Growing and selling an indie business | Michael Lynch (TinyPilot)

Growing and selling an indie business | Michael Lynch (TinyPilot)

Author: Ronak Nathani, Guang Yang July 9, 2024 Duration: 1:40:18

Having quit Google in 2018 to bootstrap indie software businesses, Michael is known for writing very transparently about the ups and downs of his journey. After recently selling his hardware business TinyPilot for $600K, Michael returns to the show to chat about the misconceptions about running an indie business, the hardest part of selling a company, and why "hardware is definitely out" for his next move 😂

Segments:
(00:04:22) The complexity of selling a hardware business
(00:08:49) Why "hardware is definitely out" for Michael's next venture
(00:11:57) The evolution of TinyPilot
(00:16:29) Inherent risks of a hardware business
(00:20:53) The most terrifying 10 minutes of 2023
(00:24:52) The pricing strategy
(00:31:48) Building the team
(00:35:32) Recognizing the limits of solo founders
(00:37:22) What and how to outsource?
(00:42:45) Tracking hours and managing expectations
(00:46:50) High-level math and profit projections
(00:52:17) Working with contract manufacturers
(00:54:12) How to know when to delegate?
(00:58:16) Misconceptions about running an indie business
(01:03:56) The importance of value capture
(01:09:26) Identity and purpose after selling a business
(01:13:40) How Michael arrived at the decision to sell the business
(01:17:53) The process of figuring out the price
(01:20:36) Negotiation and the final sale
(01:25:09) Why due diligence was so stressful
(01:30:09) The importance of buyer fit
(01:34:16) Michael's new course "Hit the Front Page of Hacker News"
(01:35:17) The power of "Show, don't tell"
(01:38:14) Sneak peek of the course

Show Notes:
- Michael's blog post on the process of selling TinyPilot: https://mtlynch.io/i-sold-tinypilot/
- Michael's excellent monthly retrospectives on building TinyPilot and beyond: https://mtlynch.io/retrospectives/
- Hit the front page of hacker news: https://mtlynch.io/notes/htfp-live/

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Music: Vlad Gluschenko — Forest License: Creative Commons Attribution 3.0 Unported: https://creativecommons.org/licenses/by/3.0/deed.en


Behind every line of code, there's a person with a story, and that's where Software Misadventures finds its pulse. Hosts Ronak Nathani and Guang Yang pull up a chair with engineers, founders, and investors, but the conversation rarely stays in the technical manual. Instead, it wanders into the human territory of career detours, hard-won insights, and those unpredictable stumbles that often teach the most. This podcast is built on the idea that the journey is just as important as the destination, especially in the fast-moving tech world. You'll hear guests recount the projects that went sideways, the decisions they'd rethink, and the moments of clarity that emerged from the chaos. It’s a refreshingly honest look at the industry, emphasizing that expertise isn't just about what you build, but what you learn when things don't go as planned. Tune in for conversations that are less about perfect solutions and more about the real, sometimes messy, process of creating with technology. Each episode offers a blend of professional wisdom and personal narrative, making it a compelling listen for anyone curious about the lives woven into our digital landscape.
Author: Language: English Episodes: 55

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