My Fastlane Journey: DD Progress Thread

[DangerDave]

Hey Everyone, 24 living in Chi...
Haven't been on FF for some months now... and I realized it would help me greatly (and hopefully help some of you!) to share/bounce things off you guys. I'll break this first big story into a couple posts... background and progress.

First post, some background:

About 6 months ago I came up with an idea that I was really excited about. It was a little spark of something that had always frustrated me. I thought and thought about it for weeks, and the spark turned into a flame. The excitement didn't die out... so 3 months ago, I took two weeks off of work to work on the idea full time. The result was pretty exciting! I got some initial wireframes done and an idea of how this thing was going to make money. I showed it to some people in the industry and although the product wasn't even 50% thought out, it definitely sparked interest and conversation... That gave me some motivation.

After the two week "vacation" I went back to my job (web design agency) and worked on the idea on some nights/weekends. To be honest, not much got done. I'm the type of guy who needs to sit down with something for hours to really get focused and get my best ideas. I just didn't have the time or energy to get the results I wanted.

I was struggling for sure. It seemed like this damn thing would never get off the ground. It was killing me knowing that other people were moving on their ideas while I worked during the day. Boo hoo, right?

So that brings us to last month. After some serious deliberation, back and forth angst, and serious stress, I walked into my bosses office and gave my two weeks notice.

Crazy? Most definitely.
I loved the people I worked with, I loved the office environment, the money was good, my boss was great. The work was the highest level I could have asked to work on out of school... But I felt like crap every day because the web agency business model is broken. You can't scale the business efficiently. Sure, you can charge $500k+ to design and develop a big brand website... but the margins are extremely slim. Then you have to go out and find another client that will pay that amount. Not very efficient.... I digress.

Yes, I think it was pretty dumb to quit. But I knew I wouldn't be able to reach the level of success I want (personally and financially) if I kept my job.

So that's how this thread came to be....
I hope this thread can help some of you guys that are where I was 6, 3, 1 month(s) ago... or are where I'm at now... scared as hell with no job and a couple months of savings at your back.

This thread will help me keep a journal of what's going through my head and will keep me on track by having somewhat of a "support group"... since I am going this alone with no co-founders at the moment. Every bit helps!

Here we go...

 

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[DangerDave]

The business I am building revolves around a website that is a "hub" between Customers and Product.
It's an old school business model that has not yet been brought online. It doesn't exist in the marketplace. That's why I have to move quickly. That's really all I can divulge right now.

So, after I left my job:

Week 1:
Steady hard week of work. Got a few pages of wire frames done, an idea of how I would charge for it. (involves payment gateways... there are several places to make money, it just depends on where I can charge and how much)

I also met with my mentor, who is a family friend. Multimillionaire from a broad range of his own holdings- Commercial real estate, Web Applications, Independent Film, Starting 3 liquor companies currently, and creator of an annual for-profit conference. He also has started a couple Non profits. Super lucky to have this guy around because he is deeply involved in the market I am targeting... and he knows what he's talking about.

We met for 2.5 hours. We talked about his current biz endeavors for about an hour. (Great to see someone successful making moves!) Then I brought out my laptop and showed him what I had been working on. This was the moment of the truth...

Long story short, we talked for the remaining 1.5 hours about what the next steps were. He was excited about it and told me to go for it. Balls out. We talked about what to tackle next and how to potentially patent it. After laying out the next steps we planned to meet again (progress report) in mid-April. AWESOME FEELING.

Week 2
Took a vacation to Mexico with one of my buddies. Had a great time. Got stuck in mexico city on the way back... hell on earth haha. Ended up getting Bronchitis from the pollution. Probably a bad waste of money, but needed a "buffer week" from being a slave for someone else (job) to being an entrepreneur.

Weeks 3 and 4
Between being sick and stressing about money, didn't get a lot done. In and out of depression and had severe anxiety attacks (which I have never had before in my life!) scary stuff but now I'm back on track.

My goal for the next two weeks is to get the wireframes and business model completed in time for my meeting with my mentor. I'll post after our meeting!!! Any questions or comments feel free to post, I feel like I'm omitting a lot of info.

 

[PatrickP]

I wish you the VERY best of luck.

I hope a week from now you have real info on what you have actually accomplished towards your goal.

I think you are CRAZY for what you have done, makes zero sense to me, but there is more than one way to skin a cat I suppose.

 

[DangerDave]

Just got back from the meeting. Exciting stuff. Have a game plan in place. Here's an update.

This week I got most of the remaining wireframes done :coolgleamA:. It's a sort of web SaaS, so there are many screens, views, and complicated interactions that took many hours to simplify. I've done all of the logistical planning of the product itself. I have around 30 pages so far.

Here's what I have to do next:

- Create a final write up of my product; its purpose, features, and benefits (tonight).
- Come up with a name, conduct a trademark search, domain buy.
- Write all marketing copy and wireframe the consumer facing end of the site.
- Design the entire thing throughout.
- Proforma doc projecting revenues, expenses, profits for the next 12-18 months (for potential financing/presentation purposes)
- Research e-business tax attorney and a lawyer to set up legally and open business CC account

I am targeting having everything including Gen1 of the site design done by next Friday.
Final design will be done by the next week. At that point, my plan is to hire an IA to clean up loose ends, etc. and hire a development freelancer(s). I have connections in the industry and I can definitely find these people.



Anyone have experience designing successful web apps? I'd love to pick your brain!!

And, do any of you guys know any great e-business tax/attorneys in Chicago that are reputable?
I don't trust the usual google search. Would rather get a referral...

