
         | churn every month.
         | 
         | The hesitancy part you mentioned isn't really a churn thing but
         | rather part of the sales cycle. One thing the author didn't
         | mention is that B2B sales cycles are _really_ long. You can
         | convert a B2C Netflix subscriber in 15 minutes, but it could
         | take 6, 12, 18 months to convert a B2B customer into a paying
         | contract.
         | 
         | Technically, the author is correct in that B2B can lead to more
         | stable businesses and less work overall, but the lengthy sales
         | cycle can be draining in its own way, even if the end result
         | winds up being "better" for the solo founder. (It could be
         | worse, too, depending on contract terms!)
         | 
         | In other words, I agree it was a poorly worded statement, but
         | the author isn't totally wrong there, but they aren't totally
         | right either. They oversimplified the advice, ignoring the
         | complexities of B2B.
        
       | 1970-01-01 wrote:
       | It is implied that this advice is specific to software. Half of
       | this advice would not apply to a small business that produced
       | things.
        
       | samtho wrote:
       | The advice in this article is fairly solid and has been said and
       | done quite a lot. Like many general-business advice articles
       | posted here, it does seem to lack substance or really any
       | actionable advice, so here is some based on my own experience:
       | 
       | A medium to very large company will spend $0.95 to save $1.00.
       | Because of tax incentives and business performance metrics, any
       | opportunity to grow for the future is usually capitalized on so
       | all you have to do is find a pain point for a company and pledge
       | to solve it cheaper than they can, which is usually through
       | headcount.
       | 
       | In fact, an easy way to find ideas (to the point where it kind of
       | feels like a cheat code) is to see what companies in a given
       | industry are constantly hiring for. If you can replace 10% of a
       | job that companies pay $65,000 per year per head, you can pretty
       | easily demand $6,500 or more. Unlike a W-2 employee, Your company
       | does not cost your customer a full-time manager, nor does it
       | increase administrative burden for HR, IT, or facilities, and
       | does not incur costs such as benefits, payroll taxes, or
       | accounting fees associated with personnel - which will
       | undoubtedly be higher than the flat monthly or yearly line-item
       | on the expense sheet that your business represents.
       | 
       | Choose an industry, pick a pain point, build the product, price
       | it according to what it costs, and sell to them. You typically
       | won't find super interesting problems to solve here but it will
       | be reliable as long as they don't build it themselves.
        
         | nadam wrote:
         | "Choose an industry, pick a pain point" This is solid advice,
         | but for me it is very hard. I always found finding pain-points
         | in an industry as an outsider (not working in the industry day-
         | to-day) very hard. (Living in a relatively small and culturally
         | isolated Eastern European country does not help either.)
         | 
         | By the way the only industry I know well (from the inside, as
         | software engineer) is "big software product development".
         | Nowadays I invest a lot in public markets, so I learned a lot
         | about other industries from an investment perspective, but it
         | is not enough to find pain-points.
        
           | samtho wrote:
           | I agree that this is the hardest part, and you've pointed out
           | the reason why developer tools seem to be over represented in
           | startups. For this reason, I mentioned to check job listings
           | and see what responsibilities they are looking to hire
           | someone to take on.
           | 
           | Just a personal thought (and please tell I'm wrong if this is
           | not the case), I think Eastern Europe as market is ripe for
           | good tech innovation. To my knowledge, it's not "behind" but
           | products and services seem to reach there after being
           | recycled from Western and Central European companies, with
           | translations into local languages being spotty at best and
           | nonexistent at worst. Someone who lives in a culturally-
           | isolated place might have the upper hand at solving specific
           | problems and being a native speaker of the local language
           | would you give you the upper hand and no competition should
           | you elect to write software to help that doesn't exist where
           | you are. This could be especially true if you can find
           | software that they wish they could use but is not translated
           | into an language that makes it useful for them.
        
           | munificent wrote:
           | _> I always found finding pain-points in an industry as an
           | outsider (not working in the industry day-to-day) very hard._
           | 
           | This is a good place to lean on your network of friends that
           | don't work in the same industry as you.
           | 
           | And if you don't have those kinds of friends... it would be
           | good to work on getting them. It's important for many many
           | reasons to have a diverse social network.
        
       | jmconfuzeus wrote:
       | I'll add to that since this is Hacker News:
       | 
       | If you're building a SaaS, don't use a front-end framework and
       | tools like Tailwindcss. Instead, use a full-stack framework like
       | Django or Rails and build your UI with Bootstrap.
       | 
       | A lot of SaaS founders underestimate the importance of time to
       | market. I worked on 2 projects where the founders wanted their
       | apps built using the latest and greatest tech stack loved by
       | silicon valley startups. Turns out, using the same tech stack as
       | VC funded companies costs a fortune in terms of both time and
       | money, so, you end up not shipping fast enough or not at all.
        
       | projektfu wrote:
       | For a 1-person business, I would add:
       | 
       | Start from the beginning either automating things or farming them
       | out if they're not your core business. Even if you have the
       | skills at something, if you're not really supposed to be doing
       | them, farm them out.
       | 
       | This is why Stripe (and Braintree) is so successful, because they
       | have automated a real pain points for many people. (For that
       | matter, AWS, etc.) It's not that it's hard to use another
       | provider, or that you can't get payments or billing for cheaper,
       | but when it flows together automatically you don't need to worry
       | about it. People who are up to their necks in business
       | administrivia and are treading water have too many annoying
       | responsibilities that they both don't enjoy and cannot squash. If
       | you go down the path of needing to maintain your stuff all the
       | time, every time those pieces do not work together perfectly is a
       | stressful time for you, focusing on things when you should be
       | focusing on your life or your business.
        
       | detourdog wrote:
       | I agree with everything but 3. Target business's not consumers. I
       | find one rich person trying to solve a personal problem is much
       | better to deal with than a business. This fits the think small
       | better to my mind.
       | 
       | The only issues is the individual has to understand what they are
       | asking for and pay their bills. If they pay their bills their
       | understanding of what they want is less important.
        
       | digitcatphd wrote:
       | AI is changing all this IMO... I have a 12 person team in India
       | that is now as effective as a 24 person team in Silicon valley
       | was. The playing field is being leveled in many ways.
        
         | mejutoco wrote:
         | Unless I am missing something, it would seem AI is available in
         | both locations. I do not see how anything changed.
        
