Entrepreneurship in NYC?
Hey guys - I’m currently a few years into a buyside role at a large firm in NYC and would say most in my role are pretty content. That being said, I come from a family of entrepreneurs and at times struggle to tolerate the hierarchy, bureaucracy, and sheer thoughtlessness that sometimes exists in large organizations. Recently I’ve been thinking about side projects that could take me down a more entrepreneurial path and provide me the chance to try to build something for myself.
That being said, I view my lack of a tech background as one of my biggest disadvantages. Are there any virtual spaces or groups in NYC where I may be able to meet more computer science-oriented folks with similar interests?
If so, would love to get pointed in the right direction. Happy to chat with anyone that’s interested in more than just cranking out identical memos until they die.
Why do you want to start a 'tech' startup, rather than some other kind of business? What are you interested in?
Fair question and I appreciate the reference to "tech" probably came across as incredibly vague/generic. The overall answer is (1) the main idea I have in mind right now revolves around a digital platform, (2) those types of platforms are the least capital intensive and scale the easiest, (3) the asset-lite element lends itself most to being a side project that a few people can work on when able while also maintaining full-time jobs. Lastly, I'd be remiss not to acknowledge that the world in general is obviously trending towards digital integration so it's exciting to think about how AI/future tools may be able to help build or monetize a product.
Bumping at a more normal hour…
I started my own business in NYC. At first I started it while still working FT. I made some money and found clients and then thought if I was doing this FT, I could easily clear a lot of money and have fun at the same time.
So I quit my FT job in NYC to focus on entrepreneurship and my new LLC. First thing I noticed was that I was wearing all the hats in the business. But, I had 100% equity. The sky was the limit, right?
My biggest mistake was thinking I could build out a solid revenue stream / sales pipeline with all this free time and I couldn’t. This is my biggest recommendation: make absolutely sure you have a solid sales pipeline before you quit your FT job.
I wouldn’t take back that experience for anything. I ultimately was not that financially successful, but I learned a lot. Also, to add, online marketing is a crapshoot. I started some ads on Facebook and got nothing from them.
Interesting - appreciate the perspective. Do you think things would have gone differently if you had delayed quitting your FT job, or did it just get to be too much work for a side hustle? And what about working with someone else to collaborate or ease the burden?
Yeah I would have delayed quitting the job. I chose a risky path when I separated. I could be partner there by now if I stayed.
What type of business did you make, and what were some things you learned?
I created a company called "Isaiah Designs." The name wasn't Isaiah, but my own name if you get my drift. I designed two things:
- Art Designs: Mainly Triptychs Oil on Canvas with my trademark piece being a Triptych bolted together with threaded rods. I sold one Triptych with threaded rods to this couple that met at HBS but lived in NYC. I was really excited to sell this piece to them. It is admittedly my best piece out of maybe 100 mixed media projects I have worked on. But, I started getting these custom orders from friends for a unique abstract art large scale piece. I sold two pieces before the client even saw the piece and just requested colors and design and size with them for the order. But, it really stressed me out to create original product on demand and I preferred to shift to people buying inventory. One of my former clients who I sold a Triptych to is now an IB Global Industry Head at GS/MS.
- Financial Designs: I met up with this dude in NYC who was in Private Equity and owned 4 restaurants and was looking to buy a 5th, but for some reason he did not have the skills to build out the financials for the acquisition. His son went to get an MBA at Baruch and graduated and still didn't know how to build out financial models for the business. I had been building financial models in corporate finance for 4 years or so by this point and had to teach his son how to use Excel. I told the owner I couldn't work with him because he knew nothing. I wasn't there to teach someone financial operations and Excel, so the owner let me work alone. I created a pretty good Excel model for his business, with a front page of the summary of financial operations.
I created functional financial models for this owner, but we had some disagreements about disclosing data and he didn't give me all the numbers and the models weren't running fully without all the data, which was a major pain in my ass and I think he may have been embarrassed with certain debt. Overall though, I think I helped him.
I talked to maybe 20 - 30 other restaurants in NYC to help with their financials, but never could agree on a deal for me to help with their financials. Some of them even had zero visibility into their financials. I was offering a role similar to The Profit if you have seen that show. It was hard for me though to negotiate prices. Unlike The Profit, I wasn't buying equity, I was just creating a financial model for a price. But, many weren't interested in additional fees for something they viewed as useless.
What was the biggest barrier to building a solid sales pipeline? Why didn't your first few clients become recurring business or help with referrals?
Biggest barrier was my lack of experience or desire for any sales or negotiation role. I realized it involved a lot of talking to people and trying to hype your business, but I really got burned out on this. I missed being a cog in the wheel at a regular company. So much lower risk. I just got rejected by so many people for my products and services and then when I landed a deal I absolutely hated negotiating price.
Anyone else have recommendations for websites/in-person groups/slack groups etc. to connect with others with more entrepreneurial goals? Likewise, if anyone here wants to talk further, feel free to DM. Primarily thinking through a new web platform that I personally would get a lot of value out of and think this audience could too.
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