 

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[ions]

Good Luck DangerDave!

 

[DangerDave]

If anyone is following this, I need some input from you guys.

Since the last post, I came up with a name and through the WHOIS database, found the guy that owns it (who isn't using it). I contacted him and began negotiations. I low balled him at first ($100 haha) and he didn't even counter offer. After some correspondence back and forth the price is now at $1850, with us splitting the cost of the escrow service. It's a short, catchy, memorable name. I know it might be expensive, but a brand is worth a lot. I'll get to financing the cost in a minute.

I found a local IP attorney specializing in online startups through a referral but have not contacted him yet.
I have designed a logo and have 2 versions of the interface completed. The interface needs a lot of polishing though.
I'm talking with the founder of two funded, active startups this week- for advice and guidance.

And, I completed my final write up and am 5 pages into a traditional business plan. The business plan is my focus.
The business plan will let me talk to family seriously about start up funds. This will include domain purchase, incorporation of the business, trademark, and development costs.

If you were in my shoes... what would you do next? Do you think I am executing the right things?

A side note, I have to start freelancing to sustain bills/rent/insurance.... I start next week so now my effort will be part time.
However, I'm still confident I made the right choice quitting my job because I make 2.5x more freelancing than I did at my job... which allows me to work part time.

 

[RPagel]

I think it is awesome that you are putting yourself out there. It probably makes it more real for you and also adds some good stress to the situation. Way to go, keep it up.

 

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[Milkanic]

Since the last post, I came up with a name and through the WHOIS database, found the guy that owns it (who isn't using it). I contacted him and began negotiations. I low balled him at first ($100 haha) and he didn't even counter offer. After some correspondence back and forth the price is now at $1850, with us splitting the cost of the escrow service. It's a short, catchy, memorable name. I know it might be expensive, but a brand is worth a lot. I'll get to financing the cost in a minute.

Try to spin the name/noun through this Domain Name Maker/Brandable Name Generator - BustAName

you might be able to come up with a catchy name with an extra prefix.

 

[911Carrera]

Good luck to you man. You're 24, take all the risks you can take while you can...

 

[DangerDave]

Can I change this into a "to hell and back again, now somewhat okay" thread? Looking back...

I quit my job.

I whole heartedly explained to the owner of the company that this was the best learning experience that I could have asked for. I just needed to do my own thing. He didn't get mad, he even supported me.

When I left that night, I looked up at the cold Chicago night sky and said "This is it. This is the beginning of the rest of your life. You did it!" I was now my own boss. No schedule, no mandatory hours, no one breathing down my neck... no paycheck.

For the next three months, I haphazardly worked on my own product idea. I had some great meetings, some great ideas... but I never got anything actually built. Never tested anything with customers. I was so focused on what my mentor was saying (who was rich and careless about money.. giving me money tips... ha), making the idea/design pixel perfect, the name right, the domain bought (for 4 figures), etc that it never got built.

After three months I started to look for freelance work to pay the bills. The same week I started looking, my former employer contacted me. He respected that I was on my own, but he wanted to bring me in on a project.

That project ended up turning into ongoing work. We agreed on three days per week, for a senior level, fixed hourly rate... which ended up being much more than my take home full-time before I quit.

The freelance was great. I felt like an entrepreneur! I had guaranteed hours, worked part time, made great money, and wrote off parking, gas, a portion of my rent, and even some meals! I paid my own benefits and had a flex schedule to go golfing with my buddies (who were still in college at the time) during the week. I got a new apartment, went to my high-end gym downtown... I saw my girlfriend more... and oh yeah, I spent more money :/.

After about six months of living this life, I broke up with my girlfriend, had a hefty back tax bill... and if that wasn't enough, got hit with something else. The owner of the company could no longer keep me as a contractor. It was either go full-time like everyone else, or go find another gig. He gave me a full-time offer... take it or leave it. I accepted.

It was fantastic that I still had a job. Yet, even though I felt fortunate to have it, I felt as if I had failed. My false sense of entrepreneurship had been brought down to earth. I was still an employee. It was always dependent on ONE client, ONE relationship, and ONE company.

I put my head down and went to work.

After a few months, I was again miserable. I was back to square one. Sure, I was making more money than when I was a full-timer previously, but I was still truly working for someone else. Even if there was no work to do, I would still *have* to be there 9 hours a day in my chair at my computer with noting to do.

I began to withdraw from my coworkers, get in late, try to leave as soon as the clock struck 5:30. It got to the point where others started asking me why I seemed so depressed.

This is where I began saying, "I failed at starting a company. And failed at being happy as an employee HERE. Why don't I try to find a company doing work I'm excited about?"

It was by no means easy, but in a few months I parlayed my skills in design and found a job in Silicon Valley... working on a product and industry I am in love with. I sold all my shit, packed my tiny car with the things I still had and drove down here. Nearly doubled my pay again (even though the cost of living is higher here!) and I get to work with (and learn from) some of the brightest people I have ever met.

I still have the dream of starting my own business some day... but the moral of the story is, if you fail, keep MOVING. Strive to do your BEST in what you do. This means in the work you do for yourself, and the work you do for others.

I have in no way "made it" like some millionaires on this forum... but I can at least say I am doing the best I can with the situation at hand.

Long story short, if you are unhappy MAKE A CHANGE. The worst thing you can ever do is continue along a path you are secure yet unhappy with.

There were neigh-sayers on this forum who said I was crazy to quit my job...
If I had listened to them... where would I be today?

 

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