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Bootstrapping a side project into a profitable seven-figure business

https://projectionlab.com/blog/we-reached-1m-arr-with-zero-funding
218•jonkuipers•1d ago

Comments

fuzzfactor•1d ago
>I’m still processing that this is real.

>that only counts recurring revenue.

>monthly revenue has consistently been 20 to 50 percent higher.

That's the way to do it.

Where you virtually have to go back and figure how much earlier you had actually reached a major milestone.

rvz•1d ago
> Bootstrapping a side project into a profitable seven-figure business in four years.

Good. But I think this is the most important piece of advice that one should follow:

> Actually show up every day.

It is the easiest thing anyone can do, however, it is the hardest for anyone to do every. single. day. nonstop.

johncole•4h ago
Wow congratulations!
ipaddr•4h ago
The validation piece I don't understand. From first sale to first dip to each peak and fall when was the validation reached? First sale, 1k revenue?

You can find 5 users who will pay but that doesn't validate a million a month.

What does product validation mean here.

pan69•4h ago
Maybe validation isn't one big moment, but maybe validation could be many small moments. So, those first 5 users: small validation. First 1K MRR: small validation. Etc. I think the point of the article is to be persistent and if you're getting small validations along the way, then those are indicators to keep going. At least, that's my take.
scubakid•4h ago
I think it can vary from person to person depending on your goals. For me, an important signal was that complete strangers were willing to pay. That first Show HN post made all the difference. Without that, this could have ended up in my side project graveyard with 100 other projects.
xyzzy9563•3h ago
I only have a product that makes $6k per month, but from my point of view, the validation is how many paying users sign up per day. Even one per day can add up. Hope this helps.
malpani12•4h ago
Congratulations!!
joak•4h ago
Survivor bias

Failures don't get on HN front page

Hey, btw congrats :-)

tomhow•3h ago
People do post their failure stories, or "post mortems", on HN and elsewhere. We should be able to make space for both as both offer valuable lessons.
hermitcrab•3h ago
Not true. This post made the front page (in the distant past):

https://successfulsoftware.net/2010/05/27/learning-lessons-f...

owebmaster•2h ago
failure posts are way less interesting than the authors think they are.
cyral•2h ago
https://news.ycombinator.com/item?id=37903489
rorylaitila•4h ago
It's an impressive accomplishment. I've always struggled to get through the valley of despair in a new project. I've decided that I can only build and sell things that I regularly use. Otherwise the signal is just too weak, and I eventually get burned out. But if I'm always a user of one, then at least it's validated for me.
scubakid•3h ago
Caring is kind of a superpower. And not just in terms of signal, but also the quality of work. I don't think this would have gone anywhere if I hadn't cared deeply about solving the problem in an elegant way.

Earlier in my career, I worked on some things as a corporate engineer that were hard to care about, and there's just no comparison.

fuzzfactor•1h ago
>The willingness to doggedly show up every single day can take you to some really suprising and amazing places.

>Caring is kind of a superpower.

>the quality of work.

>I was thrilled to spend my free time treating those early customers like royalty

Well, the secret's out, thanks for that, now anybody can do it ;)

davidw•4h ago
Congratulations!

> Back in 2021, I was inspired by the financial independence movement and wanted a better way to plan my own life. I couldn’t find the right tool, so I started building.

That sounds a bit like selling shovels to the miners. Which is not a, uh, dig at the project, just an observation.

suriya-ganesh•3h ago
Everything can be modeled as selling shovels to the miners.

We're all building tools for other people. As long the users like a product, I think it's moot to call it shovel selling.

davidw•2h ago
I think it depends on what the people are hoping to accomplish with the shovels and how realistic it is.

In this case it seems legit.

mdorazio•4h ago
Congratulations! But I’m disappointed with no mention of profit level in this post or another one linked. My last business I scaled to 500K ARR in less than two years, with $20K in total annual profit including the $0 my cofounder and I paid ourselves for many hours of work. I shut it down a year later and strongly regret the amount of work I put into it.

