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Mar 21, 2024 • 45min
517: Building Better Design Systems with Luro's Trent Walton
Hosts Victoria Guido and Will Larry are joined by Trent Walton, CEO of Luro. Trent shares his journey into the design world, from his early fascination with typography and logos to co-founding Paravel. This agency later evolved into creating Luro, a no-code solution for building design systems and tracking their adoption across products.
Trent emphasizes the importance of understanding the materials one works with in design and development and stresses the need for a holistic approach to product building. This approach blurs the lines between disciplines, encouraging a generalist mindset over specialization. Luro, as a product, stemmed from the realization that existing design systems often fell short in adoption and application, leading to a search for a more integrated and comprehensive solution.
Trent outlines the functionality and vision behind Luro, explaining how it serves not just designers and developers but entire organizations by fostering better collaboration, documentation, and understanding of design decisions. Luro aims to streamline the creation and maintenance of design systems, making them more accessible and manageable, even for teams facing resource constraints. By incorporating performance, accessibility metrics, and the ability to track component adoption and integration, Luro provides a platform for continuous improvement and alignment with organizational goals.
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Transcript:
VICTORIA: This is the Giant Robots Smashing Into Other Giant Robots Podcast, where we explore the design, development, and business of great products. I'm your host, Victoria Guido.
WILL: And I'm your other host, Will Larry. And with me today is Trent Walton, CEO of Luro. Luro is a no-code solution to build your design system and track adoption across your entire product. Trent, thank you for joining me.
TRENT: Oh, thanks for having me. It's great to be here.
WILL: Yeah, I can't wait to dive into Luro and get to know more about the product. But before we go into that, tell us a little bit about yourself. I know you're based out of Texas.
TRENT: Yeah, I grew up, lived here my whole life. I'm in Austin with the other co-founders, Dave and Reagan. Been a designer probably all my life, always been interested in, like, typography and fonts. When I was little, I used to buy badges for cars from swap meets and take them home, not because I needed, like, I had a car I was building and had any interest in, like, sandblasting or building an engine. I just liked the typography, and the design of the icons, and the logos, and all that kind of thing.
And so, now it's evolved into me just being, like, a type aficionado and a graphic design aficionado, and then that evolved into, especially when I discovered the web in the early 2000s, building and designing websites with Dave and Reagan, who I mentioned. And so, we had an agency called Paravel early on and had a lot of time putting into practice kind of that design and development and building for the web.
VICTORIA: So, your first interest in design came from, is it a car engine? Is that what I heard?
TRENT: Well, yeah, my father is a mechanical engineer, and so is my brother. And they work on cars, have classic, like, old Mustangs and Cobras and things that they build in their spare time. And I have no interest in that kind of work [laughs] but grew up in that environment. And, you know, pre-internet growing up in the '80s, one of the things that really got me was the aesthetic and the design around those kinds of muscle cars, so, like, old Shelby or Cobra or Mustang Ford ads, just, I really got into that.
So, I'd buy, like, car manuals for a few bucks, or if there's a Mustang Cobra and there's a cool, like, chrome snake logo with a condensed uppercase typeface or some sort of lettering that says, you know, "Shelby Cobra." And that's when I realized [laughs] where my interests lie. You know, engines are cool. They sound cool. Fast cars are cool. But I was just totally, you know, enamored with the typography and the design aspect that surrounded those things, and then it just kind of evolved from there. Anything else I could get my hooks into, I picked up on.
VICTORIA: I love that because when I talk to people about design, for folks who don't have a background in it, they kind of think, oh, design, that's logos. You know, I'm redesigning my house right now. My husband is like, "Oh, it's picking the tiles and the colors. We can do that." And I'm like, "No, like, design, there's a lot more to it. Design is everywhere." Like, you can find design inspiration from car manuals [laughs], it's so funny that you bought those, or from random logo design and actually, like, really good design. If it's something that's designed well, you probably don't even notice it. You just flow and use the space or use the app as you're intended to.
TRENT: Yeah. And I also think that getting inspiration or starting ideas out from anywhere but the medium you're working in might be a nice little trick to bring some, like, naïve, fresh perspective to things. So, I try to go back to that stuff as much as possible. I have heaps of manuals I've bought off of eBay in recent years, yeah, things you wouldn't think you'd find on, like, you know, whatever, a graphic designer's bookcase, just anything to sort of break the monotony or break my own little lenses of what a website should look like, or what a logo or a brand should look like, how to step outside of that a little bit.
But it's funny because it really does go back to that initial sense of wonder I experienced at those really just, you know, we're talking, like, in a gross, swampy field in Texas with, like, funnel cakes being served at every corner, like, not the most slick, rad graphic designy vibe, but that's where it all started for me. So, I go back there as often as I can [laughs].
VICTORIA: So, how do you talk to founders or people who are thinking about building products? How do you talk to them about design and give them a where to get started approach?
TRENT: I don't know that I ever specifically talk about design or even maybe, like, engineering or about performance. I talk about all those things, accessibility, et cetera. I try to blur those lines as much as possible. It's maybe an idyllic thing that I've had for years. But going back to the agency days, I'll call them the agency days, but up until, like, you know, 2015, '16, Dave, Reagan, and I ran an agency called Paravel. And by nature, the three of us are some sort of a hybrid between a designer, maybe, like, a front-end developer. You know, Dave's more of an engineer now.
But we've all been very careful to make sure that we're generalists, which I don't know that that, like, career-wise that, might pay off long term, but I cannot work on the web any other way or talk about the web any other way. I've always felt like, I mean, there was the old, which we don't have to get into, gosh, but the debate on should designers code? But I think the essence of that is really, like, should we be familiar with the materials we're working on?
So, anytime I start to talk about designing for the web or designing a product, you want to make sure everyone has a clear understanding of the environment that they're working with. So, is it, you know, a website? And is performance important? And is our site that we're redesigning is it performant now? Is it fast or slow? Or am I a designer who only cares, and this is a thing that I have to fight inside of myself all the time?
So, I'm not trash-talking anybody, but, like, do I want to load a bunch of fonts and cool images, and is that my KPI is how interesting and engaging the visuals are? Which is a great one to have, but it also, you know, while you're talking about design, you have to consider all of these other things that can define quality for an experience. Maybe those other things don't matter as much from one person to the next. But the more they are in front of me, the more they evolve the way I perceive what I work on.
And so, I try to never really isolate any kind of aspect into maybe, like, a stage or a sprint that we're doing as a team. It's just sort of this holistic kind of hippie vibey way to look at sites, but I want to make sure that it's always, like, we're always starting from a very, very broad place that involves every aspect, and all team members and stuff like that.
VICTORIA: Well, I love that because I try to think about that in the same way from the other end, like, on the operations perspective when you're talking about site performance. And, you know, like, is the site responding fast enough? And it comes back to the question of, like, well, what is the experience, expectations of the user? And what's important to get done on the site? [laughs] And having those conversations, like, early on and integrating all these different teams from the design and development and operation side to have that conversation so everyone knows what is the goal of the site and what is the important aspects of the user experience that the system needs to be able to support?
So, I also like that you said that it's like, well, should you be familiar with the materials that you're using? [laughs] Thought that that was really cool. Like, I'm actually...my husband and I are renovating our home. And I'm talking about why we should invest in design [laughs], and part of it's because there's things to know about the materials. Like, if you're choosing a floor for your house, like, the designers will know, like, what's the durable ones? What's the ones that are going to fit your need, and your cost, and your budget? And so, like, they don't necessarily need to be a person who's going to lay the floors [laughs], but they need to know what to expect out of what you decide to use.
TRENT: Yeah, it's, like, all of these constraints. And so, being familiar with the real-world implications of the decisions we make, you know, inform that. So, yeah, I mean, I think that's pretty similar, too. It's like, well, you need this floor because it's more durable in this climate or whatever, same thing for, you know, the websites that we build. It's all contingent upon the outcomes that, hopefully, we can mutually agree on. You know, there's kind of a general sense of, like, performance is important, and accessibility is paramount and extremely important. But then there's some nuance to that as you get into some smaller decisions.
So, having these kinds of discussions early on and frequently and almost...the way I like to think about it is rather than, like, a check-in where we say, "Okay, this is it," but having a place where we can all look to check in and find information and share information that's maybe not so fast. One thing I like to think about is things get lost in chats and maybe even tickets, so as you're closing tickets and opening tickets. There's a bug. I solved it. It's gone. Can you send me this logo? Can we tweak this? These micro changes they open and close very, very quickly. And so, there's this firehose that happens.
And so, I find that having a place separate from that for discussing these things and remembering these things, and referencing these things while we are in our code editors or inside of our Figma or any kind of design tool that we use to sort of cross-reference and simmer on things as we think about the decisions that we have to make, as opposed to just knocking them out super quick, always being mindful of those constraints. And again, yeah, the [chuckles] materials we're working with, whether it's just, you know, HTML, CSS, and JavaScript or whatever, but all of those things. It's good to be mindful of that.
WILL: I know you said that you've been in design for a while, and so I love just picking the brain of someone who's been into it a while and see how far we've come from, especially just the 2000s. So, in your opinion, with design, how do you feel about where we've come since the beginning of tech to where we're at now and, also, I guess, where we're going with the design?
TRENT: Yeah. So, I guess I can really just frame...this is going to help me remember just framing [laughs] where we were. I started off on Homestead, which is sort of like GeoCities. I was in college. I graduated, and I think it was 2001, maybe 2000, anyways. And it was mainly just taking images...I didn't even have Photoshop at this point. And you realize you could, like, tile a background for a build your own website. Homestead was one of those kinds of deals. And I thought that was very interesting. So, I had this cheap digital camera. It took a lot of cords to figure out how to, like, port that onto this old, crappy Hewlett Packard computer that was, like, a hand-me-down.
Fast forward a couple of years, I had graduated, did not study design, so I'm all kind of self-taught or just taught by the web, the peers, the information that has been shared and been influenced by. But Dreamweaver was out, and Macromedia was huge, and I loved Fireworks. And so, Dave Rupert, I paid him $80 to teach me HTML [laughs], and so we've been together ever since. This is right out of college.
And so, the tools that we used there were pretty rudimentary, but Fireworks was rad. Like, it was kind of web-based. It felt like it made more sense. I love Photoshop, and that's kind of, like, a primary graphic design tool that I still use to this day. But early on, it just felt like everything was so harshly limited.
So, if you had any kind of idea that you wanted to execute that you could just draw on a piece of paper, mock it up in Photoshop, the amount of work that you had to do to get that to happen was either extremely high, or it was just impossible. And then, if it was impossible, I bet you can guess what we did. We went to Flash, and we made, like, a crappy video of a web page that was not accessible and really hard to use. I was heavy into Flash for, like, two or three years until kind of, as I had been warned by Dave that, you know, HTML and CSS are going to be the way the web works.
But when I came back to that, there was this wonderful time where it felt like we were charting out every single...it was just new territory. It's like we had come to this other planet or this other world, and everything that needed to be done, we had to figure out how, like, getting web fonts onto pages, rounding borders. I mean, getting that done aside from slicing images in Fireworks felt like this new monumental discovery that changed the lives of many. Maybe it did, maybe it didn't, but in my world, it felt like that.
And so, early on, you can look back on it and go, gosh, everything was a pain in the ass, like, living with all of these limitations. But for me, I do look back at it like that, but I also look back on it as this wonderful time where we were building the web that we're working on now. So, all these things that make designing easier and quicker come with some sort of a, you know, an evolution of your perception, and [inaudible 13:14] fond memories of work along the way.
For me, it's sort of I've just always sort of been around working on the web and watching design evolve, and every little step maybe feels like a tiny one or a large one. But these days, it just seems like, oh, this is exactly how it should have [laughs] always been, like, convenient grids and convenient box shadow and all that kind of stuff.
But yeah, it's been nice to sort of grow up only being a web designer. Like, I mean, I've done graphic design. I've done brochures and, print design, and logo design for sure. But, I have always been anchored to and centered around web design and thinking about things in the context of how they will be applied to the web first and foremost.
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VICTORIA: So, what was the turning point for you that led you to found Luro? How did it all get started?
TRENT: With Paravel, the agency days, we had a lot of fun. I think, for us, our big agency spike was when responsive web design came out. Ethan coined the term. There was a lot of people on the web, you know, a lot of agencies or a lot of teams, a lot of companies that needed to pivot into that. And so, we found this great working relationship with companies where we would come in and sort of had a little bit more practice just because we got in early learning kind of how to do that well, I think.
And it was a sort of we're going to redesign a page, a homepage perhaps, or, like, a marketing page. You'll do that project; three to six months go by. And then the next thing turns into, well, we have this giant network of e-commerce stores. We have this giant network of pages with, like, download centers and support documents. And now, we need to make everything responsive, and it can be anything. We need to make everything accessible. We need to make everything performant. We need to update the brand on everything.
And I don't think we're alone in this. I think this is the beginning of the greater design system discussion as it applies to the web. Obviously, design systems predate the web; design systems pre-date, like, 2012 or '13 or whenever we got into it. But projects started to migrate from, "Hey, can you design this really amazing, responsive marketing page," to "We have a system, and we need you to solve these problems." We love working on those problems. I still do to this day.
But the reason why we switched from kind of being a, you know, individual contributor-type agency consultant type roles to building a SaaS product was because we were realizing that things got complicated...is a very, like, boring way to say it. But to get a little deeper, it was, we would see things not ship. So, like, our morale went down. The teams that we were working with morale kind of went down. And as I was digging into why things weren't shipping...and when I mean ship, I think, like, pages would ship, of course. Like, here's a page. It just needs to be built, somebody decided, or a new feature needs to be built. Of course, those went out.
But the idea of, is our design system or the system that we're designing launched? Is it applied? Is it fully adopted? Is it partially adopted? It never felt like the amount of traction that we were promising or that we were being asked for. And I don't mean we, as in just the three of us, but the entire team or the entire organization who, in many cases, all were bought into the idea of design systems.
So, what we found was, when things got real, and we had to give up things, and we had to work on things and prioritize things, it became much more difficult to work in that capacity, probably partially because of the cross-discipline nature of those things. So, as opposed to what I consider maybe a miserable way to work in many cases, is the classic; here's my Photoshop comp. And I have a red line document JPEG that I will give you, whatever engineer I'm working with, or it's myself, and I'm just giving myself a red line document, but you're just going through and trying to make those things match.
And that is sort of not fun for the team because now we're just sort of chiseling each other and sort of, like, going through and critiquing our work over and over versus really kind of in the spirit of prototyping and inventing together. I find that products are diminished when you do that.
So, as you try to get into this design system part, it requires a lot more insight into what everyone around us is doing, kind of, as I was saying at the beginning, how to have this cross-discipline view of what we are actually working on. And that view is what we thought, and we still believe in many cases, is absolutely missing. So, you can spin up a design system. And Luro is not the only design system tool. Of course, you can spin up your own. And what I mean by that is, like...I'm maybe going to answer, like, three questions in one. Maybe you haven't even asked them yet.
But just to kind of frame this, if you ask anyone what a design system is, it might be a different answer. It might be these are my Figma components that I've created and I've shared out, and there's a public link. You know, an engineer might say, "Well, it's the GitHub repo of components that I'm actually using." So, the design is helpful as documentation. But the design system is the code, or the design system is the actual...or the actual components that are live that users see, which I would argue probably is the most accurate, just because we're talking about user experience impacting whatever business objectives we may have.
So, those components need to make their way into live sites or products. So, finding out what that answer is, what's the source of truth? What is our design system? What are our components? What are our standards? You have to have multiple sources for that, just because there's multiple people with multiple opinions and multiple measures of success involved in those. And all of those opinions and measures of success, I would say, are valid. So, accounting for those and kind of crossing the streams, if you will, in one sort of central UI, we believed was crucial enough that we should jump out of the agency days and into a product-building scenario.
VICTORIA: That's really interesting. So, you saw this pattern in the delivery of your work as an agency that made you want to build a solution to create better outcomes for a potentially exponential number of clients, right? [chuckles]
TRENT: Yeah, hopefully. I think that working on how you work together as a team is vitally important, and if you can find the right environment, then the actual product will benefit. I mean, and I'm not even just thinking about these maybe soft things like, oh yeah, if engineers and designers can work together, the typography will be a little bit better, and the site will feel a little bit more cohesive, and it'll be maybe a little bit easier to digest. I believe that.
But I also believe that there are people in organizations doing research, financial analysis, customer analysis, A/B testing, you know, all sorts of work that contributes to the decisions that we make about our sites and products that sort of just gets lost in the shuffle, in the firehose of the day to day. So, having something that takes not only a, I guess, what you could classify as the what for a design system, it could be the design of a component. Maybe it's actually even, too, as well, the code that makes up that component. But then there's this giant why. Why does the button look the way that it does? Why does a card have a border around it? Why? Why? Why? Why? Why?
These things maybe they come up during meetings. Maybe there's something that, as a designer or an engineer, I found maybe on the company's shared OneDrive or somebody mentioned in passing. Those things are vitally important, and they need to be, again, back to the morale and perception evolving; they need to be accessible to everyone. But it's a needle-in-a haystack situation.
It's funny. We would consult. And one of my favorite stories is we were building this prototype. We were hired to build a prototype for a startup in Austin. They were on a big, open floor-plan office with the glass meeting rooms. And we were showing off our prototype, and we just felt really clever and witty about the way we were going to solve this and the pages that we were going to build.
And who is a friend now, a person named Angela walks by, and she's like, "What are you working on?" And we told her what it was. And she says, "Oh, wow, you know, six months before you started contracting with the startup, we did this all, and we've user-tested it. Everybody's been reorged, and nobody remembers. But I have this PowerPoint I can send you, and it will show you the results. Some of these things you're doing are probably going to be great. The other things you should absolutely not be repeating these mistakes."
And I thought about how likely it was that she walked by and happened to see that through the window and happened to look on the sharp television on the wall. And it's probably not very likely, and as we become, you know, we're remote and working remote the likelihood of those things happening maybe goes down. The idea of building a product that increases the likelihood or almost makes it seamless that you can find information relevant to what you were working on, even if you're new to that project or you haven't worked on it for a long time, is very, very key.
So, within Luro, you can build a design system. You can add your styles. You can add your components, configure your tokens, and do all that, but you can also integrate those things that I was mentioning: prototyping, research, and testing. We also do an accessibility and performance through Lighthouse and give you metrics there. All of those things are associated to the pages that your site is comprised of. They're associated to the components that you use to build everything. So, we're sort of crossing the streams here.
So, if you're going into imagine a button component and you're like, okay, the border-radius is four pixels. The type size is 16 pixels, and here's how you code it. We're putting in an actual button. The class is dot btn. That's all great. It's helping us build the button. But if you are asked by leadership or anyone, "Why did you decide this?" Or "What is the impact of design?" Or "What is the impact of the product team on our bottom line? How are you moving the needle? How are you helping us as an organization achieve?" The answer isn't, "Well, we made the border four pixels just like the design [chuckles] said." That's great. Good job.
But I think having all of this information associated with design and associated with engineering not only makes us more informed as contributors to teams but it helps us to articulate the value of what we do on the daily in a much more broad organizational sense.
So, you can say, "Well, we user-tested this, and we realized that if we took out these form elements from a signup flow, we get more signups by having fewer steps. And so we removed a step. We user-tested it before and after, and signups went up 30%." That's a much cooler answer than, "Well, our design system helps us be consistent," even though we know that that is vitally important, and it makes our app or our site feel much more cohesive, and it contributes to that sign up metric or a sales metric just as much.
But having this data and associating it with a component so it's not something that you have to sort of...I guess it almost sounds subjective if you bring it up and say, "Well, we're moving faster, and we're selling more stuff." That's not great. But if you can link and say, "Well, here's a PowerPoint before," or "Here's a summary of a user test before and after. Here's real numbers," it helps you to portray yourself as the designer or engineer or product team member who thinks very deeply about these things, and it helps you to accurately portray yourself in that way.
So, I went on a real tangent, but actually just there, I think I just was describing sort of the nuts and bolts of why we built Luro to not only be a design system tool but, like, what we kind of also call a product development tool, a product development system. So, it's extending the idea of design systems to the practice of building a product with an entire organization.
WILL: That's really, really cool, and you did a great job explaining it. I'm excited to see it and see where it's going. I felt like a lot of what you were saying was the why you're doing stuff, why you chose, you know, X, Y, Z. Is that where the analytics and the tracking portion of Luro comes into play?
TRENT: Yeah. I think that one thing we heard a lot from agencies or even just teams within an organization that are working on design systems is back to that articulating the value of maybe a design system or articulating the value of the work that we do as designers or product builders and similar to we've done a user test and these are the results, and sales or signups, or whatever the case may be, have improved. I think one of the key metrics for a design system is, is the component adopted? There are other ones, and people will mention those, things like, is it helping a team be quicker?
So, if there's a design system team, and then there's multiple product teams within an organization, and they all want to work together, and they want to be able to take the components that they need and build their ideas quicker, prototype quicker, that's a great metric as well. But one that we find vitally important is, are the components live to users? And so, being able to track that has a lot of value. One, obviously, is that communicating that to the greater organization, saying, "You know, we've spun up a design system team. The card component is on 49% of pages. The button is on 100% of pages."
And then if you're trying to be more tactical about how to improve the product or even just track down, you know, which components or which pages or which experiences aren't, I guess, consistent with the design system, you can say, well, "There's 49%, and there's 51% of pages that may or may not have the card component." And so, you can go find outdated components if you're trying to phase new ones in, and all of those sorts of things as well.
So, the metrics are sort of great from a thematic sense, saying, this is the value that our design system is, you know, affording us as a business and the users are experiencing while they're using our app or our site. But then, also, you can drill down into these metrics and see, okay, the button is appearing here. I can click into pages and see views where it's being used on the page level and see, is it being used properly? Those kinds of things.
You can track legacy components as well, so, for example, if we've rebranded the site that we all work on together and our old button was, like, dot button and the new button is dot BTN or however we would want to class those things. And you can use classes. You can use data attributes, all those kinds of things. But I would say we can track legacy along that.
So, if your goal is to completely adopt the new design system across the entire network and products within six months or whatever the case may be, you know, month over month, week over week, you can check our, you know, line graphs and see, hopefully, the legacy occurrences of that going down over time. So, if, like, the button is being used less and less and then the dot BTN is being used more and more, you can see those sort of swap places.
And so, what we have found is talking about things in sort of an objective or fuzzy way, saying, well, we're trying to ship this, and we're doing these inventories, and we're going through all the pages. And we're clicking around trying to find old things, or we're redesigning pages. But it's very, very difficult. This is just an instant quantification of where our components are manifesting in the product.
So, what we do is, with Luro, you can give us...whether it's behind an authentication layer or not, we crawl web pages, first and foremost. So, you can give us a site. And this is all optional. You can spin out a design system without this. But we crawl the site, and then we will go ahead and do performance and accessibility scores for there.
So, that's one way to itemize work, where you can just say, well, as an agency, we're going to work with this company, and we want to show them, like, the starting point and expose weak points on where we might be paying a lot of attention to. In the design or engineering phase, we need to improve the speed here. We have accessibility violations we need to think about, all that kind of stuff.
And then, once you crawl those, you can add your design system, and then you can cross-reference those, and I kind of mentioned that. You can use CSS classes to do that. And so, you'd enter in dot BTN for button. We've already crawled your pages. And so, we can tell you every time that that class appears inside of any page inside of the network. So, it's this very, like, two-minute way to get a wealth of information that's shared and communicated with...the entire organization will benefit. Like I said, like, leadership they can get a sense of how the design system is being used and adopted, but also, the active teams working on things so that they can go find outliers and work on replacing those.
VICTORIA: It's been over a year in your journey with Luro. What challenges do you see on the horizon?
TRENT: I still think it is an adoption challenge. I think that, you know, one thing that we found is that a lot of teams, and this is going back to our agency days, but I sort of sort of still see this happening now is that building the design system, you know, let me separate these two things. I think designing components and building the design system in the sense of picking styles, and choosing fonts, and iterating upon something like a search box or, a footer, or a modal that's a lot of work. That's just design and product design and product development in general.
But the act of, you know, creating the design system, maybe it's the documentation site, or however, we're communicating these standards across the organization. That part, to me, it's always kind of taken too much time and effort. And to be really candid, the amount of budget that's being allocated for those tasks is less. So, we're having a lot of users who are saying, "Well, I wasn't in charge of a design system. We had a team for that. We don't anymore. And now I'm responsible for it," or "The team's been combined, and I'm working on, like, three things at once."
And so, something that's very, very crucial to us at Luro is to help with the struggle of spinning up a design system. For us, I fully believe that there are design systems that can be fully custom available to the public and need to have, you know, every page and view needs to be unique unto itself. But for Luro, the starting place that we get you with, you know, you can link in your Storybook. You can link in Figma components. You can add components manually and all those sorts of things. Where we can get you in a few minutes is really close.
And then, if you started to fold in, you know, the idea of performance, accessibility, and then all of the other insights that you can then integrate, so if you're doing A/B testing or user testing and doing research, and you want to make sure that that's all involved inside of your design system, then it becomes a really attractive option. So, I think that decreasing the time it takes to get started and to spin up a design system is the number one thing we see people struggling with and the number one thing we want to bring.
I kind of like to compare it to services like Netlify. Like, I remember I used to have to set up servers to demo things for clients, and it would take an hour, and I don't know what I'm doing. And I would break stuff, and they would have to help me fix it. So, then I'm bothering him. And then, now I'm just, you know, will either link to a CodePen or drag and drop a deployed URL from something like Netlify. And it's this amazing, almost like it feels like deploying is just as difficult as, like, sketching something out on a napkin.
We want spinning up a design system to kind of feel that way so it's not so precious. You're not worried about...it is just easy to get started. And so, we're kind of integrating all these other tools that you use to make that easier and quicker because if you do have other things that you're working on and you need to move beyond that so that you can focus on prototyping, or designing, and building the actual components, you can do that. And you have that option as opposed to having to be mired in some of these other details.
VICTORIA: It seems like change management and integrating change into larger organizations is always the biggest challenge [laughs], even for great innovations. And I'm curious: what types of people or groups have you found are quick to adopt this new method and really the right group for you to center your message on?
TRENT: Yeah, it is...I was joking, I think, maybe before the podcast started, but it's, like, very ambitious because it's easy, I think, to say, "This tool is for designers. And if you're a designer, you can integrate your Figma, and then you'll have your components published to your team so that they can use them." And that's absolutely true. Like, if you're a designer, Luro is for you. If you're an engineer and you have just received components, and you need a way to document that and show your coded version alongside the design version and be able to collaborate with people in that sense, it is absolutely for you as well.
So, you can see how it's almost like you almost have to frame Luro for individuals across the organization. So, it's one of those deals where...and we've kind of experimented with this with the marketing. And the way we've discussed it, we talked to lots of, you know, leadership, heads of product, CMOs, even CTOs, things like that. And so, it's like, if you're trying to get your entire organization to work better, to ship, you know, more effectively, then Luro is the tool for that as well because we're getting into knowledge retention via uploading.
Like, my favorite story there is if you're an A/B tester, probably, and this is what we've experienced, is you run these tests. A lot of time and effort goes into building the prototypes for the test, whether that's you or an engineering team that's doing those things. This is one of the things we used to do as an agency. We would be brought on to prototype something totally new. We would test that alongside the existing experience. And an A/B tester, we'd work with them, and they would create, like, a PowerPoint or something that would explain the pros and cons and what should happen next and summarize the test.
And that would live on that person's hard drive, whether it's on their computer or, like, a Dropbox or a OneDrive account. And no one ever thought about it ever again. You would just move on to the next test. But the amount of money spent on us to build the prototype and the amount of money spent on the SaaS to spin up the, like, A/B testing environment and all of these things, and then the time spent on the A/B tester to analyze the results and generate a PowerPoint it's not nothing.
And so, one of the things that we find pretty appealing for leadership within Luro is the idea of integrating all of these tools and all this work that you do in mapping them to components so that when you pull up, for example, a button component, you'll see all the user tests that have been added over any period of time. So, if you were a new hire and you're trying to onboard, you can go interview everybody in the organization and ask them about the history of a button or a card component or the history of a sign-up page.
But then, also, in a self-service way, you can just click into Luro, click a button, click a card, click to the sign-up page, any of those things, and find all that stuff I was mentioning earlier, whether it's a test, or research, or prototyping, or any kind of documents that have been written. These aren't the arguments that Dave or I might have around the actual border-radius value. Those are small things that probably should be lost in the firehose.
But if we have learned an outline button with a stroke is performing way better than a solid-filled button or vice versa, that's important information that doesn't need to disappear in six weeks. So, that's the other kind of metric there is explaining kind of the holistic version, telling the holistic story of Luro to those types. And so, yeah, navigating that and trying to get, like, buy-in on a broad level is kind of what we're working on these days now.
WILL: Sweet. So, I actually really like how it's almost like version control. You can see the history of what you've been working on. And I really like that because so many times...you're correct. When I go to Figma or anything, I'm like, why are we doing it this way? Oh, we made these decisions. Maybe in comments, you can kind of do it, but I think maybe that's the only place you can see the version control. So, I like that feature. Like you said, you can see the history of why you did something like that.
TRENT: Yeah. And think about that, so if I am a front-end engineer and I receive a design and everyone thinks that, why are we doing it this way? I would hate to code something...I can do it. It's my job. But if I don't understand why, my feeling about work and maybe the quality of my work goes down, you know what I mean? I guess what I'm trying to say is, like, feeling like you understand, and you're lockstep with the entire team, and you understand what the goal is...what are we trying to do? What are we trying to achieve? Like, what have we reviewed that has made us believe this?
And if you don't have that information, or if I don't have that information, like, there's some traction within the team, whether it's actual momentum forward and the amount of tickets that are being closed, or just the spirit of what we're doing, that the product is going to be diminished. These are all these little things that add up, up, up, up, up over time. So, being able to show this information to be able to access this information kind of passively.
So, for example, if you got VS Code open and Luro open and you can see here's the user test from six weeks ago that shows us why we went with option B, you'll say, "Okay, cool. Even better." You know, you can review those things way before you get things handed to you. You know, it's much more kind of this utopian vision of an open, collaborative deal.
And the way I would say that is it's, you know, we all kind of hand things off. So, of course, like, there's some version, even if it's like a micro waterfall that happens on a daily basis. We're all doing that. Like, somebody needs to be done with something to hand it off to something else, so we're not all up in each other's space all the time.
But one thing that we like about Luro, whether we use Teams, or Slack, or whatever, it's not a real-time thing where I have to say, "Stop, look what I'm doing [laughs]. Come over here and look because I need you to know this." You can get notifications from Luro, but it's not something that is a context-switching demand type of a situation.
So, the idea is if you're like, I'm wondering what's going on. I know this is coming up. I'd like to review. Or I could let you know and tell you, and just on your own time, you can go see this. So, separate from, like, the firehose of tickets and chats, you can see the actual product evolving and some of these, like, key milestone decisions on your own time and review them. And if they've happened before you even started on the project, then you can do that as well.
WILL: I think that's probably where the breakdown between developers and designers that collab that's where it probably breaks down, whenever you're trying to get your tickets out as a developer. And then there's a change while you're working on it, and it's a complicated change, but you're still responsible for trying to get that ticket out in time. So, I think, like, what you're saying, you can get it beforehand.
So, it sounds like, to me, Luro would be a huge help because you have to have developers and designers working together; if you don't, you're just in trouble in general. But anything that can help the relationship between the two I think, is amazing, and that's what I'm hearing whenever you're talking about Luro. It helps. It benefits that relationship.
TRENT: Yeah, that even makes me think a little bit about the ongoing collaboration aspect. So, it's like, if something is shipped...or maybe let's go the agency scenario here. You've launched a site. You've launched a product. How do we know how it's performing? Of course, you'll have everybody...they're going to have analytics, and we'll be talking about that. And are signups up or down? But Luro will run tests. It'll continue to run component analytics. So, you can sense whether, like, somebody is changing a component. Or, you know, is the fully adopted design system not being utilized or being utilized less or more over time?
But then, also, we're running, again, performance and accessibility metrics. So, we've seen it where we've shipped a product for a client. You know, we've had Luro running. We've sort of used that as our hub to collaborate over time. And then we'll notice that there's a giant performance spike and that, like, the page speed has gone way down. And we itemize issues and can point you to exactly the page that it's happening on and give you some insight into that. Of course, you could go through after you've worked with the client and run Lighthouse on every single page in your own time for fun, but that's not reality or fun.
So, you'll get this information. And so, you almost...before we were telling people who were using Luro, we were kind of using it ourselves just to help ourselves do a better job. About a month into a project, we were able to email a customer, a former client, and say, "Hey, site's looking great. Amazing to see this. There's a 3-megabyte, 50-pixel avatar. Someone uploaded a giant image. It displays as 50 pixels. But somebody must have uploaded the full one to your homepage, and your page speed score tanked."
They're like, "Oh, wow, they must [laughs] be monitoring us and checking in on us every day." We love them dearly, but we were not doing that. We were using Luro off to the side. So, there is this other aspect of just sort of monitoring and making sure things stay, you know, as they were or better once we ship things and move forward to the next.
VICTORIA: That's really interesting. And I'm excited to explore more on my own about Luro. As we're coming towards the end of our time today, I wanted to give you one last chance to shout out anything else that you would like to promote today.
TRENT: Oh, that's it [laughs], luroapp.com, you know, that's the main thing. Check out component analytics. We have a YouTube channel, and I would say that's probably the easiest, a lot of effort, even though the videos maybe I'd give myself an A-minus or a solid A, not an A-plus on video production. I'm trying to get better. But explaining just, like, how to set things up. There's, like, a one-minute, like, what is all this?
So, if you want to see all the things that I've been trying to describe, hopefully well on the podcast [chuckles], you can see that really well. So, I'd say Luro App and then the YouTube channel. We've got, like, five, six videos or so that really kind of help get you into maybe what your use case would be and to show you how easily things are set up.
VICTORIA: Great. Thank you so much for joining us today, Trent, and for sharing about your story and about the product that you've been building.
TRENT: Yeah. Thank you for having me. This has been great fun.
VICTORIA: You can subscribe to the show and find notes along with a complete transcript for this episode at giantrobots.fm. If you have questions or comments, email us at hosts@giantrobots.fm. And you can find me on Twitter @victori_ousg.
WILL: And you can find me on Twitter @will23larry.
This podcast is brought to you by thoughtbot and produced and edited by Mandy Moore. Thanks for listening. See you next time.
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Mar 14, 2024 • 28min
516: Innovating Fashion: Charlotte Holt's Tech-Driven Approach
Hosts Will and Victoria sit down with Charlotte Holt, the Founder and Creator of The Fashion Library. Based in London, The Fashion Library is a contemporary wardrobe rental resource tailored for stylists. Charlotte opens up about her diverse background, spanning various countries, and shares the transformative journey that led her from being a stylist to establishing her own venture.
Charlotte sheds light on the formidable challenges stylists encounter, from the environmental repercussions of fashion production to the financial constraints of traditional shopping methods. She articulates how The Fashion Library is poised to confront these obstacles head-on by offering a platform that enables stylists to rent clothing, fostering sustainability while saving valuable resources like time and money.
Delving into the realm of technology, Charlotte underscores its pivotal role in streamlining operations and catalyzing a paradigm shift towards a more sustainable fashion industry. She outlines her ambitious vision for The Fashion Library's future, encompassing the archive, broadening the user base, and creating a robust marketplace and working platform.
The Fashion Library
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Transcript:
WILL: This is the Giant Robots Smashing Into Other Giant Robots Podcast, where we explore the design, development, and business of great products. I'm your host, Will Larry.
VICTORIA: And I'm your other host, Victoria Guido. And with us today is Charlotte Holt, Founder and Creator of The Fashion Library, London's newest contemporary wardrobe rental resource for stylists. Charlotte, thank you for joining me.
CHARLOTTE: Thank you for having me. I never ever thought I would be talking on a podcast.
VICTORIA: You never thought that? Why? What did you think would happen? [laughs]
CHARLOTTE: As in, like, I never thought I would be on a podcast, me personally. So, like, this is a new experience for me.
VICTORIA: Wonderful. Well, I know you're speaking with us today, and just to warm us up a little bit, I'm curious: what other languages could you be speaking to us in? What's your...I heard you learn multiple.
CHARLOTTE: So, I actually went to school in the south of France when I was younger. And for the last couple of years, I've been living in Mexico, so I've been trying to learn Spanish. I am pretty proficient in French and getting there in Spanish.
VICTORIA: Very cool. I live in San Diego, and I've also been learning Spanish for a long time and love to practice sometimes, so... What about you, Will? Do you speak any other languages?
WILL: I used to speak Spanish, but it's so hard when you don't live in that culture to keep it up. Because I've been to, like, Peru a couple of times and some other South American places, but I always pick it up when I go back in there and kind of get the feel for it, but it's kind of hard. I need to pick it back up. But Spanish is the one that I feel the most comfortable in outside of English.
