hey wso community! i've been a long time member since college, where i had two banking internships and ended up working full time in growth equity.
i recently quit the traditional finance path to start a tech company: BeautyRightBack (unlimited salon appointments in NYC starting at $99 a month, we have dozens on salons in network to book at).
wanted to start this discussion in case anyone else here was looking to leave the finance world and try something new. for context, i'm 24, have decent savings, and bought an apartment in nyc so mortgage is pretty low every month.
i finally quit my full time job when product was in the mvp stage and we had paying users for the monthly subscription. if anyone wants to try it out - ping me i'll give you a discount.
a few learnings on being on the other side: the hours don't get better - it's still an 80 hour a week+ grind, but you grind on something you owe and have passion for. there's no vp or partner protecting your time or giving you deadlines - you control your own schedule fully but have to manage everything.
Based on the most helpful WSO content, here are some insights and advice for someone transitioning from finance to entrepreneurship, like your journey with BeautyRightBack:
Work-Life Balance: As you've noted, the hours don't necessarily improve. Entrepreneurship often demands 80+ hour weeks, but the key difference is working on something you're passionate about. This aligns with WSO threads emphasizing that passion and personal drive are critical for sustaining the grind.
Financial Preparedness: Your decision to quit after having decent savings and an MVP with paying users is a smart move. Many WSO contributors stress the importance of financial stability before taking the leap, as startups can be a financial rollercoaster.
Skill Transfer: Your finance background likely gives you an edge in understanding P&L, financial modeling, and strategic planning. However, as highlighted in WSO discussions, entrepreneurship requires additional skills like sales, client relationship management, and resourcefulness in problem-solving.
Challenges in Sales: A recurring theme in WSO threads is that building a product is often easier than selling it. As you scale BeautyRightBack, focus on honing your sales and marketing strategies to attract and retain customers.
Networking and Support: Many entrepreneurs on WSO recommend leveraging your finance network for advice, partnerships, or even funding. Your background in growth equity could be particularly valuable in securing investments or scaling your business.
Mindset Shift: Transitioning from finance to entrepreneurship requires a shift in mindset. As one WSO thread puts it, "Comparison is the thief of joy." Focus on your unique journey rather than comparing it to traditional finance paths.
If you're looking for more tailored advice or resources, feel free to ask! And good luck with BeautyRightBack—it sounds like an exciting venture!
Sources: Transitioning from tech to a serious finance job (yes, you read that right), Tech As An Alternative to Finance, Why You Should Launch a Startup Instead of Going to the Buyside, 6 Lessons Learned After Leaving Finance For Entrepreneurship, Three Valuable Investing Tips: Why I am Transitioning from a VC to a Start Up
If its helpful feedback, I'd pay for this / subscribe if you had a version for guys (unlimited haircuts, shaves, etc.)
haha love that
Fellow entrepreneur here, congrats on the step taken! Alright, I will truly ask you "anything" and then you can decide what to answer:
1. How did you come to that solution? Did you do some analysis before or was it mostly testing different things to see what stuck?
2. Why are you buying followers on LinkedIn? Does the number of followers have any impact on your business? I would have thought your target customer doesn't use that platform and investors wouldn't have bought that anyway
3. Why is the BRB account on IG selling a hairbrush? Was that the previous product and the account hasn't been updated yet? Also, why are some posts targeting the Indonesian market (from looking at the currency used for some pricings)
4. I saw on crunchbase you did a pre-seed, was that F&Fs or angels too?
I was a VC investor before too and still enjoy digging on startups a bit, that's why the questions. Bottom line, congrats on the step taken and I'm sure that if you persevere you will make it work :)
1. How did you come to that solution? Did you do some analysis before or was it mostly testing different things to see what stuck?
Yes we ran a beta and got $1.7m revenue in 6 months
2. Why are you buying followers on LinkedIn? Does the number of followers have any impact on your business? I would have thought your target customer doesn't use that platform and investors wouldn't have bought that anyway
We didn't buy followers - we posted some engineering jobs and people auto-follow to track their job app
3. Why is the BRB account on IG selling a hairbrush? Was that the previous product and the account hasn't been updated yet? Also, why are some posts targeting the Indonesian market (from looking at the currency used for some pricings)
You're on the wrong instagram - it's @ get.brb
4. I saw on crunchbase you did a pre-seed, was that F&Fs or angels too?
our pre-seed was mostly institutional funds
I was a VC investor before too and still enjoy digging on startups a bit, that's why the questions. Bottom line, congrats on the step taken and I'm sure that if you persevere you will make it work :)
Hey congrats!
Would love to hear about your 5-year plan. Also, I would assume the margin per customer per month is quite low? Genuinely curious about how recurring the revenue is.
Quick math from your beta run: 1.7m rev, 6 months, so 283k/month, assuming mostly on your $99/month plan, that's over 2.5k customers. How are you acquiring these customers, given such low engagement on social media platforms?
we have a take rate on all subscription revenue, which just has regular saas margins. most popular plan is $175.
customer acquisition mostly through social media, paid marketing, and community marketing (ie. local mom groups)
Where does the value/profit come from? I'd think that someone would look at how much they spend at a salon in a month and see if this is a good deal for them- if yes, they join, if no, they pay per appointment. Which makes me struggle to see where this service delivers extra value- the frequent users save money, the infrequent users don't join..
More throughput to partnering salons, which is valuable even at lower margins? Or are you banking on someone spending more in membership than they would by paying per appointment?
Just generally curious as someone totally unfamiliar with this space.
the average salon runs at ~20-30% capacity utilization, which means that for 70% of the time, they still have to pay for their employees, but their employees aren't generating any revenue. In addition, holiday season and summertime is the busiest for salons, but most salons can barely scrape by rent during january-april, and september-november.
when a gel mani in nyc costs on average $50-60, getting unlimited mani, pedi, etc for $99 a month is very worth it for consumers.
when salons list on groupon/classpass, they're getting less than 40% of the actual appointment value... it's very unprofitable for them to fill capacity this way.
SOOO we solve all of that - we've built algorithms to fill salon capacity up to 95% by the first week you're with us, with recurring, stable revenue that doesn't fluctuate throughout high seasons and low season. for consumers - it is significantly cheaper to book via BRB than booking per appointment.
Very informative response- thanks.
It sounds like 1) you're pushing customers to go more often than they would have because they're paying a bit more, and 2) you're concentrating these customers in fewer salons to increase their utilization.
I imagine you have to keep the ratio of participating salons to customers at some level to be attractive to both?
Thanks for doing this. Do you come from a technical background? I have some very interesting vertical AI ideas that i've mapped out but need a technical cofounder and frankly its been discouraging. What is your advice for a non-technical founder looking to start an AI-led SaaS company like yours?
i have a technical cofounder! i also tried to interview for PM roles back in college LOL so i read up a lot on product development and how to build early stage
can I pm. I am 23 and considering leaving banking for a early stage startup
sure pm!
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