
I bootstrapped a $10 million company and need serious help - benjaminlotan
Two years ago I started Social Print Studio as a little design company. We have been able to make a name for ourselves in the world of photo printing. We have many repeat customers, some large corporate clients, and growing six-figure monthly revenues. Things are going well and we have a strategy to compete directly with major players the field and really take the company to the next level.  Problem is that we turn down massive opportunities everyday and executing our strategy has been a huge problem due to our lack of technical and managerial skills.<p>We are just a group of friends who got in over our heads. We have no network and are having trouble scaling. We are looking for a CTO or solid lead web engineer, someone with solid marketing experience, and maybe even a new CEO. We want to grow this thing huge, are ready to make bold moves, and we want to have the right experience on the team so we can do things right. Craigslist recruiting is not cutting it.<p>This is our cry for help. If you want to come work with us to build and grow the company 10-100x in the next couple years... Whether you are an engineer, designer, marketeer, or know someone who is... please get in touch. Now is the time, we have some amazing opportunities and really want to push amazing work.<p>please get in touch directly: 
Ben@socialprintstudio.com
@benjaminlotan on twitter<p>ps. we are in San Francisco.
======
paulsutter
Be careful not to throw out the baby with the bathwater. You're probably doing
a better job than you realize.

Try working with an executive coach - I work with Bryan Franklin. It's easier
for you to develop leadership and management skills than it is for an outsider
to really grok your business and share your vision.

Regarding the marketing role, be sure to get the right kind of marketer:
[https://medium.com/on-startups/1308a8f17137](https://medium.com/on-
startups/1308a8f17137)

Most of all: go slow on executive hires. There are a lot of "good talkers" out
there. An empty seat is better than the wrong person.

~~~
benjaminlotan
sound advice, thanks a bunch. i just threw the executive titles out there
since i think that's where they would ideally lead to, and i don't exactly
know how to speak to the people we are looking for to help us. I will read the
medium post you linked now! if you are ever in the bay area, hit me up, id
love to meet for coffee.

~~~
jasonm23
Just to add to the general chorus, what you really want are good consultants
(or coaches, depending on your vernacular) for the specific problems you're
facing. Crossing your fingers and letting a new CTO or CEO figure out the big
picture for you is attractive, sure, but the risks are too high.

After you've filled in the blanks, you'll feel much more comfortable, and at
that point make some hires to deal with those specific business areas, while
still maintaining overall control. As others have said, you guys are doing
something right or you wouldn't be in this position in the first place.

If I was over in SF, I'd love to help you out, but I'm based in Sydney.

Anyway, best of luck to you.

------
rdouble
Each of the three startups I worked for as one of the first 10 employees were
ruined when the 'seasoned pros' were brought in. Don't hire any C level or VP
people. There is a class of losers in the Bay Area who bounce around between
VP of Engineering/Ops/Product jobs at post-funded startups and sink the ship
while using their inflated salaries to redo their deck in Los Gatos. Hire
additional engineers / marketers / finance / designers as needed and promote
from within (as needed).

------
beachstartup
i'm running a $2 million and growing company, and i can say that if you're
doing _$10 million dollars in 2 years_ (TWO YEARS) and think you have a "lack
of technical and managerial skills" you are being intellectually dishonest
with yourself, and possibly being disingenuous to your audience here.

from what we've seen and what we've heard, basically starting at $1
million/year in revenues, you will hit a serious new set of problems (some
call these inflection points) at every doubling thereafter (i.e., 2M, 4M, 8M,
16M)

obviously there are exceptions (some businesses are simply born to be able to
handle massive amounts of revenue in a flat manner) but basically, every time
a business doubles, the problems change. this doesn't mean you're incompetent,
or that you lack skills.

~~~
benjaminlotan
yeah, i mean, i know what i;m doing by following instinct... but really at
this scale... all decisions seem wrong. we truly have no one in the company
who has been here before, and that is a problem.

