# Podcast Notes: Minimal Empires > My podcast notes from Minimal Empires podcast, covering topics like SaaS, finding ideas, motivation, business structures, goal-setting, and more. Published: 2023-08-19 Tags: podcast Canonical: https://wempe.dev/blog/podcast-notes-minimal-empires Cover: https://wempe.dev/blog-assets/podcast-notes-minimal-empires/images/be1eb663-95a1-4e4c-a020-0016709134c5.png > [!WARNING] > I will update this post if I have notes for new episodes. By [Sumit Kumar](https://twitter.com/TweetsOfSumit) who is the founder of [Parqet](https://www.parqet.com/) and has previously worked at Stripe. > Today, all it takes is the internet to build a business empire that completely changes our lives - we just have to > open our laptops and get started - That's what the Minimal Empires Podcast is all about. Whether you're an indie > hacker, startup founder with investors, solo entrepreneur, bootstrapper, or side hustler - Minimal Empires helps > founders with idea and co-founder discovery, business model validation, company formation, scaling, and exit by > sharing experiences and learnings from successful founders. Each episode is packed with valuable tips. > > Good luck with your venture! (Translated with Hashnode AI) > [!NOTE] > It is a German podcast 🇩🇪 ## Links - Podcast on [Spotify](https://open.spotify.com/show/5H4jUOFZF1WModDrlqPODt?si=0ecff99dfa4b4f46), on [Apple Podcasts](https://podcasts.apple.com/de/podcast/minimal-empires/id1652216757) - [Minimal Empires Community](https://community.minimalempires.de/c/podcast) - [YouTube channel](https://www.youtube.com/playlist?list=PLqk0x9Ni4YFeU-h9zf-9blIXOs4UZnl7I) ## My Notes ### E2 – How do I find an idea for founding, bootstrapping, or as a side hustle? - Find a small niche that offers a large "piece of the cake" - For example, Plausible, Fathom, etc. vs. Google Analytics -> Privacy, Simplicity - Narrow down the niche, e.g., by geography, age, occupation, language, etc - Ultra-small niche can be expanded later - Helpful: Be part of the niche yourself (In which "bubble" / scene am I?) - What do people complain about? What are the pain points? - Book recommendations: The Millionaire Fastlane, The Great Rat-Race Escape - Definitely take your partner on the entrepreneurship journey - Why do I want this? What do I imagine? **Some Ideas** - Website for sending faxes (including API) - Content: Expert in something (e.g., software: Linear, Supabase, Auth0, ... or hardware: vacuum cleaner, stove, keyboard) -> produce content and SEO affiliate and/or advertising - Analytics for registered users (auth provider; dashboard): - When do users log in? How often? How long? Retention? Devices? Which login is used? - Camera that streams a 24/7 food bowl (e.g., squirrel or bird) on Twitch, every tip = dispense food ### E3 – Don't start a side hustle without considering this! - How much revenue do I need to make to work full time on my project? How many customers do I need at what price? ### **E5 –** 12 Startups and How They Can Get Their First Customer | B2B | B2C (other "Indie Hackers") | | ------------------------------------ | ----------------------------------- | | "we" | "I" | | professional | personal, sympathetic | | do not want to be the first customer | want to support other Indie Hackers | - Niche first, then expand - Focus on one social channel - Where do the users hang out? Reddit? Twitter? Be active, build a reputation, don't sell directly - Start with free, feedback is everything, make calls: "How are you currently doing it?", "What are your pain points?", Book: Mom Test - Make a focused landing page, demos, GIFs, demo-account - Exposure: post on Twitter, GIFs, using the tool, etc. ### **E6 –** Motivation: Stay motivated and keep motivating - Where do I want to go? Work backward from the goal so I know what it's for - Have a "compass"; not aimlessly in one direction - What would my ideal daily routine look like if money wasn't an issue? - If you enjoy the journey, you can achieve a lot. Reaching the goal gives a dopamine boost but quickly drops off; don't celebrate achieving goals too much ### E7 – Tips and methods for maximizing revenue - Take the price you had in mind and double or triple it; people tend to lean towards pricing too low. - No more than 3 tiers. - Price the highest tier very high, so the middle one seems affordable (somewhat contradicts the popcorn pricing model in movie theaters). > [!WARNING] > This somehow contradicts the popcorn pricing model in cinemas: Pricing the high tier close to the middle tier so > that everybody thinks the top tier is a good deal because it is only slightly more expensive. - Experienced a significant revenue boost when prices were removed from the website (B2B); could set individual prices and adjust them constantly. - Never offer "unlimited" of anything; it takes away the possibility of introducing higher tiers or add-ons. - Better to be a boutique with fewer customers and higher prices; less effort for support, etc., and generally less stressful customers. - Recommendation: [Designing the Ideal Bootstrapped Business with Jason Cohen](https://www.youtube.com/watch?v=otbnC2zE2rw) ### **E8 –** Taking calculated risks as a small business owner - There are many legal "hurdles" - Not fulfilling everything from the beginning (e.g., cookie banner or correct legal notice/privacy policy); it's pointless if there are no customers yet; but it's a consciously taken risk - These things are on the to-do list but don't have a high priority ### E9 – This is