         | marginalia_nu wrote:
         | To be fair, teams scale extremely poorly. I'd almost always
         | expect a smaller team to be on par with or even outperform a
         | larger team, even double in size.
         | 
         | You get both steep diminishing returns from adding more devs,
         | you also get additional overhead from needing more management.
        
       | mtlynch wrote:
       | I think the better version of these ideas is in Jason Cohen's
       | classic "Designing the Ideal Bootstrapped Business" talk.[0, 1]
       | 
       | The difference is that Jason Cohen's advice is based on personal
       | experience growing four businesses to over $1M/yr in revenue. I'm
       | not seeing what qualifies this author to give such broad,
       | sweeping advice about bootstrapping.
       | 
       | [0] https://www.youtube.com/watch?v=otbnC2zE2rw
       | 
       | [1] https://mtlynch.io/notes/designing-the-ideal-bootstrapped-
       | bu...
        
         | jekude wrote:
         | Can't +1 enough Jason Cohen's talk, it changed the way I think
         | about business ventures as an engineer with aspirations to
         | become an entrepreneur.
        
       | scosman wrote:
       | "If you were a goldfish, would you rather live in an ocean, or a
       | garden pond? Probably the pond."
       | 
       | When Goldfish are in larger bodies of water, they actually grow
       | much faster and larger.
       | 
       | I'm might replace "Don't choose a large market" with "Start with
       | a targeted niche, but one that is able to expand to a related
       | larger market later over time".
        
         | matwood wrote:
         | Most goldfish in a large body of water get eaten.
        
         | Veuxdo wrote:
         | "If you were a goldfish, would you rather live in an ocean, or
         | a garden pond? Probably the pond."
         | 
         | Definitely the pond, they're freshwater fish.
        
           | autonomousErwin wrote:
           | Aha but the salty water will make them anti-fragile. Embrace
           | discomfort. Especially if you're a fish.
        
       | mercurialsolo wrote:
       | I would love to see an example of a scaled 1-person business. The
       | idea is super-compelling in theory, but just the thought of
       | everything involved. - Sales / Marketing - Product / Technology /
       | Engineering - Support / Services (customization changes)
       | 
       | all rolled up in one just seems like an incredible thing.
       | 
       | I think this has to be 1-person businesses are usually service
       | businesses - selling expertise. Would love to see real products
       | which are live and run by 1-people businesses.
        
         | HeyLaughingBoy wrote:
         | https://www.designjoy.co/getstarted
         | 
         | Brett @ designjoy is a 1-person business doing > $1MM/year
         | revenue. He's on twitter (@designjoy) and had a good
         | Indiehackers interview with Courtland from a couple years back.
        
         | Cthulhu_ wrote:
         | https://apolloapp.io/ is a great and relevant one; it's a full
         | fledged app with monetization, back-end services, etc etc.
         | 
         | Relevant because it'll likely shut down by the end of the month
         | due to Reddit's mismanagement.
        
         | mcsniff wrote:
         | I run a 1-person business selling a physical product, with a
         | companion app, and a static site for sales.
         | 
         | It's "easy". Yes, there are some headaches, but I prefer end to
         | end ownership. I run the entire thing, infrastructure, sales,
         | design + engineering, manufacturing, support.
         | 
         | I'm in a niche, but it is doable, I guarantee you that.
        
         | theluketaylor wrote:
         | The iOS and Android app stores likely hold the most examples of
         | high scale one person businesses. Someone already mentioned
         | Apollo. I'd add https://overcast.fm and https://david-smith.org
         | (maker of many apps, including the wildly successful
         | widgetsmith). There are plenty of other really successful apps
         | that are just one person operations.
        
           | balaji1 wrote:
           | "Since 2008 I've launched 60 different apps." from
           | https://david-smith.org/about/
           | 
           | amazing!
        
       | talkingtab wrote:
       | To put this succinctly - never start craigslist.
        
       | m3kw9 wrote:
       | Small teams can allow you to really focus on a tiny area where
       | larger companies just won't bother to focus on. I think this is
       | very sound advice from experience
        
       | nomilk wrote:
       | The examples of niche businesses at the end remind of a another
       | niche example from Tim Ferriss's _4 Hour Work Week_
       | (paraphrased):
       | 
       | > A man created a low-budget how-to DVD for less than $200 and
       | sold it to owners of storage facilities who wanted to install
       | security systems. It's hard to get more niche than that. In 2001
       | selling DVDs that cost $2.10 to duplicate for $95 a piece through
       | trade magazines, he made several hundred thousand dollars with no
       | employees.
        
         | jvanderbot wrote:
         | Yeah, I feel like these are the key examples missing from the
         | post. It's clear when you read that story that they're onto
         | something, and it requires a niche and a little gusto.
        
         | PragmaticPulp wrote:
         | Tim Ferriss is very good at downplaying the effort and costs
         | that go into businesses. Good for inspiring people to try, bad
         | for actually being transparent.
         | 
         | In this example, the (claimed) $200 production cost and $2.10
         | DVD cost are probably nothing relative to this large marketing
         | cost:
         | 
         | > piece through trade magazines
         | 
         | The marketing costs and effort are conveniently omitted.
        
           | j45 wrote:
           | Producing video also can be a cost.
        
             | Inhibit wrote:
             | Yes. As per the original post above 200$. Advertising is
             | what is omitted in the thumbnail estimate.
        
           | tonyarkles wrote:
           | > The marketing costs and effort are conveniently omitted.
           | 
           | I agree with you, but also somewhat disagree on the overall
           | takeaway. Yes, of course you have to put more effort into it
           | than just spending $200 NRE and $2.10 unit cost. The quiet
           | part that really needs to be said out loud (way more than
           | marketing costs and effort) is: find a niche with really
           | great unit economics. When you've got a product with 10%
           | margin, you have to manage all of those marketing costs very
           | very carefully. When you've got a product with a raw 5000%
           | margin, it matters way way less whether your CAC is even
           | triple the raw manufacturing cost of the product.
        
