If you’re connected to me or anyone else at TINT, you might know that we’ve been looking for someone to take the keys to our company. The big news is that we signed a deal to sell TINT to Filestack. The press release will cover what both organizations want the world to know: This deal is a winning union between two successful companies, combining forces to strategically take on more of the user generated content market.
I wholeheartedly believe this is true. But, this post isn’t about that. It’s about what the deal means for me, in a way that could never be represented in a merger agreement or capitalization table.
We started this journey in 2011. Raised $370k in 2012. Pivoted and launched TINT in 2013. Hit break-even in 5 months. Bootstrapped it to $5M ARR with 30 people. Sold it to Filestack in 2018. What happened in between? Here’s a company timeline:
2011: Hypemarks starts as Tim’s business school class project. In his homework, he describes the concept: “HypeMarks.com is a social bookmarking site that allows consumers to search the trending sites of today based on a specific category, store (bookmark) their favorite ones, and share the new-found sites with their friends.”
2012: Through a lot of hustle and luck, Tim builds the initial team, and Hypemarks goes from a university basement student project to a seed funded startup.
2013: Founders move to SF, pivot from Hypemarks to TINT, almost run out of money, and at the last minute achieve ramen profitability. Tim and I shared a studio together, and I slept on an air mattress in a tent (see photo above).
2014: Ramen profitability turns to sustainable business growth and we hire the first employees. Pictured above are Zen and Ro on Ro’s first day.
2015: Growth continues quickly, with impressive customers signing on, and TINT expands rapidly. 19 to 37 full-time employees. Moving from a 3,000 to 10,000 sqft office. Expanding sales globally with reps in UK, Dubai, and Brazil.
2016: Revenue growth plateaus while expenses climb due to rapid growth, so we have our first layoffs to stabilize the business, and work to reduce churn and increase contract value.
2017: Despite having significantly grown our average contract value, overall revenue still hasn’t grown so we continue pushing hard as a team, offering an unlimited plan for enterprises, bringing in a customer success consultant to help us reduce churn, and later in the year we hire experienced senior directors of sales and marketing. Our goal is to push into the enterprise space.
2018: The investments we made in 2017 did not result in traction in the enterprise space, so TINT switches direction to focus back on the self-service market and going back to profitability. During this time, Tim intensifies his search for potential acquirers, and after considering multiple offers, we sign a deal with Scaleworks / Filestack.
Looking back on the timeline, it’s shocking to me how much has happenned at TINT over the years. The innocence of the early days, the exuberance of early growth, the shock of hitting the plateau, the determination in the face of continuous challenge, and the uncertainty of looking for an exit.
My worldview has changed thanks to all of the madness that comes with operating a small business. Tim has handled more of it than anyone else, but me, Nik, and others on the team have faced it at one point or another. There’s a lot of crazy stuff behind the scenes that no-one talks about. Patent trolls. Ex-employee going rogue and stealing customers. Surprise illegal office zoning. Surprise Instagram API changes that break the product. Getting customers (temporarily) blacklisted by Google for mining bitcoin. Layoffs. Lost friends. Burnout.
But the team was able to find a way to handle each of those situations. As time has passed, the sharp pain of these situations has mellowed into experience. And the experience is why I joined this team, so ultimately I am grateful for the opportunity to learn valuable lessons.
As expected with our first company, we succeeded at a couple things, failed at many more. Below are a couple of things we learned along the way:
I’ve read countless startup books, blog articles, podcasts, videos, HN comment threads, slideshares and the biggest lesson I’ve learned from putting these resources into action is that it’s rare to find a panacea, “golden rule”, or even a shortcut. It’s counterintutive that this is my first point because below I basically go into my own spiel about what you’re supposed to do, but I’ve found that every hard situation is unique in is difficulty, and there are no easy playbooks or advice to follow when you feel like you need it the most. Tim put it well when I talked to him about this. “I don’t ask for advice anymore. I ask for someone’s experience and figure out what’s relevant for me.”
Growth Hacking and SEO
A big part of how we got our initial traction was thanks to our efforts to continuously find hackish ways to distribute our product. In the beginning, we built Hypemarks profiles for celebrities for them to promote on social media. Later, we integrated TINT into the Wix app market when it first opened, piggybacking on its growth. The biggest traction-creating boost was when I created keyword-specific landing pages and pointed our product’s embed backlinks to them, catapulting us to the front page for searches for “instagram widget” and “twitter widget”. Unlike writing code, with growth hacking, effort is not closely related to impact on a project-to-project basis. It’s about experimenting as many channels as possible and seeing what sticks. I’m grateful to have had the opportunity to exercise my SEO skills while at TINT as well. I’ve found that organic search is one of the most underrated, least understood areas for digital marketers.
Solutions > Products
When we first built Hypemarks, we took a product-first approach where the end user’s problem was secondary to our own excitement about the idea. Luckily we were able to pivot in time to not run out of money, but for the next company, I’m going to spend more time trying to understand a customer before jumping to build a product.
Never compromise on hiring
One of the most valuable things that can’t be described in a blog post but must be learned first-hand is the skill of evaluating how competent someone is at their role. In the beginning we as founders had zero experience in this area, so it took us a couple of years to get okay at this. Looking back, the biggest variable in our company’s success (after product-market-fit) was who we hired. We got incredibly lucky to have attracted and retained certain people. These people were classic “multipliers” who were able to go beyond their role and amplify the efforts of the entire team. On the other hand, we also had our share of mishires who added years to reaching our goals. Unfortunately if you’re a new grad starting your own company, there’s no way out of this issue, you just have to fail at it and learn. Otherwise, this will be a function of the quality of the teams you have worked on.
Being a founder is lonely because of both the pressure to exude success and the difficulty in connecting with others who have been through a similar situation. There were times when I felt hopeless. We were lucky that with 3 founders that there was some redundancy and it almost never occurred where all three of us were hopeless at the same time. Being proactive in building a support network within our organization and outside of it was one of the best things we did to stay healthy and productive.
For a period of time before 2016, we thought Holocracy, flat structures, and manager-less environments were superior to more traditional org structures. We quickly learned that there’s a reason why people have been doing things a certain way when it comes to organizing people. I’m sure more wealthy organizations can buy more talent to make this work, but for TINT, a bootstrapped startup consisting entirely of inexperienced millenials, it became inefficient fast.
One person can change everything, but everyone should be replaceable
The usual saying is “everyone is replaceable”. But there really are certain special people who are so rare that they may as well be irreplaceable. Building TINT helped me understand what the threshhold of replaceability is, how to evaluate the tradeoffs of making a keep/cut decision, and to what lengths to go to keep people. In general, our instinct at TINT was to keep compensation relatively flat and help B and C players at the expense of rewarding A players, and although it helped us create some level of camaraderie, it also hurt us in many ways. We had many A players leave us earlier than they needed to due to this culture. Next time I will better understand tradeoffs of creating a more “cultivation”-focused company culture.
Don’t sign a 4 year lease on the basis of a growth projection
This one seems dumb, but I had to put it in here because it’s one of our most painful lessons. In 2015 we were rapidly growing, and projecting our rapid growth into the future, we saw that we would easily have the budget for a much larger office. At the time, we justified our move by saying we would be more productive as a team with a better space, but looking back, a 4-year commitment was an unnecessary commitment that caused us to depend financially on a growth projection that never materialized. Not making that mistake again!
