• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Bootstrapping Profits
 

Bootstrapping Profits

on

  • 339 views

Talk at Valiocon 2013 about the early days of @BuySellAds and bootstrapping the business.

Talk at Valiocon 2013 about the early days of @BuySellAds and bootstrapping the business.

Statistics

Views

Total Views
339
Views on SlideShare
339
Embed Views
0

Actions

Likes
1
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Bootstrapping Profits Bootstrapping Profits Presentation Transcript

    • Bootstrapping ProfitsOtherwise known as “building a business”Thursday, June 6, 13
    • )| ||we’ll get backto this later...Thursday, June 6, 13
    • Thursday, June 6, 13
    • CLICK HERE!Thursday, June 6, 13
    • We make buying and selling ads easier,and more efficientThursday, June 6, 13
    • 5 YEARS$50 MILLION$0 RAISEDThursday, June 6, 13
    • Not the largestThursday, June 6, 13
    • We’re also not the smallestThursday, June 6, 13
    • Cape PorpoiseThursday, June 6, 13
    • credit: http://www.broadsheet.ie/2012/08/01/spectrum-48k-was-better/Thursday, June 6, 13
    • credit: http://www.edibleapple.com/2009/02/09/oregon-trail-coming-to-the-iphone-eventually/Thursday, June 6, 13
    • I’m not a whiz-kidThursday, June 6, 13
    • Thursday, June 6, 13
    • Thursday, June 6, 13
    • Thursday, June 6, 13
    • Thursday, June 6, 13
    • Thursday, June 6, 13
    • Hmmm... will this work?Thursday, June 6, 13
    • The first spreadsheet I built tovalidate the money side of BuySellAdsWhat?OK...Amazon WebServices S3Whoops...not gonnascale forever,$140,000...Thursday, June 6, 13
    • Trying to figure out which payment processor to go withSometimes arandom numbercan becomerealityThursday, June 6, 13
    • High-tech expense projection worksheetThursday, June 6, 13
    • February 2007Came up with ideaSeptember 2007Finished Version 1Started at HubSpotFull-timeFebruary 2008Launched BuySellAdsJanuary 2009BSA full-time2 years, concept to real working product, replacing my full-time salary(with a 6 month hiatus)Thursday, June 6, 13
    • Making the jump fromnights & weekends to real businessTime to quitfull-time jobworst casebest caseThursday, June 6, 13
    • What Actually HappenedYay, themath worked!Thursday, June 6, 13
    • Business Structure...or lack thereofRisky? YEP.But I don’t have any money, so who cares? Sue me...Setup Cost = $0Todd Garland (doing business as) BuySellAdsThursday, June 6, 13
    • If you want the “nitty gritty”Starting + Sustainingby Garrett Dimonhttp://startingandsustaining.com/buy this book ($99)Thursday, June 6, 13
    • Sorry...I’m not going to plug Drew & Josh’s bookI assume you all already have it...Thursday, June 6, 13
    • How did we attractour first users?Thursday, June 6, 13
    • Hi David,I noticed you have a bunch of sponsors in the sidebar. I’d love to help make it easier for youto manage those, and also bring you some new advertisers.We’re still in private beta, but the product is solid, and working really well forlogopond.com, csselite.com, and 13styles.com. I’d love to add you to the list.If you’re interested to see what inside, here’s an invitation code:http://buysellads.com/register/?invite=HKSius98S98If you have questions or if there is anything I can do to help, please let me know.Cheers,ToddThursday, June 6, 13
    • Didn’t waste time building featuresthat could be easily faked.Stayed in “private beta” for over a year,using the fake invite system.(I’m not sure this works very well today...)We were responsive.(everyone is these days, and now you have to be UBER-responsive)Thursday, June 6, 13
    • How did I hire ourfirst employee?Thursday, June 6, 13
    • Original email thread I sent to whois now BuySellAds’ co-founder @nathandevThursday, June 6, 13
    • I’m still inhigh schoolThursday, June 6, 13
    • If you are not a developer, how do you...?If you’re not an accountant, how do you...?If you’re not a sales person, how do you...?If you’re not a good manager, how do you...?If you don’t know how to ride a bike, how do you...?Thursday, June 6, 13
    • Figure it out!Re-source-ful-nesscome on!Thursday, June 6, 13
    • BootstrappingRevenue - Expenses = ProfitPROFIT (you hope) IS > $0Thursday, June 6, 13
    • Inc500 2012founded on personal savingsstarted with less then $10,00033%77%Thursday, June 6, 13
    • Thursday, June 6, 13
