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One concept from @pjrvs book that stuck with me is “Minimum Viable Profit”/MVPr. What is the minimum amount of profit each month/year that you need to be able to go full-time on your thing? The lower the better of course.
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Last year, @hostifi_net was starting to grow nicely each month and for the first time I started to think about the hard decision I would have to make someday - to leave the comfort of a job I enjoyed, working remotely as a Security Analyst, with benefits, making $95k+/yr.
I decided that it would only make sense financially to quit my job if @hostifi_net grew to around $200k/yr revenue. I came to that number because I felt that would be basically equivalent to my current income after calculating 70% is profit ($140k), minus healthcare and biz tax.
But when I was fired from my job in January of this year, HostiFi was only at around $28k/yr revenue... far from my ideal $200k.
Rather than applying to new jobs, I decided to dramatically reduce my MVPr by scaling back expenses:
Since going full-time in January, revenue has doubled from $28k to $63k/yr! It’s hard to say if that would have happened if I was still only working part-time on it, but I think full-time commitment helped give customers more confidence in my products.
$63k/yr revenue is still far from my ideal $200k revenue, but I’ve reduced my expenses to the point that this is now sustainable for me without requiring my attention to be split with a job. It’s my new MVPr!
A couple lessons learned:
1. By having a high MVPr ($200k ARR), I was setting up to fail. It’s hard to say if I could get there with only part-time focus
2. Having a day job that makes good money that I didn’t didn’t hate was actually a mental disadvantage in some ways
1. By having a high MVPr ($200k ARR), I was setting up to fail. It’s hard to say if I could get there with only part-time focus
2. Having a day job that makes good money that I didn’t didn’t hate was actually a mental disadvantage in some ways