~~~
beachstartup
one of your challenges is that at this point, anyone who is interested in
helping you, is also the kind of person who wants to get rich off of your hard
work (aka ownership in your company). not to say that they won't work hard
themselves, but incentives are incentives.

just be careful when you talk to private equity, investment banking and growth
capital folks and do not give up ownership of your business easily, if at all.

if they haven't hit you up yet, they certainly will after your posting this.
like moths to a flame, they will appear. or maybe wolves to a kill. or
vultures.

be especially suspicious of companies that wish to incorporate your firm
before you're ready.

also beware of competitors or "consulting firms" calling you up to find out
more about your firm for the purposes of a "purchase or partnership" who
really just want to squeeze out as much info about you as they can before
never calling back.

either way make sure you have good legal representation.

~~~
benjaminlotan
wow, you totally called it! already got on the phone with someone wanting to
take things over and do crazy things. shady people ;-) Thanks, i'll be
careful. appreciate the advice. I've kept close control thus far and have not
wanted to raise money. Hope the right person might come into the picture.
Already happy to get a couple genuine emails. cheers!

~~~
swombat
What you're looking for is a mentor, not a hire. You need someone who's been
around the block to give you pointers and illuminate your blind spots. You're
clearly doing very, very well already and should be proud of it. Don't let
yourself feel like an impostor. You're not. You've earned your success.

------
joshpadnick
Hi Ben,

First, I can completely appreciate your mentality. When the software company I
founded was at about $650,000 in annual revenue, I was convinced that it was
time to bring in a seasoned leader who knew how to take the business to the
next level because I, as a first-time entrepreneur, had certainly not done it
before.

In retrospect, that mentality was a mistake. The truth is that you understand
the business better than anyone else and there is no magical skill or talent
that someone else can bring to the table that will so fundamentally improve
things.

Do not make the mistake of thinking that if you _transfer_ responsibility to
"better" executive that they can do a better job. That person will bring their
own strengths/weaknesses to the table. They will need to rely on a team to
make up for their handicaps just as you are looking to do.

In this situation, I recommend the following:

\- First, clearly identify exactly what issues are vexing you. If it seems
like "everything" or "things are just overwhelming" then make a list of just
the most important issues.

\- Then pick 1 or 2 or 3 that you can actually focus on solving. You can't do
more than that at once, but imagine how much impact fixing your top 3 issues
will make on the business! In fact, you should try to quantify how much money
you are losing or missing out on by not resolving these issues to give
yourself a sense of what you should budget to solve them

\- Then block out or delegate everything else, and focus 100% of your creative
energies on how you can resolve these issues. Use any and all resources
available to you, including friends, consultants, or even Hacker News ;-) If
you don't even know where to begin on an issue, then find an expert for THAT
ISSUE (which is different than finding a new CEO).

\- Then keep at it, keep refining your ideas, listen to your intuition, and
push through until you make progress.

I made the mistake of thinking other businesspeople were "better" than me or
more talented than I am. The truth is you just need to know what your
strengths/weaknesses are. Then lean on the team around you or new people to
help you fill in the weaknesses.

Hope this helps,

Josh

------
jacquesm
Beware of the sharks, a call out like this will bring them on like blood in
the water. Best of luck, the golden rule for me has always been that anybody
that approaches you is not to be trusted by default.

~~~
omarchowdhury
So does that mean that when _you_ approach somebody you have something shady
in mind? Or are you just above the standard you set for others?

~~~
jacquesm
Let me try to help you out since what I wrote is apparently not clear enough,
I thought the 'default' in there covered the remainder.

If you make a public announcement that you have _vast amounts of money or
cashflow_ and that you are looking for help because you are out of your depth
then you will find that this will attract besides a few possibly capable
people a (probably larger) number of people that will just focus on relieving
you of your cash, your company or both.

Personally I would never approach someone making such a call for help for any
kind of compensation at all because I (1) don't want to be associated with the
sharks (think of it as an easy way to differentiate) and (2) feel that they
are better off to go out and do the approaching themselves.