There’s an ARR metric trap in the founder community where people focus on revenue rather than on reaching a level of take-home income comparable to what they could make at a normal job. The former is a lot easier than the latter (especially in the US for people who can take home $250K fairly easily working in tech) - as the saying goes, you can make infinite revenue by selling dollars for 99 cents.

scubakid•4h ago
Profit margin started out around 90% in the early years, but is looking more like 65% this year now that we're making a concerted effort to reinvest into growth, building a team, etc.
FredPret•3h ago
If ARR grows enough, there should be plenty of room in there to pay the founders.

For extreme examples of ARR growth at 0% profit paying off, look at Uber, Amazon, and ServiceNow. I know these are very much outliers. All three had rapid revenue growth but profits at (or far below) zero. But for all three, the founders are sitting pretty today.

https://valustox.com/NOW

https://valustox.com/UBER

https://valustox.com/AMZN

hermitcrab•3h ago
I share your frustration with the endless focus on revenue, rather than profit (looking at you, indiehackers.com). I suspect in many cases it is because they are embarassed to disclose their profit.

But congrats to the OP. It is impressive growth for a bootstrapped business.

bruce511•3h ago
It's so, so , so hard to walk the line between persistence (which leads to glory) and stubbornness (which leads to more time following already wasted time.)

Congratulations for walking this line correctly.

I agree that some sort of market validation is necessary to at least pretend you are on the former not the latter. Those early usage spikes are helpful reminders that there is a business here somewhere.

I'll also make a note that you spent time on marketing from the early days. Writing blog posts, promoting said posts, having a Discord server, committing to answer emails, all of this is marketing and its likely lead to success more than the code.

I notice whenever there was a dip in revenue, marketing (in the form of more blog posts) was the response. I suspect that was intentional, and definitely a better approach than "let me go away and silently code more features."

So there are valuable lessons to others here. Congratulations not just on the current success but also on sharing the path that leads to success. Ultimately you can show the way, but you can't make people learn from it.

Oh, and I like the bootstrapping approach. I did the same, and I'm not sorry. It's longer and harder but also skips an enormous amount of extra work.

scubakid•3h ago
Thanks. For a while there, it wasn't clear to me which side of the line I was walking.

Something that stuck with me from Poor Charlie’s Almanack is that low expectations are a cornerstone of a happy life. I built this for myself first, so when people actually signed up and paid, it was incredibly motivating. I was thrilled to spend my free time treating those early customers like royalty and building more of what they wanted.

If I had instead come into this with the expectation of quick success, I doubt I would have made it through those early years.

And cheers from one bootstrapper to another. It's not easy, but I can't imagine a more rewarding way to build.

artur_makly•2h ago
great timing. In fact, I was just looking for somethin like this. Was going to vibe-code this into life, but your price point is spot on and frankly I prefer supporting other fellow entrepreneurs.

The struggle is real, thank you for being a positive light to all who are on this path. Best to you!

scubakid•1h ago
thanks, that means a lot. wishing you the best on your journey too!
akomtu•2h ago
It would be just as interesting to hear what mistakes you have made and what you would do differently.
scubakid•2h ago
One thing I'd do differently is quit my day job earlier. It shouldn't have taken 2.5 years to work up the courage to do that.

Partly I was scared of putting my own projections at risk. But eventually I realized I'd have way more regret if I passed up the opportunity to go all-in on something I loved.

braden-lk•2h ago
Nice! How did you go about finding a growth marketer that was a good fit with your business?
jonkuipers•2h ago
I found him and he originally told me to get lost ;)
noisy_boy•2h ago
The first sign of a good marketer :)
noisy_boy•2h ago
To OP, does this focus on US customers or covers the context for international customers too?
jonkuipers•1h ago
We noticed a lot of tools neglect international use cases, so from the beginning we've focused on building with global flexibility in mind. About 80% of our customers are US-based, but we have users all over the world and offer international tax presets and account types.
danr4•1h ago
kudos!
montakaoh•25m ago
Congrats!! I can definitely relate to that roller coaster feeling of first internet money -> "its so over feeling" though definitely not as successful as you yet :D
scubakid•15m ago
I hope the roller coaster takes you to a similar destination in the end :)

What's your journey been like so far?

yesimahuman•4m ago
Congrats! I'm a customer. Haven't used it too much but so far I like having it to check in periodically. One wish list item: live securities prices to avoid having to copy/paste values all the time

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