Special early-company things
There were a few important things that we did early on in the company that we would not have been able to do later. For example, making our salaries transparent and based on a formula. Or making our cap table transparent. Another example was when we created a self-improvement program that eventually became a culture-defining company tradition with high employee participation and buy-in. I’m thankful that didn’t miss the window for doing these special things. It’s important to identify those special things that you can only do when you’re a small team that the organization can grow into as new team members are added on.
Besides all the lessons, there are also many good memories that I hope to keep forever. Hackathons where we built eye-tracking social signage. Getting lunch with the engineering team in the South Park every day. Retreats in grand mountain houses. Rallying together in times of company crisis. Meeting customers who love our product. Meeting random people who have used our product. Seeing the product randomly out there in the world.
And the relationships. TINT helped create friendships and professional connections that people will take with them into the future.
So yeah, it’s been a wild ride. And there’s a lot to be grateful for, even the bad stuff.
The ride has exceeded my expectations. I just had no idea that this is how TINT would turn out when I met Tim. To describe how much this TINT experience has exceeded my expectations, I will now indulge myself in writing a brief description of my life as it relates to this company:
Sometime in the mid 90’s our family got our first computer (the photo above is the model our family got, a Power Mac 7100). I remember learning about the Internet, loading a webpage for the first time, and being amazed that anyone in the world would see the same page if they typed the same thing into the address bar. And not only that, but anyone could create pages for whatever they wanted, even me! But unfortunately after asking my parents to help me set up a web page, they said that it costs money and even if they were to pay money to let their 8-year old dabble in web things, they wouldn’t know how to do it.
So, I aged through my regular milestones, and later on I learned basic HTML/CSS by customizing my Neopets shopfront, setting up an Angelfire page of strange pre-adolescent musings, and modifying my Blogger template. My dream job in middle school was working for Flickr as “PHP Engineer”, but it was seemingly totally unattainable. I saw some PHP when I clicked on the wrong button on Wordpress and it was intimidating and gibberish-like.
In high school I was part of the robotics team, but I didn’t do any robot programming. I was embarrassed to try when there were already other kids who knew how to do “real programming” so I worked on the Public Relations team where we focused on putting together marketing material to promote robotics. Brochures, essays, an animation, and a website (screenshot above).
When it came time to choose a major for college, I took my dad’s advice: “If you aren’t talented at anything, you should be a doctor because you get paid a lot and all you have to do is memorize things.” So, I entered college as a Pre-med student in biomedical engineering. I tacked on a minor in Computer Science because I still had hope of working at Flickr. Who knows? I kept my expectations low. Especially with so many other kids with AP-CS classes.
Junior year, I started to have second thoughts about going into medicine. My doubts stemmed mainly from how stark the difference was between the attitude of students in CS vs Pre-med. I remembered my first Pre-med “study session”, and being surprised that it ended up being a “copy session” where most of the students were looking for another student’s homework to copy. Afterward, I had the crappy feeling of being used. Another negative experience that comes to mind is how effed up I felt about the Pre-med honors society really just being a o-chem test-bank society.
The experience on the CS side was different. We worked on team projects where for the most part people worked together to solve problems collaboratively. So I figured, if these are the kind of people I’m going to work with for the rest of my life, I’ll take the chill ones. I dropped Pre-med and switched majors to focus on CS full-time.
After switching majors, that’s when I first discovered Hacker News and started learning more about the startup scene.
The Start of Something
When I met Tim, it was through my ex-girlfriend Pauline, who went up to him to ask about planting more trees on campus. Tim was in Student Government, part of the Environmental Committee. Tim couldn’t do anything to help, but asked her if she knew anyone in the engineering school who could help him with his idea. She did, and that’s how my relationship with Tim began.
We worked out of a student apartment, meeting after class and staying late into the night. This is embarrassing to admit but imagine the most wantrapreneur college students hunched over our laptops listening to The Social Network soundtrack on repeat. That was us. Listening to that soundtrack still brings me back to those uncertain days.
That summer, I managed to get an internship at real tech company, Yahoo! Out of the 30 companies I applied to, I got accepted to 2 (Yahoo and Adobe). And was the 7th pick at the one I joined (shoutout to those 7 people who decided Yahoo wasn’t for them!). I learned enough web development at that internship to be able to come back senior year and actually contribute to Tim’s Hypemarks project.
All of this life-history summary is to say that I never expected to be able to have the skills and knowledge to go off and help create a product and organization as substantial as TINT. Even though 2016-2018 were hard years where we weren’t able to grow the business, I am still incredibly lucky to have chanced into the opportunity to achieve my dreams.
I am really lucky.
There is just too much gratitude to express.
Tim - I hope you are able to take the break you need after TINT because you deserve it. People say shit rolls downhill but I’ve found that it rolls equally uphill. When all the easy decisions have been made by others, the hardest ones are the ones you had to face. You have unfailingly looked out for the best interest of the team and company and that’s the most anyone can ask for in a leader. “It’s not about the idea, it’s about the team.” That’s what you said to me when I was on the fence about joining you after graduating. I’m lucky to have trusted you.
Nik - It’s hard to believe that we met in a library basement in college, and have been working together almost daily up until today. What a pleasure it has been to work with such an ambitious and hard working person like you. Someday I will search google for “sean parker of india” and see your name as the first result. Thank you for having my back, and also being outrageously photogenic and letting me take countless pictures of you throughout our TINT journey.
The TINT Team - I’ve been lucky enough to work with more than 60 teammates while at this company. Each brought their unique skills to the table to help us advance the company to this exit. I’m going to miss being surrounded and inspired by such a talented team. I’ve absorbed so much in the experience of working together, and I have also set wildly higher bars for performance in every degree, whether that’s programming, design, sales, or support. Can they code as well as Dan? Ship as well as Brett? Sell as well as Kelly? Or organize as well as Jess? These are questions I’ll be asking myself in my future roles. The journey has been tumultuous, but I hope that y’all were able to grow from the experience too. For the continuing team, the gratitude extends into the future. The brand that we’ve worked so hard to create now rests with you.
Our Customers - Where would this venture be without our customers? I have my personal favorites. Greg from Mambo Media, thank you for being willing to Gchat late at night and give us product feedback in our early days. Nasdaq for putting TINT on the Times Square jumbotron on our team trip to New York. The Sakura of America team for the free boxes of Pigma Microns that powered all of my analog writing at TINT. Kayla at Blue Apron for always being down for a product feedback call. Purdue University, I never thought the university I grew up next to would end up being a customer! And Bob Harrington and the Orange Department at Specialty Produce for being our biggest customer champions.
Monica - Thanks for being the behind the scenes “Director of HR” when it came to the plethora of people challenges I faced at TINT. You always have a thoughtful perspective that reflects your ability to consider everyone’s needs and wants. I am very lucky to have met such a smart peach.
Idealab/StartEngine - Thank you for believing in us from the very beginning. We really didn’t know what we were doing back then, but you helped us get off the ground and we wouldn’t be here without you.
