079: Building and Selling a $20k Business in 1 Year

—Welcome to Startup Gems, where we find undiscovered startup growth hacks, stories and case studies from every random nook and cranny of the internet.—

—Whether you're a seasoned entrepreneur, an aspiring startup expert, or simply someone seeking inspiration, Startup Gems is your source for the stories that ignite the flames of innovation.—

—I’m your host, Chris Koerner, and today's episode is a deep dive into the riveting story of Bernard M. Baruch, the mastermind behind a 20 grand puzzle subscription box business. We'll uncover the principles that turned this side hustle into a successful venture in just one year. Bernard's journey isn't just about puzzles; it's a roadmap for any aspiring business owner. In the next few minutes, we'll unravel the tested principles that fueled his success—testing demand before investing, having a crystal-clear acquisition plan, and starting with minimal investment.—

—As the world went into lockdown in twenty twenty, Bernard found himself with extra time as his regular work hours dwindled from 70 to 20 hours a week. Seizing the opportunity, he decided to dive into the world of SEO and customer acquisition.—

—Bernard enrolled in a Coursera course on Search Engine Optimization during a 7-day free trial, laying the foundation for his venture. Knowing the power of recurring revenue, he set his sights on a subscription-based business. After exploring various options, he settled on the idea of a puzzle subscription box, identifying a gap in the market.—

—With limited coding skills and a budget of no more than a grand, Bernard ruled out software and B2B businesses, leaving him with the consumer product subscription route. He conducted keyword research using SEO tools, like A H REF, and secured domains for potential products, including hunting, fishing, and puzzle subscription boxes.—

—To test the waters, Bernard set up a WordPress and WooCommerce site on Digital Ocean, leveraging the SEO benefits of WordPress and the speed of Digital Ocean. Taking inspiration from successful subscription box services, he curated puzzles, set prices for a 15 percent profit margin, and made the critical decision to offer only curated puzzles.—

—As he delved into the world of SEO, Bernard encountered the slow nature of organic growth. Seeking a boost, he purchased an expired domain with good backlinks, instantly increasing traffic and leading to his first sale. However, he had no inventory yet and had to scramble to fulfill orders, even if it meant a loss.—

—Navigating challenges such as inventory shortages during the COVID-19 pandemic, Bernard connected with Moiz Ali, who recommended ShipMonk as a 3PL solution. This streamlined the fulfillment process and allowed Bernard to focus on scaling the business. Mother's Day brought a surge in subscribers, revealing that 80 percent of subscriptions were gifts, prompting adjustments to the marketing strategy.—

—Despite automation and success in customer acquisition, Bernard faced a new challenge—shipping costs cutting into margins. To address this, he introduced a puzzle mat as an upsell, boosting profits on approximately 20 percent of orders. However, low margins eventually led Bernard to sell the business.—

With around 120 subscribers, 35 hundred dollars in monthly revenue, and 300 dollars in monthly profit, Bernard listed the business on MicroAcquire. Following negotiations, he received an offer of 20 grand from an e-commerce holding company and a counteroffer of 21 grand from a private buyer. Utilizing Escrow dot com for a secure transaction, Bernard successfully sold the business, marking the end of his slow but predictable and profitable journey.—

—Key takeaways for indie hackers include the importance of testing demand before investing significant resources, having a clear acquisition channel, starting with minimal investment, and building a supportive community for idea exchange and collaboration. So there you have it, Bernard's story—a testament to the slow and steady path to success in the world of entrepreneurship.—

—Now, let's dive into the key principles that made Bernard M. Baruch's puzzle subscription box business a success. These principles are not just specific to puzzles; they're universal and can be applied to any business. So, buckle up for some practical insights!—

—Principle 1: Test Demand Before Investing Significantly—

—One of the first principles Bernard followed was to always test demand before investing significant time or resources. He didn't jump headfirst into a full-fledged business; instead, he dipped his toes in the water to ensure there was a market for his product.—

— As a business owner, you can apply this principle by conducting surveys, running small-scale pilot programs, or creating minimal viable products. By gauging the response before a full launch, you can save time and resources, ensuring your business aligns with the needs of your target audience.—

—Principle 2: Have an Intended Acquisition Channel Before Starting a Business—

—Bernard had a clear vision of his intended acquisition channel before even starting his business. He focused on search engine optimization to organically attract customers, and this strategy played a crucial role in the success of Puzzle Subscription Box.—

—For your business, identify your primary acquisition channels early on. Whether it's social media marketing, influencer partnerships, or content marketing, having a well-defined plan will guide your efforts and help you reach your target audience more effectively.—

—Principle 3: Start with Minimal Investment—

—Bernard's budget was capped at a grand, and he stuck to it. Starting with minimal investment not only reduced financial risk but also forced him to be resourceful and creative in building his business.—

—Consider bootstrapping and focus on lean startup principles. Prioritize essential expenses, explore cost-effective tools and platforms, and embrace the mindset of doing more with less. This not only conserves resources but also encourages innovative thinking to solve challenges.—


— And there you have it, folks—the three key principles that propelled Bernard's puzzle subscription box to success. Test demand, have a clear acquisition plan, and start with minimal investment. These principles are the building blocks of a resilient and thriving business.—


—Thank you for being part of today's adventure through the world of startups and innovation. Did this episode ignite any fresh perspectives or ideas? Share your reflections and favorite takeaways in a review wherever you’re listening now. Remember to stay curious, continue to forge your own path, and subscribe and follow Startup Gems to be the first to access stories that will fan the flames of your entrepreneurial passion.—