VICTORIA: Right. We're a bilingual nation. And so, I love that opportunity to get to meet other people and speak in other languages and practice that. So, Charlotte, coming back to your journey, it sounds like you've lived in all these interesting places. Why don't you tell us just a little bit more about your background?
CHARLOTTE: I am from Scotland originally. I know I don't sound like it. And then I went to school in the South of France for two years, like, to finish high school. Then I ended up back in the UK, living in London for 12, 14 years. And then, just as COVID was happening, I was actually supposed to kind of relocate or start working more in the U.S., and I actually ended up in Mexico [chuckles], of all places, and that's where I stayed for two years. I was living the good life.
I had a pretty good COVID experience. I was at the beach every day surfing, so I can't complain about that. And then I've been living in the U.S. on the West Coast in Los Angeles before I decided to set up my new business, which has brought me back to London.
VICTORIA: Wow, full circle. Well, what beach were you surfing on in Mexico, or did you go to a bunch of different ones?
CHARLOTTE: I've been to a bunch, but I was living in Sayulita. I've still got a place there that I keep because I love to be in the ocean. It's one of my favorite things to do. Surfing is definitely a good lifestyle choice of mine.
VICTORIA: There's not much surfing in London now, so your desire to start your new company must be really powerful [chuckles], very strong.
CHARLOTTE: Yeah, I actually have questioned myself, especially over the last few months when it's been full, mid-winter here: cold, dark, raining. Like, what am I doing? Why did I give up my kind of dream life working between LA and Mexico, being able to surf, you know, at least two, three, four times a month to come back here to do this? But the bigger picture is, hopefully, I will be able to go and surf wherever I like after I've built this business. So, that's kind of the end goal for me.
VICTORIA: Yeah. Tell me more about what led you to start your own business.
CHARLOTTE: I have been working as a stylist for the last 12-plus years. And then, obviously, my work took me to the U.S. A friend of mine gave me his little black book contacts of where I should go and places I should use in LA. And I walked into a rental house there that was for industry only and got a lightbulb moment. I was like, oh my God, why is this not happening back in London? And it kind of didn't make sense to me because the productions back in the UK are, well, they seem more sustainable. Everyone's hitting their kind of green quotas and targets.
So, it just made sense to me, but not just from, like, the sustainability point of renting clothes, but also having an industry-only place that you can go to and basically prep most of your job in one go. So, it was, like, saving time on the start of the job but also on the end, which is the return side, which people don't always realize.
Everyone's like, "Oh, it's so glamorous working in fashion and styling." But we are bag ladies. I will often have minimum six, eight cases with me, rails and rails, racks and racks of clothes. I'm always the first one there. I'm the last one there because we're packing away. It's lots of steaming, just lots of stuff. So, to me, it just made perfect sense to recreate the same thing in London. But then I started getting into it a little bit more and started looking at tech and how that can transform what we're doing, too.
WILL: Before we get too deep into The Fashion Library, I want to, one, explain what a stylist does because, like I said, I am not fashion-forward or friendly. So, tell me kind of what that looks like to do. And also, how did you become a stylist? Was it a dream of yours always, or what did that look like?
CHARLOTTE: I just love clothes. So, I actually was going to be a lawyer, and I went to school to study law [chuckles], and I ended up being a stylist. So, there's different kind of realms and levels of a stylist. You can be a personal stylist where you work in the consumer realm, helping people dress themselves. Then, you have your editorial stylists who create beautiful imagery for magazines. Then there's the commercial stylists who work on advertising, film, TV production. Then you've got your celebrity stylists. There's different kind of layers within being a stylist.
I actually work across a broad range of that. I do editorials, so magazines. I've worked with some talent, music videos, TV commercials, short films, stills, and advertising campaigns. And what I really love is how different every job is. It's never the same. You're never with the same crew of people. Every job is different. Sometimes, you might be on set for just one day. Sometimes, you're on set for a week. There's weeks and weeks of prep that goes into the job. There's also a lot of work on the backend doing returns, and budgeting, and reconciling everything. You literally have to love clothes.
WILL: Where did your love for clothes come from?
CHARLOTTE: [chuckles] That's a good question. I always thought it was my mum, but, actually, it was definitely my dad. I look at pictures of him from the '70s, '80s. He's got some wild outfits on. And I've got some of his pieces. I've got this floral jacket that we all used to get dressed up in when we were younger because it's the most outrageous piece. I have it now. It's actually amazing. I actually had it on the other week with just a little black vest and some jeans. And because it's such a statement piece, it looks super cool, but it's classic '60s. So yeah, definitely from my dad. He had a wild penchant for clothes.
VICTORIA: I loved how you brought up, in the beginning, that the role of a stylist is often portrayed as being very glamorous and being very just so fun and creative and how the reality of it is that it's more carrying bags around, and picking up at the end of the day, and getting the clothes ready, and how tedious that can be. And you discovered technology could take some of that tedious out of the process and allow stylists to focus their time on the creative aspects.
CHARLOTTE: Yeah. So, originally, my plan with The Fashion Library was just to kind of replicate what was happening in the U.S. with the rental house models and just bring it here. And I have a friend who I met surfing in Mexico. He's in his 50s, very successful tech entrepreneur. And I wanted to run my business past him just to kind of get some outsider knowledge but someone who's been there and done it.
And he actually said to me, he was like, "This is great, but you should really, like, start to look at tech and how that is going to really transform businesses in the future." And he flicked that switch on, and that was it. Then, I think a couple of weeks later, I started sending him all my brain dumps about tech and what I was thinking in my mind. And he actually turned around and said to me, "If you can see it in your mind, you can build it."
So, I started to look at my pain points as a stylist. And I work differently in every city because you have to adapt. Like, in LA, I'm often out and about compared to London, where I work a lot online. So, I started to look at, like, the pain points of everywhere and what would really be beneficial. It always kind of dialed back to that question of, what would help me as a stylist? So, that's how I've built the business, by looking at that aspect and what's helpful, what's not.
WILL: Yeah, I like that view because I totally agree. Tech is in pretty much everything. It's all about, how can you see it to help you with your pain points? So, that's amazing that you sat back; you saw the pain points, and it helped you create what you're doing. So, that's really, really amazing. Can you tell me more about The Fashion Library? What does that look like? What did you create? What was your pain points?
CHARLOTTE: We launched in mid-July last year with a physical showroom of around 500 pieces, which was just my archive. And then I'd built out a very rough and ready Shopify to kind of replicate what was going on in the physical realm but in the virtual realm. I hadn't shot all those pieces, so it was maybe only 200 pieces online. And then, within two weeks, I'd managed to grow the archive to well over a thousand pieces, and then I was like, ugh, I need to get all this shot now.
And it's me doing all of this. I'm working with a friend who's a photographer. And I style all the pieces on a ghost mannequin. I've already thought about some techie idea in my head about how to get around that in the future. I don't know if it's possible, but I can see it in my mind. We can build it. So, I just wanted them both to kind of work in the physical and virtual realm, but then, obviously, always going back to John's advice from Mexico that, you know, really start to look more into the tech.
And the tech's definitely taken over. We haven't built any yet. We are currently about to start raising because we want to build a fully functional marketplace that's industry-only. There's going to be a phase three, which will be a whole working platform that will streamline the working process from start to finish with lots of clever little things thrown in.
And I don't want to give too much away on this because it is just in my mind right now. Obviously, it's on paper, too, but I've just been looking at what else is going on in the fashion realm, in the fashion tech realm, and there's lots of exciting things. There was a stylist who reached out to me just before Christmas. She's actually an avatar stylist. So, I was really interested to speak to her. They're currently creating avatars from humans. So, soon, everyone's going to be able to have their own avatar if they want.
But there's some really, really interesting and innovative stuff happening within the tech space, and there's definitely exciting things. And I can see a lot of scope in the future for The Fashion Library in terms of how we build the tech and adapt and how we kind of disrupt the industry, not just here in the UK, but globally.
VICTORIA: Thank you for sharing all of that. I think that's so interesting. And I also really love that you made the connection from surfing that got you excited about tech and excited about all these possibilities that you're describing. I'm just imagining, like, a little side conversation while you're paddling around out in the ocean [laughs]. But I don't know if that's how it really happened.
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VICTORIA: What's your method for engaging with the industry on this issue and building your customer discovery process?
CHARLOTTE: Obviously, it's something I'm really passionate about. I knew that there would be others out there, too. We've been hunting for the stylists currently, so LinkedIn, this platform called The Dots here, Instagram, obviously, and then also connecting, like, higher up the food chain with production companies, ad agencies, really kind of targeting it from the top bottom down.
And then, the last couple of months, we've been focused on finding some founding members who are busy working commercial stylists who love the idea of sustainability and rental and want to be early adopters and users of The Fashion Library. We've had great feedback from them. So, having that feedback from people and it being positive is like a driving force behind what we're trying to create and creating.
VICTORIA: Has there been anything surprising in your conversations that has caused you to maybe pivot in your strategy?
CHARLOTTE: I mean, definitely, when I first took the idea to my surfing friend in Mexico, he really made me pivot from bricks and mortar into tech. I was always going to build out a tech platform, but it was literally just going to be online rental, just because of how I like to work in the UK. I think talking to him that really opened my eyes.
And then, also, kind of going off and launching really then understanding what he'd said to me. Because I think after I launched, I realized that actually the bricks and mortar is nice, and it's really nice to have that space and the showroom as a showcase, but it's not where I want to be. I'm really excited and really focused to get the tech going. It's really exciting. And if we can create what I'm envisaging, I think it's going to be so useful.
VICTORIA: Yeah. And I love that you're really focused on a specific group and creating something for the industry that you're in. Can you share any other specific problems or challenges that a stylist may have with a wardrobe rental app versus a person like me who's just trying to, like, rent a dress for the weekend or something?
CHARLOTTE: Yeah. Well, that's the thing. I mean, rental is trending as a whole globally. So, there are a lot of consumer-facing rental apps and businesses out there. But the thing about stylists is it's quite a lonely career. Yes, you have your assistants, but until you're on set or with your clients, you're pretty much on your own. And I think after COVID, there was that real push for community.
And also, as stylists, we tend to sit on big archives that we've collected from jobs, or we've had custom pieces made that actually never went to set or got used. And we don't want to get rid of them because they're special to us, but at the same time, they're just kind of sitting there gathering dust. So, being able to put those out to your peers and know that they're, like, going to go onto an advertising job or a TV commercial, or, I don't know, a short film, or a feature film, or on talent is kind of exciting because they're almost getting repurposed for what they were originally purposed for.
And also, being able to make money from your dormant archive that's kind of a cool thing; it's a first. And knowing that it's not in the customer consumer realm, so you don't really have to worry too much about your amazing couture dress that you had for this artist and it was never worn going to a wedding and getting trashed.
WILL: I think I understand kind of what the flow is. So, for example, if tomorrow I want to become a stylist, before The Fashion Library, would I have to own all my pieces to even get into the space?
CHARLOTTE: It really depends what kind of realm you're working in. Obviously, if you're working on editorial and with celebrities, you tend to get pieces from brands because they give you pieces or loan you pieces for publicity, so it's kind of a two-way deal. However, when you're working on film, TV, commercials, advertising, you get given production budgets, like, wardrobe budgets.
So, the current way that we work is we go out and shop, and we shop a lot. And we also fuel the fast fashion monster because a lot of the time, we have minimal budgets. We have this store in the UK, and it's called Primark. It's very, very, like, cheap and not good for the environment, and there's also ASOS as well. There's all this kind of online fast fashion places. And it's, like, you get the budget, and they want Prada, or they want designer and luxury. However, you've only got the budget to afford Primark or ASOS.
And, actually, what a lot of people don't realize is that stylists spend a lot. Say they get given a £2,000 or $2,000 budget; they will spend £6,000 or $6,000, and what isn't used, they then return. But because they're buying into the fast fashion brands, a lot of the time, once they do those returns, especially the online stores, it goes back, and it's actually landfilled or incinerated because the price point for them to repackage it is so minimal that it's actually cheaper for them to just get rid of it. So, we are actually really adding to the problem of fashion being a massive pollutant globally.
WILL: I didn't even catch that part, but yeah, that sounds amazing that not only, you know, if you said, "I had a budget for this movie or whatever. Can I get more pieces?" Because I'm looking at your website right now, and it looks cheaper to rent them than if I was buying them outright. So, I have more choices, but also, I'm saving the world. That sounds, yeah, that's a win, win, win.
CHARLOTTE: Yeah, that's so right. One of our slogans is, 'Saves time, money, and the planet.'
VICTORIA: It sounds like a core value that drives your everyday decisions. Are there any other values that help guide you as a founder as you're building your business?
CHARLOTTE: Just the positive feedback from everyone in the industry, whether that's from the producers, production companies, stylists, just everyone getting it because it is such a simple idea. So, it's just having that recognition and just knowing that what you've envisaged and you're creating is valued. That's a huge driving factor for me.
VICTORIA: And what does success Look like in six months or in five years from now?
CHARLOTTE: I think in six months, it will be to have a business that is growing and really living up to its foundations of helping stylists, making their lives easier, saving time, money, and the planet, growing the archive to double what it is currently. So, it's currently around 2,000 pieces. It'd be great to have 4,000-plus in the next six months. Continue to grow our user base, and just expand on that, and grow the connections that we're already creating within the industry with our affiliations with the green sustainability companies.
There's some exciting things happening. I don't want to talk about them just because until they're, like, done, I'm always a bit like, oh, I don't know if I should put that out there yet. But yeah, generally, just, like, expanding and building the business and also completing the first raise and starting to build and develop the tech. That's something I'm really ready and excited to do. It's scary, but it's also super exciting.
WILL: Yeah. I can't wait to see what comes out of it because it seems like you can go so many directions with this. Because, like you were saying, like, brick and mortar versus tech and, like, that means you can reach anywhere that you can ship products to, instead of having to come to one location. Even nowadays, like, Amazon does a little bit of it, but like, when you're trying to buy furniture or something, you can put it in the room and see how it sits there and stuff.
So, it's so many things because I know, like, fashion, the one thing I do know about fashion is how it looks on the person, so, like, you know, seeing how it looks on that person through technology. I'm so excited because I can see so many directions you can go with it.
CHARLOTTE: Will, you are right on the money there. I'm not going to say too much more, but yeah, you're definitely getting my vision a little bit. There's so much scope for it, too. And also, I mean, what you've kind of touched on is what I've envisaged. But, again, it's also, like, just keeping focused and keeping on that path for now because there's also so many different avenues further down that you can go into, too. Like, the potential and possibility with this is endless.
VICTORIA: What advice do you have for other founders out there who are building products in the fashion industry?
CHARLOTTE: That it's okay to make mistakes. You've actually just got to start. That's one of the things. You know, I worked on this for almost a year and a half before I brought it live. And I think I wanted to be as ready as possible. And knowing that it's okay to not have all the answers and, also, being able to learn really quickly and ask for help from people that you trust, and that age-old saying of trust your gut. If something with someone doesn't feel right, it's probably not, so just trusting that.
And also, just being able to pivot. You can't be so focused and rigid with what you're trying to create because it's going to, I mean, mine's changed so much from what I initially envisaged to where I'm at now, and it's going to keep changing. And that's okay because it needs to be adaptable in order to succeed and survive, I think.
And also, you're going to get a lot of people who are going to promise so much. At the end of the day, no one's going to work on it as hard as you are, and that's okay. But don't trust everyone who says they're going to do X, Y, Z for you because, usually, they're not. And they're always the ones that fall at the first hurdle.
WILL: One thing I love about doing this podcast is listening to entrepreneurs and their mindset and how they got to the place to even, like you said, start something. I feel like that's one of the biggest hurdles is just starting something. I want to understand more about your mindset. What is your wind in your sails? What motivates you?
CHARLOTTE: I got this idea. I've always had ideas but just generally just spoken about them and never really took them to fruition, whereas with this one, I was adamant I was going to do it. I actually ended up having my heart and soul ripped out of me and was, like, rock bottom, and this was already after I'd had this idea about this. And it was that need to, like, just heal and grow that I really just threw my all into it and was like, you know what? I'm going to try this. Like, I just suddenly found my path, and I just got so focused and determined on building this, so I haven't looked back yet.
Trusting your idea, knowing that it's okay to, like, make mistakes from time to time. But just being a little bit naïve, I've definitely learned a lot. But yeah, just having that determination and discipline to just keep going. Even when people who've promised you the world, like, ghost you or disappear on you, if it's your baby and it's your vision and you believe in it, you can make it happen.
VICTORIA: Thank you. That's really wonderful advice, and I think will really resonate with our listeners. Do you have anything else that you'd like to promote today?
CHARLOTTE: Yeah, so anyone involved in film, TV, and advertising production, or any stylists and costume designers, follow us on Instagram. Join our mailing list via our website, even if you're not London and UK-based, because we've got some really big, big things coming over the next 12 months. So, I know we're only London and the UK at the moment, but the vision is global. So, join us on our mission.
VICTORIA: That's so exciting. Thank you so much for coming on to the show and sharing your story with us.
CHARLOTTE: Thank you for having me.
VICTORIA: You're welcome.
You can subscribe to the show and find notes along with a complete transcript for this episode at giantrobots.fm. If you have questions or comments, email us at hosts@giantrobots.fm. And you can find me on Twitter @victori_ousg.
WILL: And me on Twitter @will23larry.
This podcast is brought to you by thoughtbot and produced and edited by Mandy Moore.
Thanks for listening. See you next time.
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Mar 7, 2024 • 37min
515: Healing Minds, Changing Lives: The Meru Health Experience
Kristian Ranta, the founder of Meru Health, shares the company's journey from its inception to its current status as a leading provider of mental health solutions. Kristian reflects on the decision to pivot Meru Health from a wellness-focused to a healthcare-centered company, emphasizing the importance of overcoming fears and listening to intuition in entrepreneurial pursuits. He discusses the challenges and rewards of building a healthcare startup, highlighting the complexities of navigating regulatory frameworks and securing insurance reimbursements.
Throughout the conversation, Kristian elaborates on Meru Health's unique approach to mental healthcare, which integrates therapy, coaching, and app-based interventions to offer users a holistic and personalized experience. He underscores the significance of community support in mental health treatment and explains how Meru Health's platform fosters connection among individuals facing similar challenges. Kristian also delves into the company's plans for expansion, both within the United States and globally, while addressing ongoing challenges such as securing insurance reimbursements and maintaining high standards for talent acquisition.
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Transcript:
VICTORIA: This is the Giant Robots Smashing Into Other Giant Robots Podcast, where we explore the design, development, and business of great products. I'm your host, Victoria Guido, and with me today is Kristian Ranta, CEO and Founder for Meru Health, a new standard for mental health care. Kristian, thank you for joining me.
KRISTIAN: Thanks, Victoria. Great to be here today. Appreciate it.
VICTORIA: Wonderful. To break the ice a little bit to get us started in the conversation here, I don't know if you can hear it, but I have a slight cold and congestion going on. And since you're a healthcare startup, I thought I would ask you, what is your favorite comfort food when you're sick?
KRISTIAN: I don't know whether it's a comfort food or not, but I think kind of what I always consume if I get, like, some flu symptoms or stuff like that it's ginger, honey, and then garlic. I try to combine these things, and it's semi-tasty. Like, it depends on, like, how strong you make it, but it's definitely effective. So, it's been my go-to thing when I get sick.
VICTORIA: Me too. I like to try to put all those things into a soup of some kind [laughs], some chicken soup. I've learned how to make some sort of version of congee, which is, like, a rice porridge, which I love because you can kind of just sit it on the stove, and it cooks all day. And you could add in all those flavors, and it comes together really nicely.
For me, I think that's really nice to think about what you like to eat when you're sick because when you're sick, it affects everything else going on in your body. So, I'm sure you have some personal experiences about how your mental health and your physical health are all interrelated.
KRISTIAN: I mean, totally. Actually, like, I've been a biohacker for quite a while. So, I've been, like, just trying a bunch of things, like, on the physical health side and, like, exercise. And I'm from Finland originally, so a lot of cold exposure, sauna, swimming in the icy water, stuff like that. And then, of course, a lot of, like, different dietary tests that I've done over the years. And I think there's, yeah, I've recognized that there's a huge connection, and it's like the mind and the body are not, like, disconnected. They're in a way the same.
Personally, also, like, a big piece kind of for me in this regard has been my journey of meditation. So, I started maybe, like, 10, 12 years ago, started meditating every day, and then I've done a bunch of different retreats and kind of dug deeper. Especially through meditation, I've learned very [inaudible 02:15] to experience the connectedness of my thoughts, and my emotions, and feelings, and the body. So, anyway, that's, like, one of my favorite topics, so...
VICTORIA: So, it sounds like you've always had this interest in the mind-body connection and how to optimize your health. How did that lead you, or what about your background led you to found Meru Health?
KRISTIAN: I'm from Finland originally. So, I moved to the States in 2018 with Meru Health with my current company. But way back, I studied computer science, did my undergraduate and graduate studies in Finland. And then I kind of, like, ended up working at a healthcare company, a startup company, while I was still studying. And I worked there for a couple of years. And this company was a clinical trial software company, so making it easier for pharmaceutical companies to collect data in patient trials for, like, new drugs, and new developments, and stuff like that.
I was basically at that company for a couple of years, and that was my first dip into healthcare and technology, the intersection. And I got so excited, and I realized that, hey, this is a place where I can use my excitement for technology and my skills and all that stuff. But I can also then, like, see the immediate improvement in people's lives and how we can help others, and that kind of resonated with me.
So, I quit after two years and then founded my first own business, which was in diabetes, so one of my co-founders back then is a diabetic. And that's kind of, like, how I went into healthcare. And, for me, then learning the mind and body connection started at the same time. Pretty much I kind of, you know, again, mentioned that I've been meditating for a while. So, I started meditating, and I started just learning about these things and just, like, became super curious to understand the human experience on a more broad basis. So, that's how I started.
VICTORIA: I love that. And I'm curious if you could talk more about the mind-body connection and also maybe to describe, like, how these issues are treated currently. Being in the United States, it's like, you have a doctor for your body, and then one for your brain, and one for your teeth, and one for your feet. And it's kind of interesting that it's broken up that way. But what's your take on how healthcare treats people now for mental health versus physical health symptoms, and what would be the ideal state?
KRISTIAN: I think that's one of the fundamental challenges of our time, that there's all these silos in healthcare. Because, again, what we know already today is that, like, your emotions and your thoughts have a huge impact on your physical body, and, you know, you can experience that yourself. Everyone can experience that by doing meditation, and yoga, and things like this. And you can start learning and feeling and seeing that, like, very concretely in your own ways.
There's also something called biofeedback, which you can do with some of the apps like Aura and, like, Headspace and others. And then you can you do it with some wearables like with Fitbits and others, where through your breathing, you can, like, instantly see, actually, the changes in your heart rate variability, meaning that your nervous system state changes in real-time. So, some of these things were, like, eye-openers for me.
And I realized that if we, like, keep on focusing on some areas separately, that's going to be challenging because, you know, we're not going to see the full picture. And that's exactly what Western medicine is doing today. On the other hand, I think there's hope because, you know, there's more and more interest and more and more, like, bridging the gap here going on with companies like Meru, but also with, like, many, many other companies and many other providers and practitioners that are working in this domain.
That's kind of, like, fundamentally the challenge that if we, let's say, we go to a physical doctor, like, a primary care doctor, they never, almost never, address any of the mental health things, although we all know that they have a huge impact on your physical health. Like, there's a ton of research that stress has a big impact on your diabetes, as an example, and your glucose balance if you're a diabetic.
Like, usually, no doctor, you know, your endocrinologist or diabetes doctor will not talk about the stress or will not really, like, address the mental side of your diabetes. So, I think still, like, disconnected, but there are numerous areas where reconnecting these things better will be beneficial. And that's, again, one of my sort of personal goals in life and my mission to, like, drive this change [inaudible 06:06] in the future.
VICTORIA: Well, that makes sense to me as someone...I grew up with a parent who had type 1 diabetes their entire life. And what's also, like what you're saying, what's not discussed is if you get a diagnosis like diabetes, that also has an effect on your mental health. And you can stress about it. It can lead to depression. It can kind of make everything a lot worse. Do you also have any personal experience that led you to be really motivated in solving this problem?
KRISTIAN: One thing that I've openly shared is that I, unfortunately, I lost my oldest brother, Peter, to suicide. You know, the story with him, he was struggling with mental health challenges for a long time. He got access to care in terms of, like, he got medication. And, you know, prescription medications, unfortunately, for him, just made it worse. And he ended up, like, not really, like, benefiting, but just actually, like, struggling more and more.
And that's actually one of the things, also, what I realized when I founded Meru Health after my, you know, I used to be in diabetes with my first ventures. But now building my third healthcare business, Meru Health; it got started from my realization that the mental health industry is broken. Like, most people are only getting access to psychiatric drugs, as an example, as a sole remedy. Like, you know, they don't have access to a therapist. They don't have access to any kind of support.
They just see a PCP for 10 minutes, and they get a prescription, and off you go. And then the PCP, you may not see the PCP anymore at all, or maybe in, like, three months, you have, like, a phone call with them or whatever. So, like, that's kind of the experience also with my brother through which I realized this is not adequate. This is crazy. Like, if that's the way we're trying to treat these conditions, it's not going to work.
And through that, I did a lot of research and a lot of investigations in my early days before founding Meru Health after I had sold my last company. And what I realized, there's roughly, like, two-thirds of people that get access to mental health care, like, either psychiatric medication or maybe some therapy. Two-thirds of people still they don't respond to that care at all. One-third will respond, and only one-sixth will actually reach full remission of symptoms, meaning that they are completely in the clear with their symptoms.
So, that was kind of a crazy revelation for me that, like, two-thirds, like, are not getting anything out of these treatments. So, that's how I kind of eventually then realized that, okay, we got to rethink this model. Like, this model isn't working. Like, if we are only giving people mainly access to these two remedies and only, like, one-third's getting any benefits, then this is, like, really bad. Like, we got to do something about it.
And that's again why, you know, I founded Meru Health and Meru Health being about a more holistic approach, not just about, like, talk therapy or psychological aspects, but also sleep, nutrition, biofeedback, learning to regulate your body, your nervous system. There's a community, peer support community, and there are providers. You work with providers as well. But that's on the background why I kind of became super passionate about mental health care and what were some of the insights that I gained where I realized that this system is, like, so broken; we got to do something about it.
VICTORIA: Well, I have so many questions about Meru Health. But before we get into that, you mentioned you had started two other healthcare companies before this one. So, as a serial entrepreneur, what lessons were the most important that you took from those previous experience going into starting Meru Health?
KRISTIAN: There's many. So, I mean, like, first of all, when I founded my first company, I was, like, straight out of school, like, pretty young. And, I mean, like, I struggle so bad. Oh, it was such a hard journey. Like, it was a medical device company, glucose monitoring. So, founding a medical device company in Finland back in the day straight out of school was, like, a huge struggle. Eventually, we, you know, we sold the business after, like, seven years or so, but it was, like, a big learning curve for me, a lot of blood, sweat, and tears [laughs] for sure.
I think few learnings from that first business were it's extremely important to design your culture, and, like, culture is everything. Like, culture eats strategy for breakfast. So, if you don't have a culture that's clearly thought through and designed, it's going to end up being whatever. Like, I mean, like, every organization has a culture, but, like, mostly, the culture has not been intentionally designed.
And why that's important is that if you just let it grow weeds, whatever, it will grow in various different directions, but it does not necessarily serve its purpose that you may have had in mind. And, again, what I realized is that when you hire people, and you start growing the company, it's extremely important to, like, calibrate the values of, like, why are you doing this? What's important for this culture? Like, how do you want to work? Why do you want to work? And then, like, what are the kind of different rules and rituals and, like, habits of the organization that will make it successful in its mission?
I never knew that when I founded my first company, and the culture became, whatever, erratic. Like, you know, it was just, like, really hard, also, because of that. And we were not able to recruit the best people or the right kind of people for the right roles because we weren't clear on, like, what are the values? Like, why would someone want to work with us? And how to streamline these things.
So, I think that's the single biggest learning for me so far on my entrepreneurial journey that you got to very intentionally think about why do you want to build a company, whatever company you're founding. Why do you want to do it? What's going to get you up from bed every day to do your thing? And then, like, how do you want to work? Like, how do you want to work, yourself, accountability? You know, all these things. And what do you expect from others? Like, how do you want to work with other people?
So, that's kind of, like, what we actually...with my current business, Meru Health, like, we had, like, a value workshop with my co-founders before we founded the company. And we actually spent a lot of time in aligning and thinking about, like, these questions. Like, why do we want to do this? And with Meru's case, all of us founders we have mental health struggles in our family, so we all kind of came together because of that. We wanted to, like, help fix, at least make a dent in the system.
And then, you know, we kind of spend a lot of time thinking about also, like, how do we want to work with each other? The listeners thinking of founding a company, it's just really, really important to think about, like, also, how do you work? Like, what's the level of accountability with each other? And then, how do you, like, if you hire the first employees, how do you also translate these things to them as well so that there's cohesion, that there's, like, alignment in the team?
Because if all the arrows, so to speak, if they all point out in different directions, you're not going to create momentum, which you'll need to be able to break through and get to your first milestones as a company. So, I think that's the most important. I could, you know, talk about that for a day or so, but that's, like, the most essential learning for me personally, which I've applied, like, carefully after that.
VICTORIA: Well, I can imagine that having a clear vision and a set of values that you all know you're working together helps create a good emotional environment for everyone who's at the company, including you who's going to be repeating what the values are, and what the purpose is, and what you're trying to get done as the CEO.
KRISTIAN: Totally, yeah. Yeah, and, I mean, like, I can also, like, maybe continue on one more point there. One of the values for Meru Health we actually chose compassion and kind of kindness. Why did we do that? Like, many people have asked us like, "Why do you have, like, compassion or kind...like, why is it relevant for your startup?" Well, I think it's extremely relevant because, like, there's not enough kindness in the world. If you're kind of intentionally building kindness into your organization, you know, you're also going to enjoy the journey so much more yourself.
Because myself and my co-founders, we all figured that, like, we've all been part of other startups and being in, you know, at consulting firms, and we've been grinding like hell at different places. And, you know, it can be exciting. It can be fun. But it also can be pretty, like, challenging sometimes. But we figured that if we are able to instill or kind of, like, inject kindness into this kind of founding spirit of our company, into the culture of our company, Meru Health, you know, it's going to be so much more fun for us and also for all the future employees.
We know it's going to be hard. Like, building healthcare businesses and healthcare companies is really, really hard. It can take, like, a long time. It's a marathon. It's not a sprint. So, you kind of, like, need to do it for a long time and be committed and hold yourself and the team accountable. But you can do it in a way that's fun, and you can do it in a way that's, like, kind. You can be respectful, and you can be kind towards others. And it's going to be much more of a pleasant journey. So, that's one concrete example of, like, what came out of our value workshop and why we chose kindness or compassion as one of our values.
VICTORIA: I think that's so important and a really great foundation to build your team on and to really find the best talent that fits what you're trying to do. So, once you founded the company, you had your values workshop. What were some of the early discoveries in your process for founding Meru Health that maybe led to a pivot or a change in the way you were approaching the problem?
KRISTIAN: I had a pretty good sense of, like, what the problem was. So, as I described, like, I did a lot of research on the problem and, like, really understanding what are the caveats in the current mental health care system? Like, what's not working? So, I had a pretty clear understanding. And, again, like, having built other healthcare businesses before, I kind of, like, had a lot of experience already in general, like, how to build healthcare businesses. So, that was kind of a helpful starting point for me.
But what happened, actually, in the early days was that we first started from a more preventative perspective. So, actually, our first product was more of kind of a coach-led or a kind of a...it was more, like, a coach-led approach to workplace wellness and prevention of mental health problems. And we kind of built an app-based program where, you know, we'd have a coach work with you through video calls and through chat, and then you'd have, like, different lessons and different activities in the app on a week-by-week basis. And, in many ways, like, that worked pretty well. Like, people were excited. We got engagement, and we sold that to, like, a bunch of enterprise customers. And there was excitement.
But we realized a couple of things in the early days, which is really important, and this was, like, the first half [inaudible 15:57] when we had founded the company, that a lot of people didn't really have a clear problem when they came to us. Thus, the engagement wasn't there. So, people were kind of, like, just "surfing," quote, unquote. They were coming in and testing and trying it out. But they maybe were stressed and stuff, but they weren't really, like, having a real problem that they wanted to solve so that they would actually spend time with the product and, actually, like, learning skills, changing behavior, things like this. So, that was one big realization for us.
The other thing we realized was that in our societies, unfortunately, prevention is not yet valued, meaning that there's no money in prevention. There's no...it's really hard to build a business when there's no, like, existing payment pathways or existing reimbursement from insurance companies. Many of these structures are missing in our environment or in our society, meaning that then we kind of realized that it's really hard to scale this kind of a business because it's really hard to make an impact because no one's willing to pay for prevention.
Even though we had, like, great results already, and there's some good evidence already out there, but still, it's not the same as, like, the healthcare industry definitely exists and is working. And there's a problem, and you need to fix the problem. And whatever sickness or illness it is, there's kind of reasons and investments for fixing this problem.
So, we pivoted this to be a healthcare company, not a wellness company. We actually applied...pretty much applied the same product idea. We just replaced the coach with a therapist. And then we basically still had the app-based experience for, like, learning, like, homework, things like this. And that's kind of how it, like, structurally changed. So, that was our pivot.
We've actually only pivoted once, and I'd say, like, fairly minor pivot even because the same product, same idea is still there. It's more just, like, a little bit of a twist on, like, okay, we're not trying to, like, prevent things in a way. We're not trying to sell it as a preventative, but we started selling it as a healthcare intervention.
And maybe one more thing I think it's going to be essential or maybe interesting for everyone listening. I actually had the idea of building the healthcare intervention from the beginning, but I was too afraid to, actually, like, pursue it. I was too afraid because I felt that, oh, like, if we're going to build a healthcare company, like, it's harder, you know, it's going to be, like, complicated. We have, like, this new approach, the mind and body approach. It's going to be, like, novel. It's, like, hard, you know. So, I had all these fears in my head, which kind of prevented me from, like, really jumping.
My intuition was already telling me that this is the way to go, but I pushed it aside. And I was kind of like, hey, it's going to be easier to just, like, start with this preventative angle with, like, you know, you don't need clinical providers. You can have, like, coaches. It's going to be easier, you know? So, I was kind of, like, taking the easy path. I was kind of, like, too much listening to my fears, not my intuition.
And, eventually, we ended up pivoting, and we ended up where I had actually imagined the whole thing being from the beginning. But I wanted to tell this because, at least for me, on my journey, it's been, like, many times that I realized that sometimes these things are, like, if you distill them to the essence, like, what's the essential question here, it's like, is it the choice of fear or choice of love? And is your choice in life in, you know, being a founder, in life in general, is it coming from a place of fear, or is it coming from a place of love?
That's something which I think was kind of another key learning for me that I was so often making decisions that were based off of a fear. And I was kind of, you know, choosing things because I was afraid of something versus not being, like, excited about something or believing in something.
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VICTORIA: Well, one thing I've heard from therapy is that the feeling of fear, the answer is more information. And maybe you could tell me a little bit more and our listeners, like, what makes creating healthcare apps scary? [laughs] What are some of those challenges that are different from what you might expect just building a wellness app that's not having health data involved?
KRISTIAN: Yeah. Healthcare is, of course, like, regulated, and there's, like, you know, there are certain standards for care depending on whether it's mental health care, diabetes, or cardiology, or other areas. Like, there are certain things, like, you know, you need to have licensed providers who can practice medicine. Or if you have a medical device, you need to get FDA approvals. So, it's, like, a way, way heavier, you know, process. And it, like, has a lot more regulations and rules and different legal implications, data security implications, patient health information, you know, HIPAA, all these other things.
So, it's just a much, much more regulated space in general, and what that means is that it's slower. It's going to be slower to build. It's going to be slower to validate. The feedback loop is going to be slower. It's going to be more resource-intensive. You're going to need to invest in more resources. It's going to need more, like, expertise. You're going to need, like, regulatory expertise, like medical, clinical, all these other things that you don't need when you're building a wellness company or a product. So, it's just a lot heavier and just, like, way more regulated.
And the risks are also much more prominent in a way that you, as the CEO or the founder, or you as an operator, may end up being challenged even in court if something goes wrong. So, there's just more risks, and you got to think about, like, insurance. And, like, that's broadly speaking, like, some of the challenges of building a healthcare company versus building a wellness company.
VICTORIA: So, as a founder of previous healthcare companies, you might have already built those networks to get access to people who can help you with those things. But if you were a new founder and you know you want to start a health tech company, how would you go about building your team to fill in some of those gaps around the areas you need help in?
