Hard Work


29
Mar 13

The Truth About What’s Holding You Back

Restraining Order

I’ve got a ton of interview requests in my inbox right now. I don’t know when my answers to this one will be posted, so I wanted to share it with you right now:

Q: When you speak with others who haven’t started their own business, launched their own product such as a new online course, what do you find are the most typical reasons they state holding them back? Do you feel there are other reasons they don’t state that are holding them back? What did you do to overcome your hurdles and have you found ways to help others overcome theirs?

A: You want the real reason, or the reason people want to hear?

The real reason is: Nothing. Nothing is “holding them back.”

Most people don’t genuinely want to be responsible for their own financial fate. They may daydream about “running their own business some day,” but they leave those daydreams firmly in the realm of fantasy. They don’t research it, talk to people about it, read books, etc. They prefer the fantasy to the reality. And there’s nothing wrong with that… until they say that something else is “holding them back”. That turns an idle fantasy into a bulwark of lies.

That was true of me, too, for a long time. (About creating a product biz anyway — I was running a small consulting agency for ages.) While I didn’t claim something was holding me back, I did seem to simply… never… do it. Then I took a long vacation and was out of the loop for a month and heard a small, quiet voice saying, “You hate consulting. You fucking loathe it. You know what you need to do.”

Then I came back from my vacation and did it. We started building Freckle two months later.

So, what to do about this, if you realize it sounds familiar?

Nothing. Stop lying to yourself, for sure, but otherwise? There’s absolutely no way to get over the hurdle of not really wanting it… until you do want it.


7
Dec 12

4 Years Into Our SaaS: Why Bootstrapping Was the Only Logical Choice

Hey, there. Four years ago this December, my husband & I launched our first software as a service, Freckle Time Tracking. Since then, it’s grossed nearly $700,000, and we’ve grown, shrunk, hired, fired, stagnated and worked our tails off. To celebrate, I’m writing a series of blog posts about what we’ve learned.

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When I was a young girl (8, 9, 10), I became obsessed with money. Mainly because we only intermittently had any, due to severe mismanagement. The words “Because we can’t afford it” ground deep grooves into my daily existence. It weighed over every opportunity, every decision.

So, get-rich-quick schemes were irresistable flames to my little moth of a heart, but… I knew better. I’d fallen for Sea Monkeys, once, and had never forgotten it. Some part of me knew that The Internet Treasure Chest and Stuff Envelopes From Home were just Sea Monkeys in sophisticated clothing.

But every time I saw the promise of riches, it hurt. I knew they were fantasies, I knew my cynicism was the only correct response, so I did nothing but grind my teeth and hurt like hell.

I grew up to be a consultant. A very expensive consultant. Because instead of buying into the fantasy, I read real biz books, and spent my time learning provably profitable skills, and hustled on the side. I wanted money, and I wanted it reliably, and I only trusted it if it was something that I actually worked for.

I worked; I got paid. Life wasn’t giving me a whole lot, so I made it give me more. When I started out, I was charging $10 an hour. By the time I quit consulting, I got paid a lot. (No joke: one of our last gigs worked out to about $500 per hour, per person.)

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I poured my heart into work for my clients and watched them destroy it. I watched my clients go into management death rolls, never shipping the things they spent thousands or tens of thousands or more on… the things I built died inside their stupid and ineffectual bureaucracies. I made my very best suggestions, I educated, I consulted, but in the end, I often ended up having to (metaphorically, though sometimes literally) make the logo bigger. I’d tried every kind of client: cheap, local, sophisticated, ignorant, startup, Fortune 100. Same shit, different day.

(I was even working on a really cool project at the Bear Stearns midtown offices the week before they suddenly ceased to exist. Naturally that project died, like almost every one before it.)

By the time we started to build Freckle, my husband and I had managed to attract clients who listened to us and who actually shipped what we built. (Thanks, Pepsi.) But it didn’t matter in the long run. I was sick of it all. I was 24 years old and burnt out.

So to say control was important to me? Understatement.

Having complete and utter control of the fate of my project was the most important thing to me.

I was so tired, deathly tired, of watching the wrong thing be done. Of projects never shipping. Of fatal compromises. Of fighting management, who were ignoring (or never even considering!) the needs of the user. Of having to use mockups in my portfolio instead of showing people the real app because the real app never lived.

Of having to appease and manage “stakeholders” who couldn’t tell their ass from a very well-spec’d hole in the ground, rather than focusing on what I was actually supposed to be achieving.

And I had enough friends in the startup game to have witnessed that “investor” is just a ritzier name for “stakeholder.”

Here was my mental list of things I’d never have to deal with, if we bootstrapped:

  • being forced to sell
  • being ousted
  • being forced to take on team members we didn’t want
  • being forced to pursue revenue sources at odds with serving our customers (e.g. ads)
  • being forced to work at an acquirer
  • being dilluted
  • having to worry about stifling shit like SEC regulations on what we tweet, blog, or tell our friends
  • managing investors who thought we weren’t growing fast enough, or who wanted to see wireframes and walkthroughs of the product and make changes, or any of that interfering bullshit

Because investors are only your allies in a few very narrow circumstances: if you want to grow big and fast, if you want to sell, if you don’t love your business & don’t care to keep it, if you don’t mind tough legal strictures and placing your business’s value in the hands of the public, if you don’t mind being forced to become an employee again.

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None of the above was an acceptable outcome to me. And, while visions of money bags danced in my eyes — wouldn’t it be nice to be handed a million dollar check! — growing up with money problems made me skeptical.

I’d long since learned that “free” money doesn’t exist, but power imbalances in financial transactions certainly do. And I was tired of being the sucker.

So, funding was never an option I’d even consider.

Bootstrapping was the only approach that would give me what I wanted:

  • independence
  • autonomy
  • disintermediation
  • ability to always do what I believed is right
  • total choice: who to work with, what to work on, when, and how
  • a long-term asset (a company I get to keep forever)

Ownership is the strategy. Bootstrapping is the tactic. Personal sovereignty is the reward.

Phew! OK, that came out more serious than I intended. Well, there are more posts where this one came from. Stick around, follow me on Twitter, for the next post about our marketing strategies over 4 years of stagnation and growth.

Second Installment: Why We Shut Down Charm on the Eve of Public Launch, at $48k/Year and Growing.


15
Sep 12

9 Years Ago, 37signals Had No Products…

How the hell did 37signals go from an unknown little consulting company to a bootstrapped product juggernaut?

Below is a video lesson from my 30×500 Product Launch Class which explains how.

It’s called Stacking the Bricks, and it’s a no-nonsense look at how 5 businesses got started, and how they grew and are growing — including a couple famous businesses, a couple nascent ones, and mine.

This video lesson is part reality check, part battlecry, part kick in the pants. It is ruthlessly practical, and it’s an investigation of patterns and systems.

Based on feedback from folks who’ve watched it, I can tell you: It’s worth your time. Make it happen. (And let it load, because it doesn’t stream.)

Watch it now, here, or download it. Rip the audio and listen to it on your commute. Just don’t fave it for later, because we both know that means never.

Click here to download the MOV file

It’s 43 minutes long, and there’s a blip in the audio part way through. (Sorry about that, but it’s too important to get out there, rather than waiting forever to re-record.) Obviously this lesson is about a year old so the relative dates are a little off, but c’est la vie.

MOARRR! Liked this video? You’ll also looove Be Your Own Angel – How to make money happen, a blog post with two more real-life stories of stacking the bricks.

And if you really, really liked that message, then you should ask yourself:

Are You Ready to Make Your First Brick?

If you’re a designer or a developer who dreams of having an independent income made by selling products directly to the people who use them…

…if you’re not sure where to start, or how to get over the problems that have plagued you every time you have started…

… if you’d sleep easier if you knew how to drum up customers before you ever put pencil to paper or code to git…

Then my 30×500 Launch Class may be just the kick in the pants you need.

A huge kick in the pants followed up by sensible, actionable advice and a process (with workbooks! so many workbooks!) you can implement yourself. And, when you join, you get access to a community of nearly 400 alumni as well as your fellow students. Some folks have told me that the alumni group alone is worth the price of admission.

This video is just one of many useful, butt-kicking, inspiring lessons in my 30×500 Product Launch Class… and I’m adding more all the time. This lesson, specifically, is an accompaniment to the heavily action-oriented, workbook-based lessons. 30×500 helps you understand the why as well as implement the how.

The next 30×500 will begin in November; you’ll have to apply, and applications open on Friday, Sept 21st.

The only way to attend 30×500 is to apply — and the only way to apply is to join my mailing list today:

Funmail Guarantee: Obv there’s no obligation whatsoever. You can unsubscribe at any time. And I promise to send you nothing but information on the class, free goodies, stories, samples and discounts and awesome stuff like that!

There are only 75 seats available. I’ll be making them available first come, first serve, for those who apply. There are over 1200 people on this mailing list. Not everyone on there is really ready to make that commitment and shell out that cash, but… you do the math :)

Transcript for the Impatient.