           | pryelluw wrote:
           | The info is generally available. It is just old school and
           | somewhat of a lost art.
           | 
           | There's lists of publications by trade. You could buy ad
           | space on multiple publications or individually. The model was
           | $n per square inch of space.
           | 
           | The trick was finding the lists. General business magazines
           | used to have advertisements for companies that ran/owned the
           | lists. So it was somewhat accessible to the general public.
           | 
           | Cost was similar to how ad words are calculated. So the more
           | niche you'd go the better chance you had of manageable costs
           | (unless your niche was super expensive for some reason).
           | 
           | Effort is relative. Once you knew how the marketing channels
           | worked everything else was fairly straightforward. The ads
           | that worked were just left on autopilot. There weren't
           | redesigns or none of the shit that's done today. Ads were
           | left alone. Tracking was even rather simple. You'd have a
           | special code, phone number, or mailbox that tied the ad to
           | the order. Simple stuff.
           | 
           | You can replicate all of these today and still make a tidy
           | sum. But you won't do it behind a computer. Gotta go out into
           | the wild and talk with people about all kinds.
        
           | matwood wrote:
           | Back then marketing was easier - just throw something up on
           | eBay. But there are some 'hidden' costs not discussed.
           | 
           | I have a friend who did something similar back around the
           | same time frame and he did pretty well. His niche was doing
           | video tutorials on how to use new camera equipment. He needed
           | to buy/own camera and video equipment. Luckily he already had
           | it from is other endeavor as a photographer. He needed to
           | have the skillset to the make and edit the video. Again, he
           | had that from being a photographer. He ended up selling quite
           | a lot of DVDs.
           | 
           | So the moral is to find a niche that leverages a lot of what
           | you already have/know.
        
         | detourdog wrote:
         | an even better business is selling printed pornography to
         | people in prison that can't access the internet.
         | 
         | Making money is easy.
        
       | andyish wrote:
       | Selling to businesses can be really hard. You can get stuck with
       | ISO standards, data and server locations and SLAs. The lead time
       | on sales can be many months, and there's a real chance it falls
       | through.
       | 
       | And on top of all that there's the strangest perception of value
       | that can drastically change from person to person.
       | 
       | Companies could happily pay thousands for access to data for a
       | single brands segmentation, then baulk at the idea of paying $7
       | per user for something like Slack that gets used many times a day
       | by many people.
       | 
       | and step 4, i'd do the opposite. Choose a MASSIVE market. It'll
       | be easier to get customers.
        
         | samtho wrote:
         | There are plenty of opportunities for a business that don't
         | require conforming to some standard. You also don't hear about
         | the multitude of businesses that had no problem selling to
         | other businesses, only the times where it didn't go as planned,
         | i.e. who writes a blog post about a modestly successful
         | business that does $1MM ARR with a 1-2 employee setup serving
         | maybe 10-25 clients because they write a niche software
         | integration that connects two different systems or some tiny
         | internal tool that alleviates a pain point?
         | 
         | Per-user pricing for companies works very well if you want to
         | sell to small companies because they only need to pay for what
         | they use. Counterintuitively, larger enterprises would rather
         | pay more per user if they can be guaranteed of a fixed price
         | for a given term. It makes it easier to budget.
        
         | j45 wrote:
         | These standards can largely be abstracted away by using a cloud
         | that already does it for you.
         | 
         | For example a good secret is using Azure. It seems more
         | expensive until you notice it provides many security
         | certifications.
        
         | toomuchtodo wrote:
         | Conversely, when you sell B2C, the value prop can be
         | considerably more challenging ("I can build this myself!",
         | "This is too expensive, can you provide a discount?", etc) vs
         | B2B where the customer will happily pull a credit card out,
         | spend $500, and thank you for the value provided.
        
         | lobstrosity420 wrote:
         | I don't think the article was saying to choose a market with
         | few customers, of course you want costumers. Rather choose a
         | market with few competitors.
        
       | paxys wrote:
       | So:
       | 
       | - Have one customer pay you lots of money rather than many
       | customers pay little money
       | 
       | - Target businesses, don't serve end consumers directly
       | 
       | - Find a small niche for yourself rather than try and do too much
       | 
       | While all of it is valid advice, I think taken to the extreme
       | it's basically saying - be an employee, not an entrepreneur.
        
         | j45 wrote:
         | The purpose of being an entrepreneur is creating a profit
         | generating asset.
         | 
         | How efficiently that profit is created is up to the individual
         | entrepreneurs.
         | 
         | With 10x multiples being paid for startups like this, it
         | couldn't be further from being an employee. Those who are not
         | profitable are more in a position of owning a job they can't
         | quit because they're so invested in it they can't breathe or
         | grow because the financial equation wasn't a high enough
         | priority.
        
         | hinkley wrote:
         | And my advice to developers who are considering joining a small
         | business or consulting firm:
         | 
         | - Don't work for someone who has one customer that dominates
         | their revenue.
         | 
         | That company will always control the requirements, even if
         | those requirements make the application a chore to get working
         | for other customers. Also if there is ever a problem with how
         | that customer is treating you personally, the company always
         | always has to preserve the revenue from that customer. They
         | will throw you under the bus.
         | 
         | I did two contracting gigs in a row that were unpleasant. The
         | first told me a pack of lies about advanced project management
         | and architecture being their focus. The work was identical to
         | any contract I've ever done, but the feeling of betrayal soured
         | the entire experience. If they did anything to advocate for
         | their employees, I didn't see it. The consequence of that is
         | that it knocked my confidence, and I took an FTE position which
         | was definitely "settling" and I've stayed at that position for
         | far too long (though COVID played a role, I can't fully blame
         | COVID).
         | 
         | It's probably better if you work someplace that gets less than
         | 30% of its revenue from any one customer, but 75% from its top
         | 4. There are diminishing returns being pulled in many
         | directions at once, yes, but there are serious dangers of being
         | railroaded by an offer you can't refuse.
        
         | dnndev wrote:
         | I understand the article to say start with these things... that
         | does not mean you have to stop there. Build an empire but start
         | small.
        
         | doctorpangloss wrote:
         | > While all of it is valid advice, I think taken to the extreme
         | it's basically saying - be an employee, not an entrepreneur.
         | 
         | A lot of people get into this stuff because they can't hack it
         | as hum drum employees.
        
         | imtringued wrote:
         | Only if you believe that you should only have one customer at a
         | time.
        
           | JustBreath wrote:
           | Exactly.
           | 
           | Ideally you'd use your first (few?) customers to create a
           | solution that can be resold to other businesses.
           | 
           | Any niche problem that larger businesses don't see as worth
           | their time.
        
