The Minimalist Entrepreneur: How Great Founders Do More with Less

You don’t learn, then start. You start, then learn.

Narrow down who your ideal customer is. Narrow until you can narrow no more. Define exactly what pain point you are solving for them, and how much they will pay you to solve it. Set a hard deadline and focus fully on building a solution, then charge for it. Repeat the process until you’ve found a product that works, then scale a business around it.

The most profound thing I have learned running a company has been the difference between behavior and intention. Behavior is what someone is doing; intention is why they’re doing it. Most people judge themselves based on their own intentions but then judge others based on their behavior.

Launch to Celebrate A launch is a stepping-stone. A thing that happens when your business already has customers, is doing well, and is going to last. Many companies go out of business within the first year. Why make a big deal out of a business before you’re sure it’ll stick around? Instead, build a successful business and “launch” as a celebration of your success. Spend your business’s profits on it, not your own money. Better yet, celebrate your customers’ success. I think celebrating a milestone is a great excuse to launch. What about having successfully sold to a hundred customers? Once you’re running a growing, profitable business with a hundred customers who love you and whom you care about, you can celebrate them—by launching. Throw a party. Invite all of your customers and thank them for their ongoing support. Do that, and you’ll have customers lining up at your door. They’ll be people you already know, and who know you. Some of them will bring their own friends and families and maybe even members of their own communities too. They may even help promote your event before it happens because you’ve told them about it and they’re excited about supporting you. Plus, they can actually speak to others about how great your product is and how much better it has made their life. Your customers may be even better salespeople than you are. Good—there’s more of them than there are of you! Or perhaps you decide you don’t need to launch at all. That’s fine too. But entrepreneurship can be lonely, and it can be a good excuse to rally—and reward—your community for helping you get this far. Once you have a hundred customers, some of them now repeat customers, selling your product better than you can, you’re ready to move on to the next chapter of your business: marketing.

build the house you want to live in You can dream, create, design and build the most wonderful place in the world . . . but it requires people to make the dream a reality. —Walt Disney

Hire software, not humans. People are expensive. Software is not, usually because a lot of it is VC-subsidized in the name of growth. Take advantage of this by using Pilot or Bench instead of hiring an accountant or a CFO. Use Gusto to run payroll and benefits in five minutes. Because you are putting off hiring, you will also save money on all of the people-managing roles in your company, like an HR person and an office manager (see below). You may be surprised how far you can get with cheap software tools. For example, you can hire a human being to follow up with new customers every time someone signs up for your service or you can use automation tools like Zapier to send a follow-up email and to add those new customers to a queue to call later.

Ultimately, you should be trying to minimize your business’s burn, but also remember that the goal here is to provide yourself enough of an income to be able to focus on what matters: helping your customers solve their problems.

A lot of people interested in those things will still not be interested in buying your product or service. A lot of people who like ice cream won’t buy your ice cream. They may be dairy-free, or only eat ice cream on date nights, or they may like looking at ice cream more than they wish to actually eat it. Or perhaps they used to eat ice cream every day and now they’re repenting for it. Who knows? You certainly don’t. But somebody (spoiler: Facebook) does. You don’t need a whole marketing department, you just need a Facebook account. With their help, you can compete with the world’s largest brands in just a few hours a week.

market by being you Marketing is really just about sharing your passion. —Michael Hyatt

passion economy”—“a world in which people are able to do what they love for a living and to have a more fulfilling and purposeful life.