I really recommend you watch the video and read the transcript, though. There’s something powerful about listening to a narrative spoken by a real person (aka me!) while looking at pictures which ground the narrative for your eyeballs.

Hello. This is Amy Hoy and you are watching Stacking the Bricks, all about what you should do with your product business. Do you recognize this logo? I bet you do, but I also bet you can’t name the company. Yes, that’s right. It’s 37signals, perhaps the poster child for creating paying products. As their website says, millions of entrepreneurs, freelancers, small businesses and departments inside big organizations rely on their web apps.

Check out all those logos. Check out that really authoritative looking stamp and the customer pictures. Kellogg’s, the WB, National Geographic, the Obama Campaign, Patagonia, USA Today, FOX, Adidas…whoa. Really impressive, right?

They have a bunch of products. They have four main products, four web apps and they have ridiculous numbers of customers. They make so much money that some of their founders are just getting into racing cars, or getting in the news because David bought some expensive car that he can only have in Italy because of the import laws, because it’s just too fast.

They have a lot of money, they have a lot of products. Oh, and they have a couple best selling books, just to add insult to injury. If you look at them and you think, “OK. I want that. I want to be that. I want to go to there,” as Liz Lemon would say. But how do you get there?

Well, we can find out by looking at the past. I like to consider myself a little bit of an Internet historian. I like to go and peruse really old web pages. Well, in this case, this screenshot came from the 37signals website from a long time ago, circa 2003.

That’s right, in 2003 they were like us, they were doing usability reviews and interface design and training and research. They were not just getting started as a consultancy, but they had no products.

Think about that, it’s 2011 right now. Eight years ago, 37signals had no products. It’s been eight years. So how did they get there? Or rather, how did they get here from where they were?

Well, they started off as a consultancy and I’m sure their consultancy grew along the same ways that most of our consultancies grow, growing and changing and doing maybe one high profile project by accident. Then other people go, “Oh, I like your high profile project. Let me hire you so I can tell you what to do, because I don’t know what I’m doing, but you do and I’m going to tell you what to do because that’s what I do, because I’m a client.”

Right. That’s my experience. Anyway, that’s how we got big, inadvertently, almost by accident. Well, let’s see, what did they say?

This is a blog post from December 26th, 2003. Jason Fried is typing out little blog posts the day after Christmas for some reason. He wrote that 2003 was a good year for 37signals. We got back on track after a challenging 2001, 2002, post-bubble season.

That means that they got screwed by the Internet bubble. Right. They weren’t multimillionaires every month because their products were bringing in so much money. They weren’t posting sexy-ass videos of their brand new office and sports cars and stuff for people to consume, because they didn’t have those things.

They launched their first paper book. They launched an express, à la carte design service where you could pay only a few thousand dollars and they would redesign one page of your app or your site. They designed and developed Basecamp over a year, which doesn’t even launch for another month at this point.

They actually thought that it was worth adding to their blog post, they switched from Sprint to Verizon and back to Sprint. This is not the 37Signals we know. They list that they’re doing the Gawker Media CSS XHTML template. What? Yeah. Yeah.

Oh, they designed bulk bagel ordering for Panera, or rather, they restructured it. A bunch of companies you’ve never heard of on this list here.

So, how did they get there? How did they get there? They were about to launch Basecamp. How did they get there?

Well, in 2003, eight years ago almost exactly, so close, Jason Fried would write one line blog posts that would get one comment or two comments and then a bunch of spam comments because these posts have been up there for 11 years. “There are few things more satisfying than being motivated.” Is that the 37Signals blog that we know? No, it is not.

Or, how about this one? 22 January, 2004. They said they were going to launch Basecamp in January 2004, and here they are posting three line, unpunctuated, uncapitalized blog posts about their launch ideas. “Simple project management. It’s not about number stats or charts. It’s about communication for the little guys — freelancers, small shops and remote teams.”

Does that really remind you of their current list of clients? Millions of entrepreneurs, freelancers, small business and departments inside big organizations, all those logos? No. They got there organically.

Here they are struggling. They’re like, “How do we launch this thing? I don’t know, so I’m going to write three lines in a blog post and share it.” You’ll notice they have one comment, and then the REST are spam. Seven comments total. One comment. When they posted this about launching their product, they had one comment. One comment. Hold that in your mind.

How did 37Signals get to where they were as consultancy? Well, among other things, they did the 37Better Project. Now, look at this page. This page is so 2001 it hurts, doesn’t it? Granted, it’s designer-y 2001, but it’s still 2001. Hey look, yellow highlighters.

What 37Signals did was redesign a single page of a whole bunch of different really famous things, like a bank. Not a specific bank, just general online banking, or FedEx, or PayPal, or motor services for car dealerships and stuff.

They didn’t do a whole whitepaper. They didn’t design an entire app. They didn’t write up a report like, “These are our justifications for XYZ.” No, they just did this thing where they redesigned one screen and they got a lot of traffic.

Ever heard of Dustin Curtis? You might know him as the American Airlines redesign guy. Well, Dustin just took a leaf out of the 37Signals playbook. Dustin wasn’t famous before that. Now he is. 37Signals wasn’t famous before they started doing stuff like this, but now they are.

They also shipped another product in January 2003, which they didn’t seem to mention in their year in review post. This was 37Signals’ first paying product as far as I can tell. This was a report on ecommerce usability, specifically search and shopping cart stuff.

You can see that they did reviews of 1-800-FLOWERS, Amazon, The Apple Store, Best Buy, CDW — I don’t even know what that is — Crate & Barrel, Crutchfield, Drugstore, eBay, Finish Line, KB Toys, Lands’ End, L.L. Bean, Macy’s, Mother Nature, PC Mall, Petco, blah, blah, blah, blah.

Now, I remember when this came out and I think that it actually cost about $400, but the page that I found for it that’s still up from 2003, or 2004 lists it as $75. This was quite a few pages, this report. How many pages? Maybe about 100.

Their first product, their first dipping their toe in was a paid whitepaper. A research, review report. It was pretty nice, but this is not like, “Oh, we launched Basecamp and now we’re famous.” No, this is a small product that many agencies could have done, but that they didn’t do.

Before I move on, actually, I’m going to back up for a second. I watched 37Signals launch Basecamp. One of the more useful habits I have is that I consume everything. Looking back on the history of the past 10 years or so, I can name so many major product launches or people who became famous that I was there.

This is not to say it had anything to do with me, or that I’m special because of this. No. But what it has given me is an interesting insight into how people go from nobody to somebody, or how people go from a little consulting agency to the biggest bootstrapped product company that we know of with legions of fan boys and talks at startup school and so on.

In 2003, there was a private beta of Basecamp and they collected people from a designer forum that I was in called YayHooray, which used to be invite only and used to be higher quality than it is now. Jason Fried himself was the one posting about the design of Basecamp. He was in there interacting with people who would be using it, freelancers, designers who worked with project management tools to handle their clients and their review cycles and stuff.

We thought it was cool, but I don’t think any of us ever thought that it would become big like this. It’s different if you know somebody when they’re little, when they’re a kid or when they’re in college, and then a decade later they’re famous and rich. You know what they’re really like. You know where they came from. It removes some of the mystique for you.

Well, that removed the mystique from Basecamp for me. If there’s any company that I’ve copied, it’s 37Signals. If there’s any company that you should consider copying when you want to create products and create a large income or create an independent income, a freedom income, whatever it is that you want, you could do much worse than to copy from 37Signals. They’re pretty much the playbook that we should copy from. And I am so excited to talk about other people who are doing the same thing.

These are people who you will recognize in a few years, and you will say ah, I watched that happen. So I don’t know how to say Marc-Andre’s last name. So I’m not going to try. But Marc-Andre is someone who is rising in the ranks. As he says, he created Thin, Tiny.rb. He wrote a book and sold a few sites. And now I’m making a living online teaching rails and making things.

That’s very simple. He started with this. Create Your Own Programming Language. Do you remember when this launched? I remember some people thinking that it was a scam on Hacker News. People were like uh, is it a scam? What do you mean, is it a scam? It’s an ebook with screencasts and code samples. How could this be a scam?

People were skeptical. People were like I don’t know. It’s on the Internet. It’s by a programmer, and it costs money. How could it possibly be real? And yet, of course, it was. And the secret is that Marc-Andre made a lot of money doing this. Maybe not enough money by itself to quit his job, but enough to significantly push him that way.

And then he did. And now he’s doing training. He’s got an Owning Rails workshop. The ultimate online class. Total ownage of the Ruby on Rails framework. And he’s launching a new ebook. This is a mini ebook that he’s giving away for free. But you can…I can guarantee you that it’s going to turn into some other product.

Another product that he’s working on, Rails themes, ready to use and deploy. Now where is Marc-Andre come from? You know based on this screenshot here, of his bio, that he started off making open source, and then he wrote a book and did a screencast. And now he’s doing a workshop, and now he’s writing another book, and now he’s doing this other product.