Given that I have in the past approached people in situations like this, and
have helped them out as much as possible without compensation (and in some
cases spending some of my own money) should hopefully be enough to convince
you that there are indeed standards here and that I try to hold others to the
same standard as I hold myself to.

------
callmeed
Hey Ben,

I'm going to write you a longer email tonight. My wife and I run Cheergram
([http://cheergram.com](http://cheergram.com)) and we've always admired what
you've done at SPS. We had pretty good success with Instagram cards last
holiday season and now we're looking into other kinds of cards, invitations,
artwork and prints. We're also doing some wedding-focused stuff (think hashtag
+ prints/books).

Maybe there's a way we can share ideas, work together, or even join forces. I
do all our development and it sounds like we have a similar tech stack. I also
have some connections in the print industry.

No matter what, keep it up and I agree with most of the commenters here.

~~~
sgt
That's actually a cool idea - I was sold when I saw the ability to cling it to
the wall.

PS: I went to [http://cheergram.com/](http://cheergram.com/) can I saw the
footer twice ("Copyright 2013...")

~~~
callmeed
Thanks, fixed that issue.

------
bradfordarner
Wow! The quantity of bad advice in these comments is shocking, if not down
right disturbing.

If Intel, GE, or Mircosoft hired a consultant to advise them on the right
move, the vast majority of people on HN would scream bloody-murder and speak
about it as a perfect example of big-business and its stupidity. What
hypocrisy!

Ben, the reality is that you clearly have moved past Steve Blank's description
of a start-up; you have found a working business model. Now, the challenge is
to find out if that business model is something that can last for 5 years or
50. No one on this board has run a successful company for 50 years. Thus,
everyone, definitely including myself, is well out of their league.

However, since entering the old school world of finance, I have realized that
there are many men and women who are twice our age who would be able to give
you great advice. You need adult supervision and that is OK. You don't know
how to hire an executive (i.e. adult supervision). Thus, you should first find
someone who can help you find adult supervision. A great place to start is in
the 'boring' industries: finance and manufacturing. Find a wise advisor who
can help you find an executive to lead.

You are no longer a start-up. Running a post-start-up company like a start-up
will kill it as quickly as running a start-up like a Fortune 500.

~~~
swombat
I think that your advice is itself pretty bad advice.

It is theoretically possible to hire someone like what you describe, but it
seems vanishingly unlikely and much more likely to cause damage.

As many others have pointed out, each business is unique, and the fact that
the OP has reached the level of success they've reached is proof that they
have a fairly solid management team already. Most likely, they are falling
prey to impostor's syndrome - "one of these days someone will discover I'm a
fraud and don't deserve all this success".

The cure for that is not to give in to the impostor's syndrome, but to reject
it by observing the simple evidence that someone who builds a $10m business in
2 years is clearly very talented and skilled.

Ultimately, if the OP doesn't want to run this business anymore, they could
just sell it. But if they want to keep running it, there's no way to abdicate
to some "adult supervision" that will magically make all the problems go away.
It will just replace the problems with a different set of problems, specific
to the new hire.

A better approach if the OP wants to keep running this company is to build
some good relationships with mentors who can help the OP grow into the role.

------
whiddershins
If you are doing 6 figure monthly revenues, one thing worth considering might
be to read some mr money mustache and really contemplate what you want for
your life ... You aren't required to grow 10 or 100x ... You also have the
option of pocketing profits, living frugally, and retiring young. That's one
of the big advantages of bootstrapping.