In 2012, President Obama signed the JOBS Act into law. This bill, among many other things, included the ability for private companies like Gumroad to sell shares to the general public, making it possible for almost anyone to invest in the business. On March 15, 2021, the legal limit for regulation crowdfunding went from $1.07 million to $5 million. These new rules also allow for “testing the waters,” allowing companies like Gumroad to see how much demand there is to invest in the company before committing to a crowdfunding campaign. I believe that crowdfunding will reorganize the funding landscape. There will always be a place for venture capitalists, but who better to fund a business than its customers, who understand how valuable its offering is? And once founders can vet demand before committing, we should see the numbers skyrocket. In the old way, the number one downside of raising money was that you created two distinct sets of stakeholders: your investors and your customers. This new practice will allow entrepreneurs to minimize complexity by turning customers into investors. All of a sudden, you have a single group of people you are serving: your community. I can speak from experience: On March 15, 2021, I used Regulation Crowdfunding to allow some of Gumroad’s creators to become part-owners. In 12 hours, we raised $5 million from more than 7,000 individual investors. Now we have thousands of our creators as our investors too, keeping our interests more cleanly aligned. For the businesses that neither need to bootstrap completely nor want to go the venture-backed path, I’m hopeful that Regulation Crowdfunding will offer a middle ground. But the ultimate long-term goal remains profitability (read: sustainability). Once you’re in control of your destiny, you should never let it go.

Community First Community is a fundamental societal unit. From Sol’s r/Fitness subreddit to yoga classes to family to the group of friends we game with in the middle of the night, communities are a place where we can connect, learn, and have fun. For minimalist entrepreneurs, communities are the starting point of any successful enterprise. That doesn’t mean you should run out and find a community to join just for the purpose of starting a business. It means that most businesses fail because they aren’t built with a particular group of people in mind. Often, the ones that succeed do so because they’re focused on a community that a founder knows well. That process can’t be rushed because it comes from authentic relationships and a willingness to serve, both of which take time to uncover and develop. You may even have to learn a new language—or at least some insider lingo. Communities used to be limited by geography, but it’s never been easier to connect to people with whom you share something in common, whether it be an interest, a favorite artist, or a belief system. But a community isn’t a group of people who all think, act, look, or behave the same. That’s a cult. A community is the opposite. That’s what I discovered when I moved from San Francisco to Provo and got out of the Silicon Valley bubble. For one of the first times in my life, I saw that the best communities are made up of individuals who might be otherwise dissimilar but who have shared interests, values, and abilities. It’s a group of people who would likely never hang out with each other in any other situational context, and it often encompasses virtually every identity, including, yes, politics.

There are only four different types of utility: place utility, form utility, time utility, and possession utility. What can you make easier to understand, faster to get, cheaper to buy, or more accessible to others?

Chances are, if you’ve learned something, there’s probably a good portion of your community that would find value in learning that same thing from you, even if you aren’t the world’s leading authority on the subject. And if you’re regularly learning, then you’ll always have regular content to contribute to the community. This can become a nice flywheel over time, as teaching often becomes the best way to drive your own curiosity and inspiration to learn more yourself. And when you learn publicly, your students will have questions that force you to learn even more stuff to teach them. You don’t have to teach everything you learn. In fact, a narrower core focus can be better. For example, Patrick McKenzie, a writer, entrepreneur, and software business expert who is best known for a 2012 post on salary negotiation that has since become a cult classic in the software engineering space, believes that the best personal brands exist at the intersection of two topics. He now works for Stripe, where he continues to write and advise software engineers and software entrepreneurs about how to start and scale their businesses, speaking from real experience as a creator and business owner himself. If you’re learning every day, which you probably are, you’ll have something to share every day. Meanwhile, you’ll build your skills and experience, learn to speak the language, and grow your community, all essential ingredients when you eventually have a product you are ready to sell. Unfortunately, as you probably already know, there are no shortcuts. As you think about what you’re creating now and how that might lead to a business in the future, look to the communities you’re already a part of. You’ve invested time and energy there, so perhaps you already have an idea of how to proceed. If you don’t, keep going, and continue using your time to get strong, to learn how to paint, to learn how to code, to learn how to write, or to learn whatever else you are into, teaching what you’re learning along the way.

If you’re struggling here (many do), some Economics 101 may help. There are only four different types of utility: place utility, form utility, time utility, and possession utility. What can you make easier to understand, faster to get, cheaper to buy, or more accessible to others? Place utility: Make something inaccessible accessible Form utility: Make something more valuable by rearranging existing parts Time utility: Make something slow go fast Possession utility: Remove a middleman

Key Takeaways It’s the community that leads you to the problem, which leads you to the product, which leads you to your business. Once you’ve found community-you fit, start contributing with the intention of becoming a pillar in that community. Pick the right problem (it’s probably one you have), and confirm that others have it. Then confirm you have business-you fit too. When in doubt, always go back to the community. They will help you keep going and ultimately succeed.