Very cool. Well, I’ve emailed back and forth with Marc-Andre a little bit, and I hope he doesn’t mind me sharing this email. First of all, he’s saying nice things about me, which is always a good way to get somebody to help you. And the second part is he was wondering if I would be interested in being an affiliate and helping him launch his first workshop.

Well, this was when I was feeling very sick, and leading up to surgery, so I really didn’t respond in any kind of timely fashion. Then when I did write back, a week later, he said, I can’t even believe this yet, but I already sold half the tickets in 24 hours. Yes. He was worried. He was reaching out to people. He wanted to have help, and then he turned around and sold half out anyway.

He said that it’s largely due to one of his affiliates, Peter Cooper, who of course runs a bunch of newsletters and Ruby and JavaScript website, but nevertheless, I bet Marc-Andre could have done it himself. He’s developed a reputation. People love to Create Your Own Programming Language. People love his open source work. He could have done it himself.

And now he’s going on to bigger and bigger things, and he’s doing it full time on his own, and that’s so cool. He said I recently decided to quit my job to focus full-time on my products. And he says also that he’s been selling his ebook and a few other small stuffs for a couple years. He didn’t come out of nowhere. Not really.

He started somewhere, and he kept building, and he kept building. Now how about this guy? Do you know Peepcode? Have you ever bought Peepcode? Well, a Peepcode screencast or a Peepcode book. Peepcode is pretty much everywhere. And I think everyone considers it the absolute best source of JavaScript and Ruby, especially, Rails screencasts.

Whether it’s about RSpec or rests or backbone or get, Peepcode’s got it covered. Well, Peepcode is mostly one dude named Geoff. Now where did Geoff start? Well, perhaps we say when did Geoff start? Geoff got into Rails pretty early. You can see his first blog posts giving away a library, a graphing library for Ruby, was July 2005. And this was his first Ruby-related blog post. He created a website called Newbie on Ruby, Newbie spelled funny.

And then later on he started the Rails podcasts, and I was one of the first guests, because I was releasing stuff at this time. And then he kept doing tutorials for free. You could see he had spark lines tutorials, spark line speech, podcasts, a typo theming tutorial posted about the Rails pluralizer, so on, and so forth.

They started in 2005. Six years ago. And then in February 10, 2006, six or eight months later, he did a Carson workshop. He did his own workshop somewhere before this. I couldn’t find the exact date. And then he got invited to do a Carson workshop. The Carson workshop invitation didn’t come out of nowhere. He’d been writing tutorials and posting open source libraries and writing about stuff and teaching for some time at this point.

So you can see in October and September, he’s been doing more and more stuff. And then a workshop, and then another workshop. And then where did he go? Well, check this out. Here’s another screenshot of his archives. I love that he has it all in one page, so I can just screenshot it and move up the timeline. In August 2006, over a year after his first blog post about Ruby, Geoff launched Peepcode.

Now, the thing about Peepcode was that it was supposed to be one screenshot…one screencast a month. He was doing it on…by himself. And that was his first paying product. In October 2006, he released this awesome cheat sheet, and I think he got the idea from my cheat sheets, which is probably part of the reason we’ve been friends.

To promote his REST screencasts, you could October 2006, this cool cheat sheet has all the REST stuff. REST was super hot, yet confusing at this time. And then there in the top right, there’s the big badge logo, the bright pink. The REST screencast, nine dollars at peepcode.com, 85 minutes of restful goodness. And this really launched…this really launched Geoff.

And he grew, and he got other people to make screencasts, and he hired his wife, and he grew some more, and he…more and more screencasts. And then he started doing ebooks. And then I convinced him to raise his rates last year, raise his prices, and on and on. Geoff did not start from nowhere. Geoff did not start a screencast…a successful screencast company from nowhere.

For the longest time, he did one screencast a month. Everybody could do one screencast a month. This dude did, and he started blogging in July, 2005. And now, in 2011, he has an extremely lucrative business. He’s kept it small on purpose, but if you’ve seen Geoff at one conference and then another conference and then another conference, you’ll notice that Geoff obviously has the money to continue flying and traveling to these conferences to promote his business, and that’s because his business makes pretty good money.

But these people, they’re both pretty far along, aren’t they? They’re people you know about, so you think, OK, well they’re famous. Well, what about this company? Have you ever heard of it? No? You will soon. Little Stream Software is a consulting business that’s focused around Redmine, and now the new Redmine offshoot which I believe is called Chili Project.

Little Stream Software is basically this guy. This is Eric Davis who is a 30×500 alumni. Actually, he attended my very first year of Hustle workshop call, which was three and a half hours of just talking about business stuff that I learned. He then joined the entire year of Hustle class which followed, and has basically taken the course over and over again and been an extreme help on the mailing list this time around. Great guy.

I’d love to see him applying what I’ve been teaching because if you know Eric at all, you know that this is his first ebook, $39, and he’s reported recently that he’s made a solid, what was it, six or seven thousand dollars off it. And now that he’s marketing it some more, it’s selling some more.

And this book, this ebook, is just a compilation of his blog posts. He had a regular blog post series about refactoring Redmine since he’s one of the core contributors, and apparently the code was pretty bad to start with. He had his regular blog post series, and he edited them all together and made them flow and he sold quite a lot of copies with, I’ll be honest, sort of so-so marketing effort.

And I think he would tell you the same thing, because the other day he wrote me. He said, “Hey, so it turns out when I market more, I sell more.” I’m like, yep! Because when you learn that lesson the first time, it doesn’t matter how many times people have told you. When you learn it for yourself, it’s amazing.

So, now he’s marketing it more. He recently did an interview, with Marc-Andre actually, and Marc-Andre asked him, “What have you learned?” And Eric was talking about how he realized later that people think that this book is a Redmine book because the title “Refactoring Redmine.” It’s actually a Ruby refactoring book, and he said that he learned a lot by producing this book and noticing the mistakes.

He’s actually turning what he’s learned from launching this book, the failure perhaps. People expected a Redmine book and it’s not, and so he’s turning that actually into another product. Oh, and check this out. Speaking of his marketing efforts, he’s one of them right now. A free nine days Rails Control and Refactoring email course. Pretty cool.

Because he realized people were really excited to buy a Redmine book and not so excited when it turned out it was a refactoring book, he’s making a Redmine book. So, his shipping of his first product actually led directly to his creation of a second product. And he’s actually putting this up for preorder. It’s not done yet and he’s selling copies. How cool is that?

And Eric also has purchased the rights to this ebook, which is really originally written by Jeremy McConnolly who wrote…I don’t even remember what his original book was on, but he made $40,000 off his technical ebook. And Jeremy McConnolly was not particularly famous either. Moderately well known, perhaps.

So, Jeremy didn’t want to run this project anymore, so he sold it to Eric, and Eric is continuing to expand his information publishing empire. And this guy, Eric, didn’t have any products a year ago. He didn’t have any products a year ago. When he attended my Hustle call, that was, gee, what year was that? My sense of chronology is not so good. Let’s see. So, in December 2009…No, that can’t be right. [laughs] Pardon me.

Anyway, let’s see. [reading] Year of Hustle was spring…I’m just confused. Not last year, but the year before. So, a year and a half ago, he had no products. Sorry about that. I should prepare better. And now he has three products. He has one product that’s out and that’s sold pretty well for a very first product. Several thousand dollars in sales. Not bad, especially considering he admitted himself that his marketing efforts were only so-so until now.

A new product that’s coming out that he’s pre-selling, and a third product that he acquired and he’s updating. Pretty great, right?

Well, let me tell you another story. This, of course, is a screenshot of my company home page, Slash7. How did I get involved in this business? If you follow me on Twitter or you’re on my mailing list, you probably think, oh God, Amy has, like, 80 million products all the time. But that wasn’t the way that it was.

My entry into this world started in December 2004, when I started to learn Rails. This is all related to me finding Basecamp, and then ignoring Basecamp for a while because I didn’t have a use for it, and then hearing about this new programming technology that was used to build Basecamp because, I don’t know if you remember this, but 37signals released their Building of Basecamp for free on the Internet and posted a lot about Ruby on Rails the very beginning.

I was like, oh. I saw the controller code and I fell in love. So, I started to write about it and I wrote my very first tutorial on January 24th, 2005. And this sort of rocketed me to moderate fame [laughs] in this tiny niche of Ruby on Rails, because there were so little out there and because I did a ping back on one of the popular tutorials.

So, 2005. Six years ago. And then I did some cheat sheets. This is my first one. You can tell it’s not very good and I didn’t finish it, because I didn’t understand what was going on in the test directory at that time. It’s not very good, right? It doesn’t look like an Amy Hoy production, does it?

Well, my next one got fancier. Then I got invited to do a workshop for free for charity by a guy named Jeff Casimir, and now Jeff and I are friends, and actually Jeff would be great for this presentation because he also launched his own business, and this was the beginning of it. Jeff was a teacher at the time, and now we runs a training business.

