Was starting a product business a mistake?

Summary

In this video, the creator reflects on the challenges and lessons learned from starting a product business, contrasting the initial optimism with the harsh realities of manufacturing. Despite setbacks and financial struggles, they express a deep passion for invention and the journey from building 'shitty robots' to developing meaningful self-improvement products. The creator shares insights into their brand 'Yore,' discusses the importance of cash flow, and candidly addresses the anxiety of uncertainty in entrepreneurship, while highlighting the rewarding nature of seeing their creations in the hands of users.

Takeaways

• 💡 The speaker emphasizes the difference between investing and losing money in a business, highlighting their ongoing commitment to their venture despite financial challenges.
• 🔧 The speaker's background includes engineering skills and access to free marketing through their YouTube channel, which they leveraged in their product business.
• 🚀 The speaker's initial internet fame came from creating 'shitty robots', which they monetized to pay for their house, showing the potential of unconventional ideas.
• 🔄 The speaker discusses the limitations of an influencer business, such as the stress and the challenge of scaling without compromising personal life or becoming excessively famous.
• 💡 The idea for a secondary business came after a health scare, leading to the creation of a calendar to track meditation habits, which was later turned into a product.
• 🎯 The speaker's brand, Yore, aims to be humorous without being silly and premium without being pretentious, reflecting a careful balance in brand identity.
• 💼 The speaker has not raised external capital for Yore, choosing to self-fund the business to maintain full ownership and avoid external pressures.
• 💰 The speaker discusses the financial realities of running a product business, including upfront costs for product development and the importance of cash flow management.
• 🛍️ The speaker mentions the strategy of using pre-orders to manage cash flow and reduce financial risk, acknowledging the need to adjust prices for profitability.
• 📈 Despite the challenges and financial investments, the speaker expresses a deep passion for creating and manufacturing products, viewing it as a fulfilling career.
• 🏆 The speaker's ultimate goal is to continue creating and selling products they are proud of, aiming for a sustainable business that aligns with their personal values and ambitions.

Q & A

What is the main difference between 'losing money' and 'investing money' in a business according to the speaker?

The speaker differentiates 'losing money' as giving up on a business, whereas 'investing money' implies a continued commitment and effort to make the business successful.

What was the speaker's initial optimism about starting a product business based on?

The speaker was optimistic due to their ambition, having homebrew engineering skills, and access to free marketing through their YouTube channel.

What is the name of the video series the speaker plans to create about their manufacturing lessons?

The video series is called 'Manufacturing Simone1 Sim11'.

How did the speaker gain internet fame in 2015?

The speaker gained internet fame for building 'shitty robots', which led to starting a YouTube channel and turning it into a career.

What was the longevity issue the speaker was concerned about in their influencer business?

The speaker was concerned about the sustainability of the 'shitty robots' joke and the potential for it to become stale over time.

What are the two ways the speaker identifies to grow an influencer business and why are they not interested in pursuing them?

The two ways are producing more content and becoming more famous. The speaker is not interested because they value a good life and do not want fame for its own sake.

What was the turning point for the speaker that led to the creation of a secondary business?

The turning point was the speaker's brain tumor, which made them realize the importance of not having everything hinge on their health and ability to be in front of a camera.

What is the name of the product the speaker created to help track meditation habits?

The speaker created a calendar with mechanical switches to track meditation habits.

How did the speaker's Kickstarter campaign for the calendar perform?

The Kickstarter campaign was successful, raising almost $600,000, although the speaker still lost money on the project.

What is the name of the speaker's product business and what does it represent?

The business is called 'Yore', representing a brand that is funny but not silly, and has a premium feel without being pretentious.

What is the main challenge the speaker faces in running their product business according to the script?

The main challenge is managing cash flow, especially the costs associated with developing new products and maintaining stock without sufficient sales to cover expenses.

What is the speaker's attitude towards the price of their products and why do they feel conflicted about it?

The speaker feels conflicted about the price of their products because they believe in setting prices according to what they think customers should pay, rather than what is needed for the business to be profitable, leading to a sense of shame about asking for money for something they made.

What is the primary reason the speaker is still investing money into their business despite the challenges?

The speaker is still investing because they love the process of creating new ideas, manufacturing them, and seeing them used and loved by people, which represents the work life they want to live.

What is the speaker's ultimate goal with their product business?

The ultimate goal is to make enough money to continue doing what they love—creating and manufacturing products—forever.