~~~
nazgulnarsil
6 figure revenue means nothing without knowing margin.

~~~
sokoloff
Especially in the photo printing business!! I don't know exactly what part
OP's in, but 4x6 prints are about as profitable as airlines...

Disclaimers: 1. I work for Vistaprint, so possibly a competitor though we
shuttered our photo printing business years ago as not profitable and without
a clear path to profit. 2. Your site is constantly crashing Safari on an iPad
original. (not complaining, just explaining why I don't know what you actually
do) 3. All content and opinion in this post is mine. I don't speak for my
employer.

------
yumraj
Agree with everything that is being said here regarding the executive seats,
don't give those out and keep control.

In addition to some executive coaches, who will help you grow personally, it
seems you need some good advisors who can help you with the problems that
you're facing. Some of these could have experience with technical issues
you're facing, while others could have managerial and supply chain experience.
It wasn't clear from your website if you have any advisory board or not.

NOTE: there is a very big difference between board of directors and advisory
board, what you need at the moment is advisory board, don't give out board of
director seats unnecessarily unless you raise a VC round of funding or go IPO
:).

By getting a good set of advisors you will be able to fill the immediate gap
in your skills/experience that you're facing and may even decide if any of
those (or their referrals) need to be hired, if at all, for executive
positions.

Now how you find advisors is non-trivial so I will advise you to look for
people with experience in your industry and domain, and contact them. Even if
their companies seem to be mildly competing at times, you'll be surprised how
many people will meet with you over coffee and might have recommendations. If
you decide to have a person come on as an advisor, don't give them any
compensation till they start providing value. If someone comes on very
strongly and will only help if compensated, then perhaps that is not the right
person.

Good Luck!!!

------
blantonl
Ben, first, you are NOT in over your head, you are simply questioning whether
or not to grow your company to some preceived "next level" by looking for
funding to take on major players in your field.

Why not continue to innovate your successful bootstrapped business?

The most important thing for you to consider is whether or not you _actually_
want to compete with the major players in the field. It sounds like you are
doing well managing your boutique operation, and frankly, based on what you've
provided it sounds like you are killing it. Boutique operations often destroy
their larger competitors, and are far more nimble to have the next best thing
that becomes popular and doesn't require "funding" to generate revenue.

Yes, you could hire a new CEO to help track down funding and manage all the
acquisition inquiries that you've received. But, if you have a successful
bootstrapped business that is generating profits, why would you want to
deviate from your current course?

------
redsymbol
Ben, just want to say - congratulations! This is a FANTASTIC problem to have
:-) Great job to you and your team getting this far... I think you realize how
special and rare it is. Great job!

~~~
benjaminlotan
thanks so much! appreciate the comment :-) come say hello if you are in SF.

------
microcolonel
I'm having a hard time understanding what exactly it is that you do, from your
confusing web site introduction.

Concerning your scaling pains, lots of people probably already do some form of
what you're trying to do; you may do better to assimilate/enfranchise them
rather than competing.

------
chiph
Book suggestion: "Four Steps to the Epiphany"

Basic takeaway is not to add structure until it's painfully obvious that you
need it. If you hire a VP or CxO from a large firm, he's going to staff you up
like a large firm, and you can't afford that yet.

------
joshu
You know more about your business than anyone else. Nobody is in a good
position to do things better than you, given the things you have learned.
Otherwise, you wouldn't have gotten as far as you have.

Perhaps you need some mentors, or just folks you are comfortable talking to --
perhaps other founders?

As an angel investor I have found that the one of the things I am called on
the most to do is just let people talk stuff out. I don't feel like it is very
useful but people really like it.

------
faramarz
Are you saying you guys are making $10m a year printing Instagram pictures?
That is incredible. This company must not have existed a few years ago..

pat yourself on the back and get yourself some local angels on board. they get
to wet their beacon and you reap the rewards of a business coach.

------
superamit
This is a brave post, Ben!

Gotta agree with most of the comments here -- I think it's incredibly hard to
find someone who's "been there before" who can walk in and actually do it for
you in a CEO role. I've spent some time looking + asking others in similar
situations.

That said, and though I strongly prefer moving people up from the inside, I
think there IS opportunity for finding people who can bring specific areas of
expertise, like fundraising+connections, building a sales team, leading a tech
team.

And I think there's a lot to be gained in finding a strong mentor or group of
entrepreneurs in similar situations to act as a sounding board. I can't help
with the former, but perhaps the latter. Let's hang again, soon.