This was in…Let’s see. June 16th, 2006. So, five years ago almost exactly. I did this free sort of hamfisted workshop with Ezra Zygmuntowicz and Jeff. So, that’s five years ago. Then three years ago almost we launched our very first product, Freckle. So, from my very first Rails tutorial, January 2005, to my very first product, 2008, was three years. Sorry. Four years at this point, because it’s December, from January to December. Four years.

But even then the course was not nearly as smooth as it looks like. I started off with a couple Rails tutorials, and it led to cheat sheets which led to the Workshop for Good, which indirectly, years later, led to the JavaScript workshop in D.C. because my friend Jeff and his wife Meg came and visited us in Vienna right before their baby was born. Their last trip together before having a family, and we were complaining about something or other. The price someone offered to pay us to do a JavaScript workshop, and Jeff was like, well why don’t you do it with me?

So, that led to our workshop in D.C., which was run by Jeff. Our very first workshop together, me and Thomas, and honestly looking back on it now it was kind of embarrassing, and that led to the workshop in Berlin which we put on by ourselves. And that led to a workshop paid for by Nokia in Tampere [Finland, a corporate workshop, our first one, which led to several other corporate workshops. Then we did our own workshop in Vienna.

Then we did one in Philly, and then we got sick of arranging locations and renting and trying to get people to buy tickets soon enough that they could buy flights to come and blah-blah-blah, and so we did an Internet version. And that changed a lot of things, and that led to our [internet] workshop, but during this time also my tutorials and cheat sheets had led to several failed book contracts. Three, actually. One for Pragmatic Programmers, one for O’Reilly, and actually the third one was unrelated

And those failed books and the work we were doing in consulting led to the JavaScript Performance ebook, which again, connected to the JavaScript workshop because the Performance ebook came first. Then the workshop came second because we found out people actually needed to learn JavaScript.

Meanwhile, doing my Workshop for Good actually led, in a lot of ways, to me to have the confidence to submit for an OSCON workshop on JavaScript, which was related to my failed JavaScript book for O’Reilly. And in there, doing the consulting work led to absolute hatred of all the tools that we had to use, which led me to design Freckle, and using Freckle and doing customer support made me all those tools, which led to me designing Charm.

As you can see, it’s all connected. And this isn’t all. All of this led to the creation of Year of Hustle call, the three hour teleconference, and that led to the Year of Hustle workshop/class, which lasted several months, and that led to the 30×500, and that led to the class software that I’m having developed, that I designed to run my online classes.

More and more and more leads to each other. I couldn’t have jumped from tutorials to having a JavaScript workshop, or tutorials to 30×500, or even from tutorials to writing the ebook on JavaScript performance. And that’s what I mean by stacking the bricks.

When we get started, we thinking that somehow there’s a clear, straight path from where we start to millions of entrepreneurs, free lancers, small businesses, and departments inside big organizations relying on our web apps. We think we can go from a lowly peons to rich and famous, and if we can’t, do that in a straight line, that either there’s something wrong with us that we can’t do it, or that there’s something that we should hate in the people that do do it. People who go from zero to hero, we’re like, whoa, fame is bad because blah-blah-blah-blah-blah.

They went from straight blah-blah-blah, marketing is evil blah-blah. Well, that’s really unproductive thinking, because if you’ve ever known somebody before they got famous, then you know that it’s never just overnight. There’s always so much more. It’s an iceberg, or a duck. You see the tip of the iceberg and you know that there’s 90 percent more iceberg under the water. Or you look at a duck. Calm on the surface, paddling like hell underneath, and occasionally diving down for some seaweed and sticking its butt in the air.

I’ve been lucky, I guess, fortunate to meet people when they were “lowly peons,” before they became rich and famous or successful. I’ve watched the process. Take the GitHub guys. They asked me to design their first product, which even at the time I knew wasn’t going to succeed, and I was too nice to say it, so I quoted them a large price so they wouldn’t end up wasting their money on me.

Or Shopify. I was approached to design Shopify for a percentage. I said, “I really need the cash right now, and I can’t do it,” because of course, people were approaching me with start-up ideas for equity all of the time. Boy, do I kick myself over that one!

Or Kickstarter. I was invited to design Kickstarter, and I really didn’t think it was going to go anywhere.

Or let’s see, what else? The Gilt Group. I fumbled that one.

Gary Vaynerchuk. Somebody who I consider a friend. I did a lot of work for him before you ever heard of him. Watched his rise from a guy who put out this crazy wine show once a day to you know, hundreds of viewers, to someone who can hit the best-seller list with basically anything that he would care to write.

Now he’s a social media marketing guy, and like, real social media marketing, and customer service expert, and all of this stuff. I knew him when he still worked at Wine Library, the actual business. We worked there, and we came there, and we sat in offices stacked high with boxes and paperwork under nasty fluorescent lights, and we worked on software for Gary.

I’ve been able to see that this graph here from lowly peon to rich and famous is a lie. There are 80 million twists and turns in this story, from one to the other, and a lot, a lot of work, and a lot of side trips, which you don’t know about.

Yet, we think that we can just sit down and start building, and at the end of our building efforts, we will have something amazing and perfect and finished, like I don’t know, St. Basil’s Cathedral, which is awesome looking.

We never consider, “Well, how do we get started? How do we get there?” Well, a journey of a thousand miles begins with a single step, allegedly Confucius has said. Something like St. Basil’s Cathedrals requires that you start with single bricks. You have to start with a single brick.

You have your one brick, and you’re like, “Wow, I have a brick. What can I do with this? It’s a fucking brick. Nothing. I can use it as a paperweight, or a door stop, or maybe I can hit somebody in the head with it.”

Then if you keep working, you get a second brick. Then another brick. You keep working, and you keep hustling, and you keep working, and suddenly you have a big pile of bricks. You have a lot of building material. Then you’re like, “Ah! Now I have enough bricks! I can do something with these bricks!”

You grab your trowel, you grab your grout, and you start the work of laying those bricks together into a cohesive thing.

You take all of the different things you worked on and you start putting them together and gluing them together in cohesive framework. Then you have a wall and people will walk by your wall and say, “That dude has a wall.”

They won’t say, “Gee, I wonder how he collected all those bricks to build that wall.” They will just look at that and they will think, “Huh, millions of customers. I want that,” or “Millions of customers, they don’t deserve that,” or “Gee, I should be able to do that tomorrow. If I just get the formula right, I can create a product and suddenly that will happen to me.” But that’s not the way it works.

But there is good news. When you start with a single brick, then you want to make it two bricks, you’re not starting over. Each brick leads to more bricks. Because every time you create or acquire a brick in some way, you’re gathering up courage. You realized, “Hey, I built this brick for brick and nothing happened to me that was bad. It was OK, I’m not longer afraid.”

You have experience that you can draw on. Now you know how to make a brick, acquire a brick. You have knowledge that you can draw on.

For example, think about when Eric realized that he gave his first ebook or a poor title. He could have said, “Oh, woe is me. I failed.” Instead he said, “Oh, well this gives me some interesting insights I can use to sell my next ebook. People really thought it was a Redmine book, but it wasn’t. So gee, I’ll make a Redmine book.”

It gives you connections. Don’t you think that Marc-Andre had an advantage because of all of the work he put into Open Source when he started selling his ebook. It wasn’t an enormous advantage, people still thought it was a scam. But he had an advantage.

Then, once he sold one ebook to people, don’t you think they’re more likely to take one of his workshops or recommend his workshop or buy his next book. Hell yeah.

What about Geoff? Geoff started blogging in 2005 and he started releasing little bits of Open Source here and there. People trusted him and he used that to begin selling products. It doesn’t meant that he had an easy time, that it was all swinging by the hand in a field of daisies.

It took a long time for him to build up his company, but he had help. With every screen cast he released, his reputation grew, people’s trust grew.

You build a customer base too, when you release any kind of product or tutorial or goodie. People buy from you once, assuming you don’t terribly disappoint them the chances are very good that they’ll buy from you again.

The people who came to my “Year of Hustle” workshop call, almost all of them attended the “Year of Hustle” class, even though it was four times the cost.

Many times, people attend one of our JavaScript workshops, and then end up attending the other JavaScript workshop, and quite a few of you have even attended my 30×500 Launch Class, even though they’re not really related.

When we emailed the list of customers who bought our JavaScript performance ebook about our new workshop product, the HTML5 Mobile Pro downloadable version, they went nuts over it. We sold like, $4,000 worth right away. People who had bought from us, and then they wanted to buy from us again. We gave them that opportunity, and they were excited.

Finally, one of the top six things you get from having one brick and then another is raw material. From the consulting, Thomas came up with the concept for the performance ebook, and he even had a lot of data that we then repurposed into an ebook. Then from that, we actually made a performance workshop for the guys in the Finland, they paid us extra.