Zen - You deserve a special shoutout for being our very first employee and for the inspiration you brought to our team. I still follow your mantra of “motion inspires emotion”, and attribute our initial success to your insistence that we switch all of our passwords to “100kMRR”. I don’t know why we stopped doing that.
Gokce and Prannay - Thanks for being my mentors during my Yahoo! internship, and teaching me that “There is no company, only a team”. The technical skills I learned from you guys were what gave me the confidence to start my own thing. I even got to work on an improvement to Flickr at a hackathon! That was a great summer.
Gary, Jeremy, Dani - Thanks for bringing me on as a “webmaster” for my first technical project of any merit. Daily Brink was the project that got the attention of my eventual manager at Yahoo!. Looking back, it’s pretty impressive how much content we put together.
There are a couple of mantras I’ve followed through the TINT journey that I plan on applying after the 90 day transition period:
“Keep doors open” - I believe that my optimal path to achieving success is to create opportunities and see what happens rather than picking an end goal and rushing to it.
“Everything happens for no reason” - The funny thing is that Tim has an arm tattoo that has the exact opposite of this mantra. I don’t bring this up in front of him because I don’t want to invalidate his world view, but I find it awesome that regardless we’ve always worked well together. Back to the mantra, I think that serendipity plays a far larger factor in life than is commonly acknowledged.
“Do your best” - I’ve always felt that doing your best is the easiest way to avoid regret. The concept is interesting to me because it doesn’t necessitate that you do “the best”, just “your best”, and begs the question “what is my best?” which leads to the definition of personal best, which is how growth is catalyzed. I’ll be doing my best to take the energy that was being focused on the company, and focus on myself and finding what’s next.
I am working full-time on transitioning the company until the middle of November, but after that, I would love to find another team of people trying to build a SaaS company from scratch and give it another go, so I’ll be looking around for people who would be interested. If you know anyone who’s looking to collaborate on a project that would benefit from a growth hacker / front-end developer, let me know!
My company, TINT, produces dynamic social displays for digital signage (among many social media related products). If you’re walking through a mall and you see Instagram photos show up on a kiosk screen, it could be us, especially if it’s a Westfield mall. Our product is built using web technologies (HTML/CSS/JS) and is rendered through a web browser.
Traditionally, we have relied on the browsers supplied by the signage company vendors, such as Broadsign, Brightsign, and FourWindsInteractive to render our content. However, this often results in performance issues because the hardware isn’t powerful enough to render smooth animations in a browser, or the browser is outdated and difficult to support.
My approach in tackling this was to remove the unpredictability of the signage system’s browser, and use a browser running on a server to render a video that can be delivered to the signage system. After all, what kind of signage system doesn’t support video? After doing some research, I found that most signage systems can download a video file from a URL and cache it locally, syncing it occasionally to keep it up-to-date. This is usually done through Media RSS, or MRSS.
Using video instead of HTML has a number of advantages, including:
Reliable playback during network instability
Increased compatibility with older hardware/software
Consistent animation performance
The tradeoffs are that:
The dimensions of the screen must be known beforehand
There is greater delay from when content is posted on social media to when it is shown on the screen
For most customers, the advantages outweigh the disadvantages, so I decided to move forward with the video approach.
The only thing I had to do was figure out how to create automatically updating videos from webpages in a simple, but scalable way. Unfortunately, there aren’t any off-the-shelf services that provide this kind of thing (startup idea?). However, after some digging, I came up with a creative way to do it myself:
First, I found Headless, a Ruby gem that creates a virtual X screen and records videos of Selenium test runs. I used that to create a simple script to create videos of websites. Through trial and error, I figured out which flags Chrome requires to create a fullscreen video:
Now I had to find a way to take this basic script and scale it up to be production-ready. I decided to use AWS ECS and Docker since it is a simple way to wrap environments around tasks, and have them run on a schedule or in parallel. I thought about Lambda, but AWS Lambda doesn’t support ruby, and I wasn’t sure that Lambda was meant to handle a task as resource intensive as rendering a video from a chrome session. To store metadata about the videos, I used MySQL, and Sinatra to provide an endpoint for signage systems to request videos from.
A flow chart of the system:
Here’s how it works:
The signage customer provides 4 inputs to an internal tool: URL of the social display, height/width of the screen, and the duration of the video
The tool returns 2 URLs which represent the link to the video file and a link to the corresponding MRSS feed
The customer uses either the video file or MRSS feed link in their signage system (depending on what their system accepts)
When the signage system first requests a video, it receives a response that says “video is being generated”, while the service starts a ECS task which generates the video
Once the ECS task finishes, the video is saved and the video becomes available to download
The signage system periodically requests the video to download, so the second time it makes a request, the video is downloaded, then played on the screen
In the background, an ECS scheduled task iterates through all the videos that have been created to determine whether any videos need to be expired (I expire any videos that have not been requested in a day) or refreshed (I refresh videos every 30 minutes)
The system still has some imperfections which I haven’t gotten around to addressing, which include:
Autoscaling - I eventually want to use AWS Fargate to handle autoscaling of containers. Right now all of our microservices share resources on our ECS cluster, and I have to manually throttle my video microservice to balance resources. Unfortunately, as I write this Fargate does not support the shm_size parameter, which Chrome crashes without.
Unnecessary Proxy - Currently the Sinatra server proxies the video from S3 to keep track of when videos were last accessed. However, I could be parsing S3 logs to do the same thing, which would reduce latency and infrastructure costs in delivering the video.
Overall, I’m happy with how this project came out. It solves a problem for our signage customers and gave me a chance to creatively re-use Selenium in a way that I imagine its original creators didn’t envision, to render visualizations for in-store screens:
It’s after work, before the holidays in 2016 and inside the Lever office in downtown San Francisco, I’m hanging out with my friend Jen, catching up and venting about work. I’m telling her about some hard decision that I didn’t have enough validation on when she suggests, “You know, one thing that’s worked really well with our team is professional coaching.” She explains how she helped her team find the best coaches, the benefits of coaching, and referred me to Christina and Blue Door Partners.
So a week later, I’m dialing their number, not knowing what to expect but open to being challenged.
“Hiiiiiiiii”, says Christina. “Hey, this is Ryo. So, what happens now?”
Fast forward a year, and I’ve been able to work on a bunch of longstanding challenges like,
Saying yes too much
Taking work too personally
Not giving people enough space for their own feelings
Not being assertive, authoritative, charismatic, inspiring, vulnerable, or strategic enough
How to be a more supportive partner
Upcoming challenging social situations
Recovering from breaking someone’s trust
Looking back at it, it’s hard to believe I covered all of that. When I started the coaching experiment, I didn’t expect much. But I ended up getting a lot out of it. So, I’m writing this post for anyone who hasn’t explored coaching as an option for personal improvement because I didn’t know what to expect when I started.
Before going into what coaching actually involves, I admit that it seems silly. But when you pay a couple hundred dollars to work with someone to do silly things, you start to pay more attention to both the task and its intended value.
The initial coaching work consisted of exercises like:
Inner Voices - Have you ever lost control of your inner monologue? This exercise involves writing a paragraph describing the inner voices in your head. A Saboteur voice that comes up whenever there’s uncertainty. A Practical voice that focuses on what to do next. An Appreciator voice that comes up to reflect on positive situations. etc. These voices are then revisited throughout future coaching sessions to improve recognition and understanding of how you feel.