         | jvanderbot wrote:
         | I think of this more as a consultant-type arrangement.
         | 
         | You are not an "employee" because you can at-will change your
         | asking price, take on other jobs, flex your hours, and work
         | from wherever you like.
         | 
         | An employee has none of those, while consultants have a bit
         | more of those, and a B2B business probably has the most.
        
           | flakeoil wrote:
           | > you can at-will change your asking price
           | 
           | Not really. Only if they are willing to pay more. And only if
           | you have no fixed contract. ass an employee you can also ask
           | for more at-will.
           | 
           | > flex your hours
           | 
           | As an employee you can often flex hours. As a consultant
           | sometimes less as you have to deliver.
           | 
           | > work from wherever you like
           | 
           | Many employees can do that too. Some consultants have to work
           | in the customers office.
        
             | jvanderbot wrote:
             | I guess it would be better to say you can flex your annual
             | hours and pay by adjusting your contract load. A family
             | member has lived this way for 30 years, and has pretty
             | great flexibility on the scale of a month, but not
             | necessarily day to day.
        
               | hinkley wrote:
               | I suppose that's one of the advantages of being an
               | intermittent contractor. The customer doesn't know why
               | you're unavailable next Monday and Tuesday. It could be
               | another customer, or it could be a trip to Yosemite.
        
             | samtho wrote:
             | I think OP's point here is that you, in general, have more
             | flexibility as a free agent. The trade-off is that the
             | nature of your work changes to include lead gen and
             | salesmanship to initially get those jobs, and active
             | relationship management, billing systems, and consistent
             | output to maintain the jobs. It's a hustle you must partake
             | in and not everyone is game for that.
        
         | jdlshore wrote:
         | That's not what the article says. You're being dismissive.
         | 
         | I run a one-person business and its advice is spot on.
        
           | paxys wrote:
           | I have done this as well and completely disagree with the
           | advice. The key to success as an entrepreneur is to build a
           | product that can be endlessly replicated without too much
           | extra cost. If you have a large company paying you a large
           | amount of money, they expect that your product is built for
           | them and not everyone else. So your job ends up being that of
           | an employee or at best an external consultant. Which may
           | still be valid, sure, but your business is never going to
           | scale in the way you'd like.
        
             | mozman wrote:
             | Except 1099 vs W2 has significant tax advantages
        
             | detourdog wrote:
             | That is client management issue in my eyes. I prefer
             | working with individuals. I find business often make
             | political and erratic group decisions. This makes client
             | management almost impossible. Any client large or small
             | that understands what they are asking is a good client. I
             | personally find dealing with individuals or coherent groups
             | is the sweet spot.
             | 
             | I'm also more or less done working specifically for others
             | and I'm now pursuing a market that is measured in the 1s or
             | maybe 10s if it's a real success.
        
               | j45 wrote:
               | Definitely a preference
               | 
               | Finding a niche problem in B2B is effective if you have
               | the B2B experience.
               | 
               | Technical folks who have consulted are especially in a
               | good spot for this.
        
             | jdlshore wrote:
             | The article does not say you should have one customer. It
             | says you should choose a niche, target businesses, and aim
             | for big dollars/small customer base rather than small
             | dollars/big customer base.
        
             | gitgud wrote:
             | > _they expect that your product is built for them and not
             | everyone else_
             | 
             | Exactly, build a few custom products for clients, then when
             | they're happy, build a platform to unify them, which will
             | allow you to scale easily.
             | 
             | A lot of companies try to do the platform first, which is
             | harder to iterate and less appealing to client's who want
             | customisation...
        
             | hinkley wrote:
             | The last B2B I did we built a product for a couple of
             | "whales" and then struggled making money off of the long
             | tail. They had such peculiar business rules we had to
             | thread a needle to get our top three working. We had one
             | team pull a RedHat on us, essentially forking the code to
             | make big changes for other customers, and didn't tell us
             | about it. When we started refactoring and rearchitecting to
             | fix some of our biggest problems, we broke all of their
             | stuff. Way to communicate guys.
             | 
             | In the end it turned out the goal of the company was to
             | sell it to deep pockets. Having prestigious customers is
             | how you do that. But the employees including some of the
             | salespeople thought we were trying to serve an entire
             | global industry. If that had been the case we should have
             | started with customers about 1 std below median size, and
             | built momentum toward landing large customers.
             | 
             | Because what happened is that we had contracts with the big
             | companies we couldn't net a profit off of, and they liked
             | to keep paying what they were already paying. If we were
             | solid with mid sized customers first, we could have asked
             | for more from the biggest ones because we were selling a
             | mature product. Instead they bought a fixer upper and
             | wanted to pay the same as we fixed issue and added tons of
             | functionality.
        
       | euix wrote:
       | In my experience running your own business is all about
       | relationships. The fact is someone with capital to spend can
       | deploy it to anyone, so why should they deploy it to you? Are you
       | their cousin? Did you go to the same school? Met at a mixer?
       | Before there is even a discussion about what you know and what
       | you can do, or what your product is there is the question of who
       | you are.
       | 
       | I have been doing some Data Science consulting on the side and
       | last year we did some analytics work for a government lottery and
       | that contract came to us because one of my partner's girlfriend
       | had a relationship with the team who needed the work done.
       | Otherwise you would never hear about any of this stuff that is
       | constantly flying around in the airwaves.
       | 
       | The problem with this advice is that it's not any advice. Saying
       | business is about nepotism is unattractive and doesn't really
       | help you, other then to say, either you are social and good at
       | forming relationships or find a partner that is. And moreover,
       | you can't sell this advice in a coaching class.
       | 
       | If you aren't a social butterfly the only way is to build those
       | relationships over a long period of time and create trust.
        
         | CharlieDigital wrote:
         | I worked in a bootstrapped startup for 10 years.
         | 
         | When I left, my network was very narrow (industry focused).
         | 
         | I did a hard reset and ended up first working at a YC company
         | and then another SV VC backed startup.
         | 
         | When this second startup pivoted they asked if I wanted to stay
         | on or accelerate my vesting. I left because there was something
         | else I wanted to build.
         | 
         | But now being connected to this network, the founders of the
         | company I left opened up 8-10 VC calls.
         | 
         | Nothing changed about me, my capabilities, my skills, my
         | knowledge. But being plugged in to this network definitely has
         | benefits.
         | 
         | The bias is obvious in the tech industry. Lots of companies get
         | funded that aren't true VC scale businesses. I spoke with
         | another YC founder that ended up folding his startup doing an
         | open source product. I asked about his pitch to YC and how he
         | framed his business model and he said he basically didn't have
         | one.
         | 
         | As much as we think tech is a meritocracy, there's a lot of
         | bias, nepotism, and favoritism.
        