Then from that, we expanded our JavaScript Master class, and from the JavaScript Master class and Thomas’ other consulting work and stuff we were doing on ourselves, we realized HTML5 is big for mobile devices. It’s big, it’s exciting, people don’t know how to use it, we’ll teach them. Then we made this workshop.

Now that we don’t have time to teach live workshops four days a month, we’ve turned one of those workshops into a downloadable product.

We get raw material, everything we create, everything we do, feeds into the other things that we do. This isn’t true when you’re employed, but it is true when you run your own business. You don’t need to be brilliant to architect it this way, you just need to have a little bit of savvy, and to work with what you’ve already got.

That is the bottom line. That is what it means to stack the bricks. As far as the grout goes, what you need is discipline, and the willingness to put it all together, and the willingness to email the people who bought your other ebook and say, “Hey! We have a new product you might like. Here’s a big discount because you’re a loyal customer.”

You need to be continually working on stuff. Keep moving forward. Not buying into the idea that if only you come up with a great idea, suddenly you’ll be a millionaire. Someone will buy your company, you’ll have millions of users. It doesn’t work that way. What works is stacking the bricks. Brick by brick. Then all of the bricks and the wall and the thing you build are yours.

Additionally, when you build your business this way, you get money. The money cannot be underestimated for keeping things going forward. Thomas and I use our workshops to fund the development of Charm. Charm is going to launch at the end of August 2011, so very soon now. We’ve paid people to help us grow based on the things we were already doing.

[NOTE: Charm did soft-launch in Aug 2011, but we decided it needed more work and our staffing situation required a total overhaul. Charm is ACTUALLY about to launch now. Yeah, I learned my lesson. Another story I'll tell you about in 30x500.]

Every brick that you get, that you make, that you stack, that you let feed into each other in this ever growing cycle of virtuousness also expands your freedom as well as your power. Then you can hire help, or buy more bricks.

Then if you keep at it for a long time, you can build your cathedral. So, the question becomes, “What’s your first brick?”

Are You Ready to Stack Your First Brick?

I mentioned 30×500 above, but just in case you missed it:

The next 30×500 will begin in November; you’ll have to apply, and applications open on Friday, Sept 21st.

The only way to attend 30×500 is to apply — and the only way to apply is to join my mailing list today:

Funmail Guarantee: Obv there’s no obligation whatsoever. You can unsubscribe at any time. And I promise to send you nothing but information on the class, free goodies, stories, samples and discounts and awesome stuff like that!

There are only 75 seats available. I’ll be making them available first come, first serve, for those who apply. There are over 1200 people on this mailing list. Not everyone on there is really ready to make that commitment and shell out that cash, but… you do the math :)

See you in class!


13
Aug 12

Why Blacksmiths are Better at Startups than You

Blacksmithing

Translations: русский язык

There’s a great show called Mastercrafts, a mini-series documentary from the BBC. I recommend you go out and find a way to watch it, right now.

Mastercrafts is all about — surprise! — master crafts:

  • blacksmithing
  • stonemasonry
  • thatching
  • hand weaving
  • stained glass
  • green wood furniture-making

Trades we barely even think about today; obsolete, cottage industries.

Nevertheless, there are still people who dream of learning these trades, and that’s where Mastercrafts comes in. Each episode follows the trials & triumphs of 3 would-be students during an intense 6-week course at the hands of a master craftsman.

I’ve watched the series twice, and loved it both times. Because it turns out that learning to work iron and weave by hand are perfect corollaries to founding a startup.

Whoever cast the shows did a fantastic job. Each episode features a great mix of student personalities. And because it’s a kind of reality show — although a very refined, smoking-jacket-wearing reality show — those personalities are brought to the fore. All the while the students are shaping stone, hanging thatch, cutting class, spinning wood on a foot-operated lathe in a tent, or hammering hot iron, they’re being aggressively human. We see their best sides… and their worst.

Every flaw you’ll ever see in a “startup founder,” you’ll see play out in Mastercrafts. And if you sit & watch the whole series in one or two sittings, the patterns will leap out at you.

Green Wood

Bad behavior you’ll recognize

Here are some of the personality flaws I’ve spotted:

Several students in different episodes are obsessed with “expressing themselves” instead of following the brief (the job specification). They waste precious time in “creative” noodling instead of actually getting shit done.

Others indulge themselves in childish boredom and rebellion when it comes to the repetition of early stages of learning, instead of committing to the basics with all their hearts.

Several more wield perfectionism as a weapon against their own achievement… a weapon, and an excuse.

Several show a great deal of self-importance, unwarranted — they talk themselves up, they expect they’ll win, they treat the advice of the master as irrelevant, or they crumble at the slightest criticism.

Others engage in bitter self-denigration, unwarranted — fatalistically wailing, “I’ll never be able to do this,” when experiencing the simplest of setbacks. They want to throw in the towel at the first bump. And the second. And the third.

Finally, and perhaps most fatally, many of the students seem to have zero patience whatsoever. They expect to jump straight to results, straight to the fun stuff — the creative stuff. They don’t want to put in their dues. They think they’re special. So they stamp their foot petulantly when their shortcuts fail.

These students claim to want to master a craft, but they resist the very nature of “craftsmanship.” Even though, to even get the apprenticeship, they had to apply and interview and disrupt their lives for 6 weeks or more!

Thatching

Wait? So the show sucks?

I’m sure I’m making the show sound like a kind of horror parade of bitchiness, but nothing could be further from the truth! All but a few of these divas are transformed over 6 weeks by the simple, honest, difficult work, and the rewards of making something real.

They find themselves achieving extraordinary things… just as soon as they decide to get over their crap.

This transformation is wonderful to watch. It’s LIFE.

And because it’s life — because, if you watch it, you’ll recognize your coworkers, your friends, and probably yourself — we can’t help but ask…

Why? Why is this the universal experience?

This is something I’ve spent half a lifetime pondering. Here’s my conclusion, in progress.

The reason the students resist the process every step of the way is because their entire self-concept is at risk:

They’ve never worked in an environment where results are all that matters. They’ve been coddled by parents, the school system, and their bosses. Their work is abstract; they rarely if ever see the end product of their work in use, they rarely if ever meet anyone who uses the product of their work in its final form.

Until now, they’ve always worked for approval, abstracted from results: the question has always been, Is this the answer the teacher wants? or Did the committee like it?not Is it true? and Did it help the customer?

It’s as if Galileo dropped his ball and feather from the top of the tower and, as they fell, sought to convince his audience by argument instead of simply looking.

This is the way most of us grow up to live, learn, and work. And it’s toxic.

Spoiled children

Have you ever engaged with a truly spoiled child?

It’s tempting to think of spoiled children as cold, calculating brats, calmly deploying tantrums as tools of manipulation. But if you’ve ever been a spoiled child, you’ll know this is far from the truth. When a spoiled child doesn’t get what he wants, he feels like the world is spinning completely out of control. He is a victim of his emotions (and he really feels as badly as he acts).

A spoiled child literally can’t cope with the reality where things don’t happen the way he expects. He’s held prisoner by his feelings.

NewImage

And a coddled child literally can’t cope when his excuses don’t work.

When the world fails to deliver the expected result to a spoiled child, or a coddled child, they feel like their world is ending. Their egos react accordingly, to force external change, to protect their mental model of the universe.

Sound familiar?

When you live and work in an insulated life — divorced from the end result of your work — you are spoiled. You’re graded more on your ability to please and manage gatekeepers than your work product. Gatekeepers are human; humans can be persuaded to accept excuses. That doesn’t apply to me. I know, but. I’m not good at that. What I really want to do is. The client said. I tried my best.

Find yourself dropped into a reality-driven environment and blam! Your carefully groomed gatekeeper skills are useless. Your ego is at risk. And it fights back.

thatching 2

Stone doesn’t care if you’ve had a hard day. Iron won’t stay hotter longer just because you’re feeling hesitant with the hammer. If you don’t get your thatch right, it will leak, and that’s that. There’s no room for error.

It must feel terrifying.

Ah, you might be thinking, but in Mastercrafts, these students are being taught & graded by a master. The master is a human. They are trying to please the master. The master is a gatekeeper, right? The master will accept excuses.

In theory, yes. But in reality? Not these masters. There’s nothing more pragmatic than a blacksmith or thatcher in 2012. They’re pragmatic because they would never survive if they weren’t.

These masters know the score. They know they serve reality and no higher authority. They know reality can’t be denied. Whether that reality is the one where the fabric is flawed, the stone doesn’t measure level, the chair breaks, or the client won’t pay… their feelings don’t matter, their excuses won’t hold, and no amount of belief in their unique value will change that.

As the master blacksmith said, when the customer asks for “10 more of these” they’re going to be bloody upset when you come back with a newer, creative design and say “But this was more fun to make.” And then you don’t get paid.

This is the 21st century condition in a nutshell: We are abstracted people living abstracted lives. We don’t know how to live any other way. When we find ourselves suddenly butting up against hard, disintermediated reality, our egos cry out like spoiled children, and kick and scream and pitch fits.