Strengths/Weaknesses - Another part of understanding yourself is appreciating your strengths and admitting your weaknesses. Writing a paragraph about one’s own strengths, and then acting them out in a physical motion representing the strength, and doing an investigation on weaknesses can bring themes to recurring challenges.
Improv - How awkward is it to do improv exercises alone and over the phone in a glass conference room that all your coworkers can see and hear into? Very! That’s why I take my calls in the back room. Based on the value I got out of the coaching improv work, I even ended up taking a class at a local theater, BATS.
From there, the sessions followed a common pattern.
Biggest Challenge - The beginning of every session started with a question: “What do you want to work on?”. There’s a significant chunk of value attached to having someone ask you this question. After going through a couple sessions, I realized that in the rush to get things done, it’s easy to ignore the harder challenges that have no easy answers. But they don’t go away. They’re on the back of your mind, collecting in a pool which eventually gets distracting, irritating, then unavoidable. And having someone ask you that question helps empty that pool.
Exploration - Going deeper into the topic through a series of Powerful Questions. Alternating between questions, and having Christina reflect back on me her observations of how I answer. Having a great coach allowed me to have a mirror on both my external projection and internal perception. A coach is supposed to help you find your own answers (although I did from time to time get straight advice, which was nice too).
Homework - identifying actions that can be taken in the next week to either explore or improve the issue. The homework would be reviewed at the beginning of the next session. The pressure to actually follow through with the homework was valuable.
Every 2 weeks, we’d have a 30-minute session following the above structure. The meetings felt like a pocket of intense inner reflection, in a sea of external responsibilities and priorities. And having the support from someone you know you can share everything with feels great.
If you’re interested, Blue Door Partners offers individual coaching in addition to Pop-Up Coaching where they come on-site to run individual coaching sessions for companies. We’ve had a great experience offering the service to our employees as a perk to improve wellness and professional growth. In addition, it’s a smart idea to set up initial introductory sessions with a couple coaches and see who gels with you. Yelp is great for this.
It was the fall of 2016, shortly after my roommate Stephen got a used road bike. One of us put the idea out there that we should bike from San Francisco to Los Angeles. We both got excited about it. Biking down the coast has been on my bucket list ever since I moved to California and biked from my dorm at USC to the Santa Monica pier. I liked the idea of being able to experience the little details of the state: The small towns and the country roads, stuff you miss when you fly down the freeway.
Overwhelmed with how much planning would need to happen, we put the idea aside. But, Stephen stubbornly still told all of his friends that he was going to do the ride. Not wanting to back down on all of his promises, in the spring of 2017 I bought a used road bike and we started preparing.
Planning and Preparation
We spent about 6 months thinking about planning, and 1 month planning in earnest. Luckily, SF to LA is a popular tour and there are a lot of great blog posts, maps, books, and GPS routes that made it easy to cobble together our own itinerary. Our biggest challenges were assembling the necessary gear (since this was our first long tour) and creating an itinerary that took into account a bridge that had washed out in Big Sur.
We ended up using these 2 RideWithGPS routes to create our own route.
To navigate, I used RideWithGps.com, and their iOS app. To use their offline maps feature it requires a paid monthly subscription, but I figured a couple dollars is a small price to pay to make sure we don’t get lost! As a secondary resource, we got the ACA Pacific Coast Map #4. Although the map didn’t cover details for our detour, I was really impressed by how useful this map was, especially the at-a-glance elevation information. A lot of people also recommend the book Bicycling The Pacific Coast, but I didn’t find it very useful, especially since it’s written in short paragraphs and doesn’t include any maps.
Luckily, I’ve had a chance to collect most of the camping gear over time, so that half of the gear was covered. It took us a month and a couple of amazon orders to collect all of the other odds and ends. Looking back, I had no regrets on what I brought, almost all of it was useful at some point. Going on a couple overnight bike camping trips before the big trip allowed us to winnow the equipment down to the essentials (and a couple luxuries - like the Kindle!).
Our first setback happened before we even started. At the TINT office, Stephen noticed that his rack was crooked, and after looking closer we saw that a screw had fallen off. We were already an hour later than when we needed to leave and we rushed to find a local bike shop that would have a screw. Ended up going to Pedal Revolution. We got the rack back on, but we weren’t able to get it fully secure in the eyelet (foreshadowing for later when the rack tore off of the frame).
Our second setback was when we were heading through the hills between Pacifica and Half Moon Bay. The roads get narrow and there are long downhill stretches where you are riding fast. I hit a series of potholes, my inner tube popped, and I lost control of the bike - flew off and hit the ground. I was incredibly lucky to only have cuts and bruises. One of my favorite memories was Stephen pulling up and laughing hysterically while I’m wondering if I’ve broken any bones. I’m sitting there dizzy, relieved that nothing happened, and expect Stephen to help me replace my flat tire. When I ask him to help me. He says, “You know this… I’m incompetent!” Ahahaha.
We were rewarded with the best campsite of our entire trip, the Half Moon Bay Beach. A clean, freshly cut section of grass next to the beach and clean showers. The raccoons at night steal our snacks but it’s okay, they deserve it.
We woke up to thumps on the tent roof. It’s 3am. I poke my head out and there are fruit snacks plunking onto the tent one at a time. I shine my light up into the tree and two glowing raccoon eyes shine down at me. I figure there’s nothing I can do and crawl back into bed to fall asleep.
The highlight of the day is halfway to Santa Cruz when we stop at Swanton Berry Farm. Along the PCH, the farm is a regular stop for anyone looking for fresh made strawberry sweets, and depending on the season, u-pick berries. Today there are catering tables and chairs set up with a band playing in the grassy field next to the parking lot. Not quite sure what the occasion is, we walk through the party to park our bikes. An older man walks up to us and introduces himself as Bern. We learn that Bern used to own the farm and the event is in memory of his younger brother who recently passed away. He invited us to have a slice strawberry pie: The best berry pie I’ve ever had. As we looked onto the sunny California coastline eating fresh berry pie, we share a special moment with strangers.
The earplugs I got from the CVS the night before were the best investment, the sleep was unbeatable. We start late as usual and are on the road at 10:30am. Right before we leave, a couple the campsite next door came up and shared that they have always wanted to do bike touring. We realize we’re living the dream! Taco Bell for breakfast and then we rolled out of the city and into the countryside.
The sights and smells were splendid. It’s old chateaus on hills overlooking commercial berry fields, beat up Tauruses and Corollas rumbling down dirt roads. It feels like Indiana, minus the heat and corn. Our spontaneous roadside stop today was Moss Landing, and Phil’s Fish Market & Eatery. We got huge portions of cioppino and fish and chips and eat in a windy gravel parking lot, rejoicing in the heavy paper containers of food in front of us. By the end of the meal we are both so full we can barely finish. Rolling into Monterrey, we struggle up the hill to Veterans Park and as the sun sets, we order delivery pizza to the park.
