Lessons from $0 to 7 figure revenue -- 13 principles to level up as an entrepreneur

[daprophecy]

@fruitsnack31 Hey! Great question. Yes, my family is well-to-do. If I had leveraged that by using their money or connections, I think it would have been insanely huge advantage. I have some friends who have done that.

I didn't use family investments or their connections (for a couple reasons). I started the business with my brother w/ $10k and we've never taken any outside money (though we've had multiple offers).

There are 2 ways my parents did help us earlier on: 1. For the first few years of the business, I had another full time job. But after we went full time on Paragon, let us move back in, which lowered our cost of living a lot. This gave us more runway to make mistakes (but the doubled edged sword is that it let us run on poor business fundamentals for a long time -- if your business can't pay you & survive, you need to work on your model). 2. They let us store product there & did a lot of picking/packing of orders.

I think that both of these things could be given by a merely supportive family rather than a family that is both wealthy and supportive. I fully acknowledge that I am not self made. Still, I encourage anyone reading interested in entrepreneurship not to use that as a reason to delay pursuing their own dreams, even if they don't have a supportive family. I have other entrepreneur friends who didn't take any help and are doing much better than me.

 

[question]

@daprophecy Congratulations on your success! While it sure is possible to be successful without a wealthy family, it sure does make it easier to take on risks. It's great that you acknowledge your privilege.

 

[dannyboy1958]

@fruitsnack31 How to be successful in business 101:

Step 1) have a family that is wealthy and supports you’re endeavors unceasingly so you can fail and it doesn’t matter

End

 

[danielps]

@dannyboy1958 How to give up before even trying 101:

Step 1) Have a defeatist attitude.

 

[dannyboy1958]

@danielps Was being facetious. I came from rags, run two successful businesses now. I can’t count how many successful businesses I know who’s founders came from wealth. I know a fraction of owners who came from nothing. Part of this is generational teaching at play though.

https://fortune.com/2015/07/17/entrepreneurs-family-money/amp/

 

[nthaison884]

@dannyboy1958 There's a lot more truth to that than I ever realized, that I realized after starting and running a successful business.Even if you AREN'T using your family's investment money, connections, etc. The simple fact that you don't need to have a 'backstop' for your life and you can play around with ideas without any real financial concerns is a HUGE deal.

I worked 2 full-time jobs for most of my life because I needed the money. There was no way I could quit them to focus on exploration of a new idea or business.

Kudos to successful people either way, but yea having a solid financial backing definitely makes it a lot easier. (cue quote of money doesn't buy happiness, but it definitely makes it easier).

edit and this OP's scenario is even more amusing and echoes that point. 'working out of the garage'. The garage is a 6 car garage at a house that's on the river.... Tough times indeed.

 

[erpackyas]

@nthaison884

I worked 2 full-time jobs for most of my life because I needed the money. There was no way I could quit them to focus on exploration of a new idea or business.

Tell us the story of how you escaped this then! Inspire somebody else who might be in a similar situation.

 

[nthaison884]

@erpackyas Well first and foremost. I have met very, very, VERY few people that are legitimately working 2+ full-time jobs. so many people claim to have the hustle mindset, but they just straight-out don't.

That said, if you ARE, the largest piece of advice I have that will likely open up doors for you is to find a place or people that appreciate you. I did a lot of job hopping in my earlier years. If you find a place or people that appreciate you, you put your all in...and they ACTUALLY appreciate you (not abuse you, appreciate you), doors can and will open as time goes on (maybe they start their new gig and they need a person, maybe a new venture starts and they remember your name, who knows).

the second one is being willing to take the chance when that either happens, or you see that moment. It can be scary but if you're pushing yourself and positioned yourself correctly, that moment will come and you need to seize it.

That said if someone is stumbling across this that is actually putting in the hours and needs the break, reach out. I can help. but don't blow smoke. Fake hussle and street cred isn't real hustle.

 

[rhondachacon]

@danielps facts! The best attitude to have is the typical shonen anime character who won't give up on his goal lol, that's how i see myself.

 

[amadeus71]

@dannyboy1958 But mostly the "supports your endeavors unceasingly" part

 

[ladydee68]

@dannyboy1958 Sounds like you need to attribute your lack of success to something that’s out of your control in order to make you feel better. This is a bad but common mentality to have brother

 

[dannyboy1958]

@ladydee68 I own and founded two very successful businesses. One of which my partner primarily runs now so I can focus on the other. The first in 2010 the other in 2017. Both are in multiple 7 figures.

My experience knowing other owners for this long, is that a small fraction come from nothing. The majority come from good families who often supported them, invested in them and were a backdrop for them.

This is not a new phenomenon: https://fortune.com/2015/07/17/entrepreneurs-family-money/amp/

 

[mattgshift600]

@dannyboy1958 I didn't know prerequisites for a successful entrepreneur was to be dirt poor. Weird flex.

What's next? 'Hey man you are successful because your parents had a successful marriage, you didn't have to experience parents divorce. "

Way to pull others down because they come from supportive families. Not disagreeing with you because it does play a big role but come man... Do better.

 

[dannyboy1958]

@mattgshift600 Not a flex but the fact is still a fact. Kids from wealthy families who get into business that succeed often didn’t have to grind as hard. You don’t have to like it, but it’s true.

Oh, and people who grow up in a stable household who also get to see a successful relationship modeled also have a lower divorce rate… Soo uhh, maybe pick a different example? 60% higher divorce rate amongst kids who grow up in a split household.

 

[danielps]

@dannyboy1958 How to give up before even trying 101:

Step 1) Have a defeatist attitude.

 

[thestarside]

@daprophecy

We're bootstrapped, 100% remote and have scaled from $0 to 7 figure revenue

1. How many people did you have before you hired your first employee?
2. When did you hire your first employee?
3. What did they do?
4. How did you find them?

 

[daprophecy]

@thestarside

1. I’m sorry I don’t quite understand this question
2. First 1099 was early on, maybe a couple years in? The business started as a side bustle and stayed that way for quite a while. First w2 wasn’t until much later.
3. Customer support
4. I think Upwork before it was called Upwork.

 

[thestarside]

@daprophecy

How many people did you have before you hired your first employee?
I’m sorry I don’t quite understand this question

I mean before your first 1099, was it just you for a couple years, or your partner and you or 4 of you as a joint venture etc?

 

[daprophecy]

@thestarside Ahh gotcha. I cofounded the company with my brother, so he was working on it too in the early days. Honestly, it sounds cliche but we ran it out of my parents garage for years. They helped us pick and pack orders. Bless them lol.

 

[sam81]

@daprophecy Thanks for sharing. I realised late in the journey on building systems and guidelines. Now with some basic guidelines along with some automation , I have been able to delegate and free a good chunk of my time