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Myth: It’s easy to go from client services to products. Reality: It’s really really really hard. As you’re selling client services you’re also marketing and bu

Myth: It’s easy to go from client services to products. Reality: It’s really really really hard. As you’re selling client services you’re also marketing and building a product, so you’re basically working two jobs. You’re promoting two company offerings, the product and the consultancy. In your brain you’re working through two problem spaces, juggling and assessing opportunities for two company, all without going insane or broke first. I know many consultancies of all sizes that have tried to make the hop. They look at valuations of services firms (1.5 times revenues) and compare it to SaaS firms (10-12 times revenue) and try to make the move. The Accentures have tried this, as have the 5-6 people shops. The reality is it is very hard to go beyond reusable deliverables and into technology that people independently pay for.

thibaut_barrere 13y ago
Albeit we (2 people, a couple with children) are still small but growing on the SaaS side, I found that mixing freelancing and products works fairly well for us. I think what made it work is 1) reduced expenses by relocating to a less expensive place and leaving frugally, 2) fine control over our cash-flow and balance between freelancing and product. I recently shared this little calculator which helps do the math: https://www.wisecashhq.com/goodies/bootstrapper-calculator https://www.wisecashhq.com/goodies/bootstrapper-calculator PS: it is still hard and requires a lot of focus and organization, but works and is sustainable long-term (we started working on this in 2011). PPS: I have enough time to play with my kids and do a bit of yoga daily, to give a data point :-)
- mathattack 13y ago
  Glad that you can make it work. It sounds like you're very reasonable about the costs and sacrifices involved. It's not just "invest consulting money in product development", rather it's "invest and save every dollar possible." Again, it's good to see that it works for you, and that you haven't had to sacrifice your family for it. Perhaps the supporting family is one reason why you're able to pull it off. (Kids care more about your time more than money anyway)
  - thibaut_barrere 13y ago
    I will try to think about the things that could be replicated and share that in an article later on; yes I think it requires a fairly accurate financial navigation, and focus on family for sure.
    - mathattack 13y ago
      Any insights are appreciated. It seems like people look at the outcome first (steady passive income) which is a good strategy, but hard to do if consulting is the first master. At larger places that I worked, either the skills were missing for the SaaS switch, or there wasn't a stomach for the investment involved.

thibaut_barrere 13y ago

Albeit we (2 people, a couple with children) are still small but growing on the SaaS side, I found that mixing freelancing and products works fairly well for us. I think what made it work is 1) reduced expenses by relocating to a less expensive place and leaving frugally, 2) fine control over our cash-flow and balance between freelancing and product. I recently shared this little calculator which helps do the math: https://www.wisecashhq.com/goodies/bootstrapper-calculator https://www.wisecashhq.com/goodies/bootstrapper-calculator PS: it is still hard and requires a lot of focus and organization, but works and is sustainable long-term (we started working on this in 2011). PPS: I have enough time to play with my kids and do a bit of yoga daily, to give a data point :-)

mathattack 13y ago
Glad that you can make it work. It sounds like you're very reasonable about the costs and sacrifices involved. It's not just "invest consulting money in product development", rather it's "invest and save every dollar possible." Again, it's good to see that it works for you, and that you haven't had to sacrifice your family for it. Perhaps the supporting family is one reason why you're able to pull it off. (Kids care more about your time more than money anyway)
- thibaut_barrere 13y ago
  I will try to think about the things that could be replicated and share that in an article later on; yes I think it requires a fairly accurate financial navigation, and focus on family for sure.
  - mathattack 13y ago
    Any insights are appreciated. It seems like people look at the outcome first (steady passive income) which is a good strategy, but hard to do if consulting is the first master. At larger places that I worked, either the skills were missing for the SaaS switch, or there wasn't a stomach for the investment involved.