We met Dominic in the morning who is staying in the campsite next to us. He’s an older black gentleman who told us about how the campground gets really popular in May. He sells rasta bracelets, used to sell them with his wife who can no longer join him due to a chronic illness. He told us more stories, but eventually we headed out away from the coast to begin our inland detour. After about 20 miles we saw a small sign ahead for the Monterrey Zoo. We decided to take a tour and relax for a bit. After an hour of African cats, we rode out, but then I heard Stephen yelling behind me. I turned around. Flat tire? I realized that it’s worse when I see that his rear tire is missing half its spokes. The rack ripped off the mounts and jammed into the wheel, destroying both the frame and the rear wheel. For a long moment we considered our options and decided that our best bet was to have me drop all of my gear and bike back to the nearest town (Salinas) and rent a car to make it to the next city in our itinerary, and once we get there, to figure out next steps. It took me an hour to hustle to Salinas, but am able to successfully rent a car, pick up Stephen, and drive to the Days Inn at King City. That night the motel was a luxury and exactly what we needed.
I have a dream of Stephen walking out of the motel bathroom holding a friend’s bike. I wake up and tell Stephen, “I have a plan.” Plan: Drive back to San Francisco, pick up friend’s bike, and drive to the next stop in our itinerary to continue our tour tomorrow morning. I called our friend, Chris, he answers and confirms. In 20 minutes we’re ready to roll out of the motel. 3 hours later we’re back in San Francisco, and after almost running out of gas, we drive drive drive. We make it to Paso Robles and assemble the bikes in the car rental parking lot. It’s HOT. We rode and checked into the Motel 6. I laid on the bed and enjoyed the stillness. It felt satisfying to come up with an idea from a dream and turn it into a reality. After the sun sets, we rode to McDonalds to get a soft serve cone.
We woke up earlier than usual, 8am, kicked it into high gear to leave. It was one of our longest days, projected to be almost 70 miles. Breakfast was McDonalds for Stephen and I’m sick of McD’s, so Subway for me. We rode out of Paso Robles and into the countryside. Long rolling hills, and then we hit the hill we saw on the map. Struggles to get the the top, but the views are incredible. Eventually we’re over the clouds, the hills are lush and green, and we saw all the way to the water which was many miles away. We coasted downhill all the way to the Pacific Coast Highway. Short stop at a small path that leads us to a coastal cliff and a beach. Stephen needed to make a couple business calls, so we stopped at a beach town and an old couple started a conversation and ended it by telling us to call our parents. Then, up through foggy farmland and to SLO where we got pork ribs at Firestone Grill. We spent our final calories getting to Pismo Beach to camp out with bohemian lifestylers on a Wednesday evening.
Another long 70 mile day. I was afraid that any stress injuries would happen today. Focused on my cycling form and tried to pedal smoothly. We found a touristy diner around the corner and got breakfast there. We began our long journey into the countryside again. I waved to a migrant worker with a full face mask working in a field and they waved back at me. This day was dusty, windy, hot, clearly we had passed through the mysterious line that separates North from South. Thirteen miles back, we passed through Guadalupe (population 7k). There’s a mural marking its location in California on the tallest building (4 stories), and main street is empty. The town is memorable and unique, somewhere I would never pass through on a drive, unclaimed by chain stores and franchises, except one Subway where we got lunch. A girl gets dropped off by her mom to start her shift as a Sandwich Artist and I wonder what it’s like to grow up here and what San Francisco must seem like to an outsider. Watching the multicolored triangle flags snap over the used car lot next door, I imagine that for all the days that pass in San Francisco, the same number pass in Guadalupe and these flags are flying regardless.
Rolled out of the tiny town, and we soon hit our first climb, Harris Grade Road. It’s steep, we’re gnashing on our lowest gears, and we stopped a couple of times to catch our breath. We race down the other side and roll into Lompoc where we get some thai food. Even medium sized towns feel much larger after biking through the country for so long. It’s 4pm and it’s onto the final hill. Hours of climbing pass by, and as the sun starts to go down, we race >30 mph down the other side down to the 101 freeway.
We double check but almost unbelievably we’re supposed to go down the freeway. At the junction, as we check directions, I see a half dead rattlesnake at my feet and it makes me jump.
We rode the freeway. Cars and semis going 80mph zoomed past. The worst was the sound of a semi truck as it rumbled from a distance, and as it got closer rose into a terrifying crescendo which peaked as the sudden gust of wind threw gravel onto me. We stayed focused and avoided rattlesnake carcasses on the right and traffic on the left. Finally, we made it to the coast. Continuing down the coast, still on the freeway, there was a sign that read “If flashing, bicyclists on bridge”, but it was clear that it flasheed all the time, clearly a half-hearted stop gap measure for an unsafe bridge with no median.
Sunset at Refugio Beach felt like our little slice of paradise, and in the twilight we reflected on our favorite parts of the trip while eating the last of the backpacking food.
Leaving Refugio beach, we debate on breakfast plans. The nearest place with breakfast is quite a ways away, so we heat up some oatmeal and hit the road hoping we’ll run into some fast food. The road is mostly flat and along the coast which is a plus, but still along the freeway which is a big minus. Along the way, we take a detour through Santa Barbara. We are thankful to find a Costco where we get our first tasty meal of the day. Pizza and salads. Then, a leisurely cruise through the bike-friendly UCSB campus. It’s fun to pretend to be students for a little bit. Then, back on the beach and down to Carpenteria. We stop at a Pho place and I ask Stephen to pull up the address for the motel that night so that I can start planning our route more accurately. He says, “It’s the Premier Inns, Thousand Oaks.” And I search it on Google Maps and realize that the motel is about 20 miles out of the way of the path to LA. It looks like we weren’t paying attention when we were booking with Travelocity and we ended up booking a place that was slightly cheaper, and probably worth going to if we were driving, but inaccessible by bike. With the sun quickly starting to get dim, we go into planning mode and we start to look for options to re-book in Ventura proper. We are lucky and are able to cancel the reservation with no charge and re-book at a much more convenient location without too much of a last-minute price hike. Whew! We roll down as the sun is setting into Ventura and check into the Vagabond Inn. This is by far the nicest motel we’ve stayed at so far, and it feels glorious to take a private hot shower and lay in a bed in a clean room. We eat takeout fish burritos from Spencer Makenzie’s and they are so good.
The last day of the ride! We can start to feel LA coming up as we roll out of Ventura and through Oxnard, heading to Malibu. We stop to eat some roadside strawberries from a parked truck and below we see houses of the rich and famous. We pass the sign marking the LA county line, and weave through traffic as we enter Malibu. We reach Santa Monica and run into the water. Then, a long Metro ride to Monterrey Park and then crashing at Stephen’s parents’ place.
The Community - Everyday, other cyclists would wave and start a conversation about where we were headed and what tours they’ve been on. Our bikes were a great way for people to approach us, and it surprised me how popular cycling is even in the remotest areas.
Our Own Stamina - We had never done long-distance cycling before planning this trip out, and the training rides we did before the trip were about 40 miles, so we were expecting the 70 mile days we had planned to be absolutely at the edge of our physical limits. However, we found that we had underestimated our abilities and although those days were exhausting, they were do-able. And we were always able to make it to the next campsite before dark.