KRISTIAN: It's going to be a learning curve. There's, like, no single book or no single place where you can learn all these things. But I'd encourage, like, there's some great materials online for sure in, like, learning, like, what to consider when building a healthcare company. ChatGPT or Google will help you kind of get started on some of the essentials.
But then I would, like, pretty quickly, I would try to, like, immerse myself in the different circles or communities where there are other healthcare founders, where there are people who've already been building healthcare businesses, where there are maybe advisors or maybe, like, accelerators for startup companies. You want to learn these things from people who've already been doing these things. You don't want to try to, like, learn everything from books. It's going to be too slow, and you don't know what you don't know. So, you don't know how to, like, ask the right questions.
If you talk to people who've already been doing these things, they will be able to tell you, "Hey, you're not asking this and that question. Like, that's an important thing. Like, you should consider A, B, or C." So, I would say that, like, surround yourself with people who've been building healthcare businesses before and maybe try to get into an accelerator or just, like, find advisors, more, like, experienced people.
VICTORIA: That's great. It's all about community, which brings me back to the question I had about Meru Health. You mentioned there's a community aspect built into the app, and I was wondering if you could talk a little bit more about that feature and how it plays into the whole model.
KRISTIAN: Community is important. So, a lot of the people who struggle with mental health problems also very often feel that they are very much alone, so that was the case with my brother. Like, he also felt very much alone with his depression that, like, no one will understand me. Like, I'm the only one who's feeling like this. I'm feeling isolated. But there are so many people who are struggling with the same kind of thing or same kinds of emotions and feelings and symptoms.
And through our community feature, we have, like, people who are experiencing similar issues going through the Meru, you know, intervention. They can now, like, connect with each other, and they can, like, reflect with each other and see what's going on. It's a moderated kind of a forum type of a thing. So, licensed providers are always moderating and, you know, also being part of the discussions there. So, they're also contributing.
But it's very much of a place for people to reflect and see that, like, these struggles that I'm going through are not just...it's not just me. Like, there's also other people. You don't need to feel so alone. And you can share with others and see that, hey, there's ways to heal. There's ways to get better. You know, you're not alone struggling with these things.
VICTORIA: I think that's a really powerful point about making that connection, making that community, and feeling like you're not alone. What other features make the Meru Health app unique in solving this problem?
KRISTIAN: We are basically a clinic, like, you know, we call it a virtual clinic. So, we have providers. There are, like, licensed therapists. We have doctors, psychiatrists. We have coaches. We have care coordinators. So, these are all real human beings that are actually practicing medicine and supporting our members or our patients.
And then, we have an app-based program, and the app is basically your home for accessing the Meru services. So, whether you're doing video calls or whether, you know, you can do them through the app. Or you can be chatting with your providers, or you can get access to, like, you know, support from the care coordinators if you need to navigate your insurance benefits or things like this.
And then, basically, in the app, you're going through different modalities of care. So, one of the unique things about Meru, like, why we built the company, why the company exists, is to kind of make this more holistic or more, like, a lifestyle medicine approach to mental health care, make it available for people. And it includes not only talk therapy or cognitive behavioral therapy, which is the normal typical way of, like, doing talk therapy. It also includes a lot of, like, mindfulness practices, a lot of...sleep kind of is a big topic where we help people understand that, like, there's no mental health without proper sleep. And it's also a physical health issue if you're not sleeping. So, sleep is essential.
There are many things that you can learn, you know, like some sleep hygiene things, meaning that, like, you shouldn't do, like, blue lights just before bed. You shouldn't do, like, exercise just before bed. You shouldn't eat big meals before bed. So, there's many, many things that you kind of, like, once you learn to know, you'll improve, like, your sleep dramatically. And once you improve your sleep, you improve your health. Like, it's a direct correlation. So, these are things that we teach people as part of one of the modules there.
Then there's, like, nutrition, as we call it, food and mood. So, there's a huge connection between, like, certain nutrients or diets with, like, mental health. I'll just give you a really quick example. Processed foods are really detrimental to brain health and, mental health, and also physical health. But, like, most doctors, if you're talking to most healthcare professionals, most, like, primary care doctors, if you go to see a primary care doctor about any mental health concerns you may have, like, 99% of them won't tell you anything about your diet. They won't tell you anything about processed foods being very detrimental.
And, again, so we are kind of including things like these, which are all based on science. Like, there's a ton of research behind these things. And we've also, ourselves, done a lot of research with Stanford, with Harvard, with other universities. But that's kind of another example of, like, some of the essentials that go beyond just the standard talk therapy in helping people more holistically learn skills, learn knowledge to help them get better.
VICTORIA: That's really cool. So, what does success look like six months from now or five years from now? It's a long process, so...
KRISTIAN: We're now, like, 130 people at the moment at Meru Health. So, we've kind of, like, come quite far from the early days of, like, just building the product, getting the first customers, doing the first validation, publishing the first research studies, first clinical studies showing that this is effective, so forth. But there's still...it feels like it's day one still because we're going to feel that we're just getting started with, like, you know, we work mainly with insurance companies. So, there's a lot of insurance companies like Cigna, and Aetna, and United, Optum, some of these ones that we work with, some Blue Shield Blue Cross. But there's so much opportunity.
So, we're now available for, like, 30,000,000 Americans. Obviously, there's way more many Americans we could be available for. So, we're constantly working in making our footprint bigger so that more and more insurance companies would reimburse for Meru's services so that people in different states and different areas can also, like, access these services if they want to.
And, like, I mean, as I mentioned earlier, building a healthcare company is a marathon. It's not a sprint. So, we've now been building, like, six-plus years, you know, probably, like, another five, six years until we'll be, like, fully, like, reaching all the people in the U.S., hopefully, and so forth. And then, you know, we actually founded the company...initially, we founded from a place of, like, we want to build a global company.
We want to democratize access to these kinds of, like, new healthcare services also, beyond just being in the U.S. The U.S. is just a really great place to start these kinds of companies, in many ways, the perfect place. But we also are, you know, we're looking at expanding into some European countries in the future and, hopefully, even beyond that. But that's something what's happening now and what we're thinking about for the future.
VICTORIA: Great. So, it's getting to expand your footprint with who has access to it in the United States and then even looking beyond, globally, and seeing how wide you can reach.
KRISTIAN: Yep. Exactly.
VICTORIA: I love that. Okay. And then, what are the challenges that you see? What are those blockers or issues on the horizon that would prevent you from reaching your goals?
KRISTIAN: I guess one challenge we're facing is that, as I mentioned, we work with insurance companies quite a lot, so some of these big names that I talked about and some more, like, regional smaller insurance companies. But one of the things is that since our care philosophy and the modalities of care we offer, like the sleep and nutrition, the biofeedback wearable, some of these other things that are not typical to mental health care, that are not conventional mental health care, getting reimbursements and getting this kind of a more comprehensive approach, getting it reimbursed by insurance companies is actually quite a challenge.
Because insurance companies typically reimburse for very select standardized and kind of known services and, like, standard types of care. And it's harder for them to reimburse for something which is, like, novel and very different, even though we've published now 14 clinical studies, including, like, randomized control studies, which is the gold standard in clinical research, and then also, like, large, large, like, thousands of people, single-arm trials, which are, like, more like population trials.
So, we have, like, a ton of evidence to show that this is very effective, actually, roughly 2 times more effective than standard of mental health care. So, it's very much more effective, and people are maintaining the gains. We've published also our, like, one-year and our two-year data. So, there's a ton of that evidence there, but it's still hard to bring in this kind of innovation into the market. That's one of the challenges that we're working on.
Then, it's always a challenge to find the best talent, to hire great talent. I've learned over my career to always challenge myself in, like, making sure that we always think through, like, how can we hire the best talent for every role and not let your standards, like, drop. If you're growing fast, you got to hire more people. That is extremely, extremely important. And it happens so easily that when you start growing faster, you got to hire for multiple roles. You actually start, like, lowering your standards because you face pressures on, like, hiring people faster and growing faster.
VICTORIA: And I wanted to ask you, too, about your background in computer science. And as you're thinking about scaling and expanding globally, what are you thinking about on the infrastructure platform side for the technology that you've built?
KRISTIAN: What we've built so far is the patient-facing app, so that's the home for the patient to kind of access our services. For our providers, we have a network of providers that we also built them an electronic medical record. So, we kind of, you know, from the start realized that there's not an electronic medical record product out there that would fit our different way of providing care. So, we actually built that in-house by ourselves, so we have that now.
And then, we also have a kind of a dashboard for our providers where there's, like, traffic lights. So, the system actually, like, sorts people based on different data inputs and places them in order of priority. Like, if someone's reporting suicidality as an example, that's going to be a red flag on a provider's dashboard. These different, like, categories, like, the red flags and then, like, more, like, amber and then green. So, that system is something we're constantly developing and fine-tuning on, like, improving the algorithms of detecting issues.
And then, on the other hand, helping our providers to focus their time on the right patient at the right time because that's also really critical in care. So, there's plenty of work going on there. We're also working on our SOC 2, which is kind of this security standard in IT. So, we're working on our SOC 2 project currently internally. So, that's a pretty big one for us to mature into that. And yeah, so the platform is kind of evolving. We're kind of building more features.
We're also building more of these different kinds of modules for people who are struggling with different kinds of issues. So, a concrete example, how can we better support people with post-traumatic stress disorder or people who have, like, panic attacks? And so, there's these kinds of more, like, nuanced areas of mental health where we can double down on by building different modularity and more individualized care pathways for people.
VICTORIA: That's wonderful. I love that. Thank you for sharing all of it. Is there anything else that you would like to promote today?
KRISTIAN: Yeah. Well, hey, thanks so much. I really appreciate you having me on this podcast today. What I, again, found useful as a founder, as an operator, is to take good care of yourself. Like, it's really important to also remember not to exhaust your resources constantly, but, like, try to kind of find ways to take care of yourself as a founder, as an entrepreneur, and also kind of, like, nurture yourself. Because, otherwise, I have lots of founder friends, lots of entrepreneur friends, and so many times people are, like, exhausting themselves. And they are kind of, like, running too fast or, like, trying to do this and that more and, you know, just do more and more all the time.
You know, while that's important, it's important to be running. It's important to be kind of productive as a founder. It's also like a trap, you know. People also fall into a trap if they're trying to do too much at the same time. It's really important to focus on rather fewer things, and it's also very important to take care of yourself. So, self-care, self-compassion, I think, those are important themes that are not too often talked about when it comes to entrepreneurship, but I think that's something I've learned to be important.
VICTORIA: It sounds like the value that you said as a company also applies for you as an individual, like, having compassion towards yourself and kindness. I think that's a really beautiful way to wrap the episode here unless...do you have any questions for me or thoughtbot?
KRISTIAN: I've been following you a bit. And just curious, like, what's coming up for you?
VICTORIA: For me personally, well, I bought a new house, so we're, like, renovating that in California. So, I'm actually switching to, like, maybe trying to do a little bit less travel compared to what I did last year, but going to more local things and getting, like, our San Diego CTO Lunches spun up again and meeting people here who are building really cool things. Lots of great health tech companies in San Diego also.
What else do we have going on? I'm definitely going to be climbing. I'm going climbing on Saturday. And then probably in LA, I'll go up and do some climbing the next couple of weeks. So, I'm looking forward to having a little bit more balance to life this year [chuckles], the best-laid plans. But yeah, that's what's coming up and, just trying to, like, enjoy where I live, enjoy my family and friends and the companies that I work at, and do a good job. That's it.
KRISTIAN: Great. Well, hey, appreciate it.
VICTORIA: Yeah. Wonderful. Well, thank you so much for coming on, and being a part of the show, and sharing your story.
You can subscribe to the show and find notes along with a complete transcript for this episode at giantrobots.fm. If you have questions or comments, email us at hosts@giantrobots.fm. And you can find me on X, formerly known as Twitter, @victori_ousg, or on Mastodon @thoughtbot.social/vguido.
This podcast is brought to you by thoughtbot and produced and edited by Mandy Moore.
Thanks for listening. See you next time.
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Feb 29, 2024 • 33min
514: The New Frontier of Fertility Treatment: Technology, Telemedicine, and Hera Fertility
Host Will Larry delves into the innovative world of Hera Fertility with its Founder and CEO, Thiv Paramsothy. Hera Fertility emerges as a telemedicine-first provider aimed at revolutionizing the fertility journey for couples. Thiv shares his journey from a tech enthusiast in Toronto to a healthcare entrepreneur driven by a desire to make healthcare more accessible and efficient. His ventures, including Hera Fertility, are born out of personal observations and frustrations with the existing healthcare system, particularly its inefficiencies and the barriers to accessing necessary care.
Thiv noticed a significant gap in the fertility treatment landscape—long waiting times for appointments, excessive costs, and the overall inconvenience and emotional toll of traditional fertility treatments. Hera Fertility aims to address these issues by offering affordable, convenient, and less invasive alternatives to IVF, leveraging telemedicine to provide immediate access to care, diagnostics, and medication.
The episode also highlights Hera Fertility's unique business model and focus on enhancing patient care through technology and personalized support. Thiv explains how the company can offer services at a fraction of the cost of traditional IVF while improving the quality of care and patient experience. By employing a telemedicine-first approach, Hera Fertility democratizes access to fertility care, especially in underserved areas, and introduces a more supportive and patient-centered approach to fertility treatment.
Hera Fertility
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Transcript:
WILL: This is the Giant Robots Smashing Into Other Giant Robots Podcast, where we explore the design, development, and business of great products. I'm your host, Will Larry, and with me today is Thiv Paramsothy, Founder and CEO of Hera Fertility. Hera Fertility is a telemedicine-first provider for couples who want to boost their chances of conceiving. They deliver convenient testing, affordable at-home meds, and concierge care, helping patients overcome infertility with better odds and faster turnaround time at only a tenth of the cost of IVF. Thiv, thank you for joining me.
THIV: Thank you for having me. Super excited.
WILL: Yeah, I'm excited to talk about this. And I know this is a huge issue, so I'm excited to hear kind of your heart behind it, why you started the company. But before we dive in that, tell me a little bit about you.
THIV: So, I was born and raised in Toronto, always loved technology and looking at different softwares and all that, but never good enough to code. But went to Waterloo, which is a fancy tech school up in Canada. That's where I really developed my passion for healthcare and tech. So, at that point, it was called, like, something nerdy like health informatics, but now people call it digital health. From there, I kind of learned what was going on in the health system, what could be better about it, and that's kind of where I wanted to focus on in my career.
And then, after college, I was realizing quickly that I wasn't a corporate guy, did it for a bit, and I realized I was very much an entrepreneur. So, I started doing startups after that, and I'm now in my third one. But all my startups really focus on how do we better the healthcare system and how do we make it better for patients?
WILL: I absolutely love that because I have three young kids, and it's absolutely frustrating at times dealing with the healthcare system because, I'm just going, to be honest–sometimes it's who you know or what type of money you have and things like that. And it's frustrating that it feels like, at times, you have to be at this right spot at the right time to get the certain healthcare, so I really appreciate that you are diving into this and trying to solve a huge issue.
THIV: Yeah, I hear you because I see that so often. That's a lot of times what inspires me to go off and do my startup. At that time, like, Hera, exactly that was one of the reasons why we started Hera.
But the way I look at it is that if you look at the healthcare system we have, it's incredible the miracles we could do and the solutions that we have and how we can save people's lives, how we can treat them to live longer. But a lot of times just getting your foot into it and finding the right care is the difficult part. And don't get me started on the barriers and obstacles that are there, from cost to just pure access. So, that's what really motivates me because, in my mind, I'm like, oh, this should be available to the masses, and that way, you know, society grows. Everyone is happier. And I think then we move along and become better.
WILL: Yeah, definitely. Were there friends, family that were going through this that kind of helped you, like, say, "I need to create this company to help the healthcare?" or what was the reason behind starting Hera?
THIV: Yeah. So, with Hera, what happened was I was at that age where all my friends and family were moving to the next chapter of their life and wanting to build a family. A lot of them were coming to me and talking to me and telling me this. And I've become that person where a lot of times, if they need any advice on where to go, what clinic to attend, or what doctor, I try to help there because that's kind of where my mind goes to. I'll know where the right doctor is or which is the best one, even though I'm not a doctor. I've just worked with so many of them.
And so, many of my friends would come to me and share those stories. And I started to hear it more and more. And then, as I was following along in their journey, I realized, like, how hard it is for them to even enter in and get seen by someone; a lot of times, it's like a 6, 12-month wait. Then, on top of that, being able to pay for a lot of these treatments, $20,000, $50,000; if surrogacy, it can go all the way to $100,000. And then, lastly, like, just how inconvenient it is.
One of the things that I was shocked by was, like, how many people had to quit their jobs to go through treatment; 1 in 5 is the latest stat to go through something like IVF. So, all these things are against them, but what really stood out to me was the people that needed help for fertility were probably the most driven and resilient people. And, look, I'm an entrepreneur. I have to be resilient, but I think these people are even more resilient. And so, for me, I was like, there's got to be a better way for people that are going through infertility. That's really what drove me to start a company, quit my job, do the whole shebang there.
WILL: I wanted to paint a picture because I'm kind of tearing up already thinking of some of the people who've gone through that journey because, like you said, it is not an easy journey. Can you paint the picture of kind of what that journey looks like? Because, from my experience, I know it's not like, oh, I need to go get IVF. It starts way before that, many doctors' appointments. It's a whole thing. I want the audience to kind of hear the whole story and paint that picture of what someone who needs IVF or anything in that category what they're going through.
THIV: Where my mind goes to is think of a couple who, like, just got married or been in a long-term relationship, and now they've decided that they want to start having kids. What typically happens is, you know, usually, you just go, yeah, we're going to try, and then that's what they do for that time. And so, they're happy. They're excited because this is, like, a new chapter. And what I picture is as they're trying, they just keep trying. And they're, like, constantly every month or every so often when they're checking, using pregnancy tests, they're just seeing the negative result, negative result, negative result. And so, that just keeps happening over and over again.
After that point is when they go, okay, maybe we need to seek some help. What ends up happening is they go to a doc, and a doc goes, "Hey, just keep trying." That's literally the advice you have to give. That's based on the guidelines. So, no test. Nothing. It's just the fact that it will happen on its own. Don't stress. And so, they keep doing that, and they keep seeing negative results. And that happens for a long time. Most people end up doing is they spend about three to four years on this journey.
And where it really tests you, it tests your, you know, relationship with one another. It really questions yourself. You know, on the woman's side, like, they feel lonely. They feel like when they go to events, they see other people celebrating. They're getting pregnant. They're frustrated as to why. So, it puts emotional toll there. And then, also, for the man, it puts a lot of pressure and makes them question their masculinity. This ends up happening.
From there, they start getting testing done. It just becomes very clinical. They start understanding, okay, they may need to now do some sort of treatment. It becomes like a job, another job for a lot of times. And that's what we kept seeing with people, and I saw for many people as I was helping them on their journey.
It's really a stark contrast to what, I think, most of us have in our head of, like, when you want to build a family where it should be joyful, and loving, and exciting, and easy. It's not. It's a hard path for people where you have to be resilient. So, I hope that that paints a picture. That's what I feel, and that's what motivates me to keep trying to figure out a better way and why we started Hera.
WILL: Yeah. The people I've talked to and been around that's kind of the same story. And you're spot on when you say they start questioning themselves. Like, "Is it me? Did I do something wrong?" And it's heartbreaking because you're like, "No, you did nothing wrong." And so, yes, I am so glad that you shared that and that you're doing something about it. So, can you kind of go into what is Hera doing to help the situation?
THIV: What we are doing we're a telemedicine-first provider. So, what we do is, one, is that through our app, you're able to access the care you need right away. So, that means if you are being told, "Keep trying," but you want to know if there's something wrong, we have testing there. If you want to know, is there things that I could do or take that will improve my chances? We have our supplements and medications that we can provide to you and deliver to you and have you follow a treatment plan. If there are more things that we need to do, like go to a clinic and get IVF, through our app, you're able to do that. We're able to find you and coordinate all that.
But really, we're a companion as you go along in this journey to sift through and provide the solutions that you need. The big thing that we've been really focused on, because we've learned this through our research, and my co-founder ran a fertility clinic for 20 years, is that most people think if you are having trouble, you have to go through something invasive like IVF, or you have to keep trying. But really, what's happening is that only 5% of infertility cases need something like IVF. And what you actually can do is that with a special set of medications taken in a certain way with our plan that spells it out for you, you can be successful. Improve your odds two to three times is what we've been seeing.
So, that's really where we're honing in on: Can we improve your chances of getting pregnant? And that has all these different pieces to it. And so, I think that's what our members really like is that, one, they get educated on what's going on and what they can do and pick options. But then they know that if they're with us and they're following our instructions and taking the medications and everything, it will improve their chances. And so, then, hopefully, they can get pregnant.
WILL: I love that because there's nothing more frustrating than knowing your body and knowing, hey, something's wrong, and someone's telling you, "Oh, just keep trying, like, just keep doing it." So, I love that you're stepping in and educating them because I feel like, especially in our healthcare, a lot of issues that I've seen is because people are not educated on, hey, that's not the right path to be going down, or there's another way to do it, and you just didn't know that. So, I'm glad that you're offering that next step. That sounds amazing.
THIV: Thank you. I think you said it the best right there. It's that next step. People want to do something. The most frustrating that we kept seeing and hearing from people is just being told to do the same thing. Isn't that the definition of insanity?
WILL: Yeah [laughs].
THIV: For us, we want to provide something so they could take that's safe, reliable, and has shown effectiveness. And along that, they could talk to someone and make sure and be reassured as they go along in this journey, as they have more and more questions, what else can they do, and just really feel empowered on this infertility journey.
WILL: That's awesome. So, how long have you been around? How long have you been a company?
THIV: We're getting up to two years. Our two-year anniversary is coming up. So, we started in April 2022 really testing out what could be the right solution here. You know, as someone who has done a few startups in my past, the first rule I would say is you never fall in love with the first idea, but you go off and test it, and find out, and interview, and keep iterating. And so, we did that for some time and learned so much. I think I've talked to now thousands of people on their fertility journey.
And, you know, as we were going along, we realized we had something special with this telemedicine-first approach. And so, we launched officially in August, I believe it was 2023, our app with the clinicians and everything after beta testing it for some time. And now, we have a group of patients going through our program in about 12 states, and we are expanding as we go along. We'll hopefully get to the 50 states by the end of the year.
WILL: Wow. By the end of the year, that's amazing.
THIV: Yeah. Because we're getting a lot of people wanting it in all parts of the country, but we wanted to really focus on the areas where you won't have that access. So, to your point earlier, you know, a lot of people we've seen so far were telling us, "Hey, I don't have a fertility doctor near me. It takes me five hours to get to one, let's say. And so, I feel hopeless. I feel like I have to do that, and I shouldn't have to." And so, that's where it's this piece of, like, knowing where you're supposed to be going or getting access and not having these barriers in front of you.
And so, for us, we're really focused on those states where access is a big issue for these services. And so, we're in Texas. We're in Kansas. We're launching in New Mexico now, places like that where you won't see too many fertility clinics in a lot of areas.
WILL: That's very interesting, and I'm glad you brought it up because I was going to ask you about that because I know you kind of specialize in the telemedicine portion of it. And I'm from Louisiana, so kind of familiar with Texas, and I used to live in Kansas. And so, those places are not the most...there's parts that are rural, but not the most rural parts, so it's interesting that a fertility doctor can be five hours away. That just blows my mind that like, you know, you're not talking about Montana or anything. You're talking about, like, Texas and Kansas that, you know, five hours is a long time. And the amount of times you have to visit the doctor for that, yeah.
THIV: For fertility, there's a lot of visits. You're going there pretty often. Especially if you're going to do IVF and having to do multiple rounds of it, you could be going there for months. And so, yeah, there's just...the reason behind this, and this is fascinating to me as well, is there are only, like, about 550 clinics that specialize, like, fertility clinics in the U.S. And most of them are actually concentrated in the metropolitan areas, and I think the stat is, like, 50% of those are in 6 states. So, the remaining states really get a few of them. I think New Mexico has, like, two or three fertility clinics.
And so, these clinics have the specialists, and they do as much as they can. But if you're not nearby one, it's really hard to do that consultation, to learn from them, to find out if there is something wrong. And so, now you still are in this gap of like, is there something wrong with me? Because it could be a simple solution, right? And if you overcome it, you can get pregnant. So, that's where we see–can we be hyper-focused on those areas where someone is maybe two hours or more away from the nearest fertility clinic?
And we really want to focus on that access piece because people should get access to this. So, that's why, with our telehealth solution, we have our own clinicians who will be able to assess. For the testing, we'll send you kits to be done at home, or you can go to a nearby lab, and we'll get the results that way. Give you a set of medications or treatments [inaudible 16:11] we'll actually send it to you.
WILL: Oh, wow.
THIV: That's how we're trying to be much more convenient and accessible because that way, you're doing a lot more at home, and these barriers that are currently in front of you are gone. And people are able to get care.
WILL: That's amazing.
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WILL: Let me ask you this because it kind of sounds like the concierge portion of it, which is amazing. How are you able to do that portion of it but do it cheaper than the streamlined way of doing it?
THIV: So, I like to look at this in two ways; one is the business, right? How do we make sure the economics make sense? And then the other is how do we make it so that the patient experience and care is optimal and satisfactory, right? Or excellent, I should say. So, the way that we thought about it, and I went around and interviewed and observed so many different care models, like, the ways that these different clinics are working, so be it in a hospital, in a traditional clinic. In the earlier days, I would go and do all of that.
You really have to think about is there a better way that we can do it but still have the same success and outcomes? And so, the first thing I noticed is that technology needs to be at the core of all of this. It checks off both of those buckets. The economics and the business will thrive because of that because you can introduce efficiencies, you know, streamline a lot of the operations, do automation. So, that was core to us. So, we were very careful and selected a good vendor to work with on the EMR side and then built on top of that.
And then, from there, technology also helps from the patient side because of all the places, like, I was interviewing, none of the clinics really had, like, an app, or they kind of had something where you would email someone. You would still call, and it was very old school. But what we heard is that patients had so many questions after, before, middle of the night. And so, we were like, how do we make it so that they feel like they can reach out to us, talk to us at any point? And so, that's why we created the app. And you can message us at any point, and then there'll be someone there to help if you need anything or to answer any questions. So, that's on the technology.
Then staff people wise the thought, and other companies have done this, but concierge care, you know, people have thoughts about it, but what's really good is that it's really about, how do I make sure that the patient is getting the best experience and getting the answers that they need? And really, it's about making sure you have the right team there who's available around the clock to answer those questions who are fully trained.
So, we hired a lot of people that had gone and worked in the fertility space. Like, my co-founder knows so much about fertility because she's worked there from the beginning. And so, that's really helpful and is able to answer a lot of these questions that come up immediately. But then we staffed it so they're available around the clock so we can be available for the patient.
And then from there, I think the business model makes sense because we're providing this extra support; patients are willing to pay for it. We've built it so that it's not transactional. And it's more about a long-term engagement so that way people pay us on a membership basis for certain services.
And so, at the end of the day, we've, essentially, and I hope this makes sense, is that we try to not replicate what a typical clinic would do and, which is, like, bill for each service. And we try to think about it: how can we build a long-term relationship with this person who probably will be here for some time and then build pricing and a business model around that? I think that's why it's working. You know what I mean?
WILL: Mmm-hmm.
THIV: And I think that's so important because if we just replicated it, it wouldn't have worked. Things would fall apart. The economics wouldn't make sense.
And then the last thing I'll say is that clinicians-wise, we didn't want to have doctors just there like everyone else thinks, but we actually have nurse practitioners or APPs. And we did this because there was more and more research, and we tested this out for long-term engagement; patients love the nurse practitioners. The doctors are great. They play a role. But I think the quarterback in all of this is that nurse practitioner. So, that's where, I think, I'm super excited. We're hiring a bunch right now. They are really the quarterback.
And we have a good clinical team to make sure everyone feels equipped. And if they have questions, they're able to answer it with docs. But we take cues from these nurse practitioners. So, I think that really helped on the business side and the patient experience side. And that's why we, you know, we have five stars on our satisfaction. People love us. Yeah, it's a long-winded answer to that, but we really thought about how to build this properly.
WILL: That's perfect because...and I'm thankful that you explained it because what I got from what you said was not only are we able to do it cheaper, but we're able to increase the amount and the quality of care that they're getting. Like, 2:00 in the morning, you have a question; you can get it answered. Like, you can't get that anywhere else. Like, sometimes you have a question, and it may take 12 to 24 hours to even get that answer. So, that's amazing that you're staffed around the clock. So, it sounds like, hey, not only are we going to do it cheaper, but we're going to be better at the quality that we give you. So, that sounds amazing.
THIV: Yeah, exactly. And I think that way, what's key here is, currently, in the market for this kind of services, you're paying so much money. A lot of times, insurance doesn't even cover this. So, I've seen people who couldn't get their dream, which, in reality, people's dreams is to have that family, to have that child. And they couldn't do it because of money, you know, maybe it's the Canadian me, but I hate that fact of, like, money stopping you from getting the care you need.
WILL: Same. I'm with you 100%, yeah.
THIV: Right?
WILL: Yeah.
THIV: And so, for us, it's like, if we can make this cheaper, we can make the prices cheaper, too, and people can pay and afford it and get their dream. And so, that's really why we did it this way. It's not so that we make more money. It's so that, you know, we build a sustainable business. But now, patients have an affordable option in front of them.
WILL: Yeah. Can you, and just ballpark it, like, what is the normal cost usually for this versus what Hera provides it for? Can you explain that?
THIV: Normally, people who are going through this would have to spend, ballpark, 15,000 to maybe 25,000. The upper end is, I would say, 50,000, and I'm not including surrogacy in this. But it's a lot of money. People are getting their second mortgage. They're getting, you know, GoFundMes. There's so much that they're doing for this. The worst is when money is blocking you from that dream. So, that amount is typically what we've seen. And that's what my co-founder has told me she would be seeing that from each of her patients and when she was at that clinic. But the way that we've approached it and how much we charge, patients are typically paying us at most around $1,000 to $2,000.
WILL: Wow.
THIV: And so, we're able to effectively do it and at least be an alternative option for them, and that's affordable. And so, I'm always excited when I see patients who come to me, and they're like, "Oh, it was so expensive." or "I thought it was going to be so expensive, and this is so doable for us." That's the difference right there.
WILL: Wow. That's a huge difference. Wow.
THIV: [chuckles] Yeah. And I hope that this changes, like, the conversation. I've seen other markets or in the past where, you know, things were so expensive, and then these new startups were coming in and really making it so that it becomes competitive. And the incumbents have to change their prices, too, and get innovative.
My goal is to bring down that, you know, current average cost of 10,000, 20,000 and so that it becomes much more affordable. And so, that could be done by improved technology, more competitors, all those things that we know about. That way, you know, as more and more people are having these issues with infertility...it used to be 1 in 8. Now it's like 1 in 5 or 1 in 6, even. We need more and more of this kind of care so that people can live out their dream, and let's make it affordable so that they can do that.
WILL: That's amazing. And I really hope you reach that goal because I think especially in healthcare, we need more of that. We need the competitors that are driving the price down instead of driving it up. So, that's amazing that you're creating that.
THIV: Thank you. That's why, you know, we have competitors, but I love it because a couple of years ago, there wasn't as many people in this space. And it keeps growing more and more. As more and more people put their attention to this, I think we'll see really good solutions so that people have options. Obviously, I'm biased. I would love for in 5 years or ten years, you know, if someone is having trouble, they're going to think of Hera. And they're going to download our app and talk to someone right away and know what they can do so they can be closer to that dream of theirs.
WILL: Yeah, definitely. And I'm glad you mentioned the 5 to 10 years. So, I know you mentioned, hopefully, by the end of the year, you're going to be in all 50 states. What's the next step? What's the next goal for Hera?
THIV: Yeah, it's a great, great question. I think about it all the time. I think for us, what we wanted to do is really, like, right now, we are early days, and we're learning from every patient we see. What else can we do? How can we help you? Fifty states is one target or milestone. I think there's a lot more we can do on the product side. For instance, we're going to be launching a male infertility program. That's probably the first of its kind out there where we specialize on the men side of things and bring them into the conversation and have them be actively involved. So, that's a big one.
But we're going to keep doing more and more of solutions and products, so really strengthen the solution that we have here so that you come to us, and we have everything that you need.
I would say next after that is really partnering with more and more of the clinics that are already there. And I say this because we're part of the health system. Yeah, business tells us to be competitive, and that makes sense. But you also are taking care of patients, and you need to partner where maybe you don't have the services for, but someone else does, or for continuity of care. And so, you need to be part of the system. And I think that's key for any kind of healthcare company that's starting up. And so, that's, I would say, level two. I like to think of, like, in games, like, the different levels.
I would say after that, as we grow and become integral to the system and be that solution that people go to when they're in need; we'll evolve to, like, going into the employer and health plan side of things and then be able to say that it's part of your insurance and health plan. And then it's a no-brainer now to sign up with us because someone else is paying for it, which is great.
So, that's kind of how we're evolving, but I want to make sure...and I think something that I've heard in your other episodes, but I'm a big believer of talking to the people that are using your solution and learning from them, and identifying where there may be gaps that you can help address. And so, as we evolve, we're going to keep talking to them. I always give out my cell phone number and tell any of our user who wants I'm like, "If there's something we could do better, let me know. Tell me directly." And so, I want to make sure that's clear that we'll see what our users tell us, what we should be focusing on.
WILL: Wow. I love that. That's amazing. Let me ask you this in kind of closing it out is, like, so that's kind of five years. Do you have anything that you want to promote, like, what you're doing right now?
THIV: Yeah. No, I think the big thing is we are constantly working on our product. What I would say is if there is anyone who is either fertility curious, or going through their own journey, or who has gone through this in the past, please reach out to me or, use our solution, talk to our clinician. I think it's so empowering once you meet with our clinician to understand what your options are and what you should do.
If you're not in one of our states, then let us know, and we'll put it on the list and bump it up. So yeah, like, please come to our website, check it out, join us, try it out as well. We're all about trying to help people get to that goal of theirs, their dream.
WILL: I love it. And we'll include it in the show notes, but in case they don't have the show notes in front of them, tell them how to get to your website, how to contact you, how to get the information.
THIV: Yeah, for sure. So, you can go on our website. It's herafertility.co. And on there, you can sign up for our services and sign up for our app. But if you have any questions before signing up, you can schedule time to talk to one of our fertility advisors, and then, yeah, you can always reach out to me. I'm on LinkedIn under Thiv. And Twitter I check every so often or X. And you can email me at any point at thiv@herafertility.co.
WILL: Awesome. Well, it was great chatting with you, and I've learned so much. Keep doing what you're doing. And I hope that you're successful because you're doing some amazing things.
THIV: I really appreciate that.
WILL: You can subscribe to the show and find notes along with a complete transcript for this episode at giantrobots.fm. If you have questions or comments, email us at hosts@giantrobots.fm. And you can find me on Twitter @will23larry.
This podcast is brought to you by thoughtbot and produced and edited by Mandy Moore. Thanks for listening. See you next time.
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Feb 22, 2024 • 37min
513: Custom Fit, Global Impact: MADE TECH's Apparel Innovation with Dustin Butcher
Host Victoria Guido interviews Dustin Butcher, CEO and Co-Founder of MADE TECH, a company revolutionizing the performance apparel industry through custom and made-to-measure automation technology. Dustin shares his journey from working in the outdoor industry and running a creative agency to founding MADE TECH. The company's mission is to provide performance apparel that perfectly fits the wearer's body, addressing a common issue where standard sizes fail to accommodate individual body shapes and sizes, particularly in sports where fit and movement are crucial.
Dustin discusses the inspiration behind MADE TECH, which stemmed from personal experiences with ill-fitting outdoor apparel during activities like ski touring. He highlights the company's focus on inclusivity, allowing for 100% size inclusivity and addressing the needs of a broad spectrum of body shapes and sizes. This initiative caters to individuals who traditionally struggle to find performance gear that fits and opens the door for brands to offer more inclusive product lines. Dustin's background in the outdoor industry and encounters with the limitations of standard sizing in apparel led to the development of a technology-driven solution that customizes clothing to the individual's measurements, enhancing performance and comfort.
The conversation also touches on the industry's broader implications of custom and made-to-measure apparel, including sustainability and waste reduction. Dustin elaborates on MADE TECH's business model, which initially targeted direct-to-consumer sales but has pivoted towards partnering with established brands to offer custom-fit options. This strategic shift aims to leverage brand trust and reach a wider audience, promoting inclusivity and personalization in the performance apparel market.
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Transcript:
VICTORIA: This is the Giant Robots Smashing Into Other Giant Robots Podcast, where we explore the design, development, and business of great products. I'm your host, Victoria Guido. And with me today is Dustin Butcher, CEO and Co-Founder of MADE TECH, powering the future of performance apparel with custom and made-to-measure automation. Dustin, thank you for joining me.
