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

Having quit Google in 2018 to bootstrap indie software businesses, Michael is known for writing very transparently about the ups and downs of his journey. After recently selling his hardware business TinyPilot for $600K, Michael returns to the show to chat about the misconceptions about running an indie business, the hardest part of selling a company, and why “hardware is definitely out” for his next move 😂 Segments: (00:04:22) The complexity of selling a hardware business (00:08:49) Why "hardware is definitely out" for Michael's next venture (00:11:57) The evolution of TinyPilot (00:16:29) Inherent risks of a hardware business (00:20:53) The most terrifying 10 minutes of 2023 (00:24:52) The pricing strategy (00:31:48) Building the team (00:35:32) Recognizing the limits of solo founders (00:37:22) What and how to outsource? (00:42:45) Tracking hours and managing expectations (00:46:50) High-level math and profit projections (00:52:17) Working with contract manufacturers (00:54:12) How to know when to delegate? (00:58:16) Misconceptions about running an indie business (01:03:56) The importance of value capture (01:09:26) Identity and purpose after selling a business (01:13:40) How Michael arrived at the decision to sell the business (01:17:53) The process of figuring out the price (01:20:36) Negotiation and the final sale (01:25:09) Why due diligence was so stressful (01:30:09) The importance of buyer fit (01:34:16) Michael's new course "Hit the Front Page of Hacker News" (01:35:17) The power of "Show, don't tell" (01:38:14) Sneak peek of the course Show Notes: - Michael’s blog post on the process of selling TinyPilot: https://mtlynch.io/i-sold-tinypilot/ - Michael’s excellent monthly retrospectives on building TinyPilot and beyond: https://mtlynch.io/retrospectives/ - Hit the front page of hacker news: https://mtlynch.io/notes/htfp-live/ Stay in Touch: 👋 Make Ronak’s day by leaving us a review and let us know who we should talk to next! [email protected]   Music: Vlad Gluschenko — Forest License: Creative Commons Attribution 3.0 Unported: https://creativecommons.org/licenses/by/3.0/deed.en