Tope Awotona, founder of Calendly, started three very different companies for three completely different communities before eventually building the scheduling software business in 2013. In 2020, Calendly posted nearly $70 million in annual recurring revenue, more than double its 2019 figure. But Awotona’s first company was a dating app that never really got off the ground. The second was projectorspot.com, which sold (obviously) projectors, but sales were poor and margins small. He tried again with a third startup, selling grills, but as he says, “I didn’t know anything about grills and I didn’t want to! I lived in an apartment, and never even grilled.” Not only was he not part of the grilling community, but he didn’t even want to be! He took a different approach to building Calendly. He had been a sales rep earlier in his career, and he knew the hassle of sending multiple emails to schedule meetings. He had even run into the scheduling problem while trying to sell his own products as an entrepreneur. As time went on and his other ideas failed to gain traction, he saw a gap in the marketplace and resolved to address it for the community of sales reps he cared about and understood. He says that “the journey to creating something that’s impactful, something that serves people, something that you know people are willing to open up their wallets and pay for—is not something that you can do just for money.” While lots of people have scheduling fatigue, Awotona focused on problems specific to sales reps, which helped him define a problem he could both solve and monetize. What does that mean for you? First, get involved in those communities wherever they are, offline and online. Then, contribute, teach, and, most important, listen. Finally, use the filters above to make sure you are picking the right community to serve. Then, your problem becomes: Which problem should I pick?

Schmidt started 2012 with new, modern packaging for the deodorant, which was designed to set it apart from the competition. She looked beyond the direct-to-consumer sales channels and the natural and wellness retailers that her competitors used almost exclusively; in 2015, she expanded into traditional grocery stores and pharmacies, which allowed her to reach more customers and to enable greater access to healthy natural products. Her creativity, innovation, and hard work paid off. Schmidt earned appearances on Fox News and The Today Show; mentions on social media from celebrities and influencers; articles in national publications; and distribution on the shelves of Target and Walmart. Though it was bittersweet, Jaime realized that a larger company with more resources could bring her vision and mission to an even wider customer base, and she signed the deal with Unilever right before Christmas 2017. Reflecting on her journey, she says, “When I’m asked about what made Schmidt’s so successful, I often say that my customers were my business plan. It started when I listened to those at the farmer’s market, and it continued through each step of growth. Staying hyper-tuned-in to my customers always guided and served me.” Not sales. Not marketing. Customers, educating, and being educated.

What started as a blog in 2015 about her personal passion has become Blossom and Root, a business that employs dozens of people and helps thousands of families every month.

Once you’re regularly cultivating relationships by contributing to the conversation, the time will come when you’re ready to go further and educate others. But what will you say and how will you engage the people you’ve come to know and respect in your community? It’s all about creating value and can all be summed up by three signs Nathan Barry, the founder of ConvertKit, which provides email marketing for creators, has hanging in his office. They read: “Work in Public” “Teach Everything You Know” “Create Every Day

Picking the Right Problem to Solve The late Clayton Christensen described picking the right problem to solve as an opportunity to help customers achieve what they hope to achieve in a particular moment. “What [great companies] really need to home in on,” he wrote in a 2016 article for Harvard Business Review, “is the progress that the customer is trying to make in a given circumstance—what the customer hopes to accomplish: the job to be done.

Don’t get an office. I believed this pre-pandemic, and I, and millions of other people who weren’t already convinced, believe it now. An office creates an insane amount of associated costs. Plus, you now have to manage an office. Unless you really need one, avoid it. (You can get one later if you really want it as a reward for building a meaningful, sustainable business.)

Drs. John and Julie Gottman, well-known couples therapists, say they can predict the end of relationships using “The Four Horsemen of the Apocalypse,” their name for four types of communication styles that start to appear in a relationship: (1) criticism, (2) contempt, (3) defensiveness, and (4) stonewalling.

