7 ms·

My Startup made $290,475.48 in 26 month and I'm shutting it down

14 points by zeynalov 13y ago

I started a startup about 26 month ago. At the beginning it looked pretty good. Now it's 4 employee a service industry small business, which makes me very depressed. I have no motivation more, I think I'm burned out. Not because it's failing, but I really have no interest in this industry. It made about 500k in 2 years and appr. 290k was pure profit. But it's still a boring constant revenue small business which makes me money for living. As a kid who loves gadgets, coding and computers I'm going to shut it down and start something better that can probably change the world. What would you do?

27182818284 13y ago
>I have no motivation more, I think I'm burned out. Recently found myself in the same situation. Partner was generous with buying me out. Best possible outcome.
Im_Talking 13y ago
"But it's still a boring constant revenue small business which makes me money for living. As a kid who loves gadgets, coding and computers I'm going to shut it down and start something better that can probably change the world." I'm sorry, but these last comments confirm, to me, that you are an idiot with no business sense at all. You need to step back and look at this whole thing objectively. Jeez.
Im_Talking 13y ago
Just read this again and still shaking my head. Ladies and gentlemen, this article describes the typical techie: a techie who happens to make money from his craft. Never, never be this guy. You want to approach software this way: you want to be a businessman/woman who uses software as a tool to create a business. Do you understand the difference between the 2 approaches? Repeat: never be this guy.
sireat 13y ago
Boring constant revenue is the small stuff that many dreams are made of. You have the kind of startup that I would love to have, what some call a lifestyle business. As other posters should have stated, there should be some way of making it run at a surplus (that is you with minor supervision + manager + employees). Is it software based or is it more towards IT service, where if you stop coming for a month you will not get any revenue?
johnny22 13y ago
why not give it to someone who wants it?
- _vn5r 13y ago
  I'd bite the bullet : )
deleted 13y ago
[deleted]
bwagy 13y ago
Off a small base those numbers aren't bad. You have a few options - Exit, sell to someone else. - Explore a management buyout, if you have a strong number two who wants to run it. You can remain as advisor / chairman. - Find a partner who you can bring on to help grow it. I suspect you probably just need a bit of a break to rest refresh - come back and look at what can you can do to achieve breakout growth. And I'd try get a partner to help, businesses with two partners grow 30% faster. Year 2 of our business we were similar, we built a game plan anchored on achieving 20% month on month growth - we didn't know how we could do it but figured it out as we went. It certainly doesn't sound like you lack ambition!
travisshreve 13y ago
how old are you? where are you from?
- zeynalov 13y ago
  I'm 27, married, from Germany (but not german)
  - travisshreve 13y ago
    As someone who is new to the startup community, this is a tough call. I believe that you should follow what your heart tells you. I know that being married adds a curveball in there because you have to do what is right for you and your wife. At this point it's not just about you and it's about your future together. I'm going to launch my company based out of Seattle and I'm going into it blind. We are working to develop and everything is new to me. This idea though is pushing me through all the tough times and it actually makes me happy. I want to do something that I enjoy everyday. Currently I work in corporate America and while it's a great job, I definitely don't love it. I know that's not a real answer but hopefully it gives you some perspective. I hope the best for you!
zeynalov 13y ago