         | carlosjobim wrote:
         | That sounds like a narrow idea of what kind of businesses a
         | person can start. If you target the general public with your
         | offers, there is no nepotism or relationships involved. That's
         | the beauty of an open society.
         | 
         | All businesses started as small businesses, we tend to forget
         | that.
        
         | OmarShehata wrote:
         | > The problem with this advice is that it's not any advice
         | 
         | It sounds like very good advice, or rather, information. If I
         | believe this, a few decisions I might make are: (1) spend more
         | time networking, and following up with people I've met, whether
         | at conferences or local events, even if they are outside (2)
         | recognize I have a handicap if I am not a social butterfly and
         | think about ways to counteract it (or realize this as another
         | factor working against me and decide not to start a business)
         | 
         | I don't think you need to be a social butterfly to have a large
         | network. I think you just have to show up to a lot of things.
         | Which might feel like wasted time if you don't frame it this
         | way.
        
         | ryandvm wrote:
         | This. I was one of the founders in a software development co-op
         | and the unfortunate truth was that almost all of our work came
         | from connections one of us previously had. The good news is
         | that if you do good work, and we did, that web of connections
         | grows exponentially. But yeah, it's hard to tell somebody just
         | getting into it that it's all who you know, but it's true.
        
           | frankc wrote:
           | I think what ozim is trying to get across and I agree with,
           | is that "it's who you know" does not imply that its just a
           | good ol boys network for it's own sake. Working with people
           | you know and trust is normal. There is no way you can suss
           | out in an interview loop or a client meeting what you can
           | from a recommendation from someone who has with direct
           | knowledge through experience with that business partner or
           | employee. Managing relationships is part of the job and part
           | of career building. For the career part, I have found that
           | just being competent and nice goes a long way, without having
           | to do aggressive networking.
        
         | ozim wrote:
         | I think people jump into "nepotism" too quickly and usually I
         | find people who jump to that - to be not to be really negative
         | but still - <losers>.
         | 
         | Building and keeping relationship * _is work*_ even with your
         | wife or kids it is not given. Building and keeping business
         | relationship is even more work when you have to convince
         | someone you don 't know that you are worth something.
         | 
         | I call out nepotism only if you can clearly see someone is
         | hired and does nothing or has no experience or skills for what
         | they were hired for.
         | 
         | I got my friends/people I know hired to the company I work for,
         | it was not walk in the park, I had to convince my friends that
         | company is good place to work as they were highly skilled,
         | which took me months ... guess what ... I had to spend also
         | quite some time convincing managers that guy I propose will fit
         | and then they still had to go through interviews and probation
         | period.
         | 
         | From the outside or other employees perspective it might have
         | looked like "X got Y into the company because they know each
         | other and X is on good terms with management", they did not see
         | how much work it was to "get good terms with management", they
         | did not see how much legwork and checking up on my friends if
         | they are available took.
        
           | closeparen wrote:
           | Tech is culturally obsessed with those Moneyball edge cases
           | where the metrics totally contradict intuition, where someone
           | is objectively brilliant but overlooked. And with their
           | complements, incompetent but charismatic frauds. Those cases
           | are certainly interesting, but I think it kind of elides the
           | much more boring reality: relationships and reputations are
           | earned, the most common way to be respected is to actually be
           | good, and the vouching of other professionals who've seen
           | your competence and character in a variety of situations over
           | time is a much stronger signal than a few hours of
           | systematized interviewing or testing.
        
             | comfypotato wrote:
             | It's still an unjust system, and it's worthwhile to aspire
             | to a system that is truly fair.
             | 
             | Technological advancement is ultimately the only way to
             | achieve a fair system where "systematized interview or
             | testing" works as well as a relationship.
        
           | zmgsabst wrote:
           | I think it's interesting you emphasized "losers", and even
           | chose that word at all.
           | 
           | What motivates you to disparage an entire group of people,
           | because they (correctly, as you admit) point out that success
           | doesn't depend on the relevant talent but on socializing?
        
             | strawhatguy wrote:
             | The 'loser' comment wasn't the best choice, true.
             | 
             | It's also interesting that you separated 'relevant talent'
             | from 'socializing', as if socializing is ever not relevant.
             | People do have to at least know about you, and that indeed
             | is a skill on its own.
        
             | rvba wrote:
             | Looks like that person build their company on nepotism -
             | and it hurts them. Thus the projection that others are
             | "losers".
        
             | ozim wrote:
             | I point out that success requires talent - I don't know how
             | you read that differently.
             | 
             | Most of the time losers claim that "if they would know the
             | right people..." or point "he/she got a job only because
             | they knew someone", well NO because knowing right people is
             | only part of the work, one still needs to deliver and still
             | needs to have relevant skills/talents.
        
               | vineyardmike wrote:
               | Knowing the _wrong_ people doesn't make you a loser. You
               | should rethink your wording or qualify loser with "losing
               | the chance to get hired at a certain place".
               | 
               | Not knowing _ozim_ and not getting hired at their company
               | doesn't make you a loser.
        
               | lliamander wrote:
               | > Knowing the wrong people doesn't make you a loser. You
               | should rethink your wording or qualify loser with "losing
               | the chance to get hired at a certain place".
               | 
               | You are misreading ozim.
               | 
               | The claim is not that people without connections are
               | losers. The claim is that people who _often make the
               | accusation of nepotism_ generally are losers.
               | 
               | In other words, untalented people will make the
               | accusation of nepotism as ego defense to avoid
               | confronting their own lack of skill.
        
               | volkk wrote:
               | its funny how mostly true this is if you take the
               | converse. i have very rarely seen smart/successful people
               | complain about others. they focus on themselves
        
               | filoleg wrote:
               | Knowing the "wrong people" (or not knowing the "right
               | people") doesn't make one a loser. But discounting other
               | people's skills just because they associated with the
               | "right people" (in addition to having the skills) does.
        