You don’t have to blog four times a week if a monthly newsletter with meaningful content is what you can manage and is more suited to your business. As with social media, experiment with how best to use your email list. If you send something out and readers unsubscribe en masse, don’t do that again. But if you offer your knowledge, your insights, your experience, and a discount, and you see a response, do that over and over.

I was accidentally at the forefront of a movement that was taking shape—what Li Jin, former partner at Andreessen Horowitz and founder of Atelier Ventures, calls the “passion economy”—“a world in which people are able to do what they love for a living and to have a more fulfilling and purposeful life.” At the time I created Gumroad, online creator platforms were still new, but the rise of no-code solutions has made building and charging for podcasts, video and audio content, online courses, virtual teaching, and virtual coaching almost seamless, so that starting a business around something you love has never been more attainable. You probably have something you enjoy, something that on its face has nothing to do with your “real” job. Maybe it’s marathon running or ceramics or electronic music or another passion that you pursue in your free time. Whatever it is, building a minimalist business around the people you love to spend time with and the ways you love to spend your time depends on being part of a community. You may already be thinking about how to solve the problems of a current community you participate in, or you may simply be planning to join a community based on something you love. Either way, finding your people is really important at the beginning. Not just for the sake of your business but also for the sake of your own well-being. Taking writing and painting classes in Provo reminded me that my community wasn’t just the people in front of me; it was also a wider group who wanted, like me, to “turn their passions into livelihoods.” The real communities I was a part of didn’t care about growth at all costs; that kind of accelerated expansion would have cracked them into a million little pieces. Instead, their priority, like mine, was connecting to each other in ways that allowed for the space, time, and freedom to explore their interests and to eventually transform their passions into businesses in meaningful ways.

For example, if you are building a software business, you can visit Makerpad.co and learn how to connect Gumroad and Carrd to accept orders on your website without writing a single line of code. And when you are ready to automate your manual fulfillment process, it will teach you how to add Airtable and Google Forms and Mailchimp. There are products like Notion, which we use to run our entire company. And there are services like Zapier, which allow you to automate the connections between all the software you use. Seriously, check out Makerpad. You’ll be surprised how much you can build without writing a single line of code.

Constraints Lead to Creativity If you’re a minimalist entrepreneur, the early stages are all about constraints. Now that you’re productizing, you have to add in more limits. In addition to your product doing just one thing (at first), there are other ways to control the temptation to try to do everything at once . . . or to try to do it perfectly. I ask myself four questions every time I want to build something new: Can I ship it in a weekend? The first iteration of most solutions can and should be prototyped in two to three days. Is it making my customers lives a little better? Is a customer willing to pay me for it? It’s important for the business to be profitable from day one, so creating something valuable enough for people to pay for is key. Can I get feedback quickly? Make sure that you’re building a product for people who can let you know if you’re doing a good job or not. The faster you get feedback, the faster you’ll build something truly valuable and worth paying for.

Think about the following before you team up for the long haul: Do not start a relationship with someone unless you really, really trust them. Do introduce vesting so that each of you earns your stock over several years. Do make sure you are aligned on your values, what you want to build, and how you want to build it. Do not ignore the possibility that one of you may leave. Plan for what a successful exit from the business may look like. Do have the hard conversations as early as you possibly can. Just like there’s no point in dating someone for five years before you figure out if they want what you want, early in any serious professional relationship, it is important to explore and understand each other’s values and ambitions. Because hard conversations get harder the longer you wait to have them. Here are some questions worth asking your potential partners: What does a happy relationship look like? What does success for this business look like? What does an exit look like? How fast do we want to grow? Why are we starting this together? Have these hard conversations again and again. Think about specific check-ins to reevaluate these goals so that disagreements don’t fester silently, and make sure that whatever path you plan on taking, you’re on the same page about

On the internet, they say, 1 percent create, 9 percent contribute, and 90 percent consume.

Like me, Ryan doesn’t believe that founders should start with code. “Do shitty work people love at first,” he says. As more and more infrastructure gets built by new businesses (including, perhaps, the one you’re working on now), it is getting cheaper, faster, and more accessible to build an MVP without code. What that means is that you shouldn’t wait until tomorrow to get started. The lower the barriers to entry, the more competition you will have.