For those who say that it's an option to give or sell it to someone - I think if the company still works, it's all because of me, I did really great amount of work and some of them are the things that others can't do. It sounds arrogant, but I think someone who will get the company in this Level, will not be able to take it further. I prefer that it dies with honor, like a sir, instead slowly with bad reputation. edit: one more point which press me about this decision is that the new idea that I came of. I have saved $ 100k money and this idea which I shared some days ago here in HN really excites me, after some possible clients sent me emails that they would subscribe my new webapp. The thread about the idea: https://news.ycombinator.com/item?id=7494337 https://news.ycombinator.com/item?id=7494337
- neilk 13y ago
  > It sounds arrogant Well, yes and no. You're probably right that you have some unique skills. But the curse of the founder is that you can't separate yourself, and how you do things, from the job. There are probably other ways to run that company, which you can't see, which are perfectly fine. Maybe the next person won't take as many risks but that's what you (and your employees) probably want at this stage. And even if you are that unique, are you saying that you in a burnt-out state is still better than anybody else at their best?
- logn 13y ago
  If your employees are happy, groom them to take it over and then make them owners.
  - 2810 13y ago
    Yup, I agree with you
- huslage 13y ago
  You are allowing too much emotion here. Figure out what it's actually worth and sell it...or at least investigate selling it...before you just shut it down. At the very least you could just let it coast and see what the employees do with it.
- 13y ago
avenger123 13y ago
How much time are you putting into this every day? You said you think you are burned out. You probably are. You need to think big picture on this. You have worked hard to build a business that makes real money. It's not sexy and you don't have the passion for it anymore but it's still generating a lot of revenue for you. If you are doing 12-13 hour days and such, slow it down. Start doing it like a regular job and do 8 hours a day. You might make less money but it will give you better perspective on it. Don't lose sight of the fact that you are able to save a ton of cash from this every year. Work less on it, give yourself some downtime so that you can figure out how you want to proceed. I think completely shutting down the business is very immature. If you sell the business, it's the new owner's responsibility to figure it out or not. There is no honor in killing your own baby when its still alive and well.
andretti1977 13y ago
You helped a lot of people with your startup: maybe somebody of those good and well talented people would be very happy to manage it :-)
nm_101 13y ago
Outsource management to other people/employees with some form of incentive for growing the business on a strictly hands-off basis (3-6 month process) - then use the income stream to enable you to do what the hell you want.
thenomad 13y ago
As someone else has said on this thread: if you're definitely planning to shut it down and you have no interest in selling it, try just stopping working on it instead. (It'd be a good idea to at least have a discussion with your employees about this plan first, and of course put measures in place for payroll and so on.) The worst that can happen is that it all grinds to a halt and you subsequently shut it down. The best thing that could happen is that it keeps rolling perfectly happily and you now have a substantial passive income. On a similar note, if you haven't read "Four Hour Work Week", now would be a very good time to do so. FHWW is a bit sketchy on the process of building a company that makes money, but once you've built one, it's a fantastic manual on how to minimise your time involvement.
joshdance 13y ago
You are in a position of strength. You are making money. So solidify your position, sell it off or automate it, take the money and then go try the next thing. Many great companies that did change the world started as something completely different. Nintendo made paper trading cards.
- Johnvoisin 13y ago
  You made my night
alecsmart1 13y ago
Can you please contact me or provide me with your email. I'd like to discuss a possible acquisition.
rajacombinator 13y ago
Sounds silly to consider shutting down a profitable business with employees. Get real and sell it to someone.