Hike/Bike Campsites - One of my worries was that we’d get to a campsite after a long day of riding to discover that the first-come-first-served hike/bike campsites would be filled up and we’d have to stealth camp on some gun-wielding stranger’s property. Luckily, we never got close to that, because most of the time, we were the only ones at the campsite. Also, I asked rangers at each of the parks if they had ever turned any cyclists away, and all of them said that it never happens.
Signage - It was strange but reassuring to see the “Bicycle Route - Pacific Coast” signs pop up even in the most remote and unexpected locations. Near the end of the trip, we needed to get on the 101 freeway, and at first I was like, “no way”, but then after taking the plunge and pedaling down the on-ramp, there were bicycle signs on the freeway too! The signs were a nice touch, I felt like I was on a well-traveled path.
Tips for the first time bike tourist
The adventure only starts once something goes wrong. Be ready to adapt to changes in the plan. Keep your expectations low :)
Check how much weight your bike frame can hold. We learned the hard way.
Related to the above, if you have any issues with your bike, reddit /r/bikewrench is a community of mechanics that’ll give you the advice you need
Practice for a longer trip with shorter tours. We bike-camped 2 times on weekends before the long trip and it helped us build our endurance and identify any gear we needed, or didn’t need on the longer trip
Never leave any food unsecured at a campsite, raccoons can open clasps, zippers, and claw through plastic bags.
Invest in plastic tubes for liquids, our soap container started leaking halfway through the trip.
If you’re camping, figuring out the sleeping gear you need to get fully recharged with a great nights sleep is critical. For me, that includes an inflatable sleeping pad and earplugs. A couple camping trips should help you figure this out.
The above image is a graph of the number of leads generated from a small marketing tool that we created at TINT. Everyday, about 18 marketers use our tool to pick a winner for their Instagram campaign. These emails are valuable to us because anyone who is wrapping up an Instagram campaign is a potential customer.
Are you a team that is lucky enough to have some extra technical talent who can crank out a fun side-project during a hack day? If so, then here’s what you need to do to get leads with a free tool:
1. Find a Customer Problem
Find a problem your customers are having. Here’s how I did it: I was getting lunch with my coworker Muriel, and she mentioned that she was having a hard time picking a winner for our Instagram contest. It was a real pain! There just wasn’t a good tool to pick a winner. She ended up searching Instagram for the contest’s hashtag, closing her eyes, scrolling down, and randomly choosing one of the images.
At that moment, I realized that I had stumbled on a perfect problem. A perfect problem is highly targeted: Something specific enough that you know the people who have this problem are your customers, but universal enough that it’ll be a popular search. Speaking of search, the next step is to…
2. Identify the Search Query
The next question is how they’ll find your tool. Most likely, they’ll be searching on Google. I asked Muriel what she searched for when she was looking for tools. She said, “Instagram winner picker”. Then I went on a walk outside and thought about what I would search for if I were a marketer looking to pick a winner for my contest. “instagram contest winner chooser”, “pick hashtag contest winner”, and “instagram giveaway generator” were some of the different keywords that came to
mind. Finally, I went to Google Keyword Planner to type my ideas in and figure out which keywords were actually being searched for. I picked the top ones, and used that to determine what keywords to optimize the tool for.
3. Build an MVP to solve the problem
Luckily, I’m a developer, so it was easy to find someone to build my idea. But, if you need to recruit someone from the engineering team, you can still make your tool happen.
Some things to keep in mind:
Make it look great - A good design can keep people on the site longer, and increase the chances of interaction, which will boost SEO.
Make it fast - Page load speed is an important factor in bounce rates, especially when people are looking for a quick tool to solve a specific problem. Improve your ranking by making sure load time is optimized.
Make it simple - In our experience, the simplest landing pages perform the best. Make sure it’s brain-dead obvious to someone landing on this page that it solves the problem that they are searching for. Our Instagram Winner Picker tool just has a single button, “Get Started”.
4. Re-evaluate and iterate every 2 weeks
Although this step is easy to do, it’s also the easiest to forget. First, create a document to track all the details of your marketing experiment. Set calendar events when you release the project in 2 week intervals to:
“What is culture and how do you start to define it for your company / startup?”
I ask myself this question often. And I answer it by saying, “A company culture isn’t a list of perks. It’s what people do when their boss isn’t looking. It’s how people make decisions, the norms and habits taken for granted, and invisible relationships that shape our workplace.”
But, how do we define OUR company culture? That’s a harder question.
Greater minds than mine have taken a stab at it. They’ve put together ways of categorizing corporate cultures through surveys and models. Using vocabulary to shine a light on what continues to be an elusive mystery.
Last year Lukas, our PM and go-to person for all miscellaneous knowledge, introduced me to the Schneider Culture Model. In 1999, William Schneider took it upon himself to try to build on previous works to create a model to describe how organizations make decisions.
Schneider’s model divides companies by how they score on two axes, one axis is the “personal vs impersonal”. Are decisions made in a detached and objective way that focuses on the company, or are they personal, taking into account the individuals involved? The other axis is “actuality vs possibility”. Are decisions made with a focus on what we can actually accomplish today, or the possibility of tomorrow?
Based on these two basic ideas, he divides corporate cultures into 4 types:
Collaboration - “We succeed by working together”
Control - “We succeed by getting and keeping control”
Competence - “We succeed by being the best”
Cultivation - “We succeed by growing people who fulfill our vision”
What I like about this model is that there isn’t a “good” or a “bad” culture. These are all different types of cultures that succeed in different environments. There are examples of Great Places to Work™ in each of these categories. For example:
Collaboration - Delta, UPS, Valve
Control - Proctor and Gamble, Marriot, US Army
Competence - Microsoft, Citibank, Pixar, Netflix
Cultivation - 3M, Zappos
Most people would be excited to work at any of these companies, yet they occupy totally different spaces in the model. This is important to note! Especially since it’s easy to get distracted by arguing, “oh, this kind of company culture is better”. Nonsense! Instead, I want to figure out what our company culture is, where we want to be, and then find ways to take us there.
So where does TINT fit in the chart? Last year, I had the company sit down and take a 20 question survey to figure it out. I asked the team, “Where do you think our company is today, and where do you want it to be tomorrow?”. And this year, I did the same thing. Here are the results that I got (You can use the checkboxes to explore the data):
Some initial observations:
People > Company - We are more people oriented than company oriented. This makes sense, as the company has produced policies that give employees more flexibility and freedom.
Possibility > Actuality - We are slightly more possibility oriented than actuality oriented.
More Actuality in 2016 - Since 2015, there is double the number of people in the “Collaboration” vs “Cultivation” quadrant, suggesting that we have become more focused on the present than the future. This makes sense, as we’ve gone through some harsh realities in the past year making it essential for us to focus on what we can do right now.
Cultivation - According to the results, we succeed by growing people who fulfill our vision. Not surprising, given that our vision statement is to help our team and customers achieve their potential.
A Common Future - If you compare the 2 predictions of an ideal future, you will see that the “where do you want to be in the future” has not changed, and that we seek to be in the Cultivation quadrant.
What do I want to do based on these results?
The Future - From the survey, we see the team expressing a consistent ideal of being more in the cultivation corner. So, let’s figure out how we can uphold what got us there in the first place!