------
livestyle
I'm not sure if this will help or not but I would head over to
[http://clarity.fm](http://clarity.fm) and find someone to chat with.

Your bound to get some great advice and gain some valuable insight.

------
zavulon
I recommend looking into joining Entrepreneur's Organization. It's an
organization of business owners who own businesses with revenue > $1 mil/year
(there's also an "accelerator" with owners whose revenue is > $250K/year).
They will provide invaluable coaching, insight and network that will help you
take your company to next level.

There's a chapter in SF:
[http://eoaccess.eonetwork.org/SanFrancisco/Pages/default.asp...](http://eoaccess.eonetwork.org/SanFrancisco/Pages/default.aspx)

------
chadkruse
Great advice in this thread. If I can leave anything, it's to be very careful
not to fall into the I-need-a-COO hole. If you start thinking you need a COO
(I really f'n hate that title btw), take Brad Feld's advice and make sure you
can define the role as Head of _______. If you can't define that something,
you definitely just need a CEO coach and a few smart soundboards to hang
around with.

Good luck!

PS - The sharks will all want to be CEO and talk about comp before they've
tried out your service...they're easy to flush out.

------
jedharris
Surprised some commenters have trouble figuring out what you do... You folks
have fun doing it! But hiring will always be hard because finding people who
fit and who also sustain your high level is hard...

No useful advice... except, stay extremely clear on who you are, don't
compromise even a little on that. "An empty seat is better" is a corollary.

------
jennyjenjen
I just wanted to say that I remember seeing you at probably more than one
event. I think you guys are doing a fantastic job and I think your cry for
help is necessary - but only because you know what you need and you're likely
not doing as badly as you might think.

I know you guys can do it. I've seen what you do and I'm impressed. Keep
truckin'!

------
stevewillows
It almost sounds like you're looking for a parental figure more than anything.
If you're at the stage you're at, I would suggest building up existing talent
and establishing authority and a process for that authority. Better to do that
now while things are young before you hire in some flashy top talent guy with
perfect teeth.

------
johnny22
you should mention your current technology stack for the web dev.

~~~
benjaminlotan
it's all over the place since we have been building and rebuilding things, but
currently it's mostly rails and node.js. Hosted on Heroku.

~~~
kayoone
Doesnt sound Bad, what are your technical struggles about exactly?

------
aa0
Are you guys open to remote work?

------
aioprisan
are you guys open to remote work?

------
FajitaNachos
Your hiring page is awesome.

I can't comment on how you should proceed going forward, but to echo the other
comments, you've obviously been doing something right. Hopefully this post
will put you in touch with the right people.

------
sbuccini
I was thinking about you guys just the other day as I walked past your old
place on Atherton. Been meaning to catch up; you want to grab lunch sometime
soon?

~~~
benjaminlotan
yo steve! good to hear from you. drop by our new space!

------
clientbiller
I've built two printing companies (sold the first one). Feel free to contact
me if you have any questions on scale or anything else. cm@printsmart.co

------
trevelyan
Can't help you guys out, but congratulations!

------
dossy
Wish you guys were in New Jersey ... ;)

------
dano414
I have no idea what you do by looking at your website on an ipad.

------
colinm
Not every company is a billion dollar company. Is yours?

------
richardjordan
The community here is overly negative on VCs (often with some justification)
but this is exactly the kind of reason they exist - fast growth, real
revenues, money can help get you to the next step.

------
wilfra
If I were in your position, I would apply to YC.

~~~
ceejayoz
YC's 6% equity cut isn't a big hit when you're at the "we have an idea" stage,
but if they're a $10M company already that's a lot to pay for advice...

~~~
wilfra
The value of the business would instantly go up a lot more than 6% just by
having "YC" forever attached to the company. All of the advising, connections
etc would just be a cherry on top.

~~~
foobarbazqux
The value might go up by more than $600K right now, but assuming it gets to
$100M, who knows if the value will have gone up by $6M due to the YC branding.

