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Ask HN: How many of you built a profitable startup while having a day job?

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Re: Ask HN: How many of you built a profitable startup while having a day job?

#181
post #135

I built an online news service in 2002/2003 with zero coding knowledge, $100, and a bootleg version of Adobe Illustrator. I put every spare moment I had into it, skipping lunches and dinners and sleep (though I never skipped church) all for the sake of keeping it lean before keeping it lean was cool. 5 years later I sold it for a paltry sum, mainly because I didn't add enough people fast enough.

so you never skipped church yet you had no problem stealing software. interesting.

Oh common now, we've all had cracked versions of Photoshop at one time. Had we not pirated it we never would have learned how to use it during the 30 day trial and later become loyal customers.

Re: Ask HN: How many of you built a profitable startup while having a day job?

#182
post #143

Earlier quoted context omitted.

>you're doing is not startuppy enough to count I have always had a problem with that. A start-up is a start-up if you decide it's a start-up and want to transform it into a viable business. There is no magic line that you have to cross to transform your project into a start-up. I always advice people to call their projects a start-up from the beginning.

> I always advice people to call their projects a start-up from the beginning Could you expand on why you advice this, meaning, what is the advantage of it? According to your post simple message above it could be the other way around (always call your startup a project).

It boosts morale and makes you more excited to work on your project.

Re: Ask HN: How many of you built a profitable startup while having a day job?

#183
post #151

Earlier quoted context omitted.

Cool. I've been having good luck with on and off. The hard part is getting back into an early sleep routine when I have the odd late night. Anything you do to help reset the routine?

I just try not to have odd nights... so far, the worst I did was going to bed at 0:30 - at that time after working 15 hours I was so tired, that I wasn't productive at all anyway, so I decided to call it a day

I find I often have a late(r) Friday due to some volunteering.

Nice to see I'm not the only one enjoying the mornings, even though I've historically been a night owl.

Re: Ask HN: How many of you built a profitable startup while having a day job?

#184
post #183

Earlier quoted context omitted.

I just try not to have odd nights... so far, the worst I did was going to bed at 0:30 - at that time after working 15 hours I was so tired, that I wasn't productive at all anyway, so I decided to call it a day

I find I often have a late(r) Friday due to some volunteering. Nice to see I'm not the only one enjoying the mornings, even though I've historically been a night owl.

Funny thing is, I'm a night owl myself. But I was tired of using all my more productive time for my employer, and all my tired nights for myself ;)

Re: Ask HN: How many of you built a profitable startup while having a day job?

#185
post #59

I built review site ten years ago and sold it. It was profitable within 6 months off organic traffic and lead gen. Approximate revenue by year: $10k, 40k, 70k, 100k, 150k, 250k, 500k, 750k, 1.5M, 2.5M. Built entirely while working for another startup (unrelated), first 3 years I was in graduate school, year 4 I was a product manager for another startup. Year 5 I finally took the leap to run it full-time. I was the so…

I'm almost in the same boat right now. I built a niche Adsense-supported social networking site around mid-2009 and my approximate revenue by year is something like: $100 (Y1), $13.5k (Y2), $90k (this year). Assuming no growth next year, it should be around $130k. I hope you don't mind me asking these questions since I'm in the thick of it myself at the moment. I'm new here so I hope I'm not breaking etiquette. At wh…

We hired someone to handle customer service in the 2nd year. We also had some manual processes that they handled for building out the site. Since we'd been doing those things ourselves for a while, we optimized the processes a lot and had a bunch of templates, so training someone else was pretty easy.

W/r to hiring vs. getting a co-founder... I strongly prefer hiring if at all possible. The rule of thumb I go by is that you should only use equity to get skills you can't rent/buy (e.g. a big network or personal brand).

The skills we hired for, in order, where:

Sales/account management as needed (wife) Accounting/bookeeping, part-time (wife) Customer service, part-time (stay at home mom; part-time) Sys admin, very part-time (did as much as possible myself) Project-specific Java developers, part-time/moonlighters All-around Java developer, first FTE (did everything including some light sys admin) Additional Java developers Additional customer service Product manager

Most of our employees we found via Craigslist, or via our personal network. Later we used a recruiter to find Java developers. But hiring for developers was always a big problem.

I think part of the reason recruiting is a unique challenge is that you'll (probably) never be the hot shiny new startup with pedigreed VC's vouching for you. It's lame, but employees rely on those signals to separate dead-end startups from something "real". Of course, the more likely scenario is that VC-backed company without revenue is far more at risk for being an elaborately doomed ponzi scheme than your profitable micro ISV. Whatever... You have to try harder with everything else you can control-- comp, office environment, developer-friendly culture, technology stack, profit-sharing if you're so inclined, etc.

