And they run heavily encrypted firmware, so you have no idea what is actually happening. There is so much CPU power in those things it puts your cell phone to shame and a lot more sensors to boot. Some models have 8 onboard cameras.
That's excellent by any metric. Most larger successful companies have a very hard time consistently breaking the 200K / employee / year turnover level and this is 2.5 times that. On top of that they are indestructible, with that much left on the table a couple of years of solid saving and you can start thinking about much larger projects, and still without outside financing.
10 years is long and if we take the revenues as linearly changing over time and the costs growing roughly linear along with it then years two and three must have been quite difficult, expectations need to be met but the money wasn't really there yet. But now there is.
Thank you! It was never an all-in bet for us, so we never struggled too much tbh. It slowly grew inside our web agency as a part-time side-quest, and only when we reached an OK level of revenues that could feed our families it became a full-time job and an actual funded company.
Ah, a spin out, ok, that makes good sense, and that helped you avoid a lot of the dangers that would have killed an entity all-in from day #1. More often than not that kind of pressure leads to sub-optimal decision making and you budded off in a nice and controlled way. Web agencies are pretty good as the basis for this kind of thing, I've seen it happen multiple times now. I think the reason is that you know exactly where the pain points of your customers are and that sets you up for productization. And in lean times you can't fall far because the agency customers will need to be served anyway.
That's a really neat and natural approach to build sustainable businesses, thank you for that and extra thanks for publishing something public others can point to as successful examples of that process being implemented in real life.
Agreed. What stands out to me is not just the revenue per employee, but the optionality it creates. Getting past that threshold buys you resilience and patience suddenly you can absorb slower years, fund bigger bets internally, and avoid being forced into bad financing decisions.
Not only that, the vast bulk of unicorn wanna-be's end up failing (sometimes failing upwards though) and then it is all for nothing.
Aiming for the middle ground: reasonable growth, good financial strategies based on unit cost profitability and a very tight hand on the purse will get you a solid business that can serve as the jump off point for many other things on top of giving the founders a much better shot at financial independence. This is all a variation on the risk/reward theme.
To be fair, it's rarely all for nothing for what I hear. Secondary stock sales [1] are very common and allow founders to take some big chips off the table. To me, it is more a matter of keeping things simple, manageable, safe and more fun for how I like to work :)
Sure, but your personal preferences have an outsized effect on your chances for success because they are very much aligned.
I know plenty of founders that gave it all and then some (including their health, their family relationships and in some cases their lives) and that ended up worse than the shape they were in when they started. So yes, you hear a lot of stories about secondary stock sales and so on but those are the exceptions and very much not the norm. That's just survivorship bias.
Fellow small business owner here. Just as a reminder, discussing any successful (where successful is defined as not failed) business is a lesson in survivorship bias.
Most businesses of all sizes, shapes, and forms fail within 10 years.
That a majority of businesses fail over a given duration of time. It’s probably true on a long-enough timescale, but the idea that the majority of businesses fail within one year or ten just seems completely dubious. How is a business defined? How is failure defined?
Ignoring the available data indicating that it is the case, I'm curious about why this seems dubious to you in the first place?
Starting and maintaining a functioning business is difficult; the default outcome is failure (the end of the business as an operating entity) and you have to work to prevent that from happening every day that you want to remain open.
And I've never seen a claim that the majority of businesses fail in a year. Most anecdotes say a majority fail within 5 years, which seems to be approximately correct based on US data.
You're always going on about the Netherlands, surely that is based on some experience of being here and if so then you must have smelled weed it is impossible to miss on the streets of any city with more than 100K inhabitants and an active inner city.
Maybe you should change your line of work. If you're that unhappy about what you do in spite of the fact that what you do is orders of magnitude more important than the next move-fast-and-break-things-advertising-driven-unicorn then that suggests to me that you should let someone else take over who does derive happiness from it and you get yours from a faster paced environment.
Personally, you couldn't pay me enough to do the latter and I'd be more than happy to do the former (but I'm not exactly looking for a job).
I am retiring next year. So that should solve my problem :). I don’t know how other medical device companies are working but in mine leadership is dominated by people who know medical devices from a sales or medical perspective. Software is kind of secondary to them although it’s becoming really important. A lot of our processes aren’t very good for software so we end up doing a lot of work that makes no sense and makes the product actually worse. It’s better not to fix bugs because a new release will take months of paperwork. The requirement structure doesn’t map to software but the SOP isn’t written by people who known software. It feels a little like the development speed of NASA with the SLS vs SpaceX who are basically doing everything faster and cheaper while still having high reliability . My company is NASA here. Just very frustrating
I've worked with a startup in the medical device space. Well funded. They were indistinguishable from most other startups, except in one detail: they did everything right. They made some extremely high tech stuff, very lightweight, and technology wise they were closer to watchmakers than to software and hardware people. I loved working with them and helped them to improve their yield (their QA was so strict that of their initial couple of runs more than 2/3rds of the devices got binned for the smallest infractions).
I suspect you may have just been unlucky with where you ended up. I'm getting closer to retirement myself but I no longer have to work for 'the man' so in that sense I got really lucky. But I really sympathize with how you feel. So, count the days, and look forward to something nicer. Best!
From what I have seen startups have it a little easier. They are usually focused on one product and often just get acquired before having to go to market themselves. Selling multiple products worldwide and complying with regulations is a totally different ballgame.
What you describe sounds nothing like most, safety-critical development I've heard of. Whereas, I've heard the other person's story countless times when I studied high-assurance systems. Very slow, top-down, process-heavy, paperwork-heavy, and outdated tools.
On the other hand, it sounds like the company you mentioned is worth imitating where possible. They sound awesome. Are you allowed to name them? Is there any writeup on how they balanced velocity and regukatory approval?
Unfortunately not. But the devices they make are absolute life savers and I found it one of the most interesting jobs I did in the last couple of years because I think I learned more from them than they learned from me. I was just focusing on a handful of details, they had to keep the broader picture in mind all the time and educate me to the point that my knowledge became useful to them.
You are probably right that they are uncommon, but the fact that the company was led by a scientist who was very much involved in the process and the mission and offloaded as much of the non-essentials of the CEO job to others made me feel I had gone back in time to be near HP when they were just founded. In the longer term I expect them to dominate the space.
Be honest, most Software people find utility in artifacts which are a mysterious black box with an emulated abstraction.
During a career role most have no idea "why" chips were designed and built a certain way, nor require this information to work within abstract domains.
In many ways, vibe-coders are the absurd optimization of a naive trajectory toward zero workmanship standards. =3
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