Ask HN: When should I stop telling people about my business?

3 points by bnzelener 12 years ago | 6 comments

I run a bootstrapped startup that's three years old and growing steadily. Revenue is doubling year over year. We'll hopefully do $400,000 in 2014 sales with a gross margin of 25-30%. I'm having a lot of fun, learning a ton, and the business is providing a living wage for me and my one full time employee. I'm almost 23.

I share a monthly update of our financials and a general summary of what is/isn't working with a group of 20 friends and mentors. The goal is to get feedback and spark ideas based on what's working for me. If someone asks me out in public about how the business is doing, I still tend to tell them our revenues and my goal for the year. I want to give out real info - not hide behind "we're doing well".

I think that, being an HN reader, I'm inspired by others' stories and I want to share mine to have the same impact. However, I think at some point I'll have to stop sharing all of our info with such a broad group. I'm concerned that some friends may become jealous and the updates will have a negative impact. I'm concerned that the updates could come off as arrogant. And to some slim degree, I'm concerned about the info being used maliciously.

What do you think? - Is sharing financials and updates about a young startup beneficial for others to hear? - When is it time to tone down the updates? - Is it likely to come off as arrogance when giving financial context to non-startup friends?

tehwebguy 12 years ago |

Probably now, since it's starting to concern you.

I know the feeling of wanting to tell people when you hit certain milestones. It's not bragging about money, it's validating your success at something you work hard on.

But now that it's working it's sort of like your friends telling you every raise they get.

Also, some people will get weird once the numbers get above a certain amount.

pedalpete 12 years ago |

I think you will want to consider it as more than just an issue of arrogance. You're showing your hand to your competitors (or potential competitors) as well as potential employees, etc. etc.

It's fine to share the details with some close confidants, if you feel it will help you and them. But are the numbers at this stage really as valuable as you think? From the info you've given, you're talking a gross margin of just over $100k last year. That is nice as a young person bootstrapping a start-up with only two employees. It isn't great as a business, depending on what you want it to be.

If your goal is to run a lifestyle business, than why share the details of your revenue and margins? That seems to me to be completely about ego. How will knowing your revenue and margins enable somebody to help your business? I suspect if you just told them about what you're doing, you'd still get similar feedback and ideas about how to improve or grow your business.

If you're looking to create a large company from your start-up, you've got a long way to go. Your current revenues need to triple or quadruple. You need to grow exponentially. The info you're sharing, in this case, just lets everybody know how far you have to go, and could put doubts into if you'll actually make it.

By all means talk about your business, but be smart about what you share, and with whom. As a test, see what sort of response you get when you stop mentioning revenues and margins to people. Do you feel they are giving you less feedback? Or less valuable feedback? Do you feel that by mentioning the numbers to everybody in sight, it makes you feel better about what you're doing, rather than the effect it is having on them?

Do some A/B testing on yourself and see what happens.

Out of curiosity, what made you post this question? Maybe the answer to your question is in that alone.

BorisMelnik 12 years ago |

I would definitely keep your advisory board. Having a group like that is so valuable, especially if you are getting a ton of feedback.

Most people don't expect to hear exact numbers, but from personal experience they (I) do like to hear percentages. Other statistics could be helpful as well. For instance I tell people last year we had 8 employees now we have 12. Great question, thanks!

lacus 12 years ago |

Maybe skip the gratuitous sharing of financial milestones, and instead update people on the cool new stuff you're building/doing, or start a discussion about the user feedback you've received recently or some interesting results from the A/B testing you conducted recently -- that sort of thing.

sejje 12 years ago |

Can't you share updates with less details to avoid feeling like a braggart?

For instance: "We're on pace to double last year's six-digit revenue and holding steady at a 25% gross margin."

Or talk to friends who can be happy to hear you're doing well.

JSeymourATL 12 years ago |

Follow your gut. Cull the list, and share details with a select few who truly provide strategic insights and valuable feedback.