Self Improvement Program - At TINT, we have a program that’s focused on being the best you can be, where we can expense up to $100 in anything related to self improvement, as long as you complete a monthly challenge. The results from the survey highlight the importance of this program at our company, and it lets me know that I personally need to continue putting effort into
participating and encouraging others to participate in the program.
Advisors - This tells me that I should continue to seek highly skilled advisors to help cultivate our team. Since we’ve brought her on, our sales advisor Bridget has helped us tremendously both with the co-founders management skills and also for our sales process.
Recruiting and Onboarding - I want to incorporate this framework into our recruiting and onboarding process to tell candidates and new hires what our company culture is and isn’t, and show them how they can contribute. The best way to maintain a culture with new employees is education, and now I have a vocabulary to teach!
Everyday Spirit and Compassion - How do we make a more spirited and compassionate workplace? And how can we introduce more change within our everyday routines to take us closer to a workplace that cultivates others? These are questions that I now need to focus on.
After doing this exercise, I think it would be even more valuable if other companies joined in to see how they see themselves in terms of culture.
Do you want to do the same experiment for your team?
Step 2: Use the results, and this google sheet as a template to figure out X and Y coordinates from the results
Step 3: Reflect! Some questions to ask yourself:
Do I agree or disagree with the results, why?
What policies and processes at the company reflect your culture quadrant?
How dispersed is everyone’s assessment of the organization, and what does it mean?
How can these results help the team better express the company’s culture?
If you do go about doing the above, book a time to share your results with me. And even if you don’t, I’m happy to chat about anything related to company cultures in startups, I enjoy connecting with like minds on the topic.
I closed my eyes and counted to three while in an empty and dark conference room. I told myself that I was ready to tell my friend and coworker that I would be laying him off. I needed to shut off my emotions. I needed to close the valve on my feelings, and close it tight. I opened my eyes, and walked downstairs. I tap my friend on the shoulder, “Can we talk?”, and we move into another conference room. Tim, our CEO, is already in the room, ready to co-pilot the meeting with me. I close the door tightly. The three of us sit in a distanced triangle. There is a long pause.
“I need to tell you something important.”
I present the details that need to be presented: The reasons, the timeline, how long benefits will last, severance, next steps. I’ve seen Tim do this before, and I’ve been the co-pilot. It is much easier to be the co-pilot. All you have to do is pay attention and fill in any gaps that you notice. This time, I’m driving. I am making eye contact, fully aware because of the adrenaline. At the same time, distant because of what I told myself in the dark conference room. I dutifully complete the agenda.
“Out of all people, I would have expected you to be more empathetic about this.” says my friend.
All of a sudden, I realize how deeply offensive I must seem to him, to be so cold. Suddenly, the valve in my heart twists open, and all of the feelings start flooding out: The disappointment, the guilt, the anger, and sadness. My eyes begin to water and my throat closes up. I try to speak, but can’t. I hoarsely force a couple words out, but stop mid-sentence. Tim notices, and picks up from where I am stuck, and the meeting continues. How did it get to this?
On August 24, 2015, the TINT Fundraising Committee was formed to decide on whether or not we should fundraise or to continue to bootstrap our own growth. In the traditional TINT fashion, we democratically elected a 7 person committee, and set up regular weekly meetings. Just one month before in July, we had closed our biggest deal yet.
One of our largest clients wanted to display their social media using TINT, and they committed $120k+ to us. We felt like the world was our oyster as we watched the monthly revenue soar to a spectacular $640k for that month, a huge difference from the previous highest revenue month of $432k.
The committee met weekly for the month of September, and developed a financial model to predict how aggressively we could spend, and when we could start seeing returns from our spending. After much back and forth, the committee coalesced around a single model that highlighted everything from a hiring model to our sales cycle. The model suggested that if we hired aggressively, we would be able to expect to see equally aggressive revenue growth after the negative effects of the slow winter season ended. The model also suggested that we would be able to stay safe even without outside funding.
Based on these suggestions, on October 7th, the committee sent out an email to the team. TINT would “delay fundraising and pursue a course of creating a relatively more aggressive hiring/spending plan. This plan will be focused on driving revenue growth over the next 6 months and measuring the incremental impact of marketing and outbound sales on our revenue as well as increased product and operational expenses.”
However, the committee was not completely blind to the risks. The email from the committee continues: “Admitted Risk: We realize there is a chance that increasing our spend could lead us to no longer being profitable and being forced to fundraise in a situation where we are burning cash in 2016. This is a calculated risk we are taking based on our projections which show we will not end up in a situation with significant burn. Excited to put some gas on the fire and prove out some of our growth assumptions!”
On December 3rd, 2015, we still felt that we were on track, and the committee sent out an update: “I am happy to say that we are overall exceeding our goal, despite being slightly below numbers for November.” The email told the team to anticipate 10 hires before next April.
The graph below shows what we saw when that email was sent. According to the plan, we were still on track. The X-axis is set up such that “4” represents November. On closer examination, you will notice that the revenue line (red) jumps up significantly at 7, 8, and 9, which represent February, March, and April. That’s when we’d start to see the returns from our investment. The model predicted that during those months we would see revenue climb to 580, 620, and 650. We could do it right? We did it in July!
GAS ON THE FIRE
From September 2015 through February of 2016, we brought on 11 full time employees. 4 of them were international and were previously contracting. Before the growth plan, from April through September, payroll averaged at $234k. From September through February, payroll averaged $293k, growing a whopping $60k.
In addition, we upgraded our digs. We went from paying $8.5k on a 3000 square foot office to paying $35k on a 10000 square foot office. Total office related expenditures climbed from a $28k in January to $62k in February. The cost of moving offices was even worse than we anticipated because we were not able to find a sublessor for the old office. Given the bullish office real estate market in San Francisco, we expected to make a healthy profit of 8k from our old office. Instead, we were experiencing an 8.5k loss, as we continued to lower the price each month, desperate for a company to move in. Ouch.
COMING TO A HEAD
In January, we hit our target of $450k. However, the good news did not last long. In February, we missed the 580 target significantly, and only made $436k. By the middle of March, it was clear that we were not going to hit $620k, and it was becoming increasingly obvious that we would not hit $650k as predicted in April. If we were to project more conservative revenue expectations forward, our bank account would look dangerously low.
How low? Well, let’s take a look at the projected health ratio. The health ratio is a number that represents the general health of the business and is simply the business’ bank balance divided by monthly core expenses. Anywhere below 1.0 is dangerous for the business, because once you dip below that, it is possible to not make payroll if revenue for that month does not arrive in time. The projection showed that our health ratio would dip to an alarming 0.6 by the middle of the year, and by the end of the year we would be bankrupt. Simply put, the model put us in an existential crisis. Compounding the necessity to make a decision was a team retreat that was scheduled for the beginning of April. If we were going to make drastic cuts, it would be best to make them before the all hands team retreat.
