Read on Twitter
It’s fun to build in public when things go as hoped; it’s terrifying when they don’t.
#founderispublic is my attempt to normalize being public about both the highs and lows of entrepreneurship.
Last week, with $985,347 in the bank, I let go of half my team...
#founderispublic is my attempt to normalize being public about both the highs and lows of entrepreneurship.
Last week, with $985,347 in the bank, I let go of half my team...
I’m sharing because I believe that if everyone shared their behind-the-scenes lows, we’d all learn faster + have more collective highs.
Laying someone off despite their individual performance is stomach-wrenching and painful. It’s even worse for the person affected.
Laying someone off despite their individual performance is stomach-wrenching and painful. It’s even worse for the person affected.
Backstory: @abenzer and I raised $3.75M and launched the world’s first audio-first learning platform, @knowablefyi, on 10/1/19.
We quickly de-risked our riskiest hypothesis: people will happily pay for premium audio-first learning. http://Knowable.fyi/testimonials
We quickly de-risked our riskiest hypothesis: people will happily pay for premium audio-first learning. http://Knowable.fyi/testimonials
Conventional wisdom: podcasts and radio are free, so no one will pay for audio.
But: TV was free too! And now: Netflix, Amazon Prime, Disney+, etc...
And... education provides an ROI.
We decided to skate to where the puck is going, rather than where it is today.
But: TV was free too! And now: Netflix, Amazon Prime, Disney+, etc...
And... education provides an ROI.
We decided to skate to where the puck is going, rather than where it is today.
Key accomplishments so far:
Sign ups: 27,475
Revenue: $125k+
Teachers signed: 233
Hours listened: 11,033
Paid subscribers: 3,108
See chart for more
Sign ups: 27,475
Revenue: $125k+
Teachers signed: 233
Hours listened: 11,033
Paid subscribers: 3,108
See chart for more
Key mistakes:
Hiring based on expected growth
Broadening customer type too early
Spending too much time talking with investors vs. customers
Not building customer acquisition into the DNA of the product
Also: Covid hasn’t helped audio; less commuting time.
Hiring based on expected growth
Broadening customer type too early
Spending too much time talking with investors vs. customers
Not building customer acquisition into the DNA of the product
Also: Covid hasn’t helped audio; less commuting time.
While on paternity leave last month I pursued an accelerant round of financing with an inbound investor.
The deal fell through.
Also, it became clear that we would fall far short of our 2020 OKR: 10,000 paid subscribers. We’re at 3,100.
The deal fell through.
Also, it became clear that we would fall far short of our 2020 OKR: 10,000 paid subscribers. We’re at 3,100.
With less runway than I had modeled, I faced a painful decision:
Keep 10 FTE’s and hope we can demonstrate sufficient growth to raise more capital within 6 months.
Reduce costs and have 2x runway to remedy aforementioned regrets.
I agonized over the decision. I still do.
Keep 10 FTE’s and hope we can demonstrate sufficient growth to raise more capital within 6 months.
Reduce costs and have 2x runway to remedy aforementioned regrets.
I agonized over the decision. I still do.
Ultimately I decided on the latter for the following key reasons:
In success we can offer to re-hire.
We have enough cash to give everyone affected a generous severance.
Fewer people helps us move faster.
In success we can offer to re-hire.
We have enough cash to give everyone affected a generous severance.
Fewer people helps us move faster.
My first priority is to help my affected teammates land on their feet as quickly as possible.
With their permission I’m sharing their resumes with my network.
With their permission I’m sharing their resumes with my network.
My next priority: reassure my remaining teammates that I’ve learned from this experience and that we all feel good about our revised growth plan.
We’re all looking at all numbers every week; including cash in bank.
We’re all looking at all numbers every week; including cash in bank.
Q1 priority: focus on our core customer, millennial professionals, and obsess over adding value.
We’re also seeing early traction on the enterprise side, which solves our biggest current challenge: cost effective awareness.
We’re also seeing early traction on the enterprise side, which solves our biggest current challenge: cost effective awareness.
I hope this thread is helpful to other entrepreneurs and builders.
I learned from @StationCDRKelly’s Knowable course that effective leaders own their mistakes — they take the blame and share the credit.
Nonetheless, I’m scared to press “Tweet all.”
I learned from @StationCDRKelly’s Knowable course that effective leaders own their mistakes — they take the blame and share the credit.
Nonetheless, I’m scared to press “Tweet all.”
My team continues on our mission to make actionable learning as addictive as social media. Thank you if you support this effort, regardless of whether you’re a Knowable member.
Join the Early Adopter Club?
Code for 25% off: Learn
http://Knowable.fyi
Questions? AMA!
Join the Early Adopter Club?
Code for 25% off: Learn
http://Knowable.fyi
Questions? AMA!