14 points by zeynalov 13y ago

27182818284 13y ago

>I have no motivation more, I think I'm burned out. Recently found myself in the same situation. Partner was generous with buying me out. Best possible outcome.

Im_Talking 13y ago

"But it's still a boring constant revenue small business which makes me money for living. As a kid who loves gadgets, coding and computers I'm going to shut it down and start something better that can probably change the world." I'm sorry, but these last comments confirm, to me, that you are an idiot with no business sense at all. You need to step back and look at this whole thing objectively. Jeez.

Im_Talking 13y ago

Just read this again and still shaking my head. Ladies and gentlemen, this article describes the typical techie: a techie who happens to make money from his craft. Never, never be this guy. You want to approach software this way: you want to be a businessman/woman who uses software as a tool to create a business. Do you understand the difference between the 2 approaches? Repeat: never be this guy.

sireat 13y ago

Boring constant revenue is the small stuff that many dreams are made of. You have the kind of startup that I would love to have, what some call a lifestyle business. As other posters should have stated, there should be some way of making it run at a surplus (that is you with minor supervision + manager + employees). Is it software based or is it more towards IT service, where if you stop coming for a month you will not get any revenue?

johnny22 13y ago

why not give it to someone who wants it?

_vn5r 13y ago
I'd bite the bullet : )

deleted 13y ago

[deleted]

bwagy 13y ago

Off a small base those numbers aren't bad. You have a few options - Exit, sell to someone else. - Explore a management buyout, if you have a strong number two who wants to run it. You can remain as advisor / chairman. - Find a partner who you can bring on to help grow it. I suspect you probably just need a bit of a break to rest refresh - come back and look at what can you can do to achieve breakout growth. And I'd try get a partner to help, businesses with two partners grow 30% faster. Year 2 of our business we were similar, we built a game plan anchored on achieving 20% month on month growth - we didn't know how we could do it but figured it out as we went. It certainly doesn't sound like you lack ambition!

travisshreve 13y ago

how old are you? where are you from?

zeynalov 13y ago
I'm 27, married, from Germany (but not german)
- travisshreve 13y ago
  As someone who is new to the startup community, this is a tough call. I believe that you should follow what your heart tells you. I know that being married adds a curveball in there because you have to do what is right for you and your wife. At this point it's not just about you and it's about your future together. I'm going to launch my company based out of Seattle and I'm going into it blind. We are working to develop and everything is new to me. This idea though is pushing me through all the tough times and it actually makes me happy. I want to do something that I enjoy everyday. Currently I work in corporate America and while it's a great job, I definitely don't love it. I know that's not a real answer but hopefully it gives you some perspective. I hope the best for you!

zeynalov 13y ago

For those who say that it's an option to give or sell it to someone - I think if the company still works, it's all because of me, I did really great amount of work and some of them are the things that others can't do. It sounds arrogant, but I think someone who will get the company in this Level, will not be able to take it further. I prefer that it dies with honor, like a sir, instead slowly with bad reputation. edit: one more point which press me about this decision is that the new idea that I came of. I have saved $ 100k money and this idea which I shared some days ago here in HN really excites me, after some possible clients sent me emails that they would subscribe my new webapp. The thread about the idea: https://news.ycombinator.com/item?id=7494337 https://news.ycombinator.com/item?id=7494337

neilk 13y ago
> It sounds arrogant Well, yes and no. You're probably right that you have some unique skills. But the curse of the founder is that you can't separate yourself, and how you do things, from the job. There are probably other ways to run that company, which you can't see, which are perfectly fine. Maybe the next person won't take as many risks but that's what you (and your employees) probably want at this stage. And even if you are that unique, are you saying that you in a burnt-out state is still better than anybody else at their best?
logn 13y ago
If your employees are happy, groom them to take it over and then make them owners.
- 2810 13y ago
  Yup, I agree with you
huslage 13y ago
You are allowing too much emotion here. Figure out what it's actually worth and sell it...or at least investigate selling it...before you just shut it down. At the very least you could just let it coast and see what the employees do with it.
13y ago

avenger123 13y ago

How much time are you putting into this every day? You said you think you are burned out. You probably are. You need to think big picture on this. You have worked hard to build a business that makes real money. It's not sexy and you don't have the passion for it anymore but it's still generating a lot of revenue for you. If you are doing 12-13 hour days and such, slow it down. Start doing it like a regular job and do 8 hours a day. You might make less money but it will give you better perspective on it. Don't lose sight of the fact that you are able to save a ton of cash from this every year. Work less on it, give yourself some downtime so that you can figure out how you want to proceed. I think completely shutting down the business is very immature. If you sell the business, it's the new owner's responsibility to figure it out or not. There is no honor in killing your own baby when its still alive and well.

andretti1977 13y ago

You helped a lot of people with your startup: maybe somebody of those good and well talented people would be very happy to manage it :-)

nm_101 13y ago

Outsource management to other people/employees with some form of incentive for growing the business on a strictly hands-off basis (3-6 month process) - then use the income stream to enable you to do what the hell you want.

thenomad 13y ago

As someone else has said on this thread: if you're definitely planning to shut it down and you have no interest in selling it, try just stopping working on it instead. (It'd be a good idea to at least have a discussion with your employees about this plan first, and of course put measures in place for payroll and so on.) The worst that can happen is that it all grinds to a halt and you subsequently shut it down. The best thing that could happen is that it keeps rolling perfectly happily and you now have a substantial passive income. On a similar note, if you haven't read "Four Hour Work Week", now would be a very good time to do so. FHWW is a bit sketchy on the process of building a company that makes money, but once you've built one, it's a fantastic manual on how to minimise your time involvement.

joshdance 13y ago

You are in a position of strength. You are making money. So solidify your position, sell it off or automate it, take the money and then go try the next thing. Many great companies that did change the world started as something completely different. Nintendo made paper trading cards.

Johnvoisin 13y ago
You made my night

alecsmart1 13y ago

Can you please contact me or provide me with your email. I'd like to discuss a possible acquisition.

rajacombinator 13y ago

Sounds silly to consider shutting down a profitable business with employees. Get real and sell it to someone.