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How to Win by Refusing to Quit with Tracy Osborn of Hello Web Design

Episode #029

Tracy Osborn once asked herself, "Should I learn how to code, or quit my startup?" You can guess which answer she chose, time and time again. Learn how relentless perseverance over time can help build a successful business.

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    My Main Takeaways:

    • If you want to be successful, pick any idea and work on it for 10 years.

    • Initially Tracy wanted a technical co-founder because she didn't like coding, then she fell out with her technical co-founder, and eventually decided to just teach herself how to code.

    • Tracy learned to code as she went along building her project. She learned what she needed when she needed it, then used it immediately, and learned anything else as she needed it.

    • Tracy's side-project Wedding Lovely, eventually evolved into a startup, but Tracey never expected it.

    • Tracy says she likely got her first few companies to sign up to her website for an SEO link by cold emailing companies that were served by her competitors.

    • At the start of Tracy's businesses she did things that didn't scale (like sending 100+ emails to people for each website she launched to announce it to people, generating some traffic)

    • When Tracy started her projects, she had no expectations, she wasn't expecting to make money. And then, she met someone popular for lunch (Tina Roth Eisenberg), and Tina shared Tracy's side project on her blog, and then generated Tracy lots of traffic. This was when Tracy realised that her website is useful to others and that she may be onto something. (Networking is key)

    • Tracy wasn't a big "Weddings" person, but loved design (Note: she started a sideproject-gone-startup based on wedding designs).

    • Tracy managed to get an interview with "500 Startups (an early-stage venture fund and seed accelerator)" in the early days, because she had a connection who introduced her to them. (Networking is key, again)

    • When Tracy had the opportunity to sell the company to Etsy, they offered a much lower offer than she expected, she tried to negotiate it up but they did not budge, so she had to reject it.

    • After stopping fundraising because she thought she'd be selling her company to Etsy for a good price, and having to reject the low-ball acquisition offer by Etsy, things went downhill. Her intern left, her co-founder left, her company was losing money, and it was just Tracy.

    • Tracy's didn't shut down her business, Wedding Lovely, because she didn't need to (likely since it didn't require too much too maintain), so she just let it operate in the background.

    • Tracy started a new business, Hello Web App, becuase she wanted something new (besides Wedding Lovely) to work on, and she she had ideas on how programming SHOULD be taught based on her experience with Computer Science and computers, and her experience with working in Django for the past few years on Wedding Lovely. And she also needed another way to make money.

    • Tracy's business, Wedding Lovely, was making $15-20k per year for the 5 or so years prior, and the year of this interview was on track to make $60-80k.

    • Tracy didn't have to worry about rent because she lived in a 5 bedroom house in San Jose (it was a family house). Tracy said she'd probably have to shut down wedding lovely if she had to pay rent. She also had a room mate who was paying her rent, so she got some income from that.

    • Courtland rarely hears of people Bootstrapping in Tech-Hub cities, purely because of how high the living costs are! (usually people living there get funding).

    • Tracy felt discouraged during the early life of Wedding Lovely because so many other startups launched during the life of Wedding Lovely and did exceptionally well, while Wedding Lovely was just "plodding along [and doing OKAY]". Tracy felt like shutting it down.

    • Soon, someone who had previously worked on Wedding Lovely with Tracy, came back asking if she could join again and help out. Tracy couldn't afford to pay them for full time, only part time; and this person was willing to work other jobs on the side to make it work. Tracy was earning $20k a year from this business, which she just gave to this other person in order to pay them part time, so Tracy essentially fired herself, and put that other person in charge because that person had the PASSION for the company that Tracy was lacking.

    • Tracy hired a Virtual Assistant from the Philipines and assigned one of her other part time employees to work on Wedding Lovely. Soon the business started making more money and doing even better than before. She promoted one part time employee to full time, and then even started paying herself (a little bit) again.

    • The company began doing so well that Tracy started paying her 3 employees bonuses during stellar months.

    • Tracy said her passion was reignited to being about making her 3 employees happy.

    • Tracy said her employees solve problems better than herself.

    • Tracy started writing a book because she wanted something else to work on and make money, but didn't want a job.

    • Tracy launched her book on Kickstarter, and promoted the Kickstarter campaign.

    • Kickstarter is a great way to validate an idea.

    • Tracy admits to not being an expert programmer by any means, yet she still made money both by using her limited knowledge to start a successful tech startup, and writing a book on it targeted for beginners, and written from the perspective of a beginner (herself). This was also her key differentiating advantage.

    • The main point of a company is not be the worlds best software engineer, but to build a valuable product.

    • Tracy says that: "You release a book, then you can use that to speak at conferences, and then you can use that to release more books"

    • Tracy raised $22k on Kickstarter for her Hello Web Design book.

    • Tracy says that she wishes she worked on building her email list more.

    • Tracy says that she is inspired to write a book when she can think of saying something that no one else is saying (or doing things in a way that no one else is doing).

    • Tracy's 1 tip for good design: Reduce visual clutter! (Do more with LESS)

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