The day things came to a head was March 23, 2016. It was decided that afternoon among the co-founders that emergency planning would need to take place, and the co-founders met for extended periods between the 23rd to the 27th, scrambling on Saturday and Sunday to come up with a plan to both reduce expenses and to effectively communicate the reductions to the team. The two plans we needed to decide between were to either Cut Shallow or Cut Deep. The Cut Shallow plan involved cutting around $30k in expenses, and then working on immediately raising a $1-2M buffer round of funding. The Cut Deep plan involved cutting $50k in expenses, and then working on reaching profitability before considering raising money. After debate, we decided to go with the Cut Deep plan because it reduced the chances of a second cut, which would be devastating to morale and our long term growth. From there, we worked to make the impossible decision of which employees would be cut. Ultimately, it was a decision that was based on what would make the least drastic impact to the business.
The decision making process was brutal and ugly. It felt awful. It involved putting everyone’s name on the board and going through them one by one, and going through the impact each person would make on the business if they were laid off. After getting through the list, we went through the list again. And then we went through the list yet again, one last, painful time. Each time, we pushed back against each other when we disagreed and identified areas where we needed to collect more information. We wished we had the experience to be able to make an optimal call. Given the constraints given to us, we did the best we could, but we still walked away disappointed that employees would have to be cut for the mistakes that we had made as the leadership team.
Stakeholders were called in the weekend before the announcement to individually meet with the cofounders. They included some early employees, and continuing employees that would be affected the most. The cofounders shared the components of the plan that applied to them, so that they could gather feedback and to prepare them for Monday. By Sunday night the cofounders had a deck, a timeline, and a sleepless night ahead.
On Monday, March 28, the co-founders proceeded with the layoffs, scheduling meetings with the applicable employees in hour long calendar events whose sole agenda was to let them know what was happening and to deliver the necessary details. The announcement to the team was scheduled for noon. Unfortunately, the last layoff meeting went longer than expected, and Tim had to deliver the news to the team alone without Ryo and Nik. Tim walked the team through the deck. It explained the necessity to make big expense reductions, restructure the company, and implement new processes.
After the presentation, employees were largely in shock. With a number of missing threads, the social fabric of the team was frayed, and walking through the office it could be felt. Adding to the tumultuous day, one of our top performing salespeople announced her resignation shortly after the presentation. It was by coincidence: She had planned on making her announcement on that day the week before, not knowing about the layoff.
It was only in the weeks afterward, that we began to realize the mistakes we had made when communicating the layoffs to the team. The biggest mistake we made was that we confused the difference between a firing and a layoff, which are legally very, very different. Inadvertently, we had created an HR liability for our company, and upon learning this mistake, we immediately worked to make clear that this was a layoff, not a firing. Another mistake we made was that we did not announce who was being laid off in the team announcement, until someone asked for it. That was really the only question on everyone’s mind, and it was against our values to not share it immediately. Yet another mistake we made was not looping in our Operations Manager and HR team before the announcement. This would likely have prevented the other mistakes.
On March 30, just 2 days after the announcement, the team set off for Wonder Valley in Fresno for the team retreat. We usually have a retreat every 6 months to strategize and bond. This time, it would be to repair. Our Operations Manager did a wonderful job of planning the retreat for the past couple months, and the retreat proceeded without incident, smoothly and efficiently. We paddled canoes, brainstormed Q2 strategies, and played cards late into the night. However, even the best retreat would not be able to fully heal the wounds left from losing one’s friends from the workplace. The team came back from Fresno closer than they were after the announcement, but still fragmented, and feeling the weird energy the layoffs brought about.
In April and May we saw a continuation of the aftermath when 2 key engineers announced their resignation in order to pursue their own interests. This hit the team particularly hard because both of these employees represented strong talent on the team.
That brings us to the present. Today, we are still working to handle the situation day by day, leading initiatives to get back to profitability. Until we reach a stable financial state, we will be operating in a mode of scarcity, holding off promotions and our 401k matching program. The scarcity is a painful but important motivator in absorbing the lessons learned.
LESSONS LEARNED / LEARNING
Expect the best, but plan for the worst – We expected the best, and planned for the best. At each step of the way, we leaned on the optimistic side. Our aggressive hiring plan assumed that we would be able to source quality candidates in that time, even though past data showed that it takes months to find a quality candidate. Our office plan assumed that we would be making a big profit from subletting the space. The growth plan projected very, very optimistic revenue growth. We should not have baked as much optimism into our plans.
Cut Deep, Cut Once – This was the first word of advice from almost every advisor, mentor, and online resource we consulted before making the decision. Leadership only has one chance to convince the team that the company can be turned around.
Fundraising – Fundraising should be guided by an individual who has the most experience in fundraising. For us, that person was Allen Morgan, a member of our board, who should have been brought into the discussion much earlier. Instead, he was informed at the beginning of 2016, months after the committee laid the groundwork for the growth plan.
HR – We learned that a firing and a layoff are very different, even if both are based on performance. In the future, we will talk to an HR professional before making big moves.
Motivation – After making the announcement, morale was at a historic low. The co-founders felt pressure to motivate the team. However, how do you motivate a team that’s just gone through a round of layoffs? What we learned from our sales advisor Bridget Gleason, was “You can’t motivate people – it’s not your job to motivate people – your job is to provide a great environment where motivated people can be successful”. We learned not to beat ourselves up for everyone feeling awful, and to be patient and focus on what is under our control to create a successful environment moving forward.
Doing More with Less – In the months after the layoff, we asked ourselves more and more “What does success look like?” Instead of taking a “spray and pray” approach to our activities, we now spend more time tracking impact so that we can learn how we can do more with less. You can only improve what you can measure.
Although we experienced the largest setback in this company’s history, we must remember everyday to appreciate how far we have come. We are making steady revenue from a group of passionate customers and have a product that regularly sells itself. The comments our customers give us for our easy to use product and personal customer service is inspiring.
We are now 2 months past the layoffs, and are experimenting with new ways of approaching work. Here is how we are challenging ourselves to improve:
Data – In the past, we never got around to measuring what we wanted to know. Now, when we start a project, we are more disciplined about asking ourselves, “What does success look like?” We are more careful about measuring our results and more disciplined about learning from our mistakes. More analysis means faster failing, more learning, and a higher chance we’ll work on what will make the most difference for our customers.
Goals – In the past, we took a scattershot approach to what everyone was working on and didn’t provide adequate direction or coordination. We set goals, but they were often forgotten by the middle of the quarter. Now, we have improved how we create goals, spending more time making sure that they are the right size and have strong business value. Also, we have made our goals more visible by adding them to our 1:1 process. By keeping us focused on our long term objectives, we will be able to achieve more with less.
Restructuring – Previously, we had 7 department heads for an organization of about 30. This resulted in significant overhead in coordinating all of the heads. We are now dividing up management responsibilities among the 3 co-founders and our sales director, which results in less communication overhead, and more time to focus on customer needs.
As for what the future holds, much is beyond our control: Competitors continue to leave and enter the space, the market evolves at a rapid pace, and customers’ needs change. However, I believe the future is still in our hands. The best team is going to write the best software, sell the best pitch, generate the greatest following.
We are not the typical VC-funded Silicon Valley company. Because we are self-sustaining, we have the luxury of focusing on sustainable growth. And we have an excellent team at TINT, to move us forward on that path. We feel the pressure, but it makes us stronger. Next time, we’ll be more careful about putting gas on the fire.