DUSTIN: Oh, thank you so much for having me, and I'm excited to be here.
VICTORIA: Wonderful. Yeah. So, why don't you just introduce yourself a little bit more and tell me about your background?
DUSTIN: Yeah, of course. So, as you mentioned, I'm one of the co-founders of MADE. We have built technology that enables the automation of custom and made-to-measure performance apparel. So, similar to how you could, like, you know, go online and design a custom suit or something like that and get it made to fit your body, we do that for performance apparel so that the product that really matters if it fits you properly and that sort of thing, and, you know, so that might be outdoor apparel, motocross, yoga. Whatever sport it is that you're into that, you need your apparel to move with you; that's what we fuel. And so, we're working with a bunch of different brands in that space to do that.
My background, I came from the outdoor industry; always been in the outdoor industry since I was able to hold a job, originally just at ski resorts and stuff as a lifty and as a waiter, and all those types of classic, you know, teenage jobs. And then I worked in-house at a bunch of outdoor companies, Voilé, a little backcountry ski company here in Salt Lake, and then Black Diamond, and Gregory Packs, and Petzl, and kind of worked around the industry a bit.
And then for the last 12 years, I ran a creative agency, specifically in the outdoor industry, working with a lot of those same brands and other brands in kind of communicating their value to the outdoor customer. And so, and then we kind of rolled into MADE, had this idea, connected with my co-founders, and really built it from there.
VICTORIA: I love hearing about people building careers in the outdoor industry, something really close to me personally. I also got my first few jobs from rock climbing and having competed as a young adult and then walking up to businesses and saying, "Hey, you have a climbing wall. Like, you should hire me, and I'll run your climbing wall." And they're like, "Okay." [laughs] So, it just, like, brings you so much confidence and such a great community to be a part of.
And so, you're talking about creating clothes that move with you. Can you tell me a time when you were doing something, some kind of performance sport activity, and you were like, "Wow, whatever I'm wearing does not fit me. This is really affecting my performance and my ability to do this sport"?
DUSTIN: Yeah, I probably have too many of these stories. And what's interesting about that is I'm a pretty traditionally medium guy. I'm 5'11. I'm 170 pounds. Like, I should generally fit into mediums, but I'm just in that weird spot where I always kind of feel like, am I a medium or a large in this? My torso is a bit long. So, my primary sport is ski touring, like, backcountry skiing. That's what I love to do. That's where I spend my time and my focus and a lot of that kind of stuff.
So, I've had lots of experiences where I might be climbing up a [inaudible 03:08], and my jacket comes up a bit on my lower back and exposes my lower back, and it's cold. And so, then I got into defaulting where I wear, like, one-piece base layers, so I can never expose my skin directly. But it's like, the ultimate solution really was to have properly fitting stuff.
The original concept for MADE came from I was out on a ski tour with some friends, and I was wearing a pair of pants, some soft shell pants that I loved the fit of. But the feature set wasn't there, and they were, like, Alpine climbing pants. They're not even designed for ski touring. They didn't fit over my ski boot. They looked a little bit silly, but I loved the fit, like, in the leg. And they didn't have like, you know, a beacon pocket and those types of things that I would want.
But I do have this other pair of ski touring soft shell pants that I wear most of the time that fit terribly but have all the features that I want. And it was like, ah, man, I wish I could, like, determine exactly what I need as a skier and then, you know, would have the confidence that it was going to fit me perfectly, that sort of thing. And that's really where it kind of started. It was a very selfish, like, how can I get the thing that I want?
You know, I connected with my co-founders, both of whom came from Arc'teryx to start this with me. And we really got to thinking, and it's like, wow, with this type of system, we can make a really big impact as far as like, we can be 100% size-inclusive. There's not body shapes or sizes we can't meet with this type of system. And so, then it really opened a lot of doors as far as, like, what we can do and how we can connect this. And that's when we all kind of came together on this idea and said, like, "This matters, and we're the ones to build it."
VICTORIA: I love that you're trying to fit something that works for you, and you realize having that ability could make it inclusive for everyone. And I wonder if you could share more about what you know about sizing in the clothing industry and, how that's developed over time, and how it may be really limiting who has access to the products that you're selling and the activity that those products allow you to do.
DUSTIN: It might sound like a crappy, little history lesson, but, you know, the further back we go...before the industrial revolution, clothing was made to fit the individual, you know, you'd go to a tailor, and you'd tell them what you need the product to do for you, and they'd measure you and make the product. And then we got into this mass manufactured thing, which is great as far as, like, efficiencies and economies of scale, and all that kind of stuff. And so, we can get stuff cheaper and still, like, high-level product, but we got into this standardized system.
And then companies deal with this challenge of like, okay, what is our small? What is our medium? What is our large? And finding those things and trying to meet the needs of the bell curve but also knowing that for every individual person, they're not meeting that person's fit needs, right? They're trying to fit as many people within the primary sizes as they can, and that's part of the challenge.
One of the things that we've run into in performance product, especially, is that, like, there are massive swaths of people that simply cannot get good performance product in their size. 68% of North American women are over a size 14, and it's really hard to find good ski outerwear, as an example, for a plus-size individual like that. And that's not even that plus size. That's an average, like, that's 68%. Like, we're not talking about like, oh, these are the ends of the bell curve. These are people who want to get out and do things, and they've been unable to do it because of clothing.
What a silly reason to not be able to do the sport that you're excited about, or even to go spend time with your friends and family, or whatever it might be, like, your motivation, but, like, what a bummer of a reason to not be able to do it. So, those are the things we're trying to solve through our system is saying, like, "Hey, we can work with these existing brands, and they can now offer stuff that is fully inclusive, meets all of their quality expectations, all of this, and still comes in with a very reasonably priced product."
You know, it's not what you think custom would be where it's like, oh, it's going to be five times the cost of the ready-to-wear product. No, we can come in at the same price or very similar with these brands and allow them to make options that meet the needs of all different shapes and sizes.
VICTORIA: Well, I can really relate to that because some of the clothes that I would wear for climbing or even yoga are coming in at a very high price point already. And I recently tried on a set of clothing from a retailer who's normally, like, known for yoga and outdoors equipment. And I was just surprised at how it seemed that they wanted the person who fit these clothes to be very narrow all the way through [laughs]. And I was like, wow, I'm struggling to fit in these clothes.
And, like you said, like, I feel like I'm pretty average, and that was frustrating, and especially, like, getting clothes like that it can really deter people from participating in the sport and participating in outdoor activities altogether. So, I think it's really cool that you are going down that journey.
Let me ask you, how did you get the original idea for MADE TECH, specifically?
DUSTIN: So, first, we had to determine, is it possible? Can you make a system that would automate the creation of a custom pattern, all of that kind of stuff in really technical product, right? We know it can be done in suits and jeans and that sort of category that's more of a simple cut-and-sew. Whereas when you get into technical product where you're dealing with waterproof fabrics and seam sealing, you know, in a ski jacket, there's, like, 200 pieces of that product versus two pieces that get, like, pushed together and sewn between, right? Like, it's really, really complicated stuff.
So, we started with that kind of hypothesis is, yes, we can figure this out, and we did that under a D2C brand, MADE Outdoor. It's madeoutdoor.com. It's now been live for almost two winters, and we've made a bunch of product and a bunch of people happy. And, you know, we had some really early success with really tall, thin dudes, you know, like, that 6'6, you know, I'm sub 200 pounds or something. I'm really thin. And that person has been kind of forced into wearing a triple XL jacket for so long. So, they're pretty psyched. And so, like, we've had some of those early wins, and that was really kind of like, okay, we tested it. We've proven this system works.
And so, it's really just been in the last six months that we've said, like, okay, now where do we make the biggest impact? How do we make that change in the industry and in these opportunities to participate in these sports? And that's not through our own brand. That is one piece of it. Sure. But the larger opportunity is for us to work with existing brands that have that consumer trust already that, you know, like, "Oh yeah, I've worn this brand for however many years, and I have that trust, and I love the brand. And now I can get something that fits me perfectly."
Or it's that person that's like, "Oh, I've always worn this brand because it fits me, but I really would love to wear this other brand, but I know it doesn't fit me properly." And so, it opens doors for people to kind of like say like, "Okay, what's the brand? What are the materials? What's the brand ethos that really connects with me? And be able to go there and not have fit be the reason that I can go with one or the other."
VICTORIA: That's really interesting. So, you started with originally direct-to-consumer custom ski and snowboard wear and, found your initial success, and then identified a pivot point where you could expand and do direct business-to-business and make other brands more inclusive as well.
DUSTIN: Yeah, that's the big idea, right? And it doesn't need to be my name or our brand name on the thing. Like, what we've built, like, there's just an opportunity for an impact here that's bigger than just us.
VICTORIA: I love that. And it makes me want to ask you, what other core values drive your everyday decisions as you go about your process here?
DUSTIN: Yeah, the three kind of pillars we think about anytime we are working on something, and really that kind of drive our whole system at MADE, is inclusivity, sustainability, and personalization. I should come up with a better way to say that, but it's those three, right?
So, on the personal side, we want you to have the thing that you need. Your setup for some climbing clothing is going to be different than mine. You're going to want to set things up differently. And maybe you are a boulderer, and I am a big wall climber. Yeah, we have different needs for what we have. And so, we want you to be able to kind of define that rather than just being a designer in some boardroom somewhere. So, that's the personalization side.
The second is the sustainability side. 30%, and this sounds outrageous, but 30% of apparel is never sold to an end consumer. And it eventually gets destroyed or sent to the landfill, which obviously has a massive sustainability impact, not only for that product to how do you dispose of that kind of thing, but also just, like, we made it, and it took time, and it took money, and it took human hours and all that kind of stuff.
So, that's a huge opportunity for us because everything that is made through the MADE system it already has a home. Like, we never make a thing...if any of our brands are using our system, they only make things that already have a home. So, that's a huge win. We immediately take off that 30% of overproduction, right?
And then the inclusivity stuff we've talked about already, but it's like, we just want people to be able to do the things that makes them happy. And it's a bummer when you can't do those things, whether it's climbing, or yoga, or whatever. Like, you know, there are some big brands that have had a hard time with size inclusivity, which is totally understandable. It's really hard to make product that fits everybody.
And so, you know, we create these standardized systems, and then we knowingly leave people off. But we know that because it's like, well, not that many people in this size have bought from us, and we have to hit our MOQs, and we have to do X and Y and that sort of thing. But with this type of system, they can hit everybody, and they're not taking those, like, big risks as far as like, oh yeah, we have to set place this big order, and then all this product is going to sit in a warehouse for three years before it'll finally sell through.
VICTORIA: It reminds me of a classic story you hear in software design about how they tried to make the first Air Force pilot chair; I don't know if you've heard this one, where they, like, took all the measurements of all the pilots and then they, like, averaged out all the, like, heights and widths and everything. So, they made this chair that fit no one.
DUSTIN: Yeah [laughs].
VICTORIA: Because no one is perfectly average. Like, you know, everyone has variations in their size and their measurements. And so, I think that's really cool. It's interesting. I hadn't thought about the conservation impact or the impact on the environment; it takes just to have to have so much error in your sizing, which is naturally part of what's going to happen when you try to make an average size.
DUSTIN: I've not been on the product design side of apparel. I don't envy them. Like, their job is hard to find that fit story that, okay, this is what the average consumer looks like. But what does our consumer look like, and then how do we find something that meets them? And what is our medium? And then, do we have to make a different medium for different markets in the world? And there's so much, like, level of detail in there.
That's one of the beauties of us working with other brands now is that, like, their level of knowledge in that stuff is huge. And so, pulling from that and being able to say like, "For your product, how should this jacket fit somebody? How do you want it to move?" So, then, when our system pulls in the 3D measurements of that individual, it can say like, "Okay, this jacket needs to sit this far off of the shoulder. It needs to have this much room around the bicep." Like, those types of things are all part of how it works and gives those opportunities for, like, an individualized fit that is determined by how the brand wants it to perform.
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VICTORIA: How did you go about, like, what was your first step when you said, "Oh, I need a system to do this type of automation and to be able to do this kind of customization"? How did you approach solving that problem?
DUSTIN: Well, we started to figure it out, and we realized that the system didn't exist [laughs]. So, that's really what it was. It was out of necessity more than anything. So, we wanted to build our custom and made-to-measure brand, and none of the systems existed to do it. So, we got to work on building those systems. You know, that was, over the last year, it's like, okay, we built all these systems. Do we just use them for ourselves, or can we have that bigger impact if we work with other brands?
VICTORIA: So, did you have the skills to build the technology already in-house, or did you have to develop that within your company?
DUSTIN: Oh, man. So, my co-founders are amazing. I started this with two co-founders, Cheryl LeBarr and Capri Philip, both came from Arc'teryx to start this with me. Arc'teryx, if people don't know, is one of the big outerwear brands in the outdoor space, a beautiful, beautiful product. They understand fit and, form and function, and they make an amazing product. And I have connections over there, and so I made a few phone calls and really, like, found the right people.
So, we got to work on it. None of us are coders. We kind of scrambled through our MVP. We figured out how we could do it with...if you look at our MVP backend, it's messy, like every startup's MVP is. And it's like, okay, this system is connecting to this system over here, and it's talking to this. And it's sending this data from here and that sort of thing. And it's like, but we figured it out, and that was the key.
You know, so the automation of this stuff really came from the pattern design side, which was Capri's specialty. And then the automation of the, like, tech pack and all of the factory details that they need to produce the garment came from Cheryl's side, from the product development side. And mine was more on the brand and kind of communication of the value and that sort of thing. We were scrappy. And we figured out how to build something that worked.
And then the next step was to bring on a proper CTO and then really build the, like, scalable system that's like, okay, now it can plug into existing systems. And, oh, you have these expectations of your enterprise-level software. Yes, this is how it works, that sort of thing. So, it's been tiered in that way. And that, honestly, is part of the fun. Like, part of the fun is finding these new problems to solve and then coming up with creative ways to solve them.
VICTORIA: That's really cool. So, you all were able to build your MVP together within your existing co-founding team. I'm curious about, like, what platforms you chose to do that in. Did you pick, like, a programming language or some sort of, like, ClickOps or some kind of, like, other tool that you could use, like low-code tool, to develop it at first?
DUSTIN: I mean, it's very low code. It's Google Docs, Google Sheets that speak to each other and, like, can share data between them kind of thing within our secret backend, obviously. We have a really great relationship with our measurement partner. We didn't build the measurement technology. That's a whole different business model and that sort of thing. So, we work with this great group called 3DLOOK that does our measurements, and it just uses a customer's phone to take a front and a side photo, and then we get a full 3D model that goes into our thing. It's super cool.
We tried to pull some things off the shelf that existed that we could use without having to build it ourselves. With my agency business, like, I have a developer that I work with a lot. And so, like, we called on them to help us build a few pieces, but for the most part, it really was just, like, getting scrappy and creative together. And, like, we built the MADE Outdoor platform on Shopify. It's like all these systems that are just kind of like, yeah, we know how these systems work. Let's use those to start, and then if it works, then we build it into a bigger framework.
VICTORIA: I'm glad you mentioned that there's take a picture because I was going to say, whenever I even have to do, like, a sizing guide chart on a website to buy clothes and you have to, like, measure your waist, I'm like, I don't want to do that [laughs]. I'm just, like, too lazy. I don't want to check that right now. So, taking a picture would be so much easier.
DUSTIN: People are so bad at that [laughs]. Like, when we first got started, and we were asking people to send in their measurements, and here's a video on how to do it, even the same person, like, with three different people measuring them, you'd get wildly different information. And so, we definitely knew early on, okay, we need to eliminate the human error aspect and get this as digital as possible. So, that's where we found the right partner. And it really is, it's, like, a two-minute thing.
You stand in front of your phone. It takes photos. The photos aren't even saved anywhere, like; they're AI, like, looks at the photos and then gives us the model. We're not sitting on a bunch of pictures of people in their base layers and underwear or anything like that. It's like, all of this is just kind of like, we have your 3D model, and now we can build the product, and we can even do digital test fits on that person, your actual body, before it even gets made, and stuff.
So, we have systems for redundancy and everything that we can test everything. And that's just the beauty of, like, the modern technology that exists. Like, we didn't build that either, but we are using the heck out of it to make sure that we can make the best product for people.
VICTORIA: That's really cool. I love that. So, you've maybe answered this question already a little bit, but was there anything else in your product discovery process, and especially as you shifted into marketing directly to businesses, anything that was in your discovery process that surprised you and had you pivot in your strategy?
DUSTIN: You know, you start with your own experience, right? So, we are sitting in our meetings, and it's like, oh man, here's all the products we want to make. And we're like, we've got this list of 40 things that we want. Oh, I need soft-shell pants. And we started in hard shell for our own brand. So, then it's like, "I live in the Wasatch. I don't wear hard shell, like, while I'm ski touring, at least. Like, I need soft shell." And then it's like, okay, well, let's start working on soft shell stuff.
Then it's like, okay, we also need mid-layers, and we need base layers. And then we need mountain bike, and we need trail run, and we need climbing, and we need hiking. And it's like, oh man, you know what would be easier? If we just worked with, like, one of the or all of the big brands in this space. And there's some really great examples of, like, smaller companies that have created really compelling systems to work with these brands, like the same group that does the secondary market stuff, so the Worn Wear program for Patagonia and the ReGear thing for Arc'teryx.
And they built that same structure for, like, two dozen different brands. And it's like, man, that is the model for us. That's where we can really connect is they've created so much value in the secondary market, and we've created a bunch of value in this custom and made-to-measure market. That's what we want to do. And we want motocross...like, the MADE brand isn't going to make motocross stuff. The MADE brand isn't going to make fly fishing necessarily. But we want these markets and these people to be able to have that solution. And we also, like, we're early in the space.
Like, we want them to use us rather than, like, take the time and money and everything to build it themselves. Like, come to us, like, that's our whole idea. We want to have that bigger, larger impact. So, I guess it's us just trying to say like, "What do we want?" And we're users. We know the market. How do we get there the fastest? And how do we have that impact quicker than just necessarily, like, okay, well, in 25 years, we'll have all those products that we want?
VICTORIA: Yeah, yeah, I could see that, how it went from, well, yeah, I would want this for every product, and then you're like, well, I can't build every product [laughs]. So, I like that pivot in your strategy. And what challenges do you see in being able to make that impact as quickly as you want?
DUSTIN: One of our biggest challenges right now, I think, is that this is a totally new idea in this space. Nobody's done this in this space. Like, in suiting, custom suits have been a thing for a long time, and it used to just be for rich people. And now because of, like, modern technology and stuff, it's become more approachable. Awesome. That's great. And so, like, in that kind of category, people are more used to the idea of, like, yeah, I place an order, and it takes time, and they make a thing, and then it comes to me.
Whereas with outdoor apparel and sports apparel and that sort of stuff, you go to your local shop. You try on six different things, and you walk out with the one that meets your needs the best. That's what people are used to. So, it's a little bit of a shift in the thought process. You know, we've had our early adopters, and now we're kind of moving into more people who are like, "Okay, I get it now." And so, we're seeing more of that where it's like, yes, if I give some time, then I really see the value of having something that fits me perfectly.
And in the MADE Outdoor brand, it's not an inexpensive product. We make a really premium hard shell product. Now, it's comparable in price to the other brands that make comparably featured and whatever product, but still, you're spending money, and you want something that's going to last for a while. And so, to have that perfect fit, to have that perfect feature set, to know that when I ski, I totally need a left chest pocket, and I don't need a right chest pocket, whatever it might be, like, your details, that matters, right?
So, that's probably our biggest challenge right now. That's not an unsolvable problem. We can manage that. We can get the communication out. And especially as we're onboarding these existing brands, that gives us the opportunity to have a much larger mouthpiece and be able to kind of say like, "Hey, this exists, and you should care." Yes, it's going to be amazing for individuals who have traditionally been off-size. But it's also amazing for you people who think you've always been just, "Yeah, I'm a medium, and everything fits me just fine." You'd be surprised.
Like, having something that fits you perfectly is a different world, and the ability to then move in that sport and, like, be able to do your thing, it's like, oh yeah, I guess that, like, extra fabric in my shoulders was kind of, like, limiting my movement while ice climbing or, you know, oh yeah, my sleeves were always coming up while I was climbing, or whatever it might be. Like, there's things that I think people will really kind of be psyched about when they start to experience that custom aspect of it.
VICTORIA: Yeah. I can speak to some of that, too, as, like, a climber. And you mentioned it even when you talked earlier about, well, if you're bouldering at the gym, that's a totally different experience than if you're out all day on a multi-pitch, and you're on the wall, and you're, you know, you're vertical for, like, six hours of the day [laughs]. And I think it's really interesting to be able to provide that customization.
And how are you defining success for the company? So, you just made this pivot about six months ago. Did you immediately create some goals that you wanted to achieve in three months, six months, or five years?
DUSTIN: Yeah, I mean, we have our, like, target, our sales targets and stuff that we are looking at as far as we want these many brands on board this year. And we want to bring on like, you know, as I step back a little bit, as, like, the bigger thoughts behind the company, that's more of, like, where we're trying to target multiple different categories at the same time. So, like, if we can get one big outdoor brand, great, that's what we want to do.
Now, we want all the outdoor brands. We totally want them all. But if we can just get one, then we're going to have a start of an impact in the outdoor sector. Then we want the motocross brand, and we want to be able to make the impact in that sector. And we want the fly fishing brand, and we want the yoga brand, and we want the traditional, like, team sports brands and those types of things.
Like, we want to kind of, like, spread and have an impact across categories and as kind of a first attack. And then to really kind of go from there and say like, "Okay, now let's build out, like, oh, fly fishing really is connecting with this, or the yoga community is loving the, like, idea of a really custom fit product." So, like, those types of things are where we can kind of go from there.
But as we begin, it's really like, can we make an impact across these different categories? And those are a lot of our goals as we start out. It's like, how can we connect with surf? How can we connect with hike? How can we, you know, like, and it's just looking at each of these little categories because we know there's people being stuck that can't get out in each of those things, and we know we can help. But we're not going to design the product personally. So, how can we make that impact with the right partners?
VICTORIA: Oh, that's great. And I'm even thinking about surfing and getting a wetsuit. And there's just so few women wetsuits, period, in the store. And it's very limited in range and can be really challenging. And I took a friend surfing last year and did not enjoy that process. She did not like it [laughter]. She liked the surfing part, but the getting the wetsuit on and trying them on was not great [laughs].
DUSTIN: I can only imagine, yeah. And there's some really cool, like, in surf, there are some great small brands, like, new brands that are doing custom fit. I don't know their systems. I don't know if it's an automated process or if it's a manual process, but the reality is it's not readily available enough to the general public. And that's where it's like, oh man, our system makes it readily available.
And so, then it's like a simple kind of like, okay, I go online. I fill in this information. I decide, do I want a hood on my wetsuit? Do I not want a hood? Do I want this kind of entry? Do I want...Like, you decide the details that you want, and then the product is made for you. That's the beauty of it, right?
VICTORIA: Yeah. And I'm curious to kind of get back to marketing to existing businesses because you not only have to sell them on this is the art of the possible. Here's, like, what you could do to get the same performance with these custom measurements of your existing high-performing apparel. But you also have to encounter this change management process where they have a way of doing things. You'd be a new product. They'd have to figure out how to change up all their operations. So, I'm curious: what's your strategy for getting involved in that and working through it?
DUSTIN: Oh man, some of these companies are giant ships with tiny rudders, right? So, to get them to shift any direction or the other is tricky. A lot of our current sales pipeline is more medium-sized brands that have a little bit more of a nimble; yeah, we can jump on this. But one advantage we have is that some of these categories do have some custom programs, like I mentioned, the custom wetsuit stuff, like, that is in the market. So, like, wetsuit companies are aware that this needs to exist. Fly fishing waders: there are some custom fly fishing waders, now, not necessarily made-to-measure, but you don't make them in a 4XL or something. You could order a 4XL from a certain company.
So, like, there are systems like that. So, they've actually already kind of figured out the manufacturing side, which is one of the challenges of it that we can help the brands figure out those details because we've done it, and we know how to, like, take advantage of the efficiencies that they have in place with their current supply chain, or they can use our supply chain that we've built out. So, it depends. But that is one of the challenges is to get them to just kind of commit to say like, "Yes, this is worth putting in the time."
So, we do have...actually, the secondary market company I mentioned earlier, the way that they do it is it's, like, a separate site. And so, it's not run through their existing site. And so, they get around some of the ways of not necessarily having to be tied directly into a lot of their internal systems, and it's run as, like, a secondary system. Like, there are guitar manufacturers that make custom that they don't even produce them. They basically license out their shapes and stuff to custom builders.
So, we're trying to take a lot of the learnings from these other categories that do something kind of similar to what we're doing and learn from them and say like, "Okay, that's one approach we could take, or that's an approach we could take."
And then, really, we're going to the sales conversations with those brands and saying, "What do you need? Because we can be flexible." We're the opposite of the giant ship with a tiny rudder. We're that tiny, little motorboat that can, you know, like, spin circles and stuff. Like, we can do whatever is really needed at this point for these brands to be able to tie into them. So, we are flexible, and we try to learn as much from them as possible to be able to build the right solution.
VICTORIA: Yeah, I think that is the draw of you get your foot in the door with the middle businesses, and you can prove out that it works, and then maybe eventually the bigger brands start to take notice and pick it up as well. But it is going to take time. That's really cool. I think it provides that, you know, for those mid-size businesses, it gives them an advantage that a larger enterprise wouldn't be able to offer.
DUSTIN: Yeah, no, I think, at first, especially, like, the idea to be kind of first to market-ish with something totally new and exciting and to create that brand value with their customer in a way that they haven't been able to before.
VICTORIA: Right. And you mentioned fly fishing a few times, and I feel like it's one of those sports that I've done it when I was, like, really small, like, maybe with my grandfather, like, fishing in the river. And as I get older, I'm like, it does sound nice.
DUSTIN: Right? [laughs]
VICTORIA: Like, sitting alone in, like, a beautiful place. Like, maybe you get a fish, maybe you don't. I think I like the idea of it more than the reality of it, but will try it out some...I have enough other sports [inaudible 33:02].
DUSTIN: I think you'd be psyched if you gave it a shot. Like, fly fishing is something that, like, if you like being outside, it's something else. There's a beauty to it, for sure. And there's a beauty to all of these sports. And, honestly, if people are being active, whatever it is that you're doing, good for you. And that's part of it is, like, we are trying to be as sport agnostic as we can in all of this because, yeah, we don't care if you are a diehard snowmobiler, right? Amazing. Great. Let's get you some product that fits so you can get out and do your diehard thing.
Or, you know, maybe you're a mountain biker or a road cyclist, or, like, you know, there's so many things that we wear clothing that we hope allows us to perform in that sport, and yet so much of it is holding us back, even maybe to a degree that we don't even know. Professional athletes and stuff, much of their product is made-to-measure. Olympic speed skaters, like, it's not like they had to just choose a medium or a large type of product. Like, it's made to fit their body so that they can perform at their pinnacle level. That's awesome.
Where that stops is in the, like, general consumer, and, like, I want to get out and do my sport. It's not about being the best at this thing. It's just about being my best at this thing and having the most fun that I want to have in it. The fit and the details of your product matter just as much as it does for the Olympian as far as I'm concerned.
VICTORIA: Absolutely. And it reminds me of a story that happened to me. I was climbing in this very popular pant that is known as their climbing pant from this particular brand. And it was maybe the fifth time I'd worn these pants and just ripped the inseam while climbing.
DUSTIN: [laughs]
VICTORIA: You know, lucky it wasn't that cold that day or anything, but it's just [inaudible 34:50]
DUSTIN: Your belayer got a kick out of it, I'm sure.
VICTORIA: Yeah, there was a layer to this, right? Yeah.
DUSTIN: [laughs]
VICTORIA: And I've heard that happens to lots of climbers who wear those same pants. Like, they're known for that because it's really hard to get that measurement right, especially with that kind of material, which was great. It's like this material that was supposed to not rip, right? [laughter] [inaudible 35:09] what is this? Yeah. Maybe I do want to go outside, and I want to go fly fishing, or I want to go skiing or snowboarding, but, oh, they don't even have pants in my size. Like, I'm not even going to try. And that's really demoralizing. So, I think it's great to be working on that problem.
Oh, wonderful. Thank you so much for joining. Is there anything else that you would like to promote today?
DUSTIN: No, I mean, I think I love having these conversations, and chatting with you has been so great. It's fun to talk about what we're working on and to, you know, get the word out a bit more. There's not really other things to promote other than, like, you know, if you're a smaller or medium-sized or a large apparel brand hearing this, like, please reach out to me. I want to talk to you.
We've built a system that really can help both the brand and the customer. It helps the brand with revenue and with margins and reduced waste and all of these things, but it also just helps the customer have a better product and a better experience. And ultimately, that's, in theory, what we are trying to do when we make product. So yeah, that's my focus, and that's what I want to talk to everybody I can about right now.
VICTORIA: I love that. Thank you so much for sharing your story and for coming on the show today.
You can subscribe to the show and find notes along with a complete transcript for this episode at giantrobots.fm. If you have questions or comments, email us at hosts@giantrobots.fm. And you can find me on Twitter @victori_ousg.
This podcast is brought to you by thoughtbot and produced and edited by Mandy Moore. Thanks for listening. See you next time.
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Feb 15, 2024 • 35min
512: Unboxing thoughtbot's Revolutionary Design Sprint Kit
In this episode of the Giant Robots Smashing Into Other Giant Robots podcast, hosts Will Larry and Victoria Guido discuss the intricacies of product design with thoughtbot's Senior Designers, Rami Taibah and Ferdia Kenny. They delve into the newly launched Product Design Sprint Kit by thoughtbot, which is designed to streamline and enhance product development.
Ferdia and Rami explain how the kit aims to compress the design process into a focused five-day sprint, allowing teams to move from idea to user-tested prototype efficiently. They discuss the genesis of the kit, its components, and the rationale behind making it openly available.
Towards the end of the episode, the conversation shifts towards the broader implications of design in product development, the iterative nature of design sprints, and the value of user feedback in guiding product decisions. Rami and Ferdia share real-world examples where product design sprints led to significant pivots or refinements in product strategy, emphasizing the critical role of user testing in uncovering genuine user needs versus presumed functionalities.
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Transcript:
WILL: This is the Giant Robots Smashing Into Other Giant Robots podcast, where we explore the design, development, and business of great products. I'm your host, Will Larry.
VICTORIA: And I'm your co-host, Victoria Guido. And with us today are Rami Taibah, Senior Designer at thoughtbot, and Ferdia Kenny, Senior Designer at thoughtbot, here to talk to us about the newly released Product Design Sprint Kit from thoughtbot. Ferdia and Rami, thank you for joining us. Why don't you introduce yourselves a little bit, tell us a little bit about each of your background while we get started?
FERDIA: I'm Ferdia. I'm a product designer at thoughtbot. I've been with the company for nearly three years now. I'm based in Dublin in Ireland, but I'm from the West Coast of Ireland. Happy to be on the podcast. It's my first time coming on, so that'll be a new experience.
RAMI: Yeah, so I'm Rami Taibah, and I am also a senior designer at thoughtbot for nearly two years. I'm also from the West Coast, like Ferdia, but I didn't move. I'm still where I'm from [laughs].
VICTORIA: Yeah, so just to get us warmed up here, why don't you tell us something interesting going on in your lives outside of work you want to share with the group?
FERDIA: For me, I'm trying to do a bit of traveling at the moment. So, one of the benefits, obviously, of working with thoughtbot is that we are a fully remote company. As long as we're kind of staying roughly within our time zones, we can kind of travel around a little bit. So, I'm actually in France at the moment and going to Spain in March. So yeah, I'll be working from a couple of different spots, which is really cool and a lot of fun.
RAMI: Yeah, it's pretty cool. I always see Ferdia, like, having these meetings in, like, these different locations. Just a few months ago, you were in Italy, right?
FERDIA: Yeah. Yeah [laughs], that's right, yeah.
RAMI: Yeah. So, for me, well, first of all, I got a new baby, new baby girl, exactly on New Year's Day, so that's interesting, going back home every day and seeing how they evolve very quickly at this age. Another thing is I've been doing a lot of Olympic weightlifting. It's probably one of the consistent things in my life since COVID. I was a CrossFitter. I got out of that, thankfully. But coming back into, like, after quarantine, weightlifting seemed like a good choice because it doesn't have the social aspect of CrossFit, and I can just do it on my own.
WILL: How is your sleep?
RAMI: I'm a heavy sleeper, and I feel guilty about it, so no problems here [laughs].
WILL: Yeah, that was one thing I'm still trying to recover from–sleep. I love my sleep. And so, I know some people can do with little sleep, but I like sleep. And so, I'm just now recovering, and we're almost two years since my baby boy, so [chuckles]...
RAMI: Yeah, I'm a heavy sleeper. And I tell my wife, like, we have this understanding, like, if you ever need anything from me besides...because she has to be up for, like, breastfeeding, just kick me. I'll wake up. I'll do whatever you need [laughs].
WILL: That's awesome.
VICTORIA: So, my understanding is that if you want to get better at any sport, if you get better at deadlifting, that will help you progress in your sport pretty much. That's my [laughs] understanding. I don't know if you all feel that way as well.
RAMI: Oh, I never heard that. But I do know that these three, like, three or four basic lifts just basically boosts you in everything else, like, deadlifts, back squats. And what was the third one? Bench press, I guess.
FERDIA: And pull-ups as well, I think, is a compound exercise. I just hate like this. I look for an excuse to skip them, so...[chuckles]
VICTORIA: Yeah, the four essential exercises, but it doesn't mean that they're fun, right?
FERDIA: [chuckles]
VICTORIA: Yeah. And then, Will, I heard you were also training for a new activity, the 5k.
WILL: Yeah, I'm going to run a 5k with my best friend. He's coming into town. So, I'm excited about it. I've always tried to do running, but my form was horrible, and I'll get injured, tried to do too much. And I think I finally figured it out, taking it slow, stretching, making sure my form is correct. So, it's been good. I've enjoyed it. And it's interesting looking at what I'm doing now versus when I first started. And I was like, whoa, like, when I first started, I couldn't even run a mile, and I'd be out of breath and dying and just like, ah, and then now it's like, oh, okay, now I'm recovered, and I can walk it off.
So, one thing it's taught me is just consistent, being consistent because I feel like with working out and running, you have this, like, two-week period that it's just hard. Everything hurts. Your body is aching. But then after that, your body is like, okay, you're serious. Okay, then, like, I can adjust and do that. And then once you get over that two weeks, it's like, oh, okay, like, still, like, sometimes I still push it and get sore, but for the most part, my body is like, okay, I get it. Let's do this.
And then now, compared to before, now I'm just like, I can't stop because I don't want to go back through that two weeks of pain that I started at, at the very beginning. So, yeah, it's been a very good journey. I don't know how far I'm going to go with it. I don't know if I'm going to go a full marathon or a half marathon. I will increase it and do multiple races, but yeah, I don't know how far I'm going to go with it.
VICTORIA: Well, it's interesting. It reminds me how, like, anytime you do something new, you're forming new neural pathways in your brain, then you can get in a routine, and it becomes easier and easier every time you do it. So, I'm going to try to relate this back to our Product Design Sprint Kit. It's like a set of exercises you can learn how to do that might be difficult at first, but then it becomes a part of the way that you work and how you build products, right? So, why don't you tell me a little bit about it? Like, what is it? What is the product design kit that you just came out with?
FERDIA: The PDS kit or the Product Design Sprint Kit it was something that I'd kind of been playing around with in investment time for a while, and then spoke to Rami about it a couple of months ago, and he got on board. And it really accelerated what we were doing. And it was basically, like, a product design sprint is a known process in design and product design and product development. I think it was started by Google.
And, essentially, the concept is that you can take an idea that you have for something new and, in five days, go from that idea to creating something that can be user tested, and so getting real kind of validated feedback on your idea. Yeah, so try to do it in a compressed timeframe. That's why it's called a sprint. So, you're trying to do it within five days.
And the concept for kind of creating a kit that we could share to people beyond thoughtbot was that we tend to repeat a lot of the same instructions in each sprint, so we're running very similar exercises. The outcomes are slightly different, obviously, depending on the customer, but the exercises themselves are pretty similar. So, the [inaudible 06:42] kind of when we're talking to the customer are often very much the same.
And we just thought that we get a lot of inquiries from start-ups, I think probably maybe even more so in Europe, before they're funded and looking kind of for the first step. Like, what can they do? So, a lot of them, if they're not in a position to, say, pay for some of our design team to come on with them and run a sprint with them, we thought it'd be cool to be able to give them, well, you know, this is something free that you can run yourself with your team and will kind of get you on the ladder. It will hopefully give you something that you can then take to an investor or somebody that could potentially fund a kind of bigger sprint or maybe even an MVP build.