Good luck. You'll be glad you took this route down the line.

Re: Ask HN: How many of you built a profitable startup while having a day job?

#186
post #173

Earlier quoted context omitted.

I just released http://www.examcommunity.com about two weeks ago... its a ghost town now... hopefully that will change.. How long did it take for you guys to get some traction?

I registered on your site and took it for a spin - very well done. We initially geared our site towards teachers, but later learned that wasn't the market that was willing to pay for our services. Maybe your experience will be different. It is a slow process. About 1-2% of our customers convert to paying accounts. When we started limiting what was free it seems people stepped up to the bat and subscribed to a paying…

thanks for the thumbs up... as time goes on will experiment with the price.

Re: Ask HN: How many of you built a profitable startup while having a day job?

#187
post #185

Earlier quoted context omitted.

I'm almost in the same boat right now. I built a niche Adsense-supported social networking site around mid-2009 and my approximate revenue by year is something like: $100 (Y1), $13.5k (Y2), $90k (this year). Assuming no growth next year, it should be around $130k. I hope you don't mind me asking these questions since I'm in the thick of it myself at the moment. I'm new here so I hope I'm not breaking etiquette. At wh…

We hired someone to handle customer service in the 2nd year. We also had some manual processes that they handled for building out the site. Since we'd been doing those things ourselves for a while, we optimized the processes a lot and had a bunch of templates, so training someone else was pretty easy. W/r to hiring vs. getting a co-founder... I strongly prefer hiring if at all possible. The rule of thumb I go by is t…

I've started to find that I'm reaching the limits of my time constraints what with holding down a full time corporate job. I've been trying to expand my network to get in touch with good developers that I can pay on a part-time basis for now since I can't afford anyone full-time. Even harder to find a decent part-time sys/db admin here in NJ! Thanks very much for the insight.

Re: Ask HN: How many of you built a profitable startup while having a day job?

#188
post #185

Earlier quoted context omitted.

We hired someone to handle customer service in the 2nd year. We also had some manual processes that they handled for building out the site. Since we'd been doing those things ourselves for a while, we optimized the processes a lot and had a bunch of templates, so training someone else was pretty easy. W/r to hiring vs. getting a co-founder... I strongly prefer hiring if at all possible. The rule of thumb I go by is t…

I've started to find that I'm reaching the limits of my time constraints what with holding down a full time corporate job. I've been trying to expand my network to get in touch with good developers that I can pay on a part-time basis for now since I can't afford anyone full-time. Even harder to find a decent part-time sys/db admin here in NJ! Thanks very much for the insight.

No problem. I should have also mentioned that we didn't add our first FTE until revenue was about 3x my corp job, so close to $350 at the time. My theory was that even if revenue dropped by half overnight, it would be possible to keep our FTE employed and scrape by long enough on the remainder to either wait it out or decide to fold (and that's with a year's worth of cash on hand). But I'm super risk averse, and others probably could handle less buffer.

Re: Ask HN: How many of you built a profitable startup while having a day job?

#189

Earlier quoted context omitted.

You have to cut that commute. It's not possible losing 1.5 hours a day. My commute is 100 foot walk, I still strugle with not having enough time. Sell the house and rent closer to the office. If its the midpoint between two jobs, either you or your wife needs find a new job to shorten the distance between them. If it is because of the school districts for your kids, you are going to have to decide your priorities. Bu…

Alternatively, take advantage of your commute. I switched from driving to public transit and I've found the time can be incredibly productive, as its in between work time and at home family time, which makes it much easier to concentrate on what I need to do.

Many folks can't make that switch (from driving to public transit) because there isn't reliable and/or suitable public transit for that route -- but this doesn't change the point.

Look for housing that is either very close to where you work (remove the commute) OR that's well-placed for a simple and comfortable commute on public transit (try it out a few times, at the times you'd be using it!) where you can also get some side-project work done.

Re: Ask HN: How many of you built a profitable startup while having a day job?

#190
post #143

I have two profitable SaaS products that were built while I was theoretically working full time on something else. I was a bit fortunate that my "something else" was Consulting, which you can ramp down by exactly as many hours per week as you'd like to devote to your side project. The thing is, if you use the term "Startup" here to describe anything other than a zero-profit 80hr/week scramble for VC funding and event…

>you're doing is not startuppy enough to count I have always had a problem with that. A start-up is a start-up if you decide it's a start-up and want to transform it into a viable business. There is no magic line that you have to cross to transform your project into a start-up. I always advice people to call their projects a start-up from the beginning.

I prefer not calling projects startups, Since, I try many projects, So, calling something startup, after "rails new project_name" sounds like a disgrace to a startup to me.

(ofcourse, opinions differs)

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