Is your self-worth tied to MRR?

At the end of 2020, in the height of the pandemic, I decided to leave my six-figure job and head out into the unknown as a solo indie founder.

My plan was simple.

I'd build SaaS products until something 'sticks' and rockets to the moon the way that so many other indie products have. 😆

Simple, right?

I've written previously about my motivations and why I decided to set out on this journey.

I've also written about my first product launch, Thread Creator, and how I set out to create something that I really wanted to see in the world.

What I haven't written about, however, is what happened since and what I've learnt along the way.

So with that, I'd like to share some lessons and advice for aspiring founders or those who are just a little further behind the road than I am. I'd also humbly suggest that this post is both a cautionary tale and a motivator to get out there and create something. Here goes…

Lesson 1: SaaS is a long game

I launched Thread Creator on Product Hunt almost exactly a year ago. Since then, it's kept me really busy. New users have signed up (over 4,000) and paid subscriptions have grown to over 140. Not bad right?

But, a year in and it's only now starting to become ramen profitable — an entire year after launch! And I still have a long way to go before revenue catches up to my previous salary.

Friends... SaaS products can take a while. Ever heard of "the long, slow, SaaS ramp of death"? Now you have 😉

Lesson 2: Survivorship bias is a dangerous trap

When you set out to build something, you're always going to be motivated by looking at others, and the successes that they have achieved.

Look at Pieter Levels with RemoteOK and Nomadlist or Jon Yongfook with Bannerbear. Or others that have reached $10k MRR or more. You'll be thinking: "If they can do it, then I can too!"

And you know what? You'd be right. You can do it too!

But… and this is where you should lean in and listen carefully.

Overnight success DOES NOT EXIST. It may appear that way, but these folks have often spent years working on projects and building an audience, as well as experiencing numerous failures and false starts. Pieter Levels has built something like 100 projects and only found success with 3 or 4!!

We often only see the big successes and miss what's gone on in the background.

Lesson 3: Don't be afraid to move on

Since launching Thread Creator I've also built and launched one or two other products, and very quickly found that they weren't working out.

That doesn't mean that they were bad ideas, or that if I spent more time on them they wouldn't be successful, but rather I had to decide very intentionally where to spend my time.

If something isn't working out and I'm not feeling motivated to work on it, then it's ok to stop, it's totally fine to abandon the project and move on to the next thing. Don't get stuck working on something that isn't going anywhere.

Lesson 4: Set milestones and measure them

So how do you know if a project isn't working out? My suggestion is to set out some core metrics or targets you'd like to hit before you start working on the project. These will differ depending on what your personal goals are and what the business is that you are trying to build.

Just make sure you know what success looks like in the early stages and if your gut is telling you that this isn't working out, then be ruthless and move on to the next thing.

The reason you should be so ruthless is that for most folks, time is an extremely valuable resource. You only have so much time in the day and you can't afford to spend it on something that won't work out.

Learn all that you can from your failures and then take those learnings into the next idea you have.

Lesson 5: Don't quit your job

I've written about this before, but I think it's important to highlight it again. I quit my job to become a full time indie founder, but I don't recommend this approach for most people.

Creating a thriving business is harder than it looks and especially so if you have pressures around money. Make sure you are taking care of yourself and your family first.

If you have never created a business or a product before. Do one as a side project first before taking the leap. You'll learn a ton and you'll be so much better prepared if you do eventually decide to go full time.

Ideally, your side project starts generating an income that is at least able to pay your bills before you quit your job.

Again, I didn't take this approach but I wrote about my reasoning around this, so feel free to take a look at my previous posts to learn more.

Lesson 6: Loneliness is the mind killer

One area that is less talked about by Indie Hackers and solo founders is the emotional and mental toll that this journey takes on you. It can be pretty lonely at times. Especially if you are going the solo route, and you have left your job.

I'd recommend you join communities like WIP, Makerlog, and others to make sure you are still engaging with and bouncing ideas off others.

Human interaction is so important, and the further you go on this journey, the more you will realize this.

Another suggestion… If you can, I'd recommend you work with a co-founder wherever possible. Two minds are usually better than one ;)

Lesson 7: Your self worth should not be linked to your MRR

I've watched my MRR increase slowly but steadily over the course of the year, but I've also experienced the crushing feeling of moving three steps forward and two steps back, when I see users churn in any given month.

I've noticed that the days where I feel a little down, or not quite myself, are usually the days when a user (or more than one) has churned. I find it definitely affects my morale and my motivation.

It's on those days I have to remind myself…I am NOT my MRR.

Bonus lesson: Rome wasn't built in a day

After being an Indie Hacker for more than a year, I've failed at building a multimillion dollar business, and I'm nowhere close to making the monthly recurring revenue that I'd hoped I would.

That being said, Rome wasn't built in a day and this journey is one that is filled with ups and downs. I'm so happy to be a year further along in this journey.

Choosing this path is amazingly rewarding, heartbreakingly difficult and every so often, Everest summitingly inspiring.

Here's to another year of Indie Hacking!

I hope these lessons will help inspire, motivate and educate you for own your journey. If there is anything I can do to help I'd be more than happy to.

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