WILL: Let me ask you this: Why is design so important? So, if I'm a developer, or a CTO, or a CEO of whatever, why should I be an advocate for design?
RAMI: Well, over here at thoughtbot, we do a lot of iterative design. I think that's a key factor that we should take into consideration. With iterative design, it's the idea of designing something based on a validation or based on a user and doing it quickly and testing it to get feedback from the user or from the market and adjust from there, instead of just designing something in, like, a silo and releasing it after six months and then discovering that you went off course four months ago. And that will cost you a lot of time, a lot of money, a lot of agony, I guess [laughs]. And it just generally will become a very frustrating process.
I've seen clients before thoughtbot where they come in and they've been working on this thing for six months, and they're just not releasing and pushing the release for month on month just because the CEO does not feel like it's at par with what he's using on, like, everyday apps. And he's, like, looking at, oh, I want to look like Instagram, or feel like Instagram, or feel like whatever they like when, in reality, products don't evolve that way.
And Instagram has already, I don't know, 12 years of development and design behind it. And you can't possibly expect your app that you're launching for your startup to feel the same, look the same, and all that stuff. That's why design is important. So, you just discover early on that you are on the right path and always correcting course with different design techniques, including the PDS.
FERDIA: What you're talking about there just de-risks a lot of stuff for people when they're trying to create something new. You could have the, you know, a really, really impressive product under the hood that can do a lot of really technical stuff. But if it's very hard to use, or if it's very hard to kind of tap into that magic that you've built on the development side, people just won't use it, and you won't be able to generate the revenue you want. So yeah, the user experience and kind of the design around that is really important to get people actually using your product.
VICTORIA: Yeah, I can relate to what you all have said. I've talked with founders before, who they maybe have a lot of experience in the industry and the problem that they are trying to solve. They think I know what it should look like. I just need developers to build it. But the activities you described about the product design sprint and creating something where you can go out and test that theory, and then incorporate that feedback into your product, and doing it within five days, it seems like a really powerful tool to be able to get you on the right path and avoid hundreds of thousands of dollars of development spend, right?
FERDIA: Yeah, 100%, yeah. And, like, a typical outcome for a product design sprint will never be a fully polished, like, perfect design. That's just...it's not realistic. But what you will hopefully have by the end of that five days is you will know, okay, these are, like, five or six things that we're doing right, and these are things we should keep going with. And maybe here are three or four things that we thought users would like, or potential customers would like, and we are actually wrong about those. So, we need to change those things and maybe focus on something else.
So, as Rami said, design is an iterative process that is like your first iteration. But getting that feedback is so helpful because, as Rami said, if you spend six months developing something and figure out that 4 of the ten things that you built weren't needed or were wrong, or customers just didn't want them, that's a really, really expensive exercise. So, a design sprint, kind of if you're to do them on a continuous basis or every couple of months, can be a really helpful way to check in with users to make sure what you're committing your resources to is actually going to benefit them in the long run.
RAMI: Yeah. And I would also like to add, like, one of the outputs of a design sprint is a prototype. To me, I'm always like, seeing is believing. It's just better to have a prototype as a communication tool within the team with clients, with customers, with users, instead of having, like, a document or even just wireframes. It just doesn't really deliver what you're trying to do, like a prototype.
FERDIA: Yeah, 100%, Rami. And, like, on the prototype, like, a good comparison that people, if they're not in product development, might have seen it's like if you're building a house, like yourself, Victoria, a lot of architects will give you two-dimensional plans. And for people that aren't in the building industry, plans can be difficult to read or difficult to visualize what those actually look like.
But if you can give someone a 3D representation of the house, you know, they can see, oh yeah, this is what it's going to kind of look like and what it's going to feel like. And the prototype that Rami is talking about gives you exactly that. So, it's not just this is our idea; it's, this is actually what the thing could look like, and what do you think of that? So yeah, it's definitely a valuable output.
VICTORIA: We're having this debate about whether or not we need a designer for our renovation project. And I'm very much pro [laughs] designer. And maybe that's from my background and being in software development and, like, let's get an expert in here, and they will help us figure it out [laughs], and then we'll make less mistakes and less expensive mistakes going forward. So, I think there's a lot of analogies there.
So, this product design sprint is a service that we offer at thoughtbot as well, right? We do workshops and meetings together with the client, and you all have this idea to record the videos and put all the content out there for free. So, I'm curious how that conversation went within management at thoughtbot and how did the idea really get started and get some traction going.
FERDIA: The benefit of the Product Design Sprint Kit what you get out of it won't replace, say, doing a product design sprint with thoughtbot because you will have expert product designers or developers in the room with you to kind of share their ideas and their experience. So, the output you're going to get from running a sprint with thoughtbot will be more beneficial, definitely.
But what we were trying to, I suppose, cater for was people that fall in the gap, that they're not quite ready to bring thoughtbot on board, or they don't have enough funding to bring thoughtbot on board to do a product design sprint, or a longer discovery sprint, or something like that. But we want to be able to give those people in kind of the software community something actionable that they can actually take and use.
So, the first three days, I think, of the Product Design Sprint Kit will be really, really valuable to people. It'll really help them identify the problem that they're trying to solve and then to come up with a lot of different solutions and to try to pick one of those. And probably where it's going to be a bit more challenging if you don't have experience in design or in development will be around the prototype, which Rami had spoken about. You can kind of do some offline things, and there are ways to test things without, say, a high-fidelity prototype, but those high-fidelity prototypes, again, are something that could be helpful.
But thoughtbot has always had an approach of kind of giving stuff for free to the community, either open source or just letting people, yeah, letting people learn from our resources and from what we know. And so, yeah, this is just a way to, hopefully, cater to people that we currently can't work with for a variety of reasons but that this is something that they could maybe use in the meantime.
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WILL: So, can you break down...you said it's five days. Can you break down what is walking you through, like, each day? And, like, what experience do I have? Because I know, I've tried to get in Figma sometimes, and it's not easy. It's a pain at times. You're trying to maneuver and stuff like that. So, what do I have to do? Like, do you show me how Figma? Do you give me a template with Figma? Like, how do you help me with those things? And I know Miro and those things. So, like, walk me through each step of the sprint.
RAMI: Yeah, well, I mean, Figma and Miro are just tools that just became popular, I guess, after COVID. Design sprints used to be physical, in the same room as sprints. You would get the clients or the stakeholders in a room and do all that stuff. But Figma, FigJam, and, you know, kind of...I don't know if this was part of their, like, product thinking, but it kind of allowed doing full-on design sprints in their tools.
So, the first step or the first day would be, like, the understanding day where basically we gather information about the product, the users, what's out there, and just come up with a general plan on how to go forward.
And the second day would be divergent where we just look at what's out there and come up with these crazy ideas, kind of, like, a brainstorming thing but in a more inclusive, I guess, way and in a more organized way. So, you don't have people shouting over each other. Like, being anonymous also is important on this day, so nobody really knows what you're doing or saying. It's just ideas to remove bias.
Then, we'd have a converge day where we take all these ideas and consolidate them, which will be an input into the prototype phase.
And the last day is the test phase. I mean, each of these days you can talk...have a full podcast.
VICTORIA: I'm curious about when you're testing and when you're, like, I'll say thoughtbot is a global company, right? And so, there's lots of different types of users and groups that you might be wanting to use your app. I'm thinking, you know, sometimes, in particular, some of the applications I've been looking at are targeting people who maybe they don't have an iPhone. They maybe have lower income or less means and access to get products and services. So, how does your design sprint talk to designing for different types of communities?
FERDIA: I think that's a great question, Victoria. I would say the first thing on it is that we'd often get a lot of people with a startup idea, and they would come in and say, "You know, this app could be used by everybody. So, like, we have kind of no beachhead market or no target market. Like, this would be great for the whole world." That's a very nice thought to have if it is something that could potentially be used by everyone.
But we would generally say you should pick a smaller niche to try to establish yourself in first and hit a home run basically with that niche first, and then kind of grow from there. We would normally say to people as, like, again, this is going back to what Rami said about the iterative process. If at the end of the five days, you've picked the wrong beachhead market and it doesn't hit home with them, that's fine. You can just do another sprint next week or next month on a different kind of subsection of the market.
So, I think picking a fairly niche sector of the market is a good starting point. You then run your product design sprint with that niche in mind and try to talk to five users from that. And, generally, we say five because, generally, if you have less than or fewer than five people contributing, you probably won't get enough data. You know that you could...if you only test with two people, you probably wouldn't get a thorough enough data set. And then, normally, once you go over five, you kind of start seeing the patterns repeating themselves. You get kind of diminishing returns, I guess, after five.
So, that would generally be the approach. Try to identify your beachhead market, the one you want to go into first, and then you will try to talk to five people generally from the founding team's network that match the criteria of that beachhead market. And, in some ways, just the final point, I guess, is the fact that you have to pull them from your network is actually beneficial to kind of make you narrow down and pick a niche market that's accessible to you because you know people in it.
RAMI: And maybe if you don't know anybody, then maybe you're in the wrong industry.
FERDIA: Yeah. Great point. Great point because, yeah, it makes it a lot easier. It's nice to have loads of industries that you could go into, but it makes it so much easier if the founding team have contacts in an industry. Yeah, it makes a big difference.
WILL: Yeah, I was going through the different days and kind of what you were talking about. So, like, one day is brainstorming, then converge, and then prototyping, and user testing kind of on that last day. It seems like it's completely laid out. Like, you're giving away all the keys except experience from the actual designer. It seems like it's all laid out. Was that the goal to, like, really have them fully laid out? Hey, you can do this from point A to point B, and this is what it looks like.
Is that something that you're...because that's what it looks like as my experience with designers and stuff. And if that's the case, what was your reasoning behind that, to give it away? For someone, like you said, like a startup they can do this because you pretty much laid it all out. I'm not a designer, and I don't claim to, but it looks like I can do this from what you laid out.
RAMI: Well, first of all, like, at thoughtbot, we're really big into open source, and open source is not always just development. It can be these kinds of things, right? It's not a trade secret. It's not something we came up with. We maybe evolved it a little bit from Google, I think it was Google Ventures, but we just evolved it.
And, at the end of the day, it's something that anybody can do. But, actually, taking the output from it is something that we do as thoughtbot. Like, okay, you have a prototype. That's great. You tested it, but okay, now we want to make it happen. If you can make it happen, then great, but the reality is that a lot of people can't, and that's why there are, like, a gazillion agencies out there that do these things.
So, the reasoning, I guess, and Ferdia can expand on, is, like, if somebody takes this and comes up with a great prototype and feels confident that they actually want to develop this idea, who else would be better than thoughtbot who actually gave them the keys to everything?
FERDIA: Yeah, 100%, Rami. Yeah, it's essentially just helping people get on the first rung of the product development ladder with fewer barriers to entry, so you don't have to have a couple of thousand dollars saved up to run a sprint. This kind of gives you a really, really low entry point.
And I guess there's another use case for it where you would often have potentially founders or even companies that want to release a new product or feature. And they might reach out to thoughtbot because they want to develop something, and they're very sure that this is what we want to develop. And, you know, maybe they don't want to engage with a product design sprint or something like that if they think they know their market well enough.
And this could be a handy tool just to say to them, "Okay, if you can go away, take this free resource for a week, run a product design sprint with your team, and come back to us and tell us that nothing has changed, you know that you've correctly identified the right market and that you've validated your theories with them," then we can kind of jump into development from there.
But yeah, it can be a good way, I suppose, to show the value of doing a product design sprint. As I said, a lot of people come in, and they have great ideas, and they can be fairly certain that this is going to work. But a product design sprint is really, really valuable to validate those before you dive into building.
VICTORIA: And can you give us an example from your experience of a client who went through a product design sprint and decided to pivot maybe their main idea and go in a different direction?
FERDIA: I'm not sure off the top of my head, Victoria, if I can pick one that pivoted in a completely different direction, but definitely, like, some of the clients that we worked with on the Fusion team in thoughtbot ended up changing direction or changing the customer that they were going after. So, some people might have had an idea in their head of who they wanted to tackle and might have had a particular, say, feature prioritized for that person. And through the product design sprint, we were able to validate that, actually, this feature is not that important. This other feature is more important, and it's more important to a different group than kind of what you initially thought. That would happen fairly regularly on a product design sprint.
Like, I think if you look at the potential outcomes, one being that everything's exactly as you thought it was and you can proceed as planned, or the opposite end of the spectrum where nothing is as you thought it was and, you know, you kind of have to go back to the drawing board, it's very rare that you're on either end of those after a product design sprint. Most of the time, you're somewhere in the middle. You've changed a few things, and you're able to keep a few things, and that's kind of normally where they land. So, I would say nearly every customer that we've done a product design sprint with has changed some things, but never kind of gone back to the drawing board and started from scratch.
RAMI: It's usually prioritization and just understanding what to do and also, like, get into the details of how to do it. That's where the value comes in. But, like, completely pivoting from a food delivery app to, I don't know, NFTs [laughs] never really happened.
VICTORIA: Yeah, and it doesn't have to necessarily be a big pivot but looking for, like, a real-world example, like, maybe you're building an e-commerce site for a plant marketplace or something like that.
RAMI: Yeah. Well, we had a self-help app where they already had the app in the market. It was a progressive web app, and they were really keen on improving this mood tracker feature. But then we did a product design sprint, and they had a bunch of other features, and that exercise kind of reprioritized. And the mood tracker ended up not being released in the first version of the actual mobile app because we were also developing a native app.
VICTORIA: Gotcha. So, they were pretty convinced that this was an important feature that people wanted to track their mood in their app. And then, when they went through and tested it, users were actually like, "There's this other feature that's more important to me."
FERDIA: One example of another client that we did, which was a kind of a wellness app, they wanted it to feel like a friend in your pocket. So, they were looking at ways to integrate with WhatsApp that you'd get notifications via WhatsApp. So, they would kind of be, like, friendly messages to people as if it's your friend, you know, texting you to check in. And that was kind of an idea going into it, and users did not like that at all. Like, they really didn't like that.
So, we ditched that [inaudible 25:49] completely. But, again, that could have been something that they would have spent a long time developing to try to implement, and then to have users say this would have been a very, very costly waste of time. So, we figured that out in a few days, which was a money saver for the team.
VICTORIA: And it must be pretty emotional to have that feedback, right? Like, it's better to get it early on so that you don't invest all the money and time into it. But as a founder, I'm sure you're so passionate about your ideas, and you really think you have the answers from your experience, most likely. So, I'm curious if there's any kind of emotional management you do with clients during this product design sprint.
FERDIA: I think it definitely is. I think people, as I said, often come in with very strong opinions of what they feel will work. And it might even be a product that they specifically want, or they might be one of those potential users. And I actually think, say, engaging an agency like thoughtbot to design something like that, if we felt that they were going down the wrong path, that could be actually quite difficult to do. But because of product design sprints, you are user-testing it. The founders are hearing this feedback from the horse's mouth, so to speak. They're hearing it directly from potential customers. So, it's a lot more black and white.
Now, sometimes, it might still be a case that a founder then doesn't want to proceed with that idea if it's not kind of going to be the way that they wanted it to be, and that's fair enough as well. But the feedback, as I said, it tends not to be that the idea is completely scrapped. It just means that you move a couple of things around. As Rami said, you deprioritize some things and prioritize other things for the first version, and that tends to be the outcome of it.
VICTORIA: Are the users always right, or is it sometimes you can have an idea that persist, despite the early feedback from users?
RAMI: Interesting question. Like, I see the parallels you're doing with the customer is always right, yeah. But the thing is, like, that's just my opinion, I think. We tested with users, and we kind of observe how they react to it and how they use the prototype.
So, it's not like an opinion session or, like, a focus group where they're actually giving...a user can say something and do something else or react in a different way. But yeah, it's a fine line, I think. But I would be really surprised if ten users would agree on something and say something, and their behavior also would reflect that, and we won't pick up on.
VICTORIA: Yes, I like the distinction you're making between what they say and then what the behavior shows, right?
FERDIA: I think something important there as well, like you'll often hear it in design communities, is that you should listen to the feedback from customers but maybe not the solutions that they're proposing. Because, at the end of the day, like, thoughtbot have experts in product design and product development, so we want to figure out from the user's perspective what they want to achieve and maybe what their problems are, but not necessarily take into account or just, I suppose, not necessarily just follow exactly what they say the solution should be.
You're kind of looking for the problems and the things that they're struggling with. You're trying to pick those up rather than just to do the solution that the customer is telling you. And you'll see that in a lot of startups as well that, you know, it's the famous Henry Ford quote about, you know, "If I'd listened to my customers, I'd have designed a faster horse." Sometimes, you need to listen to the problem, and the problem is getting from A to B faster, and then you come up with a solution for that rather than the solution that's been recommended to you.
WILL: I want to pivot a little bit and ask you both, why did you get into design?
FERDIA: I actually did architecture in university, and there were aspects of that I liked. Funnily enough, it's a fairly similar process to designing for software, and then it's an iterative approach. You're given a brief and yet you kind of take a concept forward. But then, when you apply for planning, you have to make changes. And when you kind of put [inaudible 29:41], you make changes. So, you're constantly, I suppose, designing iteratively.
And then I got into startups and was kind of wearing a lot of different hats in that startup sort of world. But the product was the one area that always kind of got me excited. So, you know, if you tried to make a sale with a particular customer and they didn't want to go over something, like, coming home and trying to figure out, okay, how can I fix that problem with the product so that next time when I go to a customer, and they'll say, "Yes"? That was kind of what always gave me the adrenaline.
So yeah, comparatively, between architecture and software, the turnaround times in software is so much faster that I think it's more enjoyable than architecture. You kind of can really see progress. Product design sprint in five days. You can kind of take something a long way whereas designing a building is a bit slower, but it's always kind of been some area of interest. Well, what about you, Rami?
RAMI: Well, I wanted to become a hacker, but I ended up to be a designer [laughs]. No, really, when, like, in middle school, I really wanted to be a hacker and kept looking up what is it. Like, I see it in all these movies really cool, and I wanted to understand, like, how it's done online. And I saw, like, everybody is talking about this weird, little thing called command line. And it turns out, like, all these hacking, quote, unquote, "hacking tutorials" were done on Linux. So, I started looking into Linux and got into Linux.
From there, I started blogging about Linux, and then I just really got into technology. I was in marketing. By then, I was a marketing major. So, that got me into blogging into, like, Linux and open source, which kind of triggered in my head, okay, I need to maybe pivot to a different career path. So, I did a master's degree in information management. Over there, I stumbled into design. The information management school that I was in, like, it was an interdisciplinary school at, like, design, coding, and business all mixed in. So, I stumbled in design there.
VICTORIA: That's how you all got started. And now you've put this product out there pretty recently. I'm curious if you have thought about how you would measure the success of this effort. So, how do you know that what you put out there in the product designs kit is helping people or achieving the goals that you had originally set out to?
FERDIA: Initially, Victoria, we obviously like to see the view counts going up on YouTube, and we're always open to feedback. So, like, at the end of each video and in the resources and stuff, we've got contact us kind of links and stuff. So, if people have feedback on how we could make it better or more useful, that would be really, really welcome. So, do feel free to reach out to us.
And kind of the ultimate success metric for us would be to have somebody come to us in future and say, "Oh, we used that Product Design Sprint Kit that you produced before, and we either got funding or, you know, we got so much value out of it that we'd like to do a full product design sprint or an MVP build, or something like that."
And the equivalent that we would kind of have a lot of in thoughtbot would be, say, gems in development where we would get people reaching out and say, "We use that gem all the time. We know about thoughtbot because of that." That kind of is a way to establish trust with potential customers. So, we're hoping that this is somewhat of an equivalent on the design side.
WILL: Oh, it's been great chatting with both of you about design and what you came up with this. I really like it. I'm going to look more into it.
VICTORIA: Yes. Thank you both for joining us. And I had one question. So, the sprint is the short-term. What would be, like, a product design marathon? Like, what's [chuckles] the big picture for people who are building products? Maybe that's a silly question, but...
RAMI: No, it's not, I mean, but I would guess it's actually building the product and having a successful product in the market and iterate over it for years and years.
VICTORIA: Yeah. So, it's a one-week sprint, and you could do it over and over again for many years just to fine-tune and really make sure that your product is meeting the needs of the people you were hoping to reach. Wonderful.
All right. Well, thank you both so much for joining us.
WILL: You can subscribe to the show and find notes along with a complete transcript for this episode at giantrobots.fm.
If you have questions or comments, email us at hosts@giantrobots.fm. You can find me on Twitter @will23larry.
VICTORIA: And you can find me on Twitter @victori_ousg.
This podcast is brought to you by thoughtbot and produced and edited by Mandy Moore.
Thanks for listening. See you next time.
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Feb 8, 2024 • 36min
511: Tele911: Pioneering Remote Emergency Care with Dr. Ramon Lizardo
Victoria Guido hosts Dr. Ramon Lizardo, CEO of Tele911, to discuss his company's innovative approach to emergency room diversion. Dr. Lizardo shares his journey from being a physician frustrated with the inefficiencies in emergency care to leveraging technology for better healthcare delivery. Tele911 is a service that transforms how emergency responses are handled. Rather than transporting patients to hospitals for non-critical care, Tele911 facilitates on-site treatments through paramedics equipped with iPads, allowing doctors to provide remote consultations, streamlining emergency services, and reducing unnecessary hospital visits and costs.
Dr. Lizardo's motivation for founding Tele911 was driven by personal experiences and the desire to improve emergency healthcare delivery. He recounts the challenges of pioneering in digital health, particularly the initial skepticism from investors and potential users about remote medical services. The COVID-19 pandemic became a turning point, accelerating acceptance and demand for Tele911's services, and Dr. Lizardo discusses the challenges of scaling the service, maintaining data privacy, and the importance of a values-driven approach to business.
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Transcript:
VICTORIA: This is the Giant Robots Smashing Into Other Giant Robots Podcast, where we explore the design, development, and business of great products. I'm your host, Victoria Guido. And with me today is Dr. Ramon Lizardo, CEO of Tele911, the leader in emergency room diversion. Dr. Lizardo, thank you for joining me.
DR. LIZARDO: Hey, Victoria. Good to connect with you once again. How are you?
VICTORIA: I'm good. It's raining in San Diego, so, unlike the song, it does happen sometimes in Southern California.
DR. LIZARDO: [laughs] But I love San Diego, by the way. It's one of those places where I feel like you have literally the perfect weather and perfect access to food. I'm a fan of Mexican food. And you can literally get the best Mexican food from, like, all of the trucks in San Diego. I truly believe that.
VICTORIA: That's true. The only better place to get Mexican food in San Diego is just to go to Mexico. You --
DR. LIZARDO: There you go [laughter].
VICTORIA: Yeah. I actually went to a startup event that was in Tijuana on a Tuesday night and just walked over the border and walked back, and it was great.
DR. LIZARDO: That is awesome.
VICTORIA: [laughs]
DR. LIZARDO: You know, there's a lot of expats living there now. It's really interesting, in Baja, California.
VICTORIA: Yeah, there's some back and forth there. And yeah, so just give me a little bit about your background and a little bit more about Tele911.
DR. LIZARDO: I'm a physician by training, but I've been in tech for about 15 years now. Tele911 is basically the child of a parent that was really frustrated with their specialty. So, I signed up for emergency medicine, and I realized a lot of what was happening was primary care. That led me to pursue a career in consulting. I worked at one of the Big Fours, interned at McKinsey, worked at Deloitte. Then, I started or joined a series of other startups that were very successful.
About three exits in, I said, hey, remember that idea that actually got me out? Being frustrated in ER because a lot of these patients didn't need to go to the hospital but were there. Well, this is how this comes about. Tele911 is basically the product of a lot of frustration, but a lot of innovation. And now we're pretty much reshaping history. In California, Texas, or Florida, when a patient calls 911 now, an ambulance shows up, but instead of being taken to the hospital, they're actually seen at home in something called treatment in place. We're the doctor on the iPad of the paramedic.
VICTORIA: So, thank you. That's a great interest. So, you had this background in consulting, and you had this experience as a physician, and then you decided to solve this really big problem with the cost around emergency rooms. So, before we dive into more around Tele911 and what you're doing with it, I thought we could warm up a little bit by just telling me, what gets you up in the morning?
DR. LIZARDO: [laughs] What gets me up in the morning? Well, I'm blessed because I have a two and a six-year-old. So [laughs], the truth is they're the ones that get me up. They usually wake up way before I do. So, if you come to this house about 5:15, 5:30, I feel like everyone's awake, and if you come to this house at 9:00 p.m., we're fast asleep. But what gets me up in the morning is that, above all, I'm a father and a husband.
I also run the nation's largest ER diversion company, which operates 24/7, and emergencies happen throughout the night. So, depending on what's happening throughout the night, I'm either up at 2:00, 4:00, 6:00 a.m. But what fuels me, though, every day is two things. One is I want to be an excellent husband and father, and I want to be present for everything that I can, especially when I'm home what's happening in my family's life.
But two, I'm part of this company that's changing the landscape of healthcare. You know, I've been part of other companies, but this is really one of those legacy events in life where I'm building something that's really changing the way healthcare is being delivered. And I understand that's my personal mission, and that's something that I strive for every day, and because of that, that drive just comes naturally.
I'm working on something that's way bigger than me, something that my kids are going to be reading about 10, 20, 30, 40 years from now, and probably they're going to say, "Yeah, that was innovative back then [laughs], but now this is how we receive healthcare, which is awesome."
VICTORIA: That's cool. So, it's like the impact your company's having and the drive to be a part of your family and, of course, your kids waking you up in the morning. And is it all of that, or is it also the chickens? Because I had chickens growing up.
DR. LIZARDO: [laughs]
VICTORIA: And they would always, like, crow, like, really early in the morning.
DR. LIZARDO: [laughs] Yeah, Victoria, that's awesome. If you come to this house at 5:45, what you're going to see is me in a robe in the middle of a snowstorm, at least for now, going out and changing the water of the chickens. So, one of the things that we've done with our household is made it more of a sustainable household. There's a living thing in every one of these rooms in our house. There's a guava tree growing in our living room, literally, a tree from the tropics growing in Princeton. There are citrus trees growing in our dining rooms. We grow about 30 different types of vegetables and fruits on our property.
And we also have livestock like chickens, which, honestly, I think we've learned that when we see things grow, we're more inclined to try them and taste them. You know, over the weekend, we had our neighbors, and one of the neighbors was like, "You have an actual olive tree from Italy growing in your..." it's about eight feet in our family room...sorry, in the kids' playroom. They were like, "I've never seen that before." I basically told them, "You should come back in a few months and pick some olives."
We love this ecosystem that we've built around sustainability, and it basically has brought our family together in order to work on things like trying to figure out how to grow these trees inside our house and outside our house.
VICTORIA: It must be such a cool experience for your kids to see something grow from a seed into something they can eat and, interact with and enjoy. And to bring it all back, I'm wondering, what was the seed for you to decide to focus on 911 or emergency services and solving that problem that people face? And maybe describe even a little bit of, like, what is the impact of divergent and emergency room services.
DR. LIZARDO: I feel like every great leader has something personal that's attached to what's fueling them, and, in my case, it's my dad. So, my dad has a heart condition, and, you know, there's been times where they've had to call 911. In the nation right now, 911 is a very antiquated and struggling system. As a matter of fact, ambulances have become very expensive Uber drivers.
Eight out of every ten calls that's medically related to a 911 does not need an ambulance and yet uses one to go to the hospitals. Most people in the U.S. believe that if they call 911 and they get an ambulance, they're going to be expedited at the hospital, which is not true. So, I know, unfortunately, that one day, my dad's going to call 911 because he really needs it, or someone in my family will. And I'm basically building a system that when he calls, he's going to get a faster response. By doing that, by basically doing what we do, we actually take care of the low-level emergency so when the real emergencies come, they actually are able to go through.
You know, Tele911 really tackles three things, three major problems in the industry. One is basically the pipes into 911 are overflooded. Sometimes, you're put on hold. Sometimes, you call 911, and they transfer you to another state because they're just so overrun. And basically, now we're creating pipes that actually allow them to take the real emergencies.
Two, the health plans. Every health plan in the United States 80% of what they do is actually try to figure out how to keep you out of the hospital. It's called utilization management. And it's just crazy how if you look at these monster health plans, their number one rule is, 'Please don't go to the hospital,' and that's the number one thing people actually do. And, for them, what we're solving is a huge problem because now they're able to take risk and actually control their budgets a lot better and, in effect, give better rates because they know that if they call 911 unnecessarily, they're going to be treated in place.
But lastly, it's because the people that are calling 911...medical debts is the number one reason for bankruptcy in the U.S. right now, and these people that are calling 911 they're going bankrupt. If you call 911 in California, in certain counties, the ambulance is $6,000, again, 6,000, even if you use it unnecessarily, let's say for a paper cut. And what I've done is basically created a company that solves for all three: for patients that need the care and basically think 911 is the only resource, for health plans that want to control these costs, but both fall for our lines. I want our lines to be free for the true emergencies.
VICTORIA: So, it was a personal experience with your father and the need for that. And I can relate to that, as well as having elderly family members who have conditions, who regularly need support. A lot of trouble is even just getting people to the hospital, and they can have services delivered right there in their home.
Anything in the early discovery phase of trying to solve this problem that caused you to pivot your strategy in your approach?
DR. LIZARDO: Absolutely. So, Tele911 right now is the product of, you know, an idea that was written on the back of a greasy napkin [laughs] at a Bojangles in South Carolina at a medical conference. But what you see today as the nation's leading ER diversion company and one of the most successful companies in digital healthcare is a product of three failures. We actually tried this multiple times and failed. And it wasn't until COVID happened, and we realized there was an acceleration and an acceptance for video calls, that we noticed that, hey, this is actually a better way, and it can happen now.
The irony of this [chuckles] is that we didn't think it was going to work so well. When we went commercial last year, we were like, maybe we could just do 300 calls. And in exchange, we started doing this by the thousands. A few months in, we're in the several thousands, and we're like, oh my God, this is working. And then, by the end of the year, we covered over 5 million lives by geography, and I realized we're on to something. Legislations passed with our name on it. So, you know, this idea that struggled, and we had to restart multiple times, we did not give up. And in exchange, I mean, we're literally making history.
VICTORIA: I love that. Yeah, so pre-COVID the idea of having medical services delivered virtually, I wonder what feedback you got from investors or from people interested in the idea at that time.
DR. LIZARDO: [laughs] No one wanted it [laughs]. No one wanted, you know, you show up to someone's house, and they're like, "Yeah, we're not going to take you to the hospital. We're going to have you see a doctor on the screen." They would be like, "No, I'm going," right? [laughs] Like, "This is not working." Also, even the counties, they were like, "This is too risky. What do you mean the doctor's going to be on the screen?" There wasn't a high level of adoption for something like this, and, you know, it struggled a lot.
I recall pitching the idea and people coming back to me and saying, "Well, you know, I love this. Tell me when it works. Tell me when you have enough traction." You know, it's funny because those are the same people now that are on our waitlist who now basically really need this, really want this, but we let them know there are 35 million more lives in coverage based on the counties just in our waitlist. It's a testament to just how awesome this product is and how fast it's adopted, but also the true need for something like this as part of the healthcare delivery continuum.
VICTORIA: Wow. Yeah. That's incredible that once you found the right fit, it became acceptable and even necessary to receive care virtually during the pandemic, and it really took off. So, now that you've gotten some initial traction and more than enough, what are your challenges that you see on the horizon?
DR. LIZARDO: So, a few challenges. Let's talk about how this went from, hey, a good idea to now a standard across different states. So, for example, in certain counties, and, I mean, this happens in every state as well. I'll give you an example of Florida. The hospitals are literally two hours away. Florida is incredibly rural. They either are able to see a doctor through our telemedicine platform, or they have to go on an ambulance for two hours, and that ambulance is away for six hours, like an entire shift.
So, one of the things that I've seen is a huge challenge is our product has grown expansively. So, what we do is we're basically building a larger network to be able to deliver for a larger volume. By the way, every time someone presses that button, within 40 seconds, on average, you get an emergency medicine physician that's board-certified in that state. And, I mean, that number used to be 2 minutes, then 1 minute, and now we're at 40 seconds. Eventually, it's going to be 10 seconds.
I'm pretty sure myself, someone who worked in emergency medicine, can't reach my friend in 10 seconds [chuckles], but this product does, which is what's fascinating about it, that high level of care. But with that same issue, we're now doing this for the tens of thousands. And within the next two years, we're going to be doing this for the hundreds, you know, we're forecasting hundreds of thousands of calls.
So, how do we prepare for that? How many emergency medicine physicians are in the U.S.? Can we cover those amount of lives? You know, do we continue to expand across auxiliary like APNs and higher tiers below MDs? So, these are the kind of things that I have to constantly think about. These are the kind of things that the government now reaches out to me to just get some advice on. Everyone's approved this. Now it's more, how do we scale this as we continue to make this the gold standard?
VICTORIA: The scaling becomes a top priority. And as a CEO who needs to build a management team around yourself, how do you identify where you have needs and where to find the people to perform the task you need to scale?
DR. LIZARDO: That really does depend on the role. One of the good things...so I used to sit on clinical boards for about 16 health plans, which allows me to have a very expansive network, particularly within healthcare and products. So, I know that the people are out there. The thing is, working at Tele911 is a very different type of environment than most people are used to. Here, we really fall fast collectively, lick our wounds, and redirect together.
Everyone has access to me. There's no hierarchy. It's more of a matrix environment, at least at this level. And then I tend to hire people at the management level that don't look like people that you would generally hire, and the reason is that there are two factors in order to be successful here at Tele911. You have to have that human component; to me, that's important. A lot of the people here...actually, I was sharing this with someone, but for the majority of my tenure here at Tele911, I was actually the youngest person at the company. I hire people with tenure and wisdom.
But a lot of the types of people that I hire here are actually outside of the industry, people who can bring in those thought processes over to Tele911 across repeatability, monetization, and scalability. Some of them are from manufacturing. Some of them...it really does depend. But when I look around the team, and I'm like, wow, you know, we are a team of misfits, but we produce amazing results. I mean, Tele911 in the last year alone, 3x volume and 5x just billing. So, we understand that we are part of something unique, and people just bring their ideas into that and adapt to it.
VICTORIA: Your approach, it sounds like, to play it back a little bit, is to find people who are smarter than you [laughs] about some things and then, yeah, really reach for wisdom and not fall into the same pattern that other organizations may be advised to follow to build their team because you have that insight into your market and your industry, and you can navigate what you need in order to scale.
DR. LIZARDO: Yeah. Also, at Tele911, this is innovation. So, there's really nowhere else to look for talent who have done this before. So, we really have to outsource from different industries. You know that adaptability is key, but what I really look for is repeatability. Has this person been ingrained with figuring out the pieces that make it whole and basically integrating them into our process, repeatable, monetizable, and scalable?
VICTORIA: Right. And maybe that answers my next question, but what core values drive your everyday decisions?
DR. LIZARDO: As I said before, and I think I said it at the beginning of the call, people know me as a father and a husband. That's who I am, and above all, that's my number one job. So, that human component is so critical in order for you to succeed here. Life happens while you're at Tele911. Parents get sick; kids have the flu; like, life happens.
And we have to understand that this is an empathetic environment. Someone in the management team had a baby today, and we were at a debrief meeting. And in the middle of a meeting, someone said, "The baby is here," [laughs] and everyone was rejoicing. If someone externally would have been in that meeting, they're like, "Who's baby, and why are we announcing it in the middle of a management meeting?" But, to us, is we function as a family, which is critical.
Another value that we really stress here is integrity. Because we're part of innovation, we have to be very clear about our numbers and very clear about how we're achieving our traction [inaudible 18:24]. I'm not really interested in the goal. I'm more interested in the process, but be very, very clear. You have to be creative. You know, I spent some time studying quantitative methodology over at Harvard, and repeatability is important, but being able to think outside the box because, again, this has never been done before. So, you have to look at this from an angle of, like, the art of the impossible, and then go and try it.
VICTORIA: Right, yeah. And I think it's really interesting, too, like, you know, when you think about making art or innovation, you can sometimes look and see how other people have done it. But then you have to decide what's your path. And, like, how do you solve for this particular problem? And, like, what can you learn from these [inaudible 19:08] this is the way you should or shouldn't do that; practice is really interesting, I think.
DR. LIZARDO: You know what? And I think that's probably been the most exciting part about this. I've never been in a situation where there was nothing to look back to reference. Like this is the first time in history that this is going, and it's accelerated so fast. We don't have a, hey, this is what good looks like. We basically have us, and we've had to adapt to that.
And along the way, what we've done is we've basically done basic, like, micro-moments of learning, adding on to those and saying, "Okay, this is what good looks like. But then what would great look like?" And I think that that's the example of...remember when I mentioned earlier, you know, it used to be 2 minutes, and 1 minute, you know, then 50 seconds, now 40 seconds. And we're like, "Hey, what if we could do 10 seconds where people press a button and get a board-certified doctor upon a 911 call?" And you're just like, yeah, that sounds impossible, but so did this idea now. So, we know the art of the impossible is just a few stone throws away as we continue to make traction.
