Thread by @micahjay1

Over the last month I’ve had the odd experience of talking to a few founders who have built profitable businesses with double digit millions in revenue and they were… bummed out. It surprised me that profit (when coupled with slowing growth) could be seen as a crisis. 1/15

On one level, I understand where these founders are coming from. Once a startup goes from “hyper growth future unicorn” to solid, profitable business...
🏔️ Recruiting becomes harder and different
😊 VCs no longer fawn over you
🤔 Founders may start to doubt themselves 2/15

Founders who have been at it awhile may be worn out. Often, these startups have been around for a while and have had to hustle like crazy to get to the point of sustainability. Perhaps its gone from excitement to despair to something quite in the middle. 3/15

It’s unfortunate that these founders feel this way. Anyone who has built a startup to a seven or eight-figure revenue run rate, and is no longer beholden to VCs should feel ecstatic! It is a bracing reminder of how deeply the “Go big or go home” ethos pervades startups. 4/15

It’s a major achievement that places the founder in an exclusive club! Many great companies were built as profitable businesses over decades, yes decades! Still, the frustration is real. Here are some broad themes to think through if you find yourself in this state. 5/15

📏 Don’t fixate on your peers: Failing to scale a billion-dollar startup isn’t a failure. Not being invited to speak at TechCrunch Disrupt doesn’t invalidate your effort. There’s always going to be another startup that’s doing better — don’t let it bother you. 6/15

🗺️ Make a plan with your investors: Is there a bold new vision to get growth started again? Are you losing share to a more aggressive startup? Spend time making a plan for the next phase of the company. No matter what, don’t get stuck in limbo. 7/15

🏦 Buy out your VCs: If you like the business, but are misaligned with your VCs, consider finding a way to buy them out. Maybe you can agree on some fixed sum, e.g. modest X their capital. VCs aren’t always in favor of this, but it’s worth a shot. 8/15

💸 Sell out: If you're totally burnt out, consider selling. Sure the multiple won’t be as big as it might have been, but hopefully, you can cash out enough to set up your next adventure. There’s no shame in a $100M startup!

techcrunch.com/2017/05/16/the… 9/15

🙏 Take care of the team: If an exit feels far off, talk to your board about bonuses for the team, and raises, if they’re making below market salaries. Recruiting and retaining talent is going to get much harder — so work hard to keep the current team happy. 10/15

👑 Treat yourself: You may not have enough cash to buy a townhouse with views of the Brooklyn Bridge or a private jet, but consider a splurge — a dream vacation, a new car, etc. to mark the milestone of startup sustainability. Also, revisit your salary vs. market comps. 11/15

⚾️ Play the long game: Compounding growth is a powerful force. Maybe your sector will be in vogue in a few years. Maybe you’ll hit on a powerful new sales channel. Maybe this is your life’s work and you’ve built a lasting franchise instead of a quick flip. 12/15

👛 Focus on profitability: If there are levers you can pull to increase profitability, work like crazy to maximize them. Even single-percentage point improvements can free up cash flow to reinvest in growth and reinvigorate the company’s trajectory. 13/15

㊙️ Start a “skunk works” project: Find a couple employees and set aside $100K to run a startup within your startup. It’ll keep your entrepreneurial energy flowing and may unlock a new growth vector for the company. 14/15

This is the point in your career where the “Founder” title starts to take a back seat to “CEO” role. Take pride in all you’ve accomplished, recharge your batteries, and get ready for the next phase of your company’s life — there’s so much left to do! end/15