how bootstrappers survive and thrive despite recession - Build cash reserves; save costs - Invest in marketing to attract customers - Reduce or stop discounts, as these customers often leave quickly, which is especially undesirable during a recession - Additional revenue streams - Increase prices ### E10 - Which business structure is suitable? My thoughts and my legal setup - Sumit has a Holding (UG) & Incubator (UG) & Parquet (GmbH) [![Diagram of a holding structure (UG) with a company (GmbH) and an incubator (UG) below it. Investments are made in the holding.](https://wempe.dev/blog-assets/podcast-notes-minimal-empires/images/1f2f022d-d45c-4355-8a7f-4b8a64b83ce0.png)](https://whimsical.com/sk-legal-setup-9VZzEHVHNPantuxTMn6ncm?auto=format,compress&w=800&fit=fillmax) - Exit the incubator in a timely manner, as otherwise, there will be high taxes (if approaching 10,000 EUR per month) or restructure the incubator and create a new one - Holding also has real estate, investments, shares, etc. - Real estate: The company can also buy property (can be purchased from the company's gross income) and rent it out cheaply (about 30% below market) to the owner - GmbH for the company when partnerships are important (reputation); with Parquet: with banks - Sumit would always go directly for UG instead of GbR if serious - Holding structure is only worthwhile if serious and initially comes with costs (e.g., for tax consultants) - If planning to emigrate, a different setup is better (with GmbH & Co. KG) - YouTube recommendation: [Warum die DOPPELTE HOLDING die beste Rechtsform ist! Steuerberater Christoph Juhn](https://www.youtube.com/watch?v=OmRd506tPK0) (the channel in general) ### **E11 –** How I set personal and business goals + my 2023 goals **Personal** - lifetime goals, have North Stars - "shoot for the stars and reach the moon" (not necessarily for habits) - build habits - start small, e.g. create time and go to bed early before a huge morning routine, or go to the gym first instead of training for 1 hour 5x a week right away - when the habit is established - already "on-track" - maybe more challenges, e.g. 200kg deadlift, or running a marathon etc. **Business** - not directly targeting revenue or profit - can favor bad decisions - Goals that favor good decisions and indirectly lead to profit, e.g. number of customers ### E14 – 6 Reasons Why You Haven't Started Your Business Yet **1) Legal hurdles: Register trademark? Start a company?** - First focus on initial customers - Some legal things can be focused on later (e.g. cookie banner) - A corporation can be backdated (but invoices already issued) - Just get started **2) Imposter: Me/Product not enough** - It's good enough for someone; it doesn't have to be the best - Big-Bang a la Apple products not good for bootstrappers; start imperfectly **3) Fear that idea will be stolen** - The idea on its own has no value, execution matters - Hundreds of others probably have the same idea; but who implements it? - Don't be afraid of building in public **4) Can't build the product / I lack a skill** - No money yet to hire a developer or similar - 2 options: - Learn it yourself - Co-Founder - 2 important skills needed: Tech + Sales/Marketing **5) Have many ideas & can't decide** - Possibly test 12 startups in 12 months or similar; ideas with product-market fit will emerge - Again: Idea has no value without execution - Just start with one **6) Don't know if anyone would buy it / if the idea makes sense** - Validate product beforehand - Book "The Mom Test" - Don't ask friends & family if the idea is good - The best validation is payment data; possibly collect payment data on a landing page until enough is available and then start - Instead of asking if the idea is good / makes sense, ask questions about the problems to be able to offer a better solution ### E15 – Open Startup: Advantages, Disadvantages - is the era over? **Open Startup:** Sharing company metrics openly (e.g. revenue, profit, churn, MRR, employee salaries, etc. etc.). Not everything needs to be published; for example, Parqet does not publish churn. Example company: [Ghost](https://ghost.org/open/) **Advantages** - Trust - Accountability - Community - Content **Disadvantages** - Encouragement for copy-cats & competitors - Insights that competitors can use - With poor numbers: harmful to trust TLDR; Advantages outweigh disadvantages, especially in the beginning. Eventually, disadvantages increase and advantages decrease. ### **E16 –** Successful Side-Hustle: Time Management Strategies for Entrepreneurs - Know your "Why": Extra income? A salary increase would be easier. As a first step into full-time business? What should your ideal day look like? - Get your partner on board; partner must know the "Why". There will be sacrifices (in relationships, etc.) to start/grow the side hustle. - Use the time when you have energy and leave the employer "the rest"; better to hustle before work rather than after with the remaining energy. - Where does the time come from? - Reduce consumption time; possibly go to bed earlier if unproductive in the evenings and then get up earlier. ### **E17 –** Top Business Models for Solopreneurs or Solo-Founders - It doesn't have to scale exclusively through time; not 10x income through 10x time; there's a limit - B2C is more difficult than B2B, as customer support can consume a lot of time - boutique more suitable than cheap - Suitable: content (newsletter, YouTube, blog), affiliate, SaaS, plugins (e.g. WordPress, Shopify, etc.)