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VICTORIA: You know, there's the impact for the person experiencing an emergency and having it be able to resolve within their home. It also opens up that possibility of remote work for doctors and nurses, which I'm sure you know more than me about the current state of the strain on our medical system and the people who are working in it and how you think about the impact on them as well.
DR. LIZARDO: Just for context, my wife is a physician. And during COVID, we ended up having two kids, one right before and one during. And because of our–one–our parenting style but also our life choices, what we basically is we took turns at different points in order to stay home with our kids. But one of the things that, you know, have always bugged me is we saw every specialty practice virtually, but emergency medicine had to be practiced in the hospital. And unfortunately, because of that force and that strain in the system, less than 50% of the spots in emergency medicines were filled last year. People don't want to do it.
So, what we did is we went out to a lot of these parents and said, "Hey, do you want to join this network where you're able to see patients while you take a nap virtually?" And they're like, "Whoa, let me try that." And, Victoria, within three weeks, dads and moms were showing up in droves with their babies to the interviews, saying, "This is what my life looks like. He takes a nap between 2:00 and 4:00. Can I grab a shift for those 2 hours?"
And along the way, we ended up building the nation's largest virtual emergency medicine practice. Out of that pain point in us and just asking questions, we built this awesome system that now propels people to basically press a button and within 40 seconds, get a doctor. And I think that's the art of the impossible. We actually look at it and say, "Well, we could probably do something better on that."
But we've also now reshaped emergency medicine to the point that now we're the ones that are writing the fellowship for virtual emergency medicine. We are now creating the protocols and our data now is in journals as, hey, this is what the specialty should look like, and this is what they're able to do. So, we're equally as excited about that and just on the outcome. And it's just a huge honor.
VICTORIA: Wow, that's incredible that it would go in that direction, and you'd have this opportunity to really reshape an industry and define how even people learn how to perform emergency services and medicine.
DR. LIZARDO: [laughs] You know what the most amazing thing is? It's actually a lot easier than what other specialties have done because cardiologists have been able to, you know, see patients virtually, but they can't do an EKG. But our team can because the medics are on-site within 8 to 10 minutes of that call, and they're able to do an EKG. They're able to do a pulse ox. They're able to even do an IV drip. So, it's actually a new way to practice emergency medicine, where the medic is your hands, eyes, ears, but the doctor's basically working in conjunction with them, guiding them to best do the assessment.
VICTORIA: That's, like, such a revolutionary idea, and I think it's so cool. I'm curious: how do you perform user research and design for patients and for emergency responders?
DR. LIZARDO: [laughs] That's a question that we're actually working through right now. So, emergency responders they actually all have an iPad or a computer on them when they show up at your house. But that looks a lot more like the Nokia phone, the blue phone from back in the day. There's very little interaction on that iPad. And what we've done is we've put an app that's dynamic that allows them to basically best assess the patient, understand their protocol. So, it actually has its enhancer experience.
Also, remember, these medics are some of the smartest people on earth. I mean, they see patients more than doctors do. They know where they live. They know what their house looks like, and they've seen them thousands of times. So, what they're really good at is interacting with the iPad in a way that actually shows the surrounding, shows the patient, and shows what's important.
When it comes to our doctors, particularly in emergency medicine, they've been dying to basically practice virtual emergency medicine. So, what we've done is we've basically provided the initial data set of what they need, along with a video. But now we're actually augmenting that with additional data sets that allow them just to have a more comprehensive picture of the patient, including some look back data, what happened before, what should be happening afterwards, integration with their health plan. They actually have more data and a better experience with practicing in their home than if they were at the hospital.
VICTORIA: I appreciate that viewpoint. And I can understand how interesting it must be to design for those two different user personas. I'm curious; you mentioned data. What's your strategy around data privacy, and protection, and security in your application when you're at the same time trying to be very innovative and move very quickly?
DR. LIZARDO: Well, you know, I've always believed data is on a need-to-know basis, particularly because we're dealing with PHI. We're dealing with clinical data. I always tell people it's one thing for someone to walk into a hospital and tell you their name, last name, phone numbers. It's a whole other thing for you to go to their home and start gathering information. So, that is basically one of our key standards here.
We understand the gravity of the data that we're collecting and how critical it is, not only to health plans, health systems, but, above all, the member and how that privacy should be kept. And it's such a critical component to the company. As we continue to grow and mature, we've added additional layers in order to best protect the company–but above all, best protect the member in situations like this.
VICTORIA: Yeah, well, I appreciate that viewpoint. And starting, you know, probably your background as a consultant and also working as a doctor, you have a really deep understanding of the type of data you're dealing with and how sensitive it is. So, I appreciate that that's a priority for you within the company. What is the wind in your sails? What keeps you going? What keeps you committed to doing this work?
DR. LIZARDO: So, at this point, we are reshaping an entire history. We're literally going in the books now. So, now we can't stop this. I remember going through medical school and reading through some books. I was joining part of a community of doctors. Now, I'm rewriting and creating a new version of how this entire industry is being practiced. And understanding the gravity of such a monumental place in society that keeps me going. We can't stop it now. And that, to me, is what's monumental in all of this.
VICTORIA: That's great. So, it's that big overall vision of the impact you're making on not just a few people, a few million people, but really the whole industry and for many years to come.
DR LIZARDO: Exactly. Exactly. So, just so you know, for example, our patients aren't just...we don't just do emergency medicine. Some of our patients have psychiatric needs, and some of our patients have, you know, oncological needs. So, we are actually the largest lead generator of patients into the right system for the United States because we're capturing them at the 911 call. So, there are so many great companies out there, and their number one problem is not how to solve for the things that they build; it's who's going to use it. How do you find more customers to actually use it?
And what a lot of these companies have realized is, hey, we've been trying to find these people for years, and yet they're walking into Tele911's front door. How do we partner up with them, and how do we basically show Tele911 the services that differentiate us in order for them to walk the patients towards us?
VICTORIA: That's such a cool stat to have that you're really putting people into the right path. And you have these great things that you all have achieved. I wonder, do you write key objectives and results? Because some of those it sounds like, well, I don't know you would ever be able to dream up that result [laughs], right?
DR. LIZARDO: Yeah. Well, yeah, we do function. We actually have a KPI doc that we use. We all track, and everyone at the company has visibility into them. It's super critical for everyone to be aligned no matter the level for that. I always say KPIs should not be unachievable, but they should be a stretch. Tele911 expects to grow 10x on its second year; very, very, very few companies in the history of digital health have grown 10x. And we are not only with foresight of, like, how we're going to achieve that; we're actually executing on a trajectory for that 10x.
That's a dangerous number to say for me as a CEO. And I look at the KPIs, and I'm like, well, we did 5x last year and cut almost a million in operating costs, so we can do 10x this year. Any consultant outside would be like, "Yeah, that's crazy," and then they look at our model, and they're like, "Yeah, these people might be crazy enough to actually do it [laughs]."
VICTORIA: Well, that's great. I mean, and, I guess, it's, like, all about how do you picture it? Like, are you trying to make a goal that gets everyone excited and gets everyone motivated and dreaming of the art of the possible, or are you just trying to make it so that you can check it off at the end of the year [laughs], right?
DR. LIZARDO: No. Actually, checking things off is...listen, at the end of the year, we're looking at the following year's list, right? We're not just checking things off. What we're doing is, we understand our mission, and because of our mission, what we're saying is, how aligned with our mission are we? I don't know if that's a circle or a checkpoint, but it's more about alignment for that mission of democratizing access to the best care as fast as possible upon a 911 call.
VICTORIA: I love that. That makes a lot of sense to me, just bringing it all back to the mission and the impact and why we're all here in the first place, right?
DR. LIZARDO: Exactly.
VICTORIA: I love that. Wonderful. Do you have any questions for me?
DR. LIZARDO: No. I mean, it was excellent to, one, just to be able to connect with you, two, to be...actually, as I was talking through these questions with you, you know, I realized how...just for context, my favorite author is Walter Isaacson. If you ever have the chance, please read one of his books. I'm reading Benjamin Franklin, and I read Steve Jobs' book. There's actually a few books. My favorite book in the whole world is Da Vinci by Walter Isaacson.
And, you know, I hope that people listening to this they can do two things. One, they can get to know me just a little bit and the things that we're doing, but two, they can be inspired because I think that's what we really need. There's a lot of people starting companies just because someone's doing something they could do it better. I mean, that's cool and all, but just so you know, most of those things actually fail. There's a reason why 9 out of 10 companies actually fail today. We don't need more copycats. Think of the art of the impossible and create that, and then pursue it as if nothing's holding you back. And if you do so, you just might find yourself with a Tele911 company.
VICTORIA: Well, that gets me fired up. I'm excited. I really love that advice. I appreciate you sharing that with us. Is there anything else that you would like to promote today?
DR. LIZARDO: Yes. If I could just take a second to share about this, I know that a lot of people who listen to this podcast want to start companies. A lot of people are trying to figure out, how do I get my idea started? But I also realized a lot of these people really haven't written down their ideas. They're basically pursuing things that haven't really been written down.
And one of the things that I shared, if we go back to this podcast, I said, this idea was written on the back of a greasy napkin in South Carolina during a storm at a Bojangles. I literally recall seasoned fries, dipping it in the grease of the chicken, which is terrible for you, by the way, cleaning my hands, and writing on the back: What if people call 911 and this and this and this happened?
And if I could leave you with one thing is, please write your ideas down. Send me photos of your napkins [chuckles], like, share napkins with people on a plane, people on a train, share these ideas, write them down. Because the ideas that write them down basically have an opportunity to go back and reestablish, to modify. But one of the things that I know is these ideas eventually echo in eternity at one place or another. And when I leave, just with an encouragement, please just write your ideas down.
VICTORIA: Great advice. I really appreciate that. You know, everything in moderation. I'm not going to say fried chicken or fries is bad for you [laughter] because I like it.
DR. LIZARDO: [laughs]
VICTORIA: But yeah, no, thank you so much. I loved sharing with that and, hopefully, people will share your ideas.
You can subscribe to the show and find notes along with a complete transcript for this episode at giantrobots.fm. If you have questions or comments, email us at hosts@giantrobots.fm. And you can find me on X, formerly known as Twitter, @victori_ousg.
This podcast is brought to you by thoughtbot and produced and edited by Mandy Moore. Thanks for listening. See you next time.
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Feb 1, 2024 • 32min
510: The Forecastr Formula :Steven Plappert’s Path to Startup Success
Host Victoria Guido sits down with Steven Plappert, CEO of Forecastr, an online software designed to aid founders in financial modeling, which was born to help non-finance savvy founders understand and communicate their company's financial health. Despite the pandemic beginning right after Forecastr's launch in 2020, the company didn't pivot significantly thanks to extensive preparation and customer discovery before the launch.
Steven delves into the operational and strategic aspects of Forecastr, highlighting the importance of balancing growth with financial sustainability, a consistent theme in their business strategy. Forecastr's significant development was integrating a strong human element into their software service, a move very well-received by their customers. Steven also outlines the company's key objectives, including cultivating a solid culture, achieving profitability, and exploring opportunities for exponential growth.
Additionally, Steven discusses the importance of work-life balance, reflecting on his previous startup experience and emphasizing the necessity of balance for longevity and effectiveness in entrepreneurship. Victoria and Steven further explore how companies, including Forecastr and thoughtbot, incorporate these philosophies into their operations and culture.
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Transcript:
VICTORIA: This is the Giant R¬obots Smashing Into Other Giant Robots podcast, where we explore the design, development, and business of great products. I'm your host, Victoria Guido. And with me today is Steven Plappert, CEO of Forecastr, an online software that helps founders who hate building financial models in Excel actually understand their numbers, predict runway, and get funded. Steven, thank you for joining us.
STEVEN: Hey, yeah, Victoria, thanks for having me. I'm stoked to be here. What's up, guys?
VICTORIA: Just to get us warmed up here a little bit, can you tell me what's going on in your world?
STEVEN: Well, you know, what is going on in my world? I had a great year last year, very healthy. I have a loving fiancé, and I'm getting married this year, which is going to be super fun. And, obviously, running a business, which takes up more than its fair share of my life. But yeah, it's early Jan, so I've been kind of reflecting on my life, and I got a lot to be grateful for, Victoria, I really do.
VICTORIA: That's wonderful. You know, I used to work with a VP of strategic growth who likened forming partnerships with companies as getting into a marriage and building that relationship and that level of trust and communication that you have, which I think is really interesting.
STEVEN: Oh, for sure. Emily always, Emily is my fiancé, she always says that, you know, Forecastr is essentially my mistress, if you will, you know what I mean? Because, like, that's [laughs] where the rest of my time goes, isn't it? Between hanging out with her and working on the company, you know, so...
VICTORIA: So, how long have you been in a relationship with your business around Forecastr? [laughs]
STEVEN: Yeah, right? Yeah [laughs]. Four years with this one. So, you know, we started it actually January 1st of 2020, going into the pandemic, although we didn't know it at the time. And so, we just celebrated our four-year anniversary a few weeks ago.
VICTORIA: Well, that's really exciting. So, I'm curious about when you started Forecastr, what was the essential problem that you were trying to solve that you had identified in the market?
STEVEN: I'd say the main problem we were trying to solve is that, like, specifically founders, you know, startup founders, really struggle to get, like, a clear picture of their financial health or, like, just the financial aspect of their business. And then they also struggle to communicate that to investors because most founders aren't finance people. You know, like, most people that start a company they don't do it because they're excellent in even, like, business or finance or anything like that. They usually do it because, like, they've identified some problem; they've lived it; they've breathed it, you know what I mean? They're some kind of subject matter expert. They may be good at sales, or marketing, or product.
But a lot of times, finance is, like, a weak part for them, you know, it's not something that they're strong in. And so, they really have a hard time, like, understanding the viability of the business and communicating the financial outcome of the company to investors and stuff like that. And my co-founder Logan and I live that because all we did all day was built financial models in Excel for startup founders working for a CFO shop called Venture First. So, that's what we really saw.
We really saw that just, you know, it's really hard for folks to get this clear picture. And we thought a big part of that, at least, was just the fact that, you know, there's no great software for it. It was just like, people are using Excel, which, you know, for people that are great in finance, you know, works but for most people, doesn't. And so, yeah, I think that that's what kind of inspired Logan and I to fly the coop there at Venture First and start a company.
VICTORIA: No, that's really interesting. So, you found this problem. You knew that this was an issue for founders, and you built this hypothesis and started it. I think you said, like, right before 2020, right before the pandemic. So, were there any decisions you made that once you got more information or once you got started, you decided to pivot? And, like, what were those pivot points for you early on?
STEVEN: There wasn't a lot of pivoting early on, I will say. And a part of that is because, like, this isn't my first company. I started a company right out of college back in 2013 called FantasyHub. In that company, we pivoted a lot and, largely because we didn't really put a lot of forethought into that company when we launched it, you know, we didn't do any customer discovery. We just launched the company. And then we skinned our knees a bunch of times [laughs] as we scaled that company up and had to change gears a lot of times.
In Forecastr, you know, we had actually been kind of building towards starting the company for 18 months. So, Logan and I actually had the idea originally in middle of 2018. And we decided at that time, look, like, we're not going to go launch this company right away because we got full-time jobs, and we might as well de-risk it. So, we spent about 12 to 18 months just doing a lot of customer discovery, kind of in stealth mode while at Venture First.
After about six months, we brought it up to Venture First and said, "Hey, here's this idea for a company we have. We want to go do it." You know, to Venture First's credit, you know, rather than viewing that territorially and saying, "Hey, you know, there's a great new product line for our company," they really inspired us to go forward with it. They said, "Hey, this is great. We want to support you guys." They put some money in. We did some more discovery. We built a prototype.
So, long-winded way of saying that by the time we actually got to the starting line in 2020, you know, we had 18 months' worth of really clear thought put into this thing. And we had been building in this space for years, you know, building financial models and Excel for founders. So, I think we had a great understanding of the customer. We had a great understanding of the market and the needs. We'd done our diligence in terms of distribution and figuring out how we wanted to generate, you know, a good, healthy funnel for the business. And so, it was really just kind of a matter of execution at that point.
And, you know, here we are four years in, and there really hasn't been anything that we've done that's really pivoted the business that much across those four years, except for one moment, which was actually six months ago. So, in July of 2023, we did finally have our first kind of pivot moment where one of the interesting things about Forecastr versus some other solutions in the market is that we're not just a product, just a SaaS platform. There's a real strong human layer to our solution. We've always felt like a SaaS plus human model was the right model for financial modeling for startups because a lot of these startup founders don't have finance expertise on staff or inherently.
And about six months ago, it wasn't as much of a pivot as it was a double down. You know, we really doubled down on that human element, you know, and now that human element isn't just through, like, a white glove onboarding and some email support. But we actually do give our customers an analyst in addition to the software that's with them for the lifetime of their subscription and is with them every step of the way. And so, that's the only time that we really made, like, a significant change into what we were doing. And it was just, I think, off the back of three years of saying, "Hey, like [chuckles], people really love the human element, you know, let's lean into that."
VICTORIA: I love that you saw that you couldn't solve this problem with just technology and that you planned for and grew the people element as well. And I'm curious: what other decisions did you have to make as you were growing the business, how to scale the tech side or the people side?
STEVEN: So many decisions, right? And that's why I tell people all the time, I'm like, you know, I've been a founder for 11 years now. And, in my opinion, by far, the hardest part about being a founder is that all day, every day, you have to make a bunch of decisions. And you hardly ever have enough data to, like, know, you're making the right decision. So, you got to make a bunch of judgment calls, and ultimately, these are judgment calls that could make or break your company. And it's really taxing. It's taxing on the mind. It's stressful, you know. It is not easy. So, you know, I think it's one of the really hard things about being an entrepreneur.
I would say one of the most consistent decisions that we've had to make at the highest level is decisions around kind of capital preservation, fiscal responsibility, and investing in the growth. So, categorically, it's like, on the one hand, you have a desire to build the company kind of sustainably, to get to profitability, to have a healthy working model, you know, where you have some real staying power, you know. And that line of thinking leads you to, you know, be conscientious about investments that you're making that, you know, increase the burn.
On the other hand, you have a desire to grow the company very quickly. You know, you have certain benchmarks you need to meet, you know, in order to be attractive to venture capitalists. And so, you have decisions that you want to make, you know, to invest in that growth. And so, I think that's a very consistent theme that's played out across the four years is Logan and I trying to walk that tightrope between growing 2 to 3X year over year and being really mindful of the company's burn, you know, both for equity preservation and just to build the company in a more sustainable way.
And I think as financial professionals and founders, the finance person in Logan and I a lot of times wants to be more conservative. The founder in Logan and I, a lot of times, wants to be more aggressive. And so, we kind of just, like, let those two forces kind of play themselves out. And I think it creates, like, a nice, healthy tension.
VICTORIA: That is really interesting, yeah. And sometimes you have to make a guess [chuckles] and go with it and then see the results of what happens. So, you're a financial forecasting company. What kind of, like, key results or objectives are you working towards this year with Forecastr?
STEVEN: Yeah, great question. So, we're really mindful of this kind of stuff. I'd say, you know, it's something that we really consider at a deep level is, like, you have to ultimately set objectives, which are very aligning and clarifying, you know, at an executive level, and then those should kind of filter all the way down through the organization.
Because so much, I think, of building a company is you have to kind of punch above your weight. You have to grow faster than [chuckles] the resources that you're putting into it might expect or whatever. I mean, you have limited resources, limited time, but you got to go really quickly. I think alignment is a big part of that, and that starts with setting clear objectives.
So, we actually have three very clear objectives, really four. The first one is living up to our cultural values. You know, we're a culture-first organization. We believe that, like, culture, you know, kind of eats strategy for breakfast, that age-old kind of cliché, but it's true. It's just like, I think, you know, if you build a really good culture, people are just...they're happier. They're more productive. You get more done. So, that is our number one strategic objective.
Number two is to become profitable. Like I mentioned, we want to become profitable. We want to build a sustainable company. So, by setting that objective, it kind of forces us to be conscientious about spend and only invest in areas that we think is, like, a one plus one equals three.
Our third strategic objective is reach 5 million in annual recurring revenue by the end of the year. We're at 2.4 right now. We want to at least double year over year. That's kind of, like, the minimum threshold to keep playing the venture game.
And then number four is unlock exponential growth opportunities. So, we definitely adopt the philosophy of, like, hey, we've got a model. It's working. We've got 700 customers, you know, we've got two and a half million in annual recurring revenue. So, like, 80% of our focus should be on becoming profitable and hitting $5 million in annual recurring revenue. Like, that's, like, the bread and butter there, just keep doing what's working. But 20% of our attention should be paid to, well, what could we be doing to, like, triple down on that, you know, to really start to create an exponential growth curve?
And, for us, that stuff and, like, kind of the data in investor space, like, there's a lot of interesting things that we could do, of course, as long as it's consensual, anonymized, et cetera, safe and secure, you know, with the kind of data that we have on private companies, you know, anonymously benchmarking companies against their peers, things like that. And I think there's a really big opportunity that we have to serve investors as well, you know, and to create a better investor experience when it comes to financial reporting, also something that we think can unlock exponential growth. So, those are the four objectives that we have going into this year.
VICTORIA: Well, I really appreciate that you had culture at number one, and it reminds me, you know, you said it's old adage, but it's true, and you can verify that in reports like the State of DevOps Report. The number one indicator of a high-security environment is the level of trust and culture that you have within your company, not necessarily the technology or tools that you're using. So, being a financial company, I think you're in a good position [chuckles] to have, like, you know, protect all those assets and protect your data.
And yeah, I'm curious to hear more about what you said about just unlocking, like, exponential growth. It's hard to keep both the let's keep the lights on and keep running with what we have, and make room for these bigger strategic initiatives that are really going to help us grow as a company and be more sustainable over time. So, how do you make room for both of those things in a limited team?
STEVEN: Yeah, it's a great question. And it's not easy, I would say. I mean, I think the way we make room for it probably on the frontend is just, like, being intentional about creating that space. I mean, ultimately, putting unlocking exponential growth opportunities on the strategic company roadmap, which is the document that kind of memorializes the four objectives that I just went through, that creates space inherently. It's one of four objectives on the board.
And that's not just, like, a resource that sits, you know, in a folder somewhere. We use the OKR system, you know, which is a system for setting quarterly objectives and things like that. And these strategic objectives they make it on our OKR board, which filters down into our work. So, I think a big piece of creating the space is just as an executive and as a leader, you know, being intentional about [chuckles] putting it on the board and creating that space.
The thing that you have to do, though, to be mindful is you have to make sure that you don't get carried away with it. I mean, like you said, at the end of the day, succeeding in a business requires a proper balancing of short-term and long-term priorities. You know, if you're focused too much on the short term, you know, you can kind of hamstring yourself in the long run. Yeah, maybe you build, like, a decent business, but you don't quite, you know, reach your highest potential because you're not investing in some of those things that take a while to develop and come to play in the long run.
But if you're too focused on the long run, which is what these exponential opportunities really are, you know, it's very easy to lose your way [laughs] in the short term, and it's very easy to die along the way. You know, I do think of startups as much of a game of survival as anything. I always say survive until you thrive. And so, that's where the 80/20 comes in, you know, where we just kind of say, "Hey, look, like, 80% of our time and energy needs to be devoted to kind of short-term and less risky priorities, such as doubling down on what's already working. 20% of our time, thereabouts, can be devoted to some of these more long-term strategic objectives, like unlocking exponential growth.
And I think it just takes a certain mindfulness and a certain intentionality to, like, every week when you're organizing your calendar, and you're, like, talking with your team and stuff like that, you're just always trying to make sure, hey, am I roughly fitting into that framework, you know? And it doesn't have to be exact. Some weeks, it may be more or less. But I think that's kind of how we approach it, you know, conceptually.
VICTORIA: Oh, what a great perspective. I think that I really like hearing those words about, like, balance and, like, being intentional.
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VICTORIA: You mentioned earlier that you're getting married, so, like, maybe you can talk about how are you intentional with your own time and balancing your personal life and making room for these, you know, big life changes while dealing with also the stress of being in kind of a survivor mode with the company.
STEVEN: Like I mentioned, this is my second company, and Emily, bless her heart, my fiancé, she's been with me my entire entrepreneurial career. We started dating the first month that I started my first company, FantasyHub. And in that company, I ran that company for three years. We took it through Techstars down in Austin. It was a consumer gaming company. Interesting company. It ended up being a failure but, like, super interesting and set me on my path. Yeah, I was a complete and total workaholic. I worked around the clock. It was a fantasy sports company, so weekends were our big time, and I worked seven days a week. I worked, like, a lot of 80-hour-plus weeks.
And, you know, looking back on it, it was a lot of fun, but it was also miserable. And I also burned out, you know, about six months before the company failed. And had the company not failed when it did, you know, I don't know what the future would have held for us. I was really out of balance. You know, I had deprioritized physical health. I hadn't worked out in years. I wasn't healthy. I had deprioritized mental health. Emily almost left me as a part of that company because I wasn't giving her any attention.
And so, you know, when that company failed, and I was left with nothing, you know, and I just was kind of, like, sitting there licking my wounds [laughs], you know, in my childhood bedroom at my parents' house, you know, I was like, you know what? Like, I don't know that that was really worth it, and I don't know that that was the right approach. And I kind of vowed...in that moment, I was like, you know, look, I'm a startup founder. I love building these companies, so I'm, like, definitely going to do it again, but I'm not going to give it my entire life.
Like, regardless of your religious beliefs, like, we at least have one life to live. And in my opinion, there's a lot more to life than [chuckles] just cranking out work and building companies. Like, there's a whole world to explore, you know, and there's lots of things that I'm interested in. So, this time around, I'm very thoughtful about creating that balance in my life.
I set hard guidelines. There's hard, like, guardrails, I guess I should say, when I start and end work, you know, and I really hold myself accountable to that. Emily holds me accountable to that. And I make sure that, like, I work really hard when I'm at work, but I take the mask off, you know, so to speak, when I'm at home. And I just kind of...I don't deprioritize the rest of my life like I did when I was running FantasyHub. So, I think it's super important.
I think it's a marathon building companies. I think you got to do that. I think it's what's in the best interest of the company and you as an individual. So, I think it's something I do a lot better this time around. And I think we're all better off for it, not the least of which is, like, one of our six cultural values is live with balance, and that's why.
You know, because, like, we adopt the philosophy that you don't have to work yourself to death to build a great company. You can build a great company working a pretty reasonable workload, you know what I mean? It's not easy. It is kind of a pressure cooker trying to get that much done in that little time, but I think we're living proof that it works.
VICTORIA: And if you don't make time to rest, then your ability to make good decisions and build high-quality products really starts to suffer eventually, like, I think, is what you saw at the end there. So, I really appreciate you sharing that and that personal experience. And I'm glad to see the learning from that, and making sure that's a core part of your company values the next time you start a company makes a lot of sense to me.
STEVEN: Yeah, totally, you know, yeah. And I've always remembered, although this might be an extreme and a privileged extreme, but, you know, J.P. Morgan, the person, was famous for saying, "I get more done in 9 months than I get in 12," in relationship to the fact that he would take his family over to Europe for, like, three months of the year and, like, summer in Europe and not work. And so, while that's probably an unrealistic, you know, ideal for a startup founder, there's some truth to it, you know what I mean? Like you said, like, you got to rest.
And, in fact, if you rest more, you know, yeah, you might be working less hours. You'll actually get more done. You're a lot clearer while you're at work. It's a mindset game. It's a headspace game. And the better you can put yourself in that good mindset, that good headspace, the more effective you are. Yeah, there's just a lot of wisdom to that approach.
VICTORIA: Right. And, you know, thoughtbot is a global company, so we have employees all over the world. And I think what's interesting about U.S-based companies, I'm interested in how Forecastr might even help you with this, is that when you start a company, you basically form, like, a mini-government for your employees.
And you have input over to how much they paid, how much healthcare they get. You have input over their hours and how much leave and everything. And so, trying to balance all those costs and create a good environment for your employees and make sure they have enough time for rest and for personal care. How does Forecastr kind of help you also imagine all of those costs [laughs] and make sense of what you can offer as a company?
STEVEN: I would say the main way that we help folks do that, and we really do play in that space, is just by giving you a clear picture of what the future holds for your company from a financial perspective. I mean, it's one of the things that I think is such a superpower when it comes to financial modeling, you know, it can really help you make better decisions along these lines because, like, what does a financial model do?
A financial model just simulates your business into the future, specifically anything related to the cash flow of your business, you know, cash in, cash out, revenue expenses, and the like. And so, your people are in there, and what they're paid is in there and, you know, your revenue and your expenses, your cash flow, your runway, all that's in the model.
One of the things I feel like we do really help people do is just get a clearer picture of like, hey, what do the next 3, 6, 12, you know, 24 months look like for my company? What is my runway? When am I going to run out of money? What do I need to do about that? Can I afford to give everybody a raise, or can I afford to max out my benefits plan or whatever that is? It's like, you can make those assessments more easily.
You know, if you have a financial model that actually makes sense to you that you can look at and say, oh, okay, cool. Yeah, I can offer that, like, Rolls Royce benefits plan and still have 18 months' worth of runway, or maybe I can't [laughs]. And I have to say, "Sorry, guys, you know, like, we're cash-constrained, and this is all we can do for now. But maybe when we raise that next round and when we hit these growth milestones, you know, we can expand that."
So yeah, I think it's all, for us, about just, like, helping founders make better decisions, whether they be your decisions around employees and benefits, et cetera, or growth, or fundraising, you know, through the power of, like, financial health and hygiene.
VICTORIA: Great. Thank you. I appreciate you letting me bring it all the way back [laughs]. Yeah, let me see. Let me go through my list of questions and see what else we have here. Do you have any questions for me or thoughtbot?
STEVEN: Yeah. I mean, so, like, how do you guys think about this kind of stuff? Like, you know, you said thoughtbot's a global company at this point, but the name would imply, you know, a very thoughtful one. So, I'd be curious in y'alls kind of approach to just, like, culture and balance and some of these things that we're talking about kind of, like, straddling that line, you know, between, like, working really hard, which you have to do to build a great company but, you know, being mindful of everything else that life has to offer.
VICTORIA: Yeah. Well, I think thoughtbot, more than any other company I've ever worked for, really emphasizes the value of just, like, people really want you to have a work-life balance and to be able to take time off. And, you know, I think that for a company that does consulting and we're delivering at a certain quality, that means that we're delivering at the quality where if someone needs to take a week off for a vacation, there's enough documentation; there's enough backup support for that service to not be impacted. So, that gives us confidence to be able to take the time off [chuckles], and it also just ends up being a better product for our clients.
Like, our team needs to be well-rested. They need to have time to invest in themselves and learning the latest technology, the latest upgrades, contributing to open source, and writing about the problems they're seeing, and contributing back to the community. So, we actually make time every Friday to spend on those types of projects. It's kind of like you were saying before, like, you get as much done in four days as many companies get in five because that time is very highly focused. And then you're getting the benefit of, you know, continually investing in new skills and making sure the people you're working with are at the level that you're paying for [laughs].
STEVEN: Yeah, right. No, that's super cool. That's super cool.
VICTORIA: Yeah, and, actually, so we're all remote. We're a fully remote company, and we do offer some in-person events twice a year, so that's been a lot of fun for me. And also, getting to, like, go to conferences like RubyConf and RailsConf and meeting the community has been fantastic. Yeah, you have a lot of value of self-management. So, you have the ability to really adjust your schedule and communicate and work with what meets your needs. It's been really great.
STEVEN: Yeah, I love that, too. And we're also a remote company, and I think getting together in person, like you just talked about it, is so important. We can only afford to do it once a year right now as an earlier-stage company. But as amazing as, you know, Zoom and things like this are, it's like, there's not really a perfect replacement for that in-person experience, you know.
VICTORIA: I agree, and I also agree that, like, once a year is probably enough [laughter]. That's a great amount of time. Like, it really does help because there are so many ways to build relationships remotely, but sometimes, at least just meeting in person once is enough to be like, oh yeah, like, you build a stronger connection, and I think that's great.
Okay. Let me see. What other questions do we have? Final question: is there anything else that you would like to promote?
STEVEN: I guess it's my job to say we are a really awesome financial modeling platform and team in general. So, if you are a startup founder or you know a startup founder out there that just could use some help with their financial model, you know, it is definitely something that we'd love to do. And we do a ton of education and a ton of help. We've got a ton of resources that are even freely available as well. So, our role in the market is just to get out there and help folks build great financial models, whether that be on Forecastr or otherwise, and that's kind of the approach that we take to it.
And our philosophy is like, if we can get out there and do that, you know, if we can be kind of the go-to resource for folks to build great models regardless, you know, of what that means for them, a rising tide will float all boats, and our boat the most of which, hopefully. So [laughs], if you need a model, I'm your guy.
VICTORIA: Thank you so much for sharing that. And I have a fun question for you at the end. What is your favorite hike that you've been on in the last three years or ever, however long you want to go back? [laughs]
STEVEN: Well, I would say, you know, I did have the great pleasure this year of returning to the Appalachian Trail to hike the Roan Highlands with a friend of mine who was doing a thru-hike. So, a friend of mine did a southbound thru-hike on the A.T. this year, went from Maine to Georgia. Good friend of mine. And I had not been on the Appalachian Trail since I did a thru-hike in 2017. So, I had not returned to the trail or to that whole community. It's just a very special community. It really is a group of, like, really awesome, eclectic people.
And so, yeah, this last year, I got to go down to the Roan Highlands in Tennessee. It's a beautiful, beautiful area of Tennessee and in the Southeast, rolling hills and that kind of thing. And hike, for him, for, like, three or four days and just be a part of his journey. Had a ton of fun, met some awesome people, you know, great nature, and totally destroyed my body because I was not prepared to return to the grueling nature of the Appalachian Trail. So yeah, I'd have to say that one, Victoria. I'd have to say that was my favorite in the last couple of years for sure.
VICTORIA: Yeah, it's beautiful there. I've hiked certain parts of it. So, I've heard that obviously the Appalachian Trail, which is the eastern side of the United States, was the earlier trail that was developed because of the dislocation of people over time and that they would create the trail by getting to a peak and then looking to another peak and being like, "Okay, that's where I'm going to go." So, when you say it's grueling, I was, like, a lot of up and down hills.
And then what I've heard is that the Pacific Trail on the western part of the United States, they did more of figuring out how to get from place to place with minimizing the elevation change, and so it's a much more, like, sustainable hike. Have you ever heard that?
STEVEN: Oh yeah, that is 100% true. In terms of, like, the absolute change in elevation, not, like, the highest elevation and the lowest, just, like, the change up and down, there's twice as much going up and down on the A.T. as there is on the Pacific Crest Trail. And the Pacific Crest Trail is graded for park animals, so it never gets steeper than, like, a 15% grade.
So, it's real groovy, you know, on the PCT where you can just get into a groove, and you can just hike and hike and hike and hike for hours, you know, versus the A.T. where you're going straight up, straight down, straight up, straight down, a lot of big movements, very exhausting. I've hiked a good chunk of the PCT and then, obviously, the whole A.T., so I can attest, yes, that is absolutely true.
VICTORIA: I feel like there's an analogy behind that and what Forecastr does for you. Like, you'll be able [laughs] to, like, smooth out your hills a little bit more [laughs] with your finances, yeah.
STEVEN: [laughs] Oh, I love that. Absolutely. Well, and I've honestly, like, I've often likened, you know, building a company and hiking the Appalachian Trail because it is one of those things where one of the most clarifying things about hiking a long trail is you just have this one monster goal that's, you know, that's months and months ahead of you. But you just got to get up every day, and you just got to grind it out. And every day is grindy, and it's hard, you know, but every day you just get one step closer to this goal.
And it's one of the cool things about a trail is that you kind of steep yourself in that one goal, you know, one-track mind. And, you know, like we were saying earlier, there's so much more to life. So, you can't and probably shouldn't do that with your startup. You should continue to invest in other aspects of your life. But maybe while you're within the four walls of your office or when you open up that laptop and get to work on your computer, you know, if you take that kind of similar approach where you got this big goal that's, you know, months or years away but every day you just got to grind it out; you just got to work hard; you got to do what you can to get 1 step closer. And, you know, one day you'll wake up and you'll be like, oh shit, like, I'm [laughs] pretty close, you know what I mean? Yeah, I think there's definitely some similarities to the two experiences.
VICTORIA: I appreciate that, yeah. And my team is actually it's more like starting up a business within thoughtbot. So, I'm putting together, like, my three-year plan. It's very exciting. And I think, like, those are the types of things you want to have. It's the high-level goal. Where are we going? [chuckles] Are we on our track to get there? But then day to day, it's like, okay, like, let's get these little actions done that we need to do this week [laughs] to build towards that ultimate goal.
