Ask HN: How to know when to give up on your startup?

#1

Post by throwaway16185 » Sat, Sep 03, 2011, 2:48 AM UTC

Hey guys, throwaway here for obvious reasons.

I have been bootstrapping a media sharing startup while working full-time for the past 1.5 years. Recently in June, it was getting so what I believe to be a lot traffic and growing. Growing 30%/mo since January, we hit a high of 250,000 uniques/mo in July.

My co-founder and I quit our jobs to work on it full time, and to grow it out, but now after the summer the site traffic has declined. It seems I quit my job when it "peaked", maybe this site was a passing fad? This month I only got 167,000 uniques -- a 35% drop.

So here I am. I'm not sure what to do. Should I shelf it, or take this as a sign and just give up? I told myself I'd try one more month to turn the traffic again towards a positive track, but I'm running out of savings and running out of ideas on how to turn the traffic.

I guess what I'm looking for is advice from those in my situation before -- did you shelf your project, or just keep working on it? I want to keep working on it, but I also want to make sure my reality is in check and that I'm not deluded by my own hope for it to grow bigger. How do you know when to quit?

Re: Ask HN: How to know when to give up on your startup?

#2

Post by hugh3 » Sat, Sep 03, 2011, 2:57 AM UTC

Why are you measuring your level of success in uniques per month rather than dollars?

How many dollars are you pulling in? Does it cover your costs? Do you think that more hits per month would be enough to make it cover your costs, or do you need to rethink how you're bringing the cash in?

edit: Don't worry too much about a drop from July to August though! I know it's disappointing, but you can't start thinking that a single setback is a trend.

Re: Ask HN: How to know when to give up on your startup?

#3

Post by throwaway16185 » Sat, Sep 03, 2011, 3:23 AM UTC

hugh3 wrote: post #2

Why are you measuring your level of success in uniques per month rather than dollars? How many dollars are you pulling in? Does it cover your costs? Do you think that more hits per month would be enough to make it cover your costs, or do you need to rethink how you're bringing the cash in? edit: Don't worry too much about a drop from July to August though! I know it's disappointing, but you can't start thinking that…

Mostly because I have no clear business model. Users to me is potential that I can possible later convert into a round or selling.

It pays for itself, but doesn't make me any money. =/

Re: Ask HN: How to know when to give up on your startup?

#4

Post by trevelyan » Sat, Sep 03, 2011, 4:44 AM UTC

A lot of online businesses are somewhat seasonal.

If students use your product heavily, this is normal.

Re: Ask HN: How to know when to give up on your startup?

#5

Post by fezzl » Sat, Sep 03, 2011, 5:01 AM UTC

throwaway16185 wrote: post #3

hugh3 wrote: post #2

Why are you measuring your level of success in uniques per month rather than dollars? How many dollars are you pulling in? Does it cover your costs? Do you think that more hits per month would be enough to make it cover your costs, or do you need to rethink how you're bringing the cash in? edit: Don't worry too much about a drop from July to August though! I know it's disappointing, but you can't start thinking that…

Mostly because I have no clear business model. Users to me is potential that I can possible later convert into a round or selling. It pays for itself, but doesn't make me any money. =/

Then your problem is that you don't have a business model (much less a validated one), not that your traffic is falling. Even if your traffic is growing as before, you need to be similarly worried.

Get your business model figured out as quickly as possible, and cut your expenses like hell in the mean time. Get cash coming in from other sources at the moment (does not need to be from your startup). Hell, slap on some AdSense on your 200,000 uniques/mth site.

Honestly, quitting and going back to a job because of this little "setback" that still nonetheless leaves you at 167,000 uniques per month is pretty cowardly.

Re: Ask HN: How to know when to give up on your startup?

#6

Post by g-garron » Sat, Sep 03, 2011, 5:01 AM UTC

Maybe you should try to get a job again, or part time job.

That way you can generate some income for you, and still have some time to give your startup another chance.

Just my two cents.

Re: Ask HN: How to know when to give up on your startup?

#7

Post by susanhi » Sat, Sep 03, 2011, 5:21 AM UTC

Apply for YC's next session.

Re: Ask HN: How to know when to give up on your startup?

#8

Post by mapster » Sat, Sep 03, 2011, 5:34 AM UTC

Are you sure you did enough testing? If you had a nibble, test it until you get more interest, and iterate.

Re: Ask HN: How to know when to give up on your startup?

#9

Post by rhizome » Sat, Sep 03, 2011, 9:13 AM UTC

throwaway16185 wrote: post #3

hugh3 wrote: post #2

Why are you measuring your level of success in uniques per month rather than dollars? How many dollars are you pulling in? Does it cover your costs? Do you think that more hits per month would be enough to make it cover your costs, or do you need to rethink how you're bringing the cash in? edit: Don't worry too much about a drop from July to August though! I know it's disappointing, but you can't start thinking that…

Mostly because I have no clear business model. Users to me is potential that I can possible later convert into a round or selling. It pays for itself, but doesn't make me any money. =/

I don't know what you mean by "media sharing," but you're going to have to figure out where money can come from. It doesn't have to be "a business model," just something to sell. Eyeballs, accounts...whatever.

Re: Ask HN: How to know when to give up on your startup?

#10

Post by rorrr » Sat, Sep 03, 2011, 9:27 AM UTC

throwaway16185 wrote: post #3

hugh3 wrote: post #2

Why are you measuring your level of success in uniques per month rather than dollars? How many dollars are you pulling in? Does it cover your costs? Do you think that more hits per month would be enough to make it cover your costs, or do you need to rethink how you're bringing the cash in? edit: Don't worry too much about a drop from July to August though! I know it's disappointing, but you can't start thinking that…

Mostly because I have no clear business model. Users to me is potential that I can possible later convert into a round or selling. It pays for itself, but doesn't make me any money. =/

Then you don't have a startup. All you have is some website.

Figure out how to make money from it, or don't waste your time. If it breaks even, you can just keep it running, but from my experience, sites require maintenance, and, depending on how much you make per hour, it can be pretty expensive to support something that doesn't pay back.