               | volkk wrote:
               | i dont think this person is stating that knowing the
               | wrong people makes you a loser. it's that complaining
               | about others getting jobs or opportunities centered
               | around "they only got that because they knew someone" is
               | generally a sentiment shared by losers. its a strong
               | take, and i don't know if i agree/disagree, but there
               | does seem to be a general trend of people who are always
               | complaining about external forces are the ones that don't
               | tend to ever gain any success or move up.
        
               | codetrotter wrote:
               | > there does seem to be a general trend of people who are
               | always complaining about external forces are the ones
               | that don't tend to ever gain any success or move up
               | 
               | This is true but on the flip side it also seems that some
               | people who end up in privileged positions attribute 100%
               | of success to themselves, and 0% to circumstances and
               | external factors, which is just as bad
        
               | ozim wrote:
               | Yes - exactly that is what I mean in my way of thinking.
               | 
               | It is not about people who didn't get specific job but it
               | is about people complaining. "Normal people" even if they
               | don't get some job are not complaining like that.
        
           | hluska wrote:
           | You're trying not to be negative but they're losers? If
           | you're going to start a comment like that everything better
           | be bang on. Unfortunately, you seem to be saying that
           | nepotism is wrong..unless you do it then it's somehow fine
           | because you're "special".
           | 
           | What a low quality comment made even worse by the insult in
           | the beginning.
        
             | FrustratedMonky wrote:
             | He has a point. People that are always calling out
             | nepotism, or good looks, etc... typically also have an axe
             | to grind and have some festering sour grapes.
             | 
             | The situation outlined is true. It can take time to
             | convince outsiders (friends), and time to convince insiders
             | (the company, manager) that X and Y are a good fit.
             | 
             | Hiring is not easy. Getting hired is not easy.
        
               | FrustratedMonky wrote:
               | Me: "it might be poor choice of words but he has a point"
               | 
               | HN: "REEEEEEEEEEEEEEEEEEEEEE"
        
               | filoleg wrote:
               | Agreed, yeah.
               | 
               | I don't want to start a flamewar with this controversial
               | hot-button topic, but imo it is kind of similar to the
               | whole incel culture. The kind of takes where they believe
               | that women aren't interested in them because they are 5'9
               | or because of them not having a square jawline or because
               | of some perceived "chad" gatekeeping them, and totally
               | not because of their own attitudes and behaviors.
               | 
               | This is just missing forest for the trees. I am not
               | saying that looks don't matter at all. But the sad part
               | is that the heavy majority of those people look totally
               | fine, and it is just their hyperfocus on their perceived
               | deficiencies (and associated behaviors) that drives
               | people away.
               | 
               | Same here. No one denies that nepotism exists. But 9
               | times out of 10 when I hear someone complaining about it,
               | it boils down to "how dare they hire someone that they
               | had any prior personal experience with and who they know
               | for a fact is a great specialist due to the shared track
               | record".
        
           | waboremo wrote:
           | I can understand why both your friends and the company
           | struggled to respect your choices and required so much more
           | legwork than normal, because man oh man you are quite bad
           | with words!
        
           | polygamous_bat wrote:
           | This comment reads like a classic "X-ism doesn't exist
           | because Y people have it hard too!"
           | 
           | No one is saying that Y does not have it hard. The claim
           | about X-ism is that people with X never even had the chance
           | that Y did. In your case, sure, someone worked hard to
           | convince their boss to hire their friend, but the people who
           | don't have those connection (i.e. because they are from
           | marginalized backgrounds/different country) just don't have a
           | single chance of being hired, regardless of how qualified
           | they are.
        
             | lliamander wrote:
             | > This comment reads like a classic "X-ism doesn't exist
             | because Y people have it hard too!"
             | 
             | The claim was not "nepotism doesn't exist". The claim was
             | that "It isn't nepotism if the person hired through
             | personal connections can actually do the job".
             | 
             | Yes, people without personal connections have it harder,
             | but the mere inequality exists does not mean the situation
             | is unjust.
        
               | comfypotato wrote:
               | It's really all opinion. I would say the system here is
               | unjust. (Life's not fair.)I wouldn't say that the
               | relationship-hires are morally wrong (if the person hired
               | is qualified).
        
             | thaumasiotes wrote:
             | > In your case, sure, someone worked hard to convince their
             | boss to hire their friend, but the people who don't have
             | those connection (i.e. because they are from marginalized
             | backgrounds/different country) just don't have a single
             | chance of being hired, regardless of how qualified they
             | are.
             | 
             | This requires that every hire the boss ever made was based
             | on an employee recommendation. That seems unlikely.
        
               | wizzwizz4 wrote:
               | Relax the hyperbole (e.g. s/don't have a single
               | chance/have a much smaller chance/), and it no longer
               | requires that.
        
           | [deleted]
        
           | antod wrote:
           | _> I got my friends /people I know hired to the company I
           | work for, it was not walk in the park, I had to convince my
           | friends that company is good place to work as they were
           | highly skilled, which took me months ... guess what ... I had
           | to spend also quite some time convincing managers that guy I
           | propose will fit and then they still had to go through
           | interviews and probation period._
           | 
           | That sounds very far away from nepotism. Nepotism is giving
           | relatives or friends the job without any qualifications
           | and/or treating them different.
        
         | doctorpangloss wrote:
         | > The fact is someone with capital to spend can deploy it to
         | anyone, so why should they deploy it to you?
         | 
         | By that logic, people have big families, they have lots of
         | friends. Why choose one family member or friend over another?
         | 
         | > I have been doing some Data Science consulting
         | 
         | I'm not trying to "gatekeep" here. Consulting is, for the most
         | part, an ordinary employment relationship.
        
         | taneq wrote:
         | > The fact is someone with capital to spend can deploy it to
         | anyone, so why should they deploy it to you?
         | 
         | Observation 1: A corporation isn't a single entity, it's a
         | stack of humans in a trench coat.
         | 
         | Observation 2: Humans choose what's familiar and what's worked
         | for them in the past.
         | 
         | Observation 3: Humans usually get promoted based on their
         | choices.
         | 
         | Corollary: Make the people who engaged you look good, and
         | they'll keep sending money your way.
        
       | zeitseeing wrote:
       | Great post! Like some of the other comments none of the points
       | were really new to me, but it's good to read them again every now
       | and again. I think focusing on B2B is always great advice for
       | solo hackers.
       | 
       | Personally I particularly struggle with charging too little.
       | Especially early on you want to just get people use your product
       | and it's tempting to lower prices to achieve this.
        