    • BuySellAds.com domainDedicated ServerAuthorize.net accountSSL CertificateFastmail.fm Email HostingWhat does it cost to get started?$2,200$350$35$99$5$2,299 one-time$390 monthlyformal apology to John Collisonfor not being a Stripe customer (yet)Thursday, June 6, 13
    • Less than 1% of companiesstarted each yearraise venture capitalThursday, June 6, 13
    • 76% of tech companies acquired in 2012 had not raisedinstitutional investment (VC/PE) prior to acquisitionhttp://www.cbinsights.com/blog/acquisitions/tech-mergers-acquisitions-deals-2012-reportThursday, June 6, 13
    • Yet...14,100Thursday, June 6, 13
    • Let’s refine that query...9,370Thursday, June 6, 13
    • Still want to bootstrap?143,000Thursday, June 6, 13
    • For each bootstrapping relatedarticle written on TechCrunch there areOVER 15written about venture fundingThursday, June 6, 13
    • OK, so let’s look at a more serious publicationventure capital1,271Thursday, June 6, 13
    • Drumroll please...bootstrap9 (nine)1992!!!Thursday, June 6, 13
    • What gives?Nothing... it’s just the way it is.Thursday, June 6, 13
    • Thursday, June 6, 13
    • Could not secure coverage for this beautifulproduct to save our life.Thursday, June 6, 13
    • NOBODY CARES!The only real advice you need about bootstrappingThursday, June 6, 13
    • If you need to win awards...Thursday, June 6, 13
    • Thursday, June 6, 13
    • If you need to build tractionthrough press coverage...Thursday, June 6, 13
    • Go raise some money...(it’s OK)Thursday, June 6, 13
    • Let’s do the mathBut Wait!Thursday, June 6, 13
    • Widget Co.35% in exchange for 3 million Series A20% allocated to employees & executives25% in exchange for 7 million Series B10% for each founder+= 100%Thursday, June 6, 13
    • 50% of exits are less than $50 millionhttp://www.cbinsights.com/blog/acquisitions/tech-mergers-acquisitions-deals-2012-reportThursday, June 6, 13
    • Acquisition price (all cash): $50 millionInvestor 1 owns 35%: $17.5 millionEmployees own 20%: $10 millionEach founder owns 10%: $5 millionInvestor 2 owns 25%: $12.5 million (each)Thursday, June 6, 13
    • Don’t forget about Uncle Sam!$5,000,000 million- Uncle Sam’s cut$4,000,000 millionThursday, June 6, 13
    • What can you do with 4 million bucks?1. Pay off your mortgage or buy a house2. Watch it collect dust in your bank account(or agonize over the ups and downs of the stock market)... and we didn’t even assume what wouldhappen if it were a cash and stock dealThursday, June 6, 13
    • Acquisition Price (all cash): $50 Millionwith $0 raisedEach founder owns 45%: $22.5 millionEmployees own 10%: $5 million(each)After Uncle Sam - $18 Million eachThursday, June 6, 13
    • What can you do with 18 million bucks?1. Pay off your mortgage or buy a house2. Watch it collect dust in your bank account(or agonize over the ups and downs of the stock market)3. Spend as much time with your family forthe rest of your life as you would like...Thursday, June 6, 13
    • (| ||Thursday, June 6, 13
    • There’s absolutely nothing wrongwith raising cash toexecute your planThursday, June 6, 13
    • High-riskHigh-reward(with other people’s money)Thursday, June 6, 13
    • All money comes with stringsMake sure they’re stringsyou can and want to live withthat’s one vicious fish hook!Thursday, June 6, 13
    • Just because you arebootstrapping now...doesn’t mean you willalways have to bootstrapThursday, June 6, 13
    • ...all bootstrapped in the beginningThursday, June 6, 13
    • Microsoft and GitHub founders areSTUPID RICHbecause of bootstrappingThursday, June 6, 13
    • Why we (BuySellAds) are notraising capital?Thursday, June 6, 13
    • We like being in TOTAL controlMany reasons...Not sure what we’d do with the moneyand...Thursday, June 6, 13
    • Thursday, June 6, 13
    • family-firstThursday, June 6, 13
    • Thursday, June 6, 13
    • BuySellAds is a remote team3 in Boston4 in California2 in Toronto1 in Quebec1 in Leipzig, Deutschland1 in London1 in Texas1 in Maine1 in Romania1 in Bangladesh3 in North CarolinaThursday, June 6, 13
    • I’m nervous how that wouldchange if we raised some cashWe’re not interested inoperating un-profitably aheadof growth.Thursday, June 6, 13
    • Let your passion prevailDon’t get caught up in all the hype&Thursday, June 6, 13
    • Build Build BuildShip Ship ShipThursday, June 6, 13
    • and most importantly...Make sure the MATH WORKSThursday, June 6, 13
    • @toddohttp://BuySellAds.comtodd@buysellads.comThursday, June 6, 13