Well, thank you so much for joining us today, Steven. I really enjoyed our conversation. Is there anything final you want to say?
STEVEN: I just want to thank you, Victoria. I think it's a wonderful podcast that you guys put on, and I really appreciate the opportunity to be here and to chat with you. You're lovely to talk to. I enjoyed the conversation as well, and I hope everyone out there did, also. So, let's make it a great 2024.
VICTORIA: Thank you so much. Yeah, this is actually my second podcast recording of the year, so very exciting for me. I appreciate it. Thanks so much for joining again.
So, you can subscribe to the show and find notes along with a complete transcript for this episode at giantrobots.fm. If you have questions or comments, you can email us at hosts@giantrobots.fm. And you can find me on X, formerly known as Twitter, @victori_ousg.
And this podcast is brought to you by thoughtbot and produced and edited by Mandy Moore. Thanks for listening. See you next time.
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Jan 25, 2024 • 38min
509: Revolutionizing Learning in Web Development with Wes Bos
Hosts Will Larry and Victoria Guido are joined by Wes Bos, a full-stack developer, course creator, and podcaster. Wes shares his web development journey, from blogging and creating a successful book on Sublime Text to developing his popular online courses and hosting the Syntax podcast. He talks about the spontaneous start of his teaching career, his approach to creating content that is both approachable and practical, and the importance of making web development accessible to all learners.
Wes discusses the evolution of his career, detailing his experiences in teaching at Ladies Learning Code and HackerYou and how he transitioned into selling online courses. He emphasizes the significance of offering quality content in his free and paid courses, ensuring his teachings are relatable and helpful for real-world applications. Wes also delves into the technical aspects of managing his course platform, discussing the benefits of having complete control over his content and the challenges he faces, such as content theft and logistical issues in distributing his popular sticker packs.
The conversation shifts to the role of AI in web development, where Wes highlights its impact on coding efficiency and the need for developers to adapt to AI integration in applications. He advises beginners in web development to be wary of over-relying on AI, emphasizing the importance of understanding the fundamentals of coding. The episode concludes with Wes offering advice for content creators in the tech space, stressing the importance of sharing knowledge and its positive impact on the community. He encourages listeners to stay passionate and continuously learn in the ever-evolving field of web development.
Wes' Online Courses
Sublime Text Power User Book
Syntax Podcast
Ladies Learning Code
HackerYou (Now Juno College)
Follow Wes Bos on LinkedIn or X. Visit his website: wesbos.com.
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Transcript:
WILL: This is the Giant Robots Smashing Into Other Giants Robots podcast, where we explore the design, development, and business of great products. I'm your host, Will Larry.
VICTORIA: And I'm your other host, Victoria Guido. And with me today is Wes Bos, a Full-Stack Developer, Coursemaker, and Podcaster. Wes, thank you for joining us.
WES: Thanks for having me; stoked to be here.
VICTORIA: Can you tell me, you know, on top of all of these skills that you have, podcasting, you're making courses; you're also doing development full-time; I heard that you've also picked up a new hobby in making stickers and, like, designing merch for aligning with some of your marketing goals.
WES: Yeah. All right. So, my name is Wes Bos. I'm a full-stack developer from Canada, and I do primarily two things: I make web development training courses, and I have a podcast called Syntax in which we release three episodes a week and talk about everything related to HTML, CSS, JavaScript, Node, just web development and things that surround it.
WILL: I want to see how you started in those courses. I know a little bit about your story because I remember when I first started in development. I think it's gotten a little better, but I was the only junior at one of the first companies I started at. And I went through a bootcamp and then became a junior. And I was like, how do I develop? Like, how do I get better? And they were like, "Wes Bos, his course.
WES: [laughs]
WILL: Go to Wes Bos." [laughs] And so, I did that, and it helped me tremendously. But it's interesting. I just want to see how you started. I know some of your background with ladies who code, and I think HackerYou. So yeah, wherever you want to start, bring us into the beginning of Wes Bos.
WES: So, I've been a web developer forever, a good chunk of my life. And back in, like, the blogging days, I was doing a lot of posting blog posts and whatnot. And I had a couple of the blog posts do super well. And back in the day, it was like, you get tons of traffic, and you try to, like, seize the moment. Like, oh, there's, like, 50, 000 people on my website right now. Like, how do I, like, take advantage of that?
So, what I did was I threw up a quick, little...it was a blog post about Sublime Text, which was the hot, new editor at the time. And I threw up a little thing. I'm like, I'm writing a book about Sublime Text. And I threw up a little sign-up where people could pop their email in and hear a little bit more about it. And I got, like, 2,000 signups for that in a matter of a couple of days. And I thought like, oh, all right, well, now I got to make this thing, you know, like, I just [chuckles] I didn't have any plans to make it.
I had kind of been going around in my head, but I decided to write the book. And then as part of the book, I gave a bunch of videos, and I realized I liked the video part a lot better. And it makes a lot of sense to show people what you are doing when you're talking about code and code-related things. So, I came out with a bunch of videos for that as well. People loved the videos, and I thought, oh, let's just keep doing this. So, I made a bunch of free courses, a bunch of paid courses.
And kind of at the same time as well, I was teaching at this thing called Ladies Learning Code, which kind of transitioned into a bootcamp that I did the initial content for, which was called HackerYou. And, like, people kept giving me the same feedback into like, I'm not a traditional teacher. I'm just a web developer that has learned on his own and figured things out. And a lot of people said, like, " I really like the way that you explain things. Like, it makes so much sense the way that you explain it."
And I figured out that, at least for some people, they really like the way that I explain something, and I will continue to do that. So, that's pretty much how I got into it. It's just explaining how it works in my head, putting it onto video, and putting it out there for web developers to learn from.
WILL: Yeah. And that was one of the reasons why I think I was so successful in my career is because there's a...Just learning development is hard; let's be honest. It's just hard. And I would run into people that would honestly just talk over my head, and I was like, I have no idea what you're saying, but okay.
But your courses, it was like, oh, okay, I understand that. That makes sense. Like, I can't remember the name of it, but the React beginner course I've been to that one probably three times just because I'm like, it's making sense. And every time, I get more and more and more out of it. So, I can definitely agree that the way you teach your courses it brings it down to earth. Like, I think maybe anybody could pick it up, I would say, because it's like you're talking to them, so yeah.
WES: It's really important to me that everything is approachable. And I will often explain things, like, I'm the same as you. There's extremely smart people out there, and they'll just talk at you about all of these things. And it's just like, I have no idea what you're talking about. Those words don't make any sense to me.
And it's not that I dumb it down. It's just like, the way that it makes sense in my brain is not the same way that they're talking. So, the way that I explain it is just how it makes sense to me, and people tend to really enjoy that type of thing. And I really hope that I can make a lot of this web development stuff approachable. And sometimes it's not the, like, exact perfect explanation of how something really works, the explanation you need to understand how these pieces fit together and when you would actually use something.
That's the other part of a lot of the stuff that I teach as well is that I have this big thing on one of my course websites, which is like, no foo bar baz. Because when you're learning to code, you stumble across all these foo bar baz where people are making functions and passing the values in, and they're called meta-syntactic variables.
The whole idea is that because foo bar baz mean nothing, you're able to take it out of context and focus on what is happening, and I'm quite the opposite. Show me a real example of a bunch of dogs, or a sandwich, or a button that you can click on that fetches data. And I always try to make my examples something that is real world enough that you could understand, okay, I see where this might be used rather than something in isolation because I find that myself very frustrating.
VICTORIA: What's one of your favorite examples or, like, example scenarios that you use when you're designing a code problem to teach people?
WES: It really comes down to, like, what you're teaching, but the ongoing joke on the podcast that we have is that I always use sandwiches because a sandwich is a great metaphor for a lot of things in life. So, for example, when we talk about streaming versus buffering, and we talk about, like, you're eating the sandwich as it's coming into your house versus you're cutting it into pieces and eating it.
Or in my upcoming TypeScript course, I have a bunch of examples where there can be multiple types of food, and a sandwich can be one of them, and a pizza can be another one. And that kind of shows how to use generics, right? Like, you might have a database entry that is a food entry, but you want to further that to be a sandwich or a pizza, and not all of them are that simple, right?
Like, a lot of them are also just related to web development, which is like, here's buttons that you need to click on, and here's data that you need to fetch, and here's a database schema that needs to happen. And if that's the case, I try to, like, make it real world enough where you can say, okay, I understand that this is how it works. Now, how can I apply that to my own idea? Because often, people learning to code have their own ideas. They just want to make something to solve their own problems.
WILL: How did you learn to code? Because I don't think you did a traditional route. I remember on one of your podcasts, you said your dad was in IT, but I don't think you went to a traditional route. So, how did you learn to code?
WES: It's a really long story. But the story is that I got into computers at an early age. I got into designing T-shirts and CD art for a lot of, like, hardcore bands in the music scene when I was in high school, and that parlayed into Myspace. Myspace taught me CSS. And then I've always been, like, fairly entrepreneurial, so that I parlayed into running my own business, making websites. And I've just been at it for so long that I've sort of taught myself all the pieces that I need over the years.
I do have a degree in what's called business technology management, which is, it's a business degree but no coding or things involved. It was more, like, higher level. There was some, like, networking IP addresses, and then there was a lot more, like, business management teams, procurement, SAP, things like that, so none of the web development stuff I have learned comes from that degree. It's all self-taught.
VICTORIA: So, you found that you had the skill around explaining web development concepts, and then that led to you creating your own business and having your own, like, coursework out there and everything through your podcast. So, maybe you could share a little bit what that journey has been like.
WES: It's been a very long journey. I'm not sure which part you want to hear about, but I've been selling courses for probably about nine years. And I have sold quite a bit because I also offer about half of them for free. So, I have a bunch of free ones where people take it, and they're like, "Oh, this is amazing. I'm going to take the paid one that he has as well." And I spend a lot of time making sure that the free ones and the paid ones are the same quality. Like, it's not just some crappy 10-minute course that I'm using as a lead magnet to get you in the door. Like, they're actually pretty good.
So, it's been really fun. Like, I've built a whole course platform that sells all of my courses, and you can view them and stream them, and there's invoicing and checkouts built into it. So, like now, if somebody wants to get into selling courses, there's lots of options out there where you can sign up for some SaaS and upload your course, and you're up and running. But at the time when I had done it, there was nothing like that out there, so I had to build my own whole course platform. And I've really enjoyed working on that over the years and upgrading it, and changing it, and rewriting, and adding features to it.
VICTORIA: Yeah, that's really interesting. I like that you kept the quality the same on the free and the paid versions. That's a really interesting, I think, like, a reflection of your own values. And then, I'm curious: now that there are other hosting options out there, is there anything that would make you decide to switch to one of those platforms? Because it also sounds like you're getting a lot of enjoyment about managing the one you have yourself, and there might be some other benefits to that.
WES: Yeah, probably not. First, because they take a cut, and a lot of these course platforms are not there to promote your business. They're there to promote their own business. And it's the same thing with YouTube. When your YouTube video ends, what does YouTube recommend? They usually recommend what you think you're going to watch, which is sometimes somebody else's video, right? And not having full control over how the courses are sold and consumed, to me, can be a little bit frustrating because you can't do different ideas that you have.
So, like, one of the ideas I had early on is I was getting lots of email from people in different countries, you know, in Argentina, and in Brazil, and in India. And they say, "Hey, like, I would love to take your course, but the cost of the course is a day, a week's wages, and that's way too expensive for me." So, I implemented this thing called parity purchasing power. I didn't come up with the economic concept of it, but I was the first person to offer different prices based on the country that the user was coming from. And, A, that's a cool thing to do for people, and B, it helps sales tremendously.
And if I was using some course platform, some of the course platforms now have that in place; it's table stakes, right? But at the time, I don't think I would have done as well if I hadn't coded that in myself. So, having full control over absolutely everything is really important to me. And also, like, nobody wants a teacher who doesn't actually build stuff, you know? No one wants to learn from the guy who just, like, skimmed the docs and came up with a crappy, little example. Like, you want to learn from people who are daily writing code and building real-world applications that, like, I have to support my family on this application, you know, it's pretty important, and it's pretty real world.
WILL: Yeah, and just following you, I think...and I don't know if you would describe yourself like that, but I think you're, like, a tinkerer. Like, you just...some of the ideas you have is just like, let me just try it out and see if it works. And so, that's amazing that you're able to do that. Where does that side come from? Was it from your dad being in IT, or where did that come from?
WES: Probably. Apart from growing up and seeing my dad just fix stuff and do stuff, but I'm just a constantly curious and hungry guy. And I absolutely love dipping into different tech and not even just tech but, like, I built this whole recording studio that's soundproofed. I built the whole thing myself just because I love to learn new things and to dive deep and learn how everything works.
And I think a lot of developers very easily burn out. And I always like to say, like, my competitive advantage is not burning out. So, I'm very cognizant of that might happen at some point. And part of the cure for me is I need to be excited about this type of stuff, and I need to be using it. And being able to build new things, and dip into tech, and learn constantly is what keeps me excited and motivated about web development.
WILL: Wow. So, you say you built your office. So, you built the entire, like, from concrete up?
WES: Not concrete up. So, this was like a...I'm in a basement right now, and I put up some walls. And I talked to a bunch of sound engineers about soundproofing. So, the whole ceiling is not mechanically fastened to the actual ceiling. It's like kind of, like, a floating ceiling, which is pretty cool. And then there's soundproofing material in the walls and outside the walls, and special drywall, and all kinds of interesting stuff to make it sound as good as possible and be as quiet as possible in here because I have three kids.
WILL: [laughs] I totally understand the three kids...
WES: [laughs]
WILL: And the noise that that brings. So, that's amazing. And I think you bring up something that we don't talk about enough in development is that mental health side. Like, just trying to figure out, what do you like to do outside of your computer, away from your computer? So, that's neat that you're working on that, and that that's probably why you haven't burnt out compared to other people. But yeah, kudos to you. That's yeah, that's pretty interesting that you have hobbies outside of that.
WES: Yeah, I find that pretty important to sort of keep that balance. Otherwise, if you're doing it day in, day out, especially if you're working on the same thing...like, another benefit I have is I'm always dipping into new stuff, and that keeps it really interesting. But there's plenty of other creators out there that go too hard, and they go 24/7 on it, and then you don't hear from them for six months. And it's because they got burnt out on it, which is very scary to me that that might happen to me at some point. So, I try...I don't know if I've got it figured out, but I try to combat that as much as possible.
VICTORIA: And I'm wondering how you balance just that need to create content because it seems to me that web development is constantly changing, right? And so, content that you created a year ago, maybe you got to go back and update everything. So, how do you manage that and keep your content fresh with all the ongoing changes in web development?
WES: Yeah, unfortunately, sometimes it means you just have to deprecate content, or you say, "Hey, this is not the content you should be taking right now," because some of the courses take four or five months to record, and after a year or two, they can be out of date. So, I'll mark them as deprecated if they need to be.
But I'm just kind of always working on something new, both with my courses as well as, like, the podcast. We always just have...that's the kind of the benefit of the job as well is that, like, yeah, it changes all the time, but there's always new stuff to talk about. As somebody who makes a living explaining how new things work, it's kind of nice.
VICTORIA: That's great. You got a good pipeline of content to talk about [laughs] and to update for, so that's great.
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VICTORIA: You know, you're creating this content for web developers, and you have this kind of global audience now. What's on the horizon for you? What are you planning for in the next couple of months or in the next five years?
WES: Yeah, next couple of months, I have a TypeScript course I've been working on for over a year now. I've been sort of cranking on it, and that will be out. And then we have a podcast that we are going to be launching a video version of pretty soon, which I'm pretty excited about. We've been kind of going pretty hard. We just hired a producer. We've been going pretty hard on, like, the social clips type of thing. So, that's coming down the pipeline as well.
And five years, I have no idea. I think I always say, like, a five-year plan is a five-year guess. You know, like, you can plan ahead for six months, a year, and have some good goals. But in web development, like, a year ago, AI, maybe a year, like, 13 months ago, the AI stuff was nothing but a murmur, right? And now, the AI stuff is a good chunk of what I talk about and what I teach. So, you just kind of got to react to it; otherwise, if you have a five-year plan, then you're not going to be able to catch these new things that pop up.
WILL: How do you pick? Because I know you said you have a TypeScript course coming out. How do you pick new topics to talk about? Because there are so many. There's testing you can talk about. There's React Native. There are so many areas you can go to. How do you pick and choose that?
WES: It's actually pretty easy because it's what I'm excited about and what I want to tell people and teach people, like, what they should be learning. So, like, every single one of my courses is tech that I myself am using and that I want to help teach other people, so it's pretty straightforward.
It's not like I have some sort of, like, stats of, like, what is the most popular framework out there, and, like, obviously, that does play into it like a Next.js course. I've used Next.js in a couple of my courses. I'll probably do another Next.js course. But that's both because I enjoy it and because it's stable enough and popular enough that people would want to buy it. I'm not going to be creating a Java course or a Rust course or something like that because I know that's popular right now, and it would probably sell well. It's just not something I know enough about, or I'm excited about.
VICTORIA: Yeah, and I'm curious to go back to your comment about AI and just ask you, how are you talking about it in your courses? What are, like, the things you think it's really important for developers to know right now about AI and web development?
WES: There's kind of, like, two parts to it. First, there's the part of, like, using AI to help you code. So, there's all these, like, coding assistants that get in your editor, and you can send them your code, and it can help you decipher it, and it can scaffold out code. Those things are really, really good.
And I know a lot of developers are hesitant about it because, like, "Who knows what kind of code it's generating? And you still have to be able to understand it. And I prefer to write it by hand." And that's a valid opinion, but, like, I don't think that that's going forward. And I think that this AI stuff is making us so much more efficient in writing code that if you're not picking it up, I think that you might be at a little bit of a disadvantage there. So, there's that [SP] hunk.
And then there's also the, like, we're going to have to start implementing this stuff into the apps that we build, and whether it's just pinging in an AI service and getting data back or creating a bunch of embeddings so you can have related, like, for a blog post or for a podcast, we want related podcasts. Or if you want to use AI to, like...group tagging on a blog is a really annoying thing. Nobody uses tags well enough. But, like, what if the tags could just be automatically generated based on the words in the post or the words that we speak on the podcast?
So, there's just, like, so many, like, new features that will make it better. Your product is going to be better for your end user. And even starting now and, like, when those features are not enabled, like, it's not, like, necessarily an AI feature, but it's like, wow, I wish this had better grouping of podcasts, or I wish that you had better tagging, or that your search is not very good because it's just a text match whereas there's a lot more depth that could be added with AI. So, integrating AI into our websites and our applications that we're building is going to become just another skill that you, as a web developer, have.
VICTORIA: No, I think that's a really interesting take on it. And I'm curious if you've also seen AI used to even, like, suggest better standards for code or certain design patterns and, like, tools that help you, like what you said, kind of get better at coding faster.
WES: That's the thing people are talking about. Like, if you're learning to code, should you use these types of things? Because, like, you can just hit Tab a couple of times, and it might look good. And it certainly can bite you. Especially if you need to be able to go back and edit that code to fix it, you need to understand how it works, so there's that part of it. But, man, does it make you faster for doing a lot of common things that you will be doing over again. It just really helps you out, so I'm a big fan of it. I have lots of complaints about it as well, but I think it's here to stay.
VICTORIA: [laughs] Yeah, it's here to stay. And I've talked to founders who are really excited about it, and maybe they weren't, you know, they don't have years and years of React development experience, but they know the functions that their app needs to do. And they're able to use coding prompts and tools to kind of create at least a minimal product of what they want to build, so it's really exciting.
WILL: I totally agree with AI because I use some, especially with the coding, and it makes it so much faster, but I do think you still have to know what you're doing. Because I think you posted on it, like, in one of the coding helpers that I use in VS Code, it still doesn't know how to close out the end of the line. You have these extra backticks or whatever. And it is like, so, as a new developer, you still have to understand your code, or that's going to drive you crazy every time that you use it [chuckles].
WES: Yeah, that's extremely frustrating, the backticks. I've had an issue open on GitHub Copilot for about a year now. They've said they fixed it, and a couple of little situations, it's been fixed. But I would love to, like, talk to somebody about, like, the actual issue because if you give the broken code back to the AI and say, "Fix it," it fixes it. So [laughs], it knows what's wrong. I just, I don't know. Yeah, you still have to know these things.
WILL: You taught at Ladies Learning Code and then HackerYou. Did that help you overcome the imposter syndrome of teaching? I don't know if you knew how big your courses were going to become. But what did the imposter syndrome look like for you during that time, or did you even have it?
WES: To a certain point, yeah. I think everybody has imposter syndrome, and that's good. Because if you're so confident that you're so amazing and blessed at this specific thing, then your head is probably too big, and [chuckles] you probably don't know what you don't know.
But with a lot of my stuff, I'll often just ask people who know better than me. Like, that's a big part of what it is, is you can just consult experts or like, "Hey, what do you think about this?" Or "Is this the best approach?" Or "Here's my code. Do you mind running through it really quickly and see if there's anything that sticks out?" People are often, like, you can pay them, or people are often willing to help, so there's that.
And like, also, you have to just know that this is for the people who enjoy it. Like, I'm not making courses for people who are better developers than I am. I'm making courses for people who like the way that I explain specific things.
And then, like, another thing that probably really helped me is that I have, like, a 100% money back, no time limit on it. And that just makes me feel good about like, hey, like, if this is not actually good, if you do not think that this is good, or if you just don't jive with the way that I explain things, no sweat, you know, here's your money back. You keep going. And that makes me feel a lot better because it's not like I'm trying to fleece somebody for money and trick them into buying the course. Like, I feel pretty good about it, and if you feel pretty good about it, then we're both happy.
WILL: Yeah, that's amazing because I feel like there's certain things that I would love to get started, but that imposter syndrome and also, like, the opinionated developers out there, like, you know what we are talking about. But it just seems like it would be hard to start with that. So, that's why I asked that question.
WES: Yeah, I've learned that, like, a lot of these people that have these extremely harsh opinions are, A, they lack all the social skills, so there's something with them that they just don't have it. And you have to understand that that's just something that they have, and they may not be trying to be a jerk. That's just kind of the way they are.
And if people are overly opinionated, it's usually because they're, like, covering for their own insecurity of what they want, not always. But a lot of times, I feel pretty good about people telling me, "Oh, you could do it this way," or "No, why are you doing it this way?" Like, I feel pretty confident in my skillset, but I also am always willing to learn and always willing to be corrected and learn new tips and techniques because that's how you get better.
So, the people that are constantly being angry online and throwing around opinions and saying things are garbage, that's very scary for beginners because they think, oh, like, am I learning the wrong thing? I don't want to waste my time here. Like, am I going to lose my job if I don't learn it? And the reality is it's not that cut and dry, you know, it's a lot more easygoing. So, I try to convey that as well. And I don't put too much into these silly people who get really angry at semicolons or something silly like that.
WILL: That's good advice. That's good advice. Because I think there's been some stuff that I want to do, that's held me back. So, that's really good advice. I appreciate it.
WES: Yeah, just do it, like, you never know. Like, if someone's calling you out for putting yourself out there, like, that's a really big jerk thing to do. And I've called people out as well. Like, I don't get it as much anymore, and that probably has to do something with the fact that I've sort of established myself. But several times in the early days, people would be, like, mean. And I would just be like, "Hey, like, just call people out, like, nicely, but, like, hey, you don't have to be mean about it. I'm just trying to share what I've learned here." And that usually gets them.
VICTORIA: Yeah. It's like, what are your intentions with providing this feedback to me right now? Like, are you trying to help? [laughs] Because it doesn't really feel that way. No, I appreciate that. And, you know, I'm also...part of thoughbot we've traditionally put out a lot of trainings, a lot of, you know, Upcase things on Ruby on Rails. And with my team, I'm looking at putting together some workshops around site reliability engineering and things that would be helpful for developers to learn how to instrument their code.
So, speaking of advice that you would give to maybe any engineer or any developer who's looking to share their expertise, or put together a course, or even a blog post about what they're learning, like, what would you advise someone who's trying to create content like that?
WES: Put it out there. When I released my Sublime textbook, keep in mind, a book about Sublime Text that's a pretty niche thing, there was already two books out there on that exact topic. And a couple of times, I was like, is anyone going to want this? There's already one of them out there. Should I even write this blog post? There's 70 out there. And just keep in mind that, like, the way that you explain it or the specific issue that you hit or whatever, it might be the way that really clicks for somebody else.
So, I always tell people just put it out there. You never know what is going to come of it. It's likely going to be a net positive for the web development world in general. So, don't ever feel that you shouldn't put yourself out there because you might not know absolutely everything about it. Just share what you know. That's how we get better.
VICTORIA: Yeah, I had a friend many years ago who we used to organize Women Who Code, and she said, "Do you think anyone would really be interested in, like, a cloud series of these topics?" And we're like, "Oh, maybe not." In the first event we had around Cloud for Women Who Code, I think, like, 30 people showed up. So yeah, put it out there, see who's interested, and go from there. That's great advice.
WES: Yeah. On the same topic, is like, 'Will somebody want this?' is a huge question. People always come to me and they say, "Hey, do you think if I make a course on X, Y, and Z, will people buy it?" Or they'll put out a tweet that says, "Hey, would you buy this, or would you attend this?" And everybody's always like, "Yes, yes, yes," just trying to be supportive. But at the end of the day, you have to test these things by actually putting things out there.
So, for me, how did I know the first thing I wanted to do was Sublime Text? It's because I put out blog posts on probably 20 different topics, and those were the posts that just hit really well, and they really resonated with people. So, like, if you're trying to understand, like, will it work? You can test those things very easily by putting a YouTube video up, putting a couple of TikToks up, write a blog post, put a couple of tweets up. And, eventually, when you put out enough content, you're going to start to see a trend in a specific area, and that will give you a little bit of guidance as to what it is you should pursue.
WILL: That's great advice. Have you had any hurdles through your journey of online courses and the podcast, releasing podcasts?
WES: I feel like I'm always, like, course-correcting. I've never had, like, a flop. And, like, I've had courses I've shelved. Early on, after Sublime Text, I was like, I'm going to do a gulp course, which was, like, a build tool for JavaScript. And then webpack started to get a little bit more popular, and I was like, okay, well, maybe I'll just make a tooling course in general, but I was like, ah, that's kind of way too big. And after, like, working on it for a couple of weeks, I was like, you know what? Like, I'm going to scrap this because I don't think that this is it, you know?
So, just kind of always listening, always feedback, and course correcting is probably my biggest advice there for the hurdles. There's stuff that comes up, like people stealing the courses. And, like, I had early access to one of my courses once, and somebody bought it with a stolen credit card and then put it up online. And, like, that's incredibly deflating because now there's your unfinished course out there before people could even buy it. And people will spam you and run DDoS attacks on you and lots of stuff like that, where people are just...they see that. And that's always really frustrating, but you kind of roll with the punches and kind of keep working on it.
WILL: Wow. That's interesting. So, someone bought the course with a stolen credit card, and they released it early to the public?
WES: Yeah. I don't know if I should say this or not, but there's a very large Russian website that is...literally, they have a paid membership, and the whole point is that you pay for the membership, and you get access to every course ever. Sometimes, they use paid cards, and sometimes it's stolen cards.
WILL: Oh, wow.
WES: They just buy every course by every creator, and they put it up on this thing. And you can get it for free for the first, like, three months, and then it goes under their paid thing. And that stuff was really frustrating to me at first, but I've learned just to...the web development community is incredibly supportive, and I have nothing to complain about, really. People who do want to support you will support you.
WILL: That's neat. That's really neat.
VICTORIA: Yeah. And speaking of the web development community, are there events or conferences you go to or different, like, places where you really connect to the web development community?
WES: Yeah. Conferences are fantastic. I really enjoy that those are back. So, React Miami is coming up. It's going to be a really fun one. But I go to a couple of conferences a year, and I usually speak at them. We also do meetups every now and then with Syntax where we'll rent out a bar and get a bunch of merch and stickers and just kind of chit-chat with everybody. That's honestly, my favorite is just going to a meetup where there's no talks or anything. It's just a bunch of interesting people in a room, and you get to talk with all kinds of cool people.
VICTORIA: That's fun, yeah. I've been organizing a monthly CTO lunch down here in San Diego, and it's like, we just get together and have lunch and, like, talk about different stuff [laughs].
WES: Love it.
VICTORIA: And it's really great. I used to organize those meetups with, like, two speakers, and then there was pizza and drinks and all that stuff to coordinate. And it's a lot easier just to kind of get everyone together and talk, which is what most people want anyways [laughs].
WES: I'm always bummed when you go to a conference and the, like, after party has, like, a band or, like, music is bumping. It's like, I just want a quiet room with some drinks that I can talk to people and have a good conversation, you know.
VICTORIA: Yeah, I go to a lot of events, a lot of conferences, a lot of events. I see a lot of different types of stickers and design and anything like that. So, I thought it might be fun to ask you about that. Like, you know, I don't know if you can share us a link of what your stickers look like. Or how do you make it fun and interesting for you to have that kind of thing to hand out?
WES: Once a year, once a year and a half, I make these sticker packs, and they have, I don't know, 15 or so stickers in it, various web development things. And it's a pretty big production because I get a lot of them done. So, the last time I sold 11,000 packages of them, and I sell them for five bucks shipped anywhere in the world. And it's, like, a huge logistical hurdle to try to make that happen because there's so much to it.
But it's really fun for me because I'm able to do something that is fun. A lot of people aren't able to go to conferences and get the stickers, and they want that. They want to feel part of a community, and everybody loves getting a pack of stickers. So, I've been doing that for probably seven years now. Just right now, I'm just doing a little bit of research into what the next pack is going to look like and some new materials that have hit the sticker world [laughs], so it's pretty fun.
The website is bos.af with, like, bos.af. That might not work anymore. I got note that the people who I registered the dot AF domain name from have lost contact with the Afghanistan domain authorities. So, it's possible I might just lose that domain name, which is a bit of a bummer because that's a really cool domain name, but that's where I sell them once a year. And, usually, they're only for sale for about a week, and then they're done selling, and I do the whole shipping thing around the world.
VICTORIA: Wow. I did not think you were going to say, "Sold 11,000" sticker packs. That's really impressive [laughs].
WES: Yeah, it's crazy. It's almost 200,000 stickers if you think about it.
VICTORIA: That's, like, a major production. I bet when you got into web development, you didn't think you'd also have a side hustle making stickers off of it [laughs].
WES: Yeah, it's crazy. Like, I was, like, sending them out with stamps, and it's just like, I was holding in one single hand, like, $4,000 worth of stamps. It's crazy to think.
VICTORIA: I can imagine going into the post office and being like, "I need $4,000 worth of stamps [laughs]," but that's great.
WES: The first time I just started dumping them into mail, I would cross the border because I'm in Canada, and the USPS is much cheaper. So, we would just cross the border, and then we just dumped them into mailboxes. And it was okay. But they were like, "Hey, like, next time, just, like, bring it to the post office, and, like, we have processes for this much mail." I don't mail them out of the U.S. anymore because there's some weird stuff around crossing the border. You have to do all this crazy stuff. But it's pretty crazy buying that many stamps. They usually look at you funny when you go to the store and say, "Hey, I need this many stamps."
[laughter]
VICTORIA: They're like, "Well, what are you doing?" [laughs] Well, great. I think, let's see, we're coming up at the end of our time here. So, are there any final takeaways for our listeners today?
WES: Check me out. I'm at wesbos.com; podcast is at syntax.fm if you want to give it a listen. We post three times a week. And I just encourage everyone keep learning, keep excited about web development because it's a pretty cool industry.
VICTORIA: Awesome. Thank you so much for taking time to chat with us today. I really enjoyed our conversation.
You can subscribe to the show and find notes along with a complete transcript for this episode at giantrobots.fm. If you have questions or comments, email us at hosts@giantrobots.fm. And you can find me on X, formerly known as Twitter, @victori_ousg.
WILL: And you could find me on X @will23larry.
This podcast is brought to you by thoughtbot and produced and edited by Mandy Moore. Thanks for listening. See you next time.
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Jan 23, 2024 • 29min
thoughtbot's Incubator Program Mini Session 3: Episode 08: Goodz with Mike Rosenthal and Chris Cerrito
If you missed the other episodes with thoughtbot Incubator Program partcipants and founders Mike Rosenthal and Chris Cerrito of Goodz, you can listen to the first episode and the second episode, and the third episode to catch up!
Lindsey Christensen and Jordyn Bonds catch up with the co-founders of Goodz, Chris Cerrito and Mike Rosenthal, where they share insights from their journey during the Incubator program, including the usefulness of the application process in aligning their vision and the challenges and benefits of user interviews and the importance of not overreacting to single user feedback and finding a balance in responding to diverse opinions. They reveal the varied reactions of users to Goodz's product, highlighting the different market segments interested in it.
As the Incubator program nears its end for Goodz, Chris and Mike reflect on their achievements and future plans. They've made significant progress, such as setting up an e-commerce site and conducting successful user interviews. The co-founders discuss their excitement about the potential of their product and the validation they received from users. Mike mentions the importance of focusing on B2B sales and the possibility of upcoming events like South by Southwest and Record Store Day.
Transcript:
LINDSEY: Thanks for being here. My name's Lindsey. I head up marketing at thoughtbot. If you haven't joined one of these before, we are checking in with two of the founders who are going through the thoughtbot Startup Incubator to learn how it's going, what's new, what challenges they're hitting, and what they're learning along the way.
If you're not familiar with thoughtbot, we're a product design and development consultancy, and we hope your team and your product become a success. And one way we do that is through our startup incubator.
So, today, we are joined by our co-founders, Mike Rosenthal and Chris Cerrito, Co-Founders of the startup Goodz. And we also have another special guest today, Danny Kim, from the thoughtbot side, Senior Product Manager at thoughtbot. So, I think, to start off, we'll head over to the new face, the new voice that we've got with us today. Danny, tell us a little bit about your role at thoughtbot and, specifically, the incubator.
DANNY: Yeah, sure. First of all, thanks for having me on, and thanks for letting me join in on all the fun. I'm one of the product managers at thoughtbot. I typically work for the Lift-Off team. We usually work with companies that are looking to, like, go into market with their first version MVP. They might have a product that exists and that they're already kind of doing well with, and they kind of want to jump into a new segment. We'll typically work with companies like that to kind of get them kicked off the ground.
But it's been really awesome being part of the incubator program. It's my first time in helping with the market validation side. Definitely also, like, learning a lot from this experience [laughs] for myself. Coming at it specifically from a PM perspective, there's, like, so much variation usually in product management across the industry, depending on, like, what stage of the product that you're working in. And so, I'm definitely feeling my fair share of impostor syndrome here.
But it's been really fun to stretch my brand and, like, approach problems from, like, a completely different perspective and also using different tools. But, you know, working with Mike and Chris makes it so much easier because they really make it feel like you're part of their team, and so that definitely goes a long way.
LINDSEY: It just goes to show everyone gets impostor syndrome sometimes [laughter], even senior product managers at thoughtbot [laughter]. Thanks for that intro. It's, you know, the thoughtbot team learns along the way, too, you know, especially if usually you're focused on a different stage of product development.
Mike, it's been only three weeks or a very long three weeks since last we checked in with you, kind of forever in startup time. So, I think the last time, we were just getting to know you two. And you were walking us through the concept, this merging of the digital and physical world of music, and how we interact with music keepsakes or merchandise. How's my pitch?
MIKE: Good. Great. You're killing it.
[laughter]
LINDSEY: And has anything major changed to that concept in the last three weeks?
MIKE: No. I mean, I can't believe it's only been three weeks. It feels like it's been a long time since we last talked. It's been an intense three weeks, for sure. No, it's been going really well. I mean, we launched all sorts of stuff. I'm trying to think of anything that's sort of fundamentally changed in terms of the plan itself or kind of our, yeah, what we've been working on. And I think we've pretty much stayed the course to sort of get to where we are now. But it's been really intensive.
I think also having sort of Thanksgiving in there, and we were kind of pushing to get something live right before the Thanksgiving break. And so, that week just felt, I mean, I was just dead by, you know, like, Thursday of Thanksgiving. I think we all were. So, it's been intense, I would say, is the short answer. And I'm happy, yeah, to get into kind of where things are at. But big picture, it's been an intense three weeks.
LINDSEY: That's cool. And when we talked, you were, you know, definitely getting into research and user interviews. Have those influenced any, you know, changes along the way in the plan?
MIKE: Yeah. They've been really helpful. You know, we'd never really done that before in any of the sort of past projects that we've worked on together. And so, I think just being able to, you know, read through some of those scripts and then sit through some of the interviews and just kind of hearing people's honest assessment of some things has been really interesting. I'm trying to think if it's materially affected anything.