       | dnndev wrote:
       | Spot on great advice. The big picture is start small (niche, deep
       | pockets) and then grow big (wide market, all price ranges). I see
       | some comments assuming his advice is the end game for an
       | entrepreneur, its just the start.
       | 
       | I will add one note: dont waste money on marketing
       | (google/facebook/etc... ads) when you start small, if you don't
       | have connections that can give you projects/buy your product then
       | pair up with someone who does.
        
       | treelovinhippie wrote:
       | [dead]
        
       | JustBreath wrote:
       | One issue with targeting a small market and trying to grow it is
       | if your business relies on your truly innovative/unique/original
       | idea IMMEDIATELY it will get copied either by the big guys or by
       | other small fish who are more than willing to race you to the
       | bottom on profits.
       | 
       | You must build your business on something beyond an idea.
       | 
       | Intellectual property, customer relationships, the brand,
       | reputation, quality, luxury value, etc...
       | 
       | It's trite but true: ideas are worthless, execution is
       | everything.
        
       | IAmGraydon wrote:
       | How to make a living, but not a fortune.
        
       | kumarm wrote:
       | Any advise whether 1-person business or well funded startup needs
       | to be taken with grain of salt and check if it is really
       | applicable for you.
       | 
       | >>Target businesses. Not consumers
       | 
       | I was a developer with decent sense of Product Management. Hated
       | Management and Sales related activities. Apps in App Stores
       | targeting consumers really worked out well for me. Having been
       | running my business for 12 years+ profitably.
        
       | tlogan wrote:
       | I think number 3 and 4 are bad advices.
       | 
       | Here is my reasoning:
       | 
       | 3) Selling to businesses can be tough because you can't automate
       | all tasks. For a one-person business, the key is to automate as
       | much as possible.
       | 
       | 4) Small businesses shouldn't worry about competition. In fact,
       | big markets are great for small businesses because they offer a
       | vast range of customer needs. Not everyone wants the same set of
       | features in a product. So, you can create a version of an
       | existing product, but with fewer features. You can even advertise
       | it as being simpler. Alternatively, you could tailor your product
       | to suit specific uses better.
       | 
       | I'm not sure about 1) - scaling is easy for certain type of apps
       | and services. It really depends.
        
         | eschneider wrote:
         | Scaling the service isn't the problem so much as scaling the
         | customer acquisition.
        
         | HPsquared wrote:
         | Automate, and/or outsource.
        
       | solofounder99 wrote:
       | Most of what you do as a developer loses money.
       | 
       | Your objective is not so much to write good code as finding a
       | "sugar daddy", that is, businesses, to finance all the cool
       | Python projects that make no money.
        
       | dlisboa wrote:
       | What about tackling a large-ish market but competing on price? As
       | a small bootstrapped business, depending on the cost of the
       | product, you just don't have too many costs.
       | 
       | Small companies/single founders have much smaller overhead:
       | there's no 50 person costly dev team on your payroll. So you get
       | to offer a subset of the main competitor's product at a much
       | lower price and still have high margin.
       | 
       | It's something I've thought of: many companies I've worked for
       | over the years bought expensive products that weren't necessarily
       | too complicated or crucial, just did things we didn't want to do
       | divert resources to do in-house.
       | 
       | Yet the costs ballooned (usually $ per/user) and we kept those
       | subscriptions for a while up until we figured a cheaper
       | alternative. If the costs had not increased so much there'd be
       | nothing to move off of, we'd have been happy forking over money.
        
         | carlosjobim wrote:
         | Competing on price gives you the worst type of customers. If
         | you can deal with that then you're good. It's like some weird
         | glitch in the human psyche - instead of appreciating that they
         | can get their product or service for a better price, they fell
         | like they're being cheated and will start causing problems. I
         | have no idea why it is like this. Maybe they're pissed off for
         | having to buy the thing and that's why they were looking for
         | the cheapest offer to begin with?
        
         | jjk166 wrote:
         | Bigger companies might have more people on payroll, but they
         | are also serving more customers to generate more revenue, and
         | the individuals on that payroll can do their tasks more
         | efficiently because they can specialize and cooperate. There
         | might be times when a bigger company is bloated, for example
         | shortly after a merger, or complacent, perhaps refusing to take
         | on business below a certain volume, but in general they can
         | easily undercut small businesses via economies of scale.
        
         | lapcat wrote:
         | > As a small bootstrapped business, depending on the cost of
         | the product, you just don't have too many costs.
         | 
         | The cost is in acquiring customers, as mentioned by the
         | article. "Sales and marketing are both major time drains and
         | you can't spend all your time doing them." I would say money
         | drains too. A small business can't "make it up in volume" like
         | a big business can.
        
           | dinvlad wrote:
           | While difficult initially, a small business doesn't need as
           | much volume though - you might "only" have a few customers,
           | but that's gonna be enough to feed you and maybe your family.
           | 
           | Plus, small business customers can stick around for longer,
           | because you develop an authentic relationship with them,
           | while delivering similar or better quality product at a
           | fraction of the price of the big ones. I.e. you have an
           | inherent edge, and it's more about quality than quantity,
           | while the bigger ones simply can't afford that.
        
             | lapcat wrote:
             | > a small business doesn't need as much volume
             | 
             | > a fraction of the price of the big ones
             | 
             | These two things are inherently in conflict.
             | 
             | low volume * low price = low income
        
       | realjohng wrote:
       | You can target consumers-- with enough eyeballs, run ads. I had a
       | successful little Android game that ran for a few years.
        
       | nextworddev wrote:
       | Don't do 1-person businesses, period (if you can avoid it).
       | 
       | It's not as glamorous nor profitable as Twitter hustle bros make
       | it to be.
       | 
       | Only do it if what you want to do happens to be doable as
       | 1-person.
        
         | [deleted]
        
         | JustBreath wrote:
         | I mean unless you are already wealthy what's the alternative?
         | 
         | Basically you're saying "get a job."
        
           | nextworddev wrote:
           | No, I'm saying "consider getting a partner / cofounder"
        
             | JustBreath wrote:
             | That's fair.
             | 
             | "Co-found a 2 person business" is much better advice than
             | "don't start a 1 person business."
        
           | cloverich wrote:
           | Start a business with at least one other person, so you have
           | support.
        