That’s what happens when these abstracted people arrive in the workshops of the master craftswoman on Day 1, thinking,

“Gee, I work with fabric a lot. I could totally weave by hand on a loom. People hundreds of years ago did it. How hard could it be?”

The answer, of course, is incredibly fucking hard. Mindnumbingly hard. Weaving is like playing a pipe organ only with the opportunity to break and snap and knot and twist. Make a mistake, and there goes hours — maybe days! — of configuration alone.

NewImage

Mastering a craft is HARD. It’s HARD, and their spoiled little inner brats thought it’d be easy. No wonder they rebel. No wonder they indulge their “perfectionism” or chafe bitterly at boredom.

It’s this same attitude which leads you to abandon your project at the first sign of trouble. The same attitude which causes you to noodle endlessly on features. To delay marketing; to believe that if you build it, they will come. Or, hell, to ever build it or ship it at all. To seek feedback from your peers instead of your customers… to spend more time catering to venture capitalists than the people who’ll pay for your product. To lavish your energy on “innovating” instead of mastering the basics.

Infinitely more endeavors have failed due to childish misbehavior than due to the market, the economy, the customers, or the competition.

Business is a reality engine:

Don’t work on the basics every day? You’ll fail.

Don’t market constantly? You’ll fail.

Don’t solve your customer’s pains? You’ll fail.

Don’t ship? Ha!

There you go: business in four sentences.

Business is truly a mastercraft. Attack it rigorously, honestly, and openly — and commit to mastering your spoiled inner child — and oh! the places you’ll go. Reality will become your fondest friend. Your driving questions will evolve from Does this make me sound smart? to Does this motivate a customer to buy? — from Gee, what do I feel like doing today? to How will I make my customers’ lives better today?

You’ll make things with your hands and your brain that will help people, people you get to meet, to talk to, to learn from. And you will feel rewarded.

Forging Metal

If you’re not in it for the long haul, though, don’t bother. If you’re too special to practice the basics, don’t bother. If you’d rather feel validated than achieve a result, don’t bother. If you’d rather defend the status quo than grow, give up now.

That is the decision you’ll face every day:

Do you just want to splash about in the kiddie pool and rebel at the first sign of seriousness…

Or do you want to craft a real business and a real life, with reality as your favorite ally? Do you want to surprise yourself with how much you can achieve?

Do you have what it takes to become a master craftsman?

NewImage

UPDATE: This is what you’ll learn in 30×500!

The philosophy and practice of craftsmanship doesn’t come out of nowhere — it comes from being around the right people, learning the right things, in the right environment, and practice, practice, practice. It’s almost impossible to do it alone.

That’s why I teach 30×500, a product launch class. If you’re a designer, developer, or writer, and you want to run your own business & create the kind of personal and financial freedom you desire, you should check it out.

Learn how I built my product business to over $500,000 a year in revenue, and about how I can help you learn & develop the skills you need to create your business with a craftsmanlike attitude.

NOTE: Applications open on Friday Sept 21st. There are only 75 seats available & it always sells out (this will be the 6th edition!).

Drop your email in the box below for free lessons and a chance to grab a seat for yourself:


Funmail Guarantee: Obv there’s no obligation whatsoever. You can unsubscribe at any time. And I promise to send you nothing but information on the class, free goodies, stories, samples and discounts and awesome stuff like that!


1
Jun 12

Henry Ford, the Bootstrapper (Biz Book Friday!)

Hey hey hey, it’s Biz Book Friday! the tradition is coming back.

NewImage

Oh, Henry.

Henry Ford was inarguably one of the best entrepreneurs the country (and possibly the world) has ever seen.

To wit, here’s Wikipedia’s stunning intro to Ford’s achievements:

  • His introduction of the Model T automobile revolutionized transportation and American industry.
  • As owner of the Ford Motor Company, he became one of the richest and best-known people in the world.
  • Celebrated as both a technological genius and a folk hero, Ford was the creative force behind an industry of unprecedented size and wealth that in only a few decades permanently changed the economic and social character of the United States.
  • He is credited with “Fordism”: mass production of inexpensive goods coupled with high wages for workers.
  • Ford had a global vision, with consumerism as the key to peace.
  • His intense commitment to systematically lowering costs resulted in many technical and business innovations, including a franchise system that put dealerships throughout most of North America and in major cities on six continents.
  • Ford left most of his vast wealth to the Ford Foundation but arranged for his family to control the company permanently.

(He also had enormous personal flaws, but sadly that’s par for the course for people with outsized impact on the world.)

But what Wikipedia doesn’t mention — and many people don’t know — is this:

  • Ford was the consummate bootstrapper
  • His biography, My Life and Work, is one of the best books on business *ever written

If you know me, you know I love reading old books. There’s nothing quite like viewing the past first-hand, through the lens of the people living in it at the time — people who wrote about their present. When reading new stories about the past, it’s so easy to slip into the habit of judging those ridiculously foresighted people from history, and how could they have ever believed that anyway? Like, duh. Which is kryptonite to learning, because of course, our present will soon be the past, and people will think the same of us. Perspective, and humility, are necessary ingredients to becoming fully human and these days they are in short supply.

Umm, yeah. Old book rant over.

Sooooo… I’d been meaning to read Henry Ford’s autobiography for some time.

If I’d known what an amazing, revelatory page-turner it’d be, though, I wouldn’t have wasted a second more delay.

Banishing the Pleasant Things in Life

Here are a sample of some of my highlighted passages from just the first few chapters:

I think that we have already done too much toward banishing the pleasant things from life by thinking that there is some opposition between living and providing the means of living. We waste so much time and energy that we have little left over in which to enjoy ourselves.

1922 to 2012: 90 years of Americans worshipping overwork. Has it ever been any worse than today?

The Whole Point

Power and machinery, money and goods, are useful only as they set us free to live.

Yes!

Skepticism

I have no quarrel with the general attitude of scoffing at new ideas. It is better to be skeptical of all new ideas and to insist upon being shown rather than to rush around in a continuous brainstorm after every new idea. Skepticism, if by that we mean cautiousness, is the balance wheel of civilization.

Rush around in a continuous brainstorm! The balance wheel of civilization!!

I ask you: what’s not to love about this down home, hard-as-nails pragmatism from a bazillionaire?

Signifying Nothing

We have passed through a period of fireworks of every description, and the making of a great many idealistic maps of progress. We did not get anywhere. It was a convention, not a march. Lovely things were said, but when we got home we found the furnace out.

Here he’s talking about radicals & reactionaries who want to either breakdown the capitalist system completely or freeze it in time, forever, to prevent any possible change whatsoever.

But if you ask me, this sounds a lot like any time we get together with our pals and talk about the amazing startups we’re going to build: Lovely things are said, but when we get home we find the furnace out.

Oooh, burn.

Or not burning, as the case may be.

Who Has Value?

The foundations of society are the men and means to grow things, to make things, and to carry things… Speculation in things already produced — that is not business. It is just more or less respectable graft.

Speculation? More or less respectable graft?

That doesn’t sound like the VC model at all. Not. at. all.

Shame on you for even thinking it.

Business: Like a Chicken

Profiteering is bad for business. The lack of necessity to hustle is bad for business. Business is never as healthy as when, like a chicken, it must do a certain amount of scratching for what it gets.

I want to favorite this so hard, scream it from the rooftops, tattoo it on my left ass cheek. (But not even my ass isn’t big enough for this paragraph. C’est la vie.)

This is one of the biggest reasons I — and, it seems, Ford — believe in self-funding through customer sales. Solve a problem, serve a need, get your just desserts.

Because:

The producer depends for his prosperity upon serving the people. He may get by for a while serving himself, but if he does, it will be purely accidental, and when the people wake up to the fact that they are not being served, the end of that producer is in sight.

And if that producer is divorced from having to please customers, insulated from having to create value and capture that value in the form of customer dollars — able to avoid selling entirely, in fact — you have a venture-backed startup.

Maybe I’m bull-whipping, dog-piling, and fireballing a dead horse here. But if you ask me, this is the heart of the matter.

Anything that gives you the ability to avoid the reality of serving your customers is bad for you and everyone else. If you succeed, then, it will be accidental.

Technofetishism

Rushing into manufacturing without being certain of the product is the unrecognized cause of many business failures. People seem to think that the big thing is the factory or the store or the financial backing or the management. The big thing is the product, and any hurry in getting into fabrication before designs are completed is just so much waste time.

OMG.

Can you believe this book was written nearly 100 years ago?

Henry Ford: Startup Oracle.

The Cutting Edge.

The principal part of a chisel is the cutting edge. If there is a single principle on which our business rests it is that. It makes no difference how finely made a chisel is or what splendid steel it has in it or how well it is forged—if it has no cutting edge it is not a chisel. It is just a piece of metal.

Business, like a chisel, has a distinct purpose.