I guess, you know, at first, we were, like, we kind of had some assumptions around, okay, let's try to find, like...adult gift-givers sounds like the wrong thing, adults who give gifts as, like, a persona. The idea that, like, you know, maybe you gift your siblings gifts, and then maybe this could be a good gift idea. And I think, you know, we had a hard time kind of finding people to talk in an interesting way about that. And I think we've kind of realized it's kind of a hard persona to kind of chop up and talk about, right, Chris? I don't know [crosstalk 04:55]
CHRIS: Well, it also seemed to, from my understanding of it, it seemed to, like, genuinely stress out the people who were being interviewed...
MIKE: [laughs]
CHRIS: Because it's kind of about a stressful topic [inaudible 05:03], you know, and, like, especially --
LINDSEY: Why? [laughs]
CHRIS: Well, I think, I don't know, now I'm making assumptions. Maybe because we're close to the holiday season, and that's a topic in the back of everybody's mind. But yeah, Danny, would you disagree with that? Those folks, from what we heard, seemed like they were the most difficult to kind of extract answers from. But then, if the subject changed and we treated them as a different persona, several of those interviews proved to be quite fruitful. So, it's just really interesting.
DANNY: Yeah. It really started, like, you kind of try to get some answers out of people, and there's, like, some level of people trying to please you to some extent. That's just, like, naturally, how it starts. And you just, like, keep trying to drill into the answers. And you just keep asking people like, "So, what kind of gifts do you give?" And they're just like, "Oh my goodness, like, I haven't thought about buying gifts for my sister in [laughs], like, you know, in forever. And now, like [laughs], I don't know where to go." And they get, like, pretty stressed out about it.
But then we just kind of started shifting into like, "All right, cool, never mind about that. Like, do you like listening to music?" And they're like, "Yes." And then it just kind of explodes from there. And they're like, "This last concert that I went to..." and all of this stuff. And it was much more fruitful kind of leaning more towards that, actually, yeah.
LINDSEY: That's fascinating. I guess that speaks to, especially at this stage and the speed and the amount of interviews you're doing, the need for being, like, really agile in those interviews, and then, like, really quickly applying what you're learning to making the next one even more valuable.
MIKE: Yeah. And I think, you know, like, we launched just a little sort of website experiment or, like, an e-commerce experiment right before Thanksgiving. And I think now, you know, we're able to sort of take some of those learnings from those interviews and apply them to both sort of our ad copy itself but also just different landing pages in different language on the different kind of versions of the site and see if we can find some resonance with some of these audience groups. So, it's been interesting.
LINDSEY: Are you still trying to figure out who that early adopter audience is, who that niche persona is?
MIKE: I think we --
CHRIS: Yes, we are. I think we have a good idea of who it is. And I think right now we're just trying to figure out really how to reach those people. That, I think, is the biggest challenge right now for us.
MIKE: Yeah. With the e-commerce experiment it was sort of a very specific niche thing that is a little bit adjacent to what I think we want to be doing longer term with Goodz. And so, it's weird. It's like, we're in a place we're like, oh, we really want to find the people that want this thing. But also, this thing isn't necessarily the thing that we think we're going to make longer term, so let's not worry too hard about finding them. You know what I mean? It's been an interesting sort of back and forth with that.
CHRIS: From the interviews that we conducted, you know, we identified three key personas. Most of them have come up, but I'll just relist them. There's the sibling gift giver. There was the merch buyers; these are people who go to concerts and buy merchandise, you know, T-shirts, albums, records, things along those lines to support the artists that they love. And then the final one that was identified we gave the title of the 'Proud Playlister'. And these are people who are really into their digital media platforms, love making playlists, and love sharing those playlists with their friends.
And that, I would say, the proud playlister is really the one that we have focused on in terms of the storefront that we launched, like, the product is pretty much specifically for them. But the lessons that we're learning while making this product and trying to get this into the hands of the proud playlisters will feed into kind of the merch buyers.
MIKE: Yeah. And I think that, you know, it's funny, like, this week is kind of a poignant week for this, right? Because it's the week that Spotify Wrapped launched, right? So, it's like, in the course of any given year, it's probably, like, the one week of the year that lots and lots and lots of people are thinking about playlists all of a sudden, so trying a little bit to see if we can ride that wave or just kind of dovetail with that a bit, too.
LINDSEY: Absolutely. And do you want to give just, like, the really quick reminder of what the product experience is like?
MIKE: Oh yeah [laughs], good call.
CHRIS: This is a prototype of it. It's called the Goodz Mixtape. Basically, the idea is that you purchase one of these from us. You give us a playlist URL. We program that URL onto the NFC chip that's embedded in the Good itself. And then when you scan this Good, that playlist will come up. So, it's a really great way of you make a playlist for somebody, and you want to gift it to them; this is a great way to do that. You have a special playlist, maybe between you and a friend or you and a partner. This is a good way to commemorate that playlist, turn it into a physical thing, give that digital file value and presence in the physical world.
LINDSEY: Great. Okay, so you casually mentioned this launch of an e-commerce store that happened last week.
MIKE: It didn't feel casual.
LINDSEY: Yeah. Why [laughter]...[inaudible 09:45] real casual. Why did you launch it? How's it going?
MIKE: I don't know. Why did we launch it? I mean, well, we wanted to be able to test some assumptions. I think, you know, we wanted to get the brand out there a little bit, get our website out there, kind of introduce the concept. You know, this is a very...not that we've invented this product category, but it is a pretty obscure product category, right? And so, there's a lot of sort of consumer education that I think that has to go on for people to wrap their heads around this and why they'd want this.
So, I think we wanted to start that process a little bit correctly, sort of in advance of a larger launch next year, and see if we could find some early community around this. You know, if we can find those core people who just absolutely love this, and connect with it, and go wild around it, then those are the people that we're going to be able to get a ton of information from and build for that persona, right? It's like, cool, these are the people who love this. Let's build more for them and go find other people like this. So, I think, for us, it was that.
And then, honestly, it was also just, you know, let's test our manufacturing and fulfillment and logistics capabilities, right? I mean, this is...as much as we are a B2B, you know, SaaS platform or that's what we envision the future of Goodz being, there is a physical component of this. And, you know, we do have that part basically done at this point. But we just, you know, what is it like to order 1,000 of these?
What is it like to put these in the mail to people and, you know, actually take orders? And just some of that processing because we do envision a more wholesale future where we're doing, you know, thousands or tens of thousands of this at a time. And so, I think we just want to button up and do some dry runs before we get to those kinds of numbers.
CHRIS: I think it also it's important to remember that we are talking in startup time. And while this last week seems like an eternity, it's been a week [laughs] that we've had this in place. So, we're just starting to learn these things, and we plan on continuing to do so.
MIKE: Yeah. But I think we thought that getting a website up would be a good way to just start kind of testing everything more.
LINDSEY: Great. Danny, what went into deciding what would be in this first version of the site and the e-commerce offering?
DANNY: I mean, a lot of it was kind of mostly driven by Chris and Mike. They kind of had a vision and an idea of what they wanted to sell. Obviously, from the user interviews, we were starting to hone in a little bit more and, like, we had some assumptions going into it. I think we ultimately did kind of feel like, yeah, I think, like, the playlisters seem to be, like, the target market. But just hearing it more and hearing more excitement from them was definitely just kind of like, yeah, I think we can double down on this piece.
But, ultimately, like, in terms of launching the e-commerce platform, and the storefront, and the website, like, just literally looking at the user journey and being like, how does a user get from getting onto a site, like, as soon as they land there to, like, finishing a purchase? And what points do they need? What are the key things that they need to think through and typically will run into? And a lot of it is just kind of reflecting on our own personal buyer behavior.
And, also, as we were getting closer to the launch, starting to work through some of those assumptions about buyer behavior. As we got there, we obviously had some prototypes. We had some screenshots that we were already working with. Like, the design team was already starting to build out some of the site. And so, we would just kind of show it to them, show it to our users, and just be like, hey, like, how do you expect to purchase this? Like, what's the next step that you expect to take? And we'd just kind of, like, continue to iterate on that piece. And so...
LINDSEY: Okay. So you were, before launching, even showing some of those mockups and starting to incorporate them in the user interviews.
DANNY: Yeah, yeah. I mean, we tried to get it in there in front of them as early as possible, partially because, like, at some point in the user interviews, like, you're mostly just trying to first understand, like, who are our target customers? Who are these people? And we have an assumption of or an idea of who we think they are. But really, like, once you start talking to people, you kind of are, like, okay, like, this thing that I thought maybe it wasn't so accurate, or, like, the way that they're kind of talking about these products doesn't 100% match what I originally walked into this, you know, experiment with. And so, we, like, start to hone in on that.
But after a certain point, you kind of get that idea and now you're just like, okay, you seem to be, like, the right person to talk to. And so, if I were to show you this thing, do you get it, right? Like, do you understand what's happening? Like, how to use this thing, what this product even does. And then also, like, does the checkout experience feel intuitive for you? Is it as simple as, like, I just want to buy a T-shirt? So, like, I'm just going to go by the T-shirt, pick a size, and, you know, move on with my life. Can we make it as seamless as that?
LINDSEY: And so, you mentioned it's only been a week since it's been live. Have you been able to learn anything from it yet? And how are you trying to drive people to it today?
MIKE: Yeah, I think we learned that sales is hard [laughs] and slow, and it takes some time. But it's good, and we're learning a lot. I mean, it's been a while since I've really dug deep in, like, the analytics and marketing kind of metrics. And so, we've got all the Google Tag Manager stuff, you know, hooked up and just, you know, connecting with just exploring, honestly, like the TikTok advertising platform, and the YouTube Pre-Rolls, and Shorts. And, like, a lot of stuff that I actually, since the last time I was heavily involved in this stuff, is just totally new and different.
And so, it's been super interesting to see the funnel and sort of see where people are getting in the site, where people are dropping off. You know, we had an interesting conversation in our thoughtbot sync yesterday or the day before, where we were seeing how, you know, we're getting lots of people to the front page and, actually, a good number of people to the product page, and, actually, like, you know, not the worst number of people to the cart. But then you were seeing really high cart abandonment rates.
And then, you know, when you start Googling, and you're like, oh, actually, everybody sees very high cart abandonment rates; that's just a thing. But we were seeing, like, the people were viewing their cart seven or eight times, and they were on there sort of five times as long as they were on any other page. And it's this problem that I think Danny is talking about where, you know, we need to actually get a playlist URL. This gets into the minutiae of what we're building, but basically like, we need to get them to give us a playlist URL in order to check out, right?
And so, you sort of have to, like, put yourself back in the mind of someone who's scrolling on Instagram, and they see this as an ad, and they click it, and they're like, oh, that thing was cool. Sure, I will buy one of those. And then it's like, no, actually, you need to, you know, leave this, go into a different app, find a play...like, it suddenly just puts a lot of the mental strain. But it's a lot. It's a cognitive load, greater than, as you said, just buying a T-shirt and telling what size you want.
So, thinking through ways to really trim that down, shore up the amount of time people are spending on a cart. All that stuff has been fascinating. And then just, like, the different demographic kind of work that we're using, all the social ads platforms to kind of identify has been really interesting. It's still early.
But, actually, like, Chris and I were just noticing...we were just talking right before this call. Like, we're actually starting to get, just in the last 12 hours, a bunch more, a bunch, but more people signing up to our email newsletter, probably in the last 12 hours that we have in the whole of last week. Yeah, I don't know, just even that sort of learning, it's like, oh, do people just need time with a thing, or they come back and they think about it?
CHRIS: Yeah. Could these people be working on their playlists? That's a question that I have.
MIKE: [chuckles] Yeah, me too.
CHRIS: It's like, you know, I'm making a playlist to drop into this product. It's really interesting. And I think it gives insight to kind of, you know, how personal this product could be, that this is something that takes effort on the part of the consumer because they're making something to give or to keep for themselves, which is, I think, really interesting but definitely hard, too.
DANNY: Yeah. And I also want to also clarify, like, Chris just kind of said it, like, especially for viewers and listeners, like, that's something that we've been hearing a lot from user interviews, too, right? Like, the language that they're using is, like, this is a thing that I care about. Like it's a representation of who I am. It's a representation of, like, the relationship that I have with this person that I'm going to be giving, you know, this gift to or this playlist to, specifically, like, people who feel, like, really passionate about these things. And, I mean, like, I did, too.
Like, when I was first trying to, like, date, my wife, like, I spent, like, hours, hours trying to pick the coolest songs that I thought, you know, were like, oh, like, she's going to think I'm so cool because, like, I listen to these, like, super low-key indie rock bands, and, like, you know, so many more hours than she probably spent listening to it. But that's [laughs] kind of, like, honestly, what we heard a lot in a lot of these interviews, so...
LINDSEY: Yeah, same. No, totally resonates. And I also went to the site this week, and I was like, oh damn, this is cool. Like, and immediately it was like, oh, you know, I've got these three, you know, music friends that we go to shows together. I'm like, oh, this would be so cool to get them, you know, playlists of, like, music we've seen together. So, you might see me in the cart. I won't abandon it.
MIKE: Please. I would love that.
CHRIS: Don't think about it too long if you could -- [laughter].
LINDSEY: I won't. I won't.
CHRIS: I mean, I would say I'm really excited about having the site not only as a vehicle for selling some of these things but also as a vehicle for just honing our message. It's like another tool that we have in our arsenal. During the user interviews themselves, we were talking in abstract terms, and now we have something concrete that we can bounce off people, which is, I think, going to be a huge boon to our toolset as we continue to refine and define this product.
MIKE: Yeah, that's a good point.
LINDSEY: Yeah. You mentioned that they're signing up for, like, email updates. Do you have something you're sending out? Or are you kind of just creating a list? Totally fine, just building a list.
MIKE: [laughs] No.
CHRIS: It's a picture of Mike and I giving a big thumbs up. That's, yeah. [laughter]
MIKE: No. But maybe...that was the thing; I was like, oh great, they're signing up. And I was like, gosh, they're signing up. Okay [laughter], now we got to write something. But we will.
LINDSEY: Tips to making your playlist [crosstalk 19:11] playing your playlist --
MIKE: Yeah [crosstalk 19:13].
CHRIS: Right. And then also...tips to making your playlists. Also, we're advancing on the collectible side of things, too. We are, hopefully, going to have two pilot programs in place, one with a major label and one with a major artist. And we're really excited about that.
LINDSEY: Okay. That's cool. I assume you can't tell us very much. What can you tell us?
MIKE: Yeah. We won't mention names [chuckles] in case it just goes away, as these things sometimes do. But yeah, there's a great band who's super excited about these, been around for a long time, some good name recognition, and a very loyal fan base. They want to do sort of a collection of these. I think maybe we showed the little...I can't remember if we showed the little crates that we make or not, but basically, [inaudible 19:52]
LINDSEY: The last time, yeah.
MIKE: So, they want to sell online a package that's, you know, five or six Goodz in a crate, which I think will be cool and a great sort of sales experiment. And then there's a couple of artists that we're going to do an experiment with that's through their label that's more about tour...basically, giving things away on tour. So, they're going to do some giveaway fan club street team-style experiments with some of these on the road.
So, first, it's ideal, provided both those things happen, because we definitely want to be exploring on the road and online stuff. And so, this kind of lets us do both at once and get some real learnings as to kind of how people...because we still don't know. We haven't really put these in people's hands yet. And it's just, like, are people scanning these a lot? Are they not? Is this sort of an object that's sitting on their shelf? Is it...yeah, it's just, like, there's so much we're going to learn once we get these into people's hands.
LINDSEY: Do you have the infrastructure to sort of see how many times the cards are scanned?
CHRIS: Mm-hmm. Yep, we do.
MIKE: Yeah. So, we can see how many times each one is scanned, where they're scanned, that sort of thing.
CHRIS: Kind of our next step, and something we were just talking about today with the thoughtbot team, is building out kind of what the backend will be for this, both for users and also for labels and artists. That it will allow them to go in and post updates to the Goodz, to allow them to use these for promotion as people, you know, scan into them to give them links to other sites related to the artists that they might be interested in before they move on to the actual musical playlist. So, that's kind of the next step for us. And knowing how users use these collectibles, both the kind of consumer Good and the artist collectibles that we were just talking about, will help inform how we build that platform.
LINDSEY: Very cool. And right now, the online store itself that's built in Shopify?
MIKE: Yeah. The homepage is Webflow that Kevin from the thoughtbot team really spearheaded in building for us. And then, yeah, the e-commerce is Shopify.
LINDSEY: Y'all have been busy.
MIKE: [laughs]
LINDSEY: Is there anything else maybe that I haven't asked about yet that we should touch on in terms of updates or things going on with the product?
MIKE: I don't know. I don't think so. I think, like Chris said, I mean, we're just...like, now that the site has kind of stood up and we're really switched over to kind of marketing and advertising on that, definitely digging into the backend of this kind of SaaS platform that's going to probably be a big focus for the rest of the, you know, the program, to be honest. Yeah, just some other things we can do on the next front that could eventually build into the backend that I think can be interesting. No, I guess [laughs] the short answer is no, nothing, like, substantial. Those are the big [crosstalk 22:26]
LINDSEY: Yeah. Well, that was my next question, too, which is kind of like, what's next, or what's the next chunk of work? So, it's obviously lots more optimization and learning on the e-commerce platform, and then this other mega area, which is, you know, what does this look like as a SaaS solution? What's the vision? But also, where do we start? Which I'm sure, Danny, is a lot of work that you specialize in as far as, like, scoping how to approach these kinds of projects.
DANNY: Yeah. And it's interesting because, I mean, we were just talking about this today. Like, part of it is, like, we can, like, really dig into, like, the e-commerce site and, like, really nailing it down to get it to the place where it's like, we're driving tons more traffic and also getting as low of a, like, cart abandonment rate as possible, right? But also, considering the fact that this is in the future, like, large-scale vision.
And there's, like, also, like, we're starting to, I think, now iron out a lot of those, like, milestones where we're kind of like, okay, like, we got, like, a short-term vision, which is, like, the e-commerce site. We got a mid-term vision and a potential long-term vision. How do we validate this long-term vision while also still like, keeping this short-term vision moving forward?
And, like, this mid-term vision is also going to, like, help potentially, either, like, steer us towards that long-term or maybe even, like, pivot us, like, into a completely different direction. So, like, where do you put your card, right? Like, how much energy and time do we put into, like, each of these areas? And that's kind of, like, the interesting part of this is starting to talk through that, starting to kind of prioritize, like, how we can maximize on our effort, like, our development and design effort so that things just kind of line up more naturally and organically for our future visioning, so...
MIKE: Yeah. A lot of different things to juggle. I saw there was a question. Somebody asked what the URL is, but I don't seem to be able to [crosstalk 24:10].
LINDSEY: The same question as me. We got to drop the link for this thing.
MIKE: Yeah, getthegoodz.com.
CHRIS: That's G-O-O-D-Z.
LINDSEY: Get in there, folks
MIKE: Yeah, get [crosstalk 24:23].
LINDSEY: And let us know how it goes.
MIKE: Yeah, please [laughs]. Any bugs? Let us know. Yeah. I think that those...yeah, I mean, it's a good point, Danny, in terms of juggling kind of the near-term and longer-term stuff. You know, it's a good kind of reminder our big focus, you know, in the new year is going to be fundraising, right? We're already talking to some investors and things like that.
So, it's like, okay, yes, as you said, we could tweak the cart. We could tweak the e-commerce. Or, like, can we paint the big picture of what the longer-term version of this company is going to be in a way that makes it compelling for investment to come in so that there can be a long-term version of this company? And then we can build those things. So yeah, it's definitely a balance between the two.
LINDSEY: Oh, also, just casual fundraising as well.
[crosstalk 25:06]
MIKE: Yeah, yeah.
LINDSEY: [laughs]
MIKE: But it's hard. It's like, you wake up in the morning. It's like, do I want to, like, write cold emails to investors? Or do I want to, like, look at Google Analytics and, like, tweak ad copy? That's actually more fun. So, yes.
LINDSEY: Yeah, life of the founder, for sure. All right. So, that's getthegoodz (Goodz with a z) .com. Check it out. We'll tune in and see what happens with the e-commerce site, what happens with the SaaS planning the next time that we check in.
But Chris, Mike, Danny, thank you so much for joining today and sharing what's been going on over the last few weeks: the good, the bad, the challenge, the cart abandonment. And, you know, best of luck to you over the next few weeks, and we'll be sure to check in and see how it's going.
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Transcript:
LINDSEY: Thank you to our viewers and listeners. We are catching up once again with one of the startups going through the thoughtbot Incubator. My name is Lindsey Christensen. I'm joined today by Jordyn Bonds, who heads up the thoughtbot incubator, as well as our Co-Founders of Goodz, Chris Cerrito and Mike Rosenthal. Welcome, everybody.
MIKE: Thanks, Lindsey.
LINDSEY: Before we get started, before we put Chris and Mike back in the hot seat, at the top here, Jordyn, we have a special announcement for our viewers and listeners.
JORDYN: Application window is open for session 1 of 2024, folks. You can go to thoughtbot.com/incubator and apply. And Chris and Mike can tell you how easy or hard applying was.
MIKE: It was easy. It was totally easy. It's a very straightforward process.
CHRIS: Yeah, it was way more straightforward than a lot of applications that we've dealt with in the past, for sure.
JORDYN: Ha-ha. And if you've got a business idea that involves software but you haven't gotten anything out there yet, come talk to us. We will help you make sure that it's a good idea and that there are people who might buy it, and maybe get you even a little further than that.
MIKE: We actually have a friend who's considering applying. I'll tell him applications are open. He's worried his idea is not big enough to actually be a business idea, so we'll see.
CHRIS: Even the process of doing the application was really helpful for us because it helped us get aligned on exactly what we were doing, yeah.
JORDYN: I love that. And I found that to be true when I was a founder applying to some of these things, in particular, applying for an SBIR grant was one of the most challenging things that we did, but it was so productive. I was so annoyed by it at the time, and then I cribbed from that thing. It actually sort of forced us to make a business plan [laughs], and then, basically, we ran it, and it was great [laughs].
CHRIS: Yeah. I think that was, for us, that was our point where we were like, "Is this idea fleshed out enough to move forward?" And we were like, "Yes, it is. Let's go. Let's do this."
JORDYN: So, use the application as a forcing function, everybody. It will help you clarify your thinking.
LINDSEY: Yeah. Jordyn, what would you say to Mike's friend who's questioning if their idea is big enough? How do you respond to that sentiment?
JORDYN: That is a fascinating sentiment because I feel like so much more often, I am trying to help founders with the opposite problem where they think this thing is so big that they are not thinking about what step 1 is going to look like. They're just, like, in 10 years, we're going to be the next Amazon, and I'm like, "Maybe [laughter]. Let me help you figure out how to get to that giant vision." So, I don't come across the "Is this big enough to be a business?" question as often. And, I don't know, what would I say? I guess I need the details.
LINDSEY: It could be a perfect fit
MIKE: It could be.
JORDYN: It could be a perfect fit.
LINDSEY: In a way, that's what you're answering, right?
MIKE: Right.
LINDSEY: In some of this work.
MIKE: That is true. So, yeah, you guys would certainly...just thinking through the process we've gone through the last two months, it would definitely help them flesh that out.
LINDSEY: Which is a great segue.
MIKE: Great segue.
LINDSEY: Chris and Mike, we're actually coming up to the end of your incubator time.
CHRIS: It's so sad.
LINDSEY: Can you believe it?
MIKE: It's gone by really fast. I mean, eight weeks is not a long time, but it has gone by very, very fast.
CHRIS: It felt like a very long time in the middle of it.
MIKE: [laughs]
CHRIS: But now that it's over, it feels like a blink that it's coming to a close.
MIKE: I don't know. It's funny. I think we had some note in our retro today that was like, maybe the very end of the year is not the best time to do an accelerator just because you have, like, the holidays kind of jumping in here in the end. So, that might have helped make it feel like a... I feel like the end of the year always feels like a rush anyway. So, I think just life gets a little bit busier this time of year, too, but yeah.
CHRIS: Yeah, my gingerbread man decorating game is, like, really down this season because we've been so busy. Tragic.
LINDSEY: Chris, can you remind our viewers and listeners who might not be familiar what was the idea that you and Mike have been exploring with the incubator or, like, what did you come in with?
CHRIS: So, with Goodz, what we're trying to do is make little, physical collectibles objects that connect back to the digital content that a user loves. The idea being that today, we are awash in these digital files, links, so many things on our desktops, on our phones, on our devices, and it's really hard to tell which part of those are really, really important to us. So, by giving them a presence in the physical world, that denotes that's something that's really important, worth keeping, worth sharing, and showing off to your friends and family.
And to start this off, mostly because Mike and I are both kind of music nerds, we're starting off with a music focus, but at some point, we're hoping to move into other realms, too.
LINDSEY: And a lot of the incubator, as repeat listeners will know, is focused on really kind of evolving user interviews all the way through and narrowing in on, you know, a core audience, a core market. Mike, how has that evolution been? I think the last time we chatted was around three weeks ago. What has the latest iteration of user interviews looked like in terms of the people you're talking to and even what you're asking them?
MIKE: It's been a really fascinating process. I mean, I'm trying to think of where we were exactly the last time we talked to you, but I think we'd probably just launched the e-commerce site that we had been experimenting with putting up.
LINDSEY: Yeah, exactly.
MIKE: And so, and we really then started cranking on user interviews kind of once that was live. And so, moving away from the conceptual and more into like, "Okay, share your screen. Here's the link. Like, tell me what you think is going on here," and really sort of getting users who had never, you know, never heard our pitch, never been involved with us to sort of try to wrap their heads around what we are and what we're doing just based on that website and trying to sort of make iterative changes based on that.
You know, for me, because I had not done user interviews very much in the past, like, it's very tempting, like, you get sort of 1 note from 1 person in 1 interview, and you're like, oh, we need to change this word. That word didn't make any sense to them, or this thing needs to be blue instead of pink. I think, for me, it was like, all right, how do we kind of synthesize this data in a responsible way?
And it emerged naturally, which, I mean, Jordyn and all thoughtbot folks said that it would, but you sort of started hearing the same things again and again. And we never really got to a place where, like, you heard the exact same things from everyone. But there were enough buckets, I feel like, where we're like, okay, like, this part really isn't making that much sense to people, or, like, we do really need to, you know, structure this differently to convey.
So, it was a bunch of that kind of work over the last three weeks or so and sort of just getting a sense of like, are we conveying our message? It's hard. I mean, it's a new, like, we're not the only people making physical products with NFC chips in them, but it is not the most common, like, product. Like, it is kind of a new category out there. And so, really trying to understand just right off the bat, do people get it? And you get wildly different answers [laughs] as to whether they get it or they don't, which has been fascinating, too.
JORDYN: Yeah. [crosstalk 7:12]
LINDSEY: Chris or Jordyn, anything to add there?
JORDYN: Yeah. You get the best, like, bootcamp in the don't overreact to a single user interview experience in some ways because we [laughs]...it would literally be like, interview in the morning someone says this thing. Interview in the afternoon, someone says the exact opposite thing [laughter]. And you're like, okay [laughs], like, which one of these things are we going to respond to, if either of them?
CHRIS: Yeah. It's hard. As somebody with, like, a strong desire to please, it's hard to reign yourself in and want to change things immediately, but it definitely makes sense to do so in the long run.
MIKE: But yeah, but, I mean, like I said, I do feel like it kind of came down to buckets. It's like, okay, you're that. I can, like, categorize you with all those other people and you with all those other people. And yeah, I hear you. I'm like, yeah, it's tempting to want to please them all.
But I think with this one, we're fighting hard to be like...or we sort of have a philosophy that this product is emphatically not for everyone because, at the end of the day, you get a lot of people who are like, "Wait, you're just putting a link to a streaming playlist on a physical object? Why don't I just text someone the link?" And sometimes that breaks down by age group, like, 18-year-olds being like, "What are you talking about, old man?
LINDSEY: [laughs]
MIKE: Like, why the hell would I do that? It makes no sense." But it sort of skews all over the age ranges. But then there'll be other people who are 18 or 20 years old who are like, "Wow, I never had cassettes when I was growing up," or "I never got to make, you know, mixtapes or CD-Rs for people." And like, you know, so it's, yeah, it's about finding the people who are the early adopters. As Jordyn has said a lot, it's like, we need to find those early adopters and, like, make them love us, and then other people will come later.
CHRIS: I mean, some of the most gratifying moments, I think, are there's been some interviews where people have been so excited that after the interview, they've gone and purchased our products, which is just, like, the coolest feeling ever.
LINDSEY: Wow.
MIKE: Yeah, it's pretty cool.
LINDSEY: Are you open to sharing a little bit more about what those buckets or what those segments look like?
CHRIS: I mean, I think there's folks who outright just get it almost immediately, and I think those people tend to be hardcore music collectors, hardcore music fans, Jordyn and Mike, please feel free to jump in if you disagree with any of this. They just get it right off the bat.
Then I think there's, in my experience, there's another bucket of people who are a little more hesitant, and maybe they wouldn't buy it, but they seemed really excited about the idea of getting one as a gift, which is really interesting. They're like, "I don't know if I'd buy this, but I'd really like to have one." And then there is another segment, like, which Mike just mentioned, of folks who just don't see the value in this whatsoever, which is totally fair.
MIKE: Yeah, totally. I think it's also...I see it almost as, like, a matrix. There's, like, desirability, and, like, technical understanding because people were like, "I technically understand what this is, and I do not want it in my life." Or like, "I get what this is and, oh my God, I have to have that," or like, "I don't really understand what you're talking about, but, man, I love physical stuff. Like, sure I want..." you know, it's like, it goes across those two planes, I think.
JORDYN: I will say that it, I think you alluded to this before, Mike, but, like, we're going to run a whole analysis of...because we did a ton of interviews, and we haven't actually done that, like, sort of data-driven thing of like, are there trends in the demographics somewhere that we're not getting? Because the pattern has not been there. Like, someone will talk to an 18-year-old, you know, at 1:00 p.m. who is just, like, "Why on earth would I ever want this?" And then I, like, you know, will talk to a 21-year-old who is like, "I love this."
And it's like, why? Like, this is the answer. The thing we're trying to get out now is, like, what is the difference between those two people? It's not a demographic thing that we can see from the outside, so what is it instead? But with consumer stuff like this, often, you don't necessarily...you don't need that in such great detail when you're starting. You just kind of, like, throw it out there and see who grabs it, and then you start to build sort of cohorts around that.
And that is kind of what these interviews have shown us is that there are people who will grab it, and that was part of what we were trying to validate. Are there people who Mike and Chris do not know personally who will, like, get this and be psyched about it immediately? And that is, you know, check unequivocally true. Like Chris said, there are people that we were, you know, that we had recruited on this user interviews platform [chuckles] who then just turned around and bought the product because they were so psyched about it. One of the guys I interviewed was like, "Can I invest in your company right now?" Like, during the interview, and I was like, "Maybe?" [laughs]
CHRIS: There was, like, another person who wanted to work for us immediately...
JORDYN: Yes, great.
CHRIS: Which was really interesting and kind of awesome.
JORDYN: Yeah, they're like, "Are you hiring?" You're just like, okay. So, it's validating that there are people all over that spectrum. Like, where those trends lie, though, which is, I think, what you were asking, Lindsey, not as straightforward and in a fascinating way. So, we still have a little more, like, number crunching to do on that, and we may have an answer for you later.
LINDSEY: That's exciting. Exactly. I'm curious: what are the connecting dots between the folks who are really into it, and how might that impact how you approach the business?
MIKE: Yeah, it's hard. It's definitely going to be a niche to start. And so, we got to figure out kind of got to crack the code on how we find those people.
LINDSEY: And, Mike, I think you had also mentioned last time that, you know, you or both of you have a network kind of in the music industry, and you've been floating the idea past some people there. Have you been having more of those conversations over the last few weeks, too?
MIKE: We have, yeah. Well, so yeah, we've had a couple more just kind of straight-up pitch calls versus like, "Hey, there's this cool thing we're doing," and having those people be like, "Cool. Let's do a pilot." And so, they're ordering, you know, 500 or 1,000 units at a time, which is rad.
LINDSEY: Whoa.
MIKE: For the first...yeah.
LINDSEY: Okay, very cool.
MIKE: Yeah. The first two or three of those should happen in January or maybe early February, but yeah, those are done and in production and arriving soon. So, that's really exciting with some cool bands. We won't say the names in case it doesn't [laughs] work out, but it does look like it's going to work out.
LINDSEY: And so, it's specific bands that are creating merch for their fans.
MIKE: Yeah, yeah. So, we're working with one artist manager on a band that he manages, and then we're working with a record label. And they're going to try with a couple of smaller artists. And so, yeah, it's actually really good for us. One is going to be straight-up sales, most likely, and it's, like, selling these things. And the other ones will be given away as kind of promo items on tour artists, which is also a really interesting use case for us, too, that we're excited about and using them as a way to sort of get email addresses and, like, fans engaged and stuff, so...
And then yeah, then I had another conversation, and they want to talk about doing some pilots. So far, like, that side of things is going great. We're sort of 3 for 4 in terms of initial calls leading to pilots right off the bat, which is kind of unheard of from [laughs] my experience.
LINDSEY: Yeah, I'd say so. No, a lot of very good signals.
MIKE: Really good signals. But then we were able to turn some of those into user interview conversations, actually, as well over the course of the last couple of weeks, which has been really helpful, like, talking to manager and label-type people about what they might want out of a software product that is associated with this because we're not just thinking about making physical products but sort of coupling that with an online toolset. And that part, we haven't gotten as far along as we did with the direct-to-consumer e-commerce, but it's been fascinating.
LINDSEY: So, what has been happening with the online shop? As you noted the last time we talked, it was just a baby less than a week-old Shopify site getting, you know, some first hits of people going around maybe putting things in their basket. I'm sure a lot has happened over the last few weeks. What kind of work, what kind of insights have you seen around the site?
CHRIS: We've been, I mean, we've been selling stuff at a slow but steady pace. It's been great because it's enough to, you know, because our product really straddles the line between physical and digital; there's a lot of physical aspects to this that we need to figure out and kind of the level of orders that we've been getting have been really...it's, like, the perfect number to think about fulfillment issues, things like what kind of package does this go in? How do we mail this out? Things along those lines, just very basic, practical questions that needed to be answered.
But yeah, it's been great. We actually, I mean, we hit our goal for the amount of these that we wanted to get in people's hands before Christmas, which is pretty awesome. And we continue now with the lessons learned. I think our plan is to try and make a push for Valentine's Day because these seem like they would be a great Valentine's Day present: make a playlist; share it with your loved one; share it with a friend; share it with somebody you don't like at all. Who knows?
LINDSEY: [laughs]
CHRIS: But yeah, that's kind of our next sales push, we think.
LINDSEY: The hate playlist.
CHRIS: [inaudible 15:40] hate playlist.
MIKE: Yeah, perfect. Real passive-aggressive.
CHRIS: Just Blue Monday, like, by New Order, like, 14 times.
LINDSEY: [laughs] Yeah, every song is just like a sub-tweet...
MIKE: [laughs]
LINDSEY: About something they've done and [inaudible 15:53] Have you updated the site? Like, how do you decide what gets updated on the site? [laughter] Everyone laughed.
MIKE: It was a little haphazard, I would say, there for a minute. But --
CHRIS: We got the site up very, very quickly. And from my perspective, I've been dealing a lot with the physical side of things, just getting great product photos up there, which is, like, something that thoughtbot has actually been super helpful with. You know, everybody on the team is starting to submit photos of their Goodz in the real world and using their Goodz, which is great.
And we continued to update the site with that but also making sure our text made sense, refining copy in response to things that people said during user interviews. The checkout process, the process of adding the URL that we point the Good to that, we did a bunch of experimentation there based on what people were saying during user interviews. So, it has been a little haphazard, but we have made a bunch of changes.
LINDSEY: Jordyn, has there been any experiment, like, structured experimentation around the site or how you're getting people to the site?
JORDYN: Mike actually did a little bit of ad funnel work that I don't think we've, like, even remotely scratched the surface of. So, I wish I could say that was conclusive, but I think we've found a little bit more...here are plenty of sales that are from people that nobody here knows.
MIKE: True.
JORDYN: So, people are finding out about this somehow [laughs]. But I think it's a little bit, like, word-of-mouth sort of chain of events is our sense so far. I wanted to say, though, about the site, we did get what Chris was saying about, like, this experiment was, in part, about fulfillment and figuring out how fulfillment would work and packaging, and not just messaging and not just closing the sale with consumers, but also, just, like, how do you fulfill these?
But one of the really fun things we've managed to do in the last, since we talked last time, which I can't even believe...I feel like this wasn't even a gleam in our eyes for this project, but we managed to get out, like, stood up and out the door, and working in production in the last few weeks is a way for folks to actually assign the URL to their mixtape themselves. Previously, the plan had just been for Chris and Mike to do that, which is fine but a little