             | danenania wrote:
             | While this definitely makes a lot of things easier, you now
             | need 2x the revenue to get to profitability, which makes
             | bootstrapping harder.
        
       | hamdouni wrote:
       | TLDR; avoid big consumer market, target small b2b market
        
       | nicbou wrote:
       | I expected something more interesting, to be honest.
       | 
       | For example, to be wary of obligations like being on-call,
       | because if you're sick or need a vacation, no one is there to do
       | them.
       | 
       | Or to avoid overengineering tech, because you're the only user
       | and you can fix quirks as needed.
       | 
       | Or to learn to outsource things if it lets you focus on what
       | matters.
       | 
       | I don't know, anything that makes me feel like I wasn't tricked
       | into hearing about what's promoted at the end of the page.
        
         | OJFord wrote:
         | This is exactly the kind of submission that I tend to be more
         | interested in the comments than TFA. Or that I'd submit myself
         | evem having not liked it so that I could (hopefully) get to
         | read the comments.
         | 
         | That is, people (like you - thanks!) are going to offer their
         | own suggestions, and it's going to be more varied, more
         | interesting, quite likely some bigger names or monetarily
         | success stories, etc.
        
           | waprin wrote:
           | Since you're interested in more opinions I'll toss mine in as
           | someone full time focused on building a one person software
           | business.
           | 
           | First, I think entrepreneurship is a bit like music genres.
           | There's a lot of different styles. If you're trying to start
           | a pop punk band, the guy in the successful jazz quartet
           | probably has a lot of good advice , but also a lot of advice
           | that's less relevant to your goals. It's good if you can
           | filter between the two.
           | 
           | I hang out in dvassalos discord which is filled with people
           | trying to do 1 person business, about half SWEs and half
           | creators / influencers. The creators seem to be crushing the
           | SWEs. It's just way easier to build an info product people
           | will pay for than an app people will pay for. The info
           | products also have the advantage that , content creation is
           | both the product and the marketing work. But in pure SaaS,
           | product development and marketing are completely different.
           | 
           | I'm working on a few different "bets" but the project I'm
           | most optimistic about making money is www.livepokertheory.com
           | . I still want to do SaaS since I'm a SWE at heart and think
           | there's more long term upside. But this project is a hybrid
           | info product/ SaaS since I'm creating content on how to
           | understand game theory solvers and creating a SaaS to make it
           | easier to study and retain the content.
           | 
           | Poker is a niche I enjoy plus it's quasi-b2b since there's an
           | ROI on the content.
           | 
           | If you're looking for credibility I have very little as I've
           | only made a bit. I had an iOS app that made a little more but
           | it was too controversial (very unfairly so, but it was too
           | much controversy to build a business around, it's in my post
           | history here).
           | 
           | But I've made a little plus I'm making money myself with my
           | own content.
           | 
           | I've been a little MIA on my blog and twitter but hoping to
           | build in public a bit more once I get ducks in a row.
           | 
           | Anyway, I think there are certain formulas and playbooks that
           | get trotted out because they often work well. But they don't
           | guarantee success nor do alternative playbooks guarantee
           | failure. I think what's more important is to look at high
           | level strategic reasons why certain playbooks exist and let
           | the high level strategy guide you rather then rigid adherence
           | to specific tactics (which, incidentally, is also good advice
           | for understanding the articles on my poker blog).
        
         | matheusmoreira wrote:
         | > anything that makes me feel like I wasn't tricked into
         | hearing about what's promoted at the end of the page
         | 
         | That's why I read the comments here on HN first and decide
         | whether to spend time reading TFA later. Chances are anything
         | of substantial relevance will be directly quoted here. The
         | discussion will probably be more interesting anyway.
        
         | jimbokun wrote:
         | Sounds like you should write a follow up article!
        
           | nicbou wrote:
           | Another one: don't follow every sensible idea while ignoring
           | every other sensible idea in your backlog. Sometimes you just
           | gotta do less...
        
           | simultsop wrote:
           | peer pressure at its finest
        
         | balaji1 wrote:
         | why not let him sell haha... rest of the article is decently
         | written.
        
         | pesfandiar wrote:
         | I'd love to know how one gets out of being on-call, when almost
         | all software systems need to be up 24/7.
        
           | Destiner wrote:
           | There are things that mostly just work (e.g. static content),
           | and then there are things that require constant attention
           | (infra, PaaS, tech heavy APIs).
        
           | moffkalast wrote:
           | Don't make SaaS systems then?
        
         | AndrewKemendo wrote:
         | Or as I found out:
         | 
         | Don't start something that requires physical labor - even if
         | it's as low intensity as say 3D modeling - if you don't have a
         | temp stand in available.
         | 
         | If you get hurt, even a little, everything stops completely and
         | you lose repeat business immediately
        
           | jermaustin1 wrote:
           | My side gigs almost always involve a little physical labor.
           | Everyone writes code, but how many people do small-scale
           | manufacturing of wood products?
           | 
           | Its hard to compete with bigger shops, but selling on
           | platforms like Etsy (so long as you are willing to bet on
           | yourself) can be semi-lucrative.
           | 
           | Running the numbers this morning since a friend asked, in the
           | past 117 since I started my latest side-hustle selling wooden
           | things, I've done 245 orders, selling 251 items for a total
           | gross revenue of $5,612.19. It isn't retire to a private
           | island money, but it covers the costs it is supposed to
           | (mortgage & utilities). I usually let these hustles go a year
           | before deciding to give up or invest more time and energy.
        
           | cinntaile wrote:
           | That's just part of being a 1-man show and not something you
           | can really avoid. If you hurt your hands you can't write code
           | either so it doesn't save you.
        
             | sowbug wrote:
             | I think it's more subtle than that. If you're in a service
             | industry, and you can't serve, your cash flow stops. But if
             | you're selling a product, then the product can keep
             | generating income as long as it's valuable.
             | 
             | Obviously, you can think of yourself as being in the
             | service of building a product, but that doesn't nullify the
             | distinction. In fact, it can strengthen it: devote your
             | initial efforts to building the sellable part of the
             | product, so that you can actually sell it as soon as
             | possible.
             | 
             | (This is the "capital" part of capitalism. Use labor to
             | build capital, then profit off the capital.)
        
       ___________________________________________________________________
       (page generated 2023-06-22 23:01 UTC)