Peter Drucker famously wrote that “The purpose of a business is to create and keep a customer.”

Henry Ford would say that “The purpose of a business is to serve.” He was a big believer in Service with a capital S — not customer service, but to serve the world, both customers and employees, by excellent products and an excellent working environment, fair wages, and an opportunity to better one’s self.

But if you read TechCrunch, HN, Business Insider, the Wall Street Journal, or the Economist — from anywhere on the low-to-stratospherically-quirked-highbrow spectrum — how often do you find this mentioned? The purpose?

Just this side of never.

It’s all about the handle, the splendid steel, the fine craftsmanship. Never the cutting edge.

Henry Ford: Best Bootstrapper of All Time.

Conclusion… and Next Week!

Now, Henry and I disagree on several points — namely the goal of constant price reduction — but that’s a topic for another Biz Book Friday.

Suffice to say, regarding the autobiography of this prescient business genius:

A++++ Would Read Again.

Bonus: you can get it for your Kindle or iBooks for free, because it’s out of copyright (that’s how old it is!). Download Henry Ford: My Life and Work now, and read the crap out of it.

Seeya next week!


11
Mar 12

Scary Things I’ve Done That Could Have Killed My Business (& Some I’m Gonna Do)

Today’s a Sunday. That means I spent >90 minutes on Campfire with my 30×500 students, answering questions, talking about biz and shootin’ the shit.

Today, I wanted to get my students’ opinions on some changes I’m making for the next 30×500. I’m always trying to increase the number of students who stick with it all the way through to shipping.

Here are some of the ideas I presented:

  • an application process
  • distributing 100% of the materials a month early to people who attend
  • major changes in the software I use to run the class (tossing out a lot of the functionality, turning the rest on its head)
  • a significantly higher price, which may require a payment plan

David Richards, a member of the current 30×500, weighed in on that last one:

Something in my gut says a payment plan might be a headache while dealing with student retention. First payment of $xxxx, sucking air after some Safari work, next payment’s due… naw, I’ll just bail.

I agreed with him. It’s certainly a possibility. There are parts of the class which require a lot of personal investment in time & energy to complete, and who knows?

But, I said,

…one thing I really worry about is NOT doing things I should do, out of fear.

The fact is, each one of these steps is scary to me.

I worry people might just “stop paying” on the payment plan

Even though the first Year of Hustle class had a payment plan, and nobody “just stopped paying,” I worry someone might.

I worry about raising the price

Even though I’ve successfully raised the price by over 300% since the first class (and worried about it every time).

I worry about sending students the 100% of the materials in advance

Even though last time, I gave away the “secret revelation” behind 30×500 (1, 2, 3), and three of the meatiest lessons (from deep inside the class 3 & 4, 5) — and it resulted in an even more productive, profitable class.

I know this one, particularly, sounds ridiculous. Why would I worry that more people will drop out or ask for refunds if I give them the material all at once, when my refund rate during class is already so low? People who have already passed the application process and already paid?

Well. Ever downloaded a bunch of ebooks or PDFs or slide decks, and because you had so many, you never dove into any of them? Yeah. I worry about that. And that a new student might read it all — and say “So, what?” Despite the fact that only one person out of nearly 300 students ever said anything like that. Yes, less than 0.4%. It’s still on my mind.

I really worried when I first offered the 100% money-back guarantee

It was a >$1,000 class. What if people take advantage of me? What if they took it to the end, took all the materials, got a lot out of it, and then dicked me over?

Every time I revise the sales page, and I leave that guarantee in there, I worry anew. Even though I’ve only ever given a handful of refunds per class.

It doesn’t matter.

What Does Worry Mean??

Worry isn’t always rational. Hell, most of the time it’s not. Worry is a sign you’re doing something you haven’t done before. Or it’s a sign you’re doing something you have done before, which worked just fine, and your subconscious is refusing to learn the lesson.

Or it’s a sign of absolutely nothing.

So yeah, I’m worried. About allllll kinds of things.

But whenever I feel worry, I’ve made it a habit to remind myself:

I should be much more worried that I’ll straightjacket myself with fear. That the real thing to fear is doing the same thing, forever.



NB: This blog post was inspired by Brooke Riggio, a 30×500 alum, who’s worried about his money-back guarantee:

I gave him that advice because when I was worried, other people gave it to me. And they were right. And I am right. But it is still scary and we still worry.


1
Mar 12

Letter to My Struggling Baby Business – Feb, 2009

Par Avion

The date: February 2009. Two months after the (unglorified) launch of Freckle Time Tracking, one month after the surprisingly not bad launch of the JavaScript Performance Rocks! beta. What with all that, the consulting, and the traveling, and the drama with our flakey partners in Freckle, and being newly married and in a foreign country where I didn’t speak the language, and and and… I was having a really, really tough time. So I sat right down and wrote myself a letter. And signed it “with love” the way you do. Wait, that’s a song. Anywayz…

Dear new business,

I know you feel like you’re having a rough time these past couple months. Things seem really swell, and you’re up up up, until suddenly a needle appears, and bursts your little bubble, and crash! Back down to earth again.

Or lower.

Because after the impact—smack!—you realize that while things were feeling so wonderfully amazing and fresh and new, that was probably because you were selectively forgetting about less happy-fun things that “have” to get done.

It’s like hitting the ground all over again. Smack! Smack! Ow!

I know that when this happens—and it’s happened several times—you feel guilty as well as deluded. You end up wondering if the happy stuff can only ever come out of denial.

New Business, I want to tell you something important: Change can be really hard.

I know you’ve experienced a couple of overnight life-changing epiphanies, which seemed effortless at the time, and were just totally awesome.

But that’s not usually how things work. And those lucky, beautiful, awesome breaks have made it unfairly difficult for all the ordinary, long-term slugging-it-out change that has to happen most of the time.

With ordinary, long-term, slugging-it-out change, sometimes there are “casualties.” Sometimes things don’t get done. Sometimes people don’t like you any more. That sucks, but not changing sucks more.

And I think that sometimes you forget that those beautiful overnight changes came from years of not changing at all. They were unacted-upon but desperately needed change, bottled up for years. The change champagne cork just finally exploded, and thank god for that.

Speaking of champagne, don’t forget to celebrate the victories you’ve already won… just because you find yourself looking around and what you see is a lot of stuff you’ve still got to do before you’re really free.

Think about it… you’re already ahead of schedule. You wanted to be in place by January 2010, and yet you’ll be in nearly full force by April 2009, instead.

That’s pretty awesome! And yet you are all angsty and morose that it’s not now, dammit.

I don’t want to say you SHOULD still be high on that, but it’s worth thinking about when you’re feeling in the dumps because not everything is done and perfect yet, and leftover bits of Old Business are still hanging about in in the corners, glaring at you and making you feel tremendously guilty.

I know you feel stressed out, and harried, and overcommitted, and totally overwhelmed right now and pissed at everyone.

But remember: you’re still in transition. You’re fucking up. You’re also kicking ass. At the same time. That is possible, and yes it’s awkward, but that’s where the value lies, doesn’t it? If it were too easy, that’d make you mopey too. I know it would—I know you.

Butterflies look great a couple days after they come out of their cocoon. They really look neat inside the cocoon, too. It’s the bit in the middle, with the squeezing, and the wrenching, and tearing, and wrinkled wings, all damp with cocoon goo, that we don’t tend to think about. It’s amazing and miraculous, but also tough and uncomfortable and really quite gross.

But you can’t have the before & after without the in-between.

As long as you can survive my redonkulous butterfly metaphors, you’ll be all right.

Love and admiration,

Me

February 25, 2009

Horrifying butterfly metaphors aside, I was right. Now, it’s 3 years and one week later. I quit consulting in January 2010 as planned, even though our product income wasn’t quite there yet. It was hard, again. I should have written another letter. But I made it through, and our business is going awesome. All our dreams are coming true.

I am so thankful to the Me of Yesteryear who, for once in my life, broke out of her cycle of short-termism, who for once didn’t give up, and stuck it out through all the hard shit. It was worth it.

What would you put in YOUR letter to yourself?


14
Nov 11

Success: The Boring Way! The Only Way

Boring Art - “I Will Not Make Any More Boring Art” by John Baldessari (probably a lie!)

One of the things I keep telling my 30×500 Product Launch Class students is this:

Success is boring.

A Peek into the Success Sausage Factory

Imagine a movie made from my daily biz life over a period few weeks… I guarantee you, the time lapse would bore you to tears. Even with popcorn.

All you’d see is me doing what works. Over and over. Because that’s what it takes to create a success:

Design a live class.

Email your list. Sell seats.

Write a blog post. Sell seats.

Give the class.

Revise the class.

Email your list. Sell seats.

Write a blog post. Sell seats.

And give the class again.

And give the class again.

Take the class and turn it into a self-serve product.

Get people to sign up for the announce list.

Get people to sign up for the announce list.

Get people to sign up for the announce list.

Email your list. Make sales.

Write a blog post. Make sales.

Email your list. Make sales.

Write a blog post. Make sales.

Ship it.

Email them.

Email them.

Rewrite the sales page.

Tweet about it.

Email them.

Email them.

Ask them how they like it.

Make it better.

Email them.

Tweet about it.

This is my life, folks. For serious.

Yawn.

How Do You Get to Carnegie Hall?

Excuse me, how do you get to Carnegie Hall? Practice, practice, practice.

carnegiehall.png

Hey! It’s Carnegie Hall! Somebody musta practiced! cc t_a_i_s

So. This boringness?

It’s the fact of life for anyone who strives for awesome — the concert pianist, the public speaker, the teacher, the basketball player, the dancer, the painter, the writer, the chemist, the doctor.

Boring is not boring.

It’s system, it’s practice — it’s a game, always trying to out-do yourself, and money is one of the ways you get to keep score. (A particularly fun way.)

For every improvement you make while pracitcing, you get to enjoy the thrill of signups, sales, and emails from happy customers.

Boredom’s the Way to Go

Contrast this to the what the Legends of the Startup Founder Heroes tell us: excitement, thrills, near-death misses… straining, and huffing, and puffing, and not sleeping. Big dreams and bigger dramas. Elation and depression.

Waiting & dreaming of the big payoff.

And almost always, eventually, the failure.

No. Thank. You. I’ll take boredom any day.


10
Nov 11

You Are So Damn Lucky – Stop Blaming Your Family, Your Friends, & Your Society & Get Off Your Ass

I’ve traveled the world. Well, quite a few parts of it, anyway. Enough to see a pattern, certainly. First of all, everybody, everywhere, is convinced that their countrymen are the worst drivers in the world. And…

Everybody, everywhere, is convinced that their country/city/family is the worst environment for creating a great business.

In Austria, people tell me how hard it is to create a business, and how terrible the taxes are. (Two things that I can tell you from first hand experience are, in fact, not so bad at all.)

In London, I’ve heard about how nobody will believe in you — and even investors will refuse to acknowledge your brilliance by giving you their money. I once read an essay that claimed that “only 1 in 10 business people ‘get it’” in London. Only.

In New Zealand, I’ve been told that folks daren’t do great things because of “Tall Poppy Syndrome” — that is to say, the tall poppy gets mowed. They say people in NZ resent and cut down anyone who strives to go above & beyond. You know, “Who do they think they are?”

And Tall Poppy Syndrome, of course, sounds remarkably like the “the nail that sticks up gets hammered down” — a Japanese proverb.

The Austrians believed that London and the US was better; the Londoners, New Zealanders thought the US was better.

Of course, the US is my home turf. I’ve lived most of my life in the US, and have more connections there than anywhere else. I’ve got enough material about the US for hundreds of essays:

People complaining about the system. About their jobs. About their families’ lack of support.

And, perhaps most brutally of all, complaining about the absolute hubris and gall of their compatriots.

How dare they.

Mike Lee & The Clattering Claws

You know that famous, experienced iApp developer guy who announced he would start charging $1,000 an hour?

Well the “community” full of alleged “entrepreneurs” — mostly American, it seems — couldn’t have piled on faster with:

  • Who does he think he is?
  • Ha! That’ll never happen in a month of Sundays!
  • HA HA

Yadda yadda yadda. Honkhonksnore.

Gee, This Sounds Familiar…

Could it be Tall Poppy at work? Or perhaps Stick-uppy Nail?

Call it what you like. I call it the Crab Bucket (after Terry Pratchett).

But… It’s Americans! The Land of Milk and Honey and Outsized Optimism and Supportive Parents and Embracing Failure and Money Money MONEY!

And yet…

An Intimate, Open Source Example

You probably know about OSCON, the mega-conf that O’Reilly Media puts on every year, all about Open Source. What you probably don’t know is that I was on the committee for several years running.

One year, I argued strongly against a certain talk proposal because it was badly written, without value for the audience… and I had bought the speaker’s book and found it to be positively dreadful.

My overall feeling was: Not On My Watch.

Later, when I was walking the halls during the conference, I happened upon a conversation. I happened to overhear that would-be speaker talking to a friend…

Railing about how her talk was “barred” because she was a woman.

It took all the self-control I had to keep my mouth shut.

Stop Lying To Yourself… And Everyone Else

That right there is the same principle at work, dear reader. The principle of the Big, Sexy Excuse.

It’s not my fault, it’s Society.

It’s not my fault, it’s my family.

It’s not my fault, it’s my vagina — and what other people think about it.

All lies.

All Big, Sexy Excuses that’ll get you a little righteous anger, a little clucking sympathy, and a fat lotta nothing done.

Successful People Struggle. End of Story.

Everywhere you find folks who buck the status quo, you find them drinking and moaning and blogging about why their family, their friends, and their society fails to support them. Why there aren’t more people like them. Why people don’t understand them.

Why they feel so damn alone.

This is a universal experience. It can’t be escaped.

And yet, there are those who kick ass anyway.

Those who don’t cuddle their excuses close like their favorite blankie. Who don’t hang their whining out in public like a white flag. Who don’t wait for some magical time when the stars align, for everything to be easy before they get to work.

Who show up, who do awesome shit, and who do it all bravely against the grain — because true success is always against the grain.

Because they know that their excuses don’t matter, only their efforts do. And they know that nobody will ever invite them to do great work. They have to invite themselves.

Choose to be one of them.


13
Aug 11

When You Do What You Love & Are Still Miserable

You are not alone.

Right now I’m living in one of the most beautiful cities in the world, and the weather is beautiful, and I look outside (over our attractive park) and feel nothing about it but, “Meh.”

I know I should try to enjoy it before we leave — for 2.5 months — but I can’t. I can’t bring myself to leave the sofa, much less the apartment.

I’m looking at the brand spanking new version of Charm that we deployed to our beta customers yesterday, and I want to love it. I want to feel proud of all the work and suffering that’s paid off.

But I don’t. I don’t love it, and I don’t feel proud.

Today, all I can see is what’s wrong with it. Bugs. Awkwardness. Missing features. Frustration. I want to punch it.

I’m scared that we’ll miss our August launch. (There’s no reason to worry about that, but I won’t let that stop me.) I’m deeply anxious that after all this, after all the work — we’ve been building it for a year now — and the reworking, and the research, that I’ll turn out to be wrong.

That people won’t want it.

That my “revolutionary” interface designs, that I struggled with for months, are so much gilding on a self-indulgent pile of crap.

And that very thought, of course, leads straight to another nauseating tug on my heart: that Charm won’t cover its own monthly costs any time soon. That we won’t make back our investment. That it may turn out to be nothing but a giant sink of time and money, and we’ll struggle, and I’ll be incredibly embarrassed because hey, here I go trying to teach other people how to duplicate my success. What would I do with such an obvious flop?

That alone be enough to ruin anyone’s day, but I never do anything by half-measures. There’s something else.

A sickly, whispering little doubt that maybe all this growth is a mistake.

Bigger, more involved projects, renting an office, hiring a team… today, it’s making me feel trapped. With a team, with more important products, comes responsibility. I can’t just skip out whenever I want or work whatever hours I want. Straightjacketed. Stuck. Doomed.

Maybe, that nasty little doubt whispers, we have doomed ourselves to a workaday existence by our own hand.

But wait, there’s more.

We had a bug in our (human) email workflow last week. Some people’s emails slipped thru the cracks. Then they thought we were ignoring them and got angry. On a good day, I can handle this with no problem, soothing bruised egos with expert skill.

This is not a good day.

I’m antsy with guilt and shame. It makes my fingers curl. I want to hide under a rock, or maybe a pillow, and not come out.

And the money situation. We did too much too fast. I have gotten too used to having a large padding that hand-waving “of course we can” has become my modus operandi.

Now I am paying the price in muscle twitches.

And fat checks I have to write to certain government agencies.

I know, intellectually, that our financials are not dire. I have a plan for fixing it — and, because we have assets in the form of existing products, I can fix it. But not by tomorrow or next week.

So I’ve had to write one email after another, asking the freelancers we work with to hold off on doing new work. Juggling. Canceling stuff we were gonna do. And today I had to nix plans to hire a certain consultant. He would have started today.

Not only am I bummed out by the fact that we have to grind these projects to a halt, but oh, the guilt.

So yeah. Today? Not so great.

I suppose I “know” that it will pass. It has every other time. But it sure as hell doesn’t feel like it. It feels like the weight will never lift and that this, the way I’m seeing things now, is truth.

There’s nothing useful in this post. No action steps for you to take. No suggestions on how you, too, can avoid feeling like this. This is just the way it is sometimes. As far as I can tell, it happens no matter how awesome my circumstances may be, no matter how much I love my work. Like the weather. Maybe it doesn’t “mean” anything, but that’s cold comfort when it sure as hell feels like it.

But if any of this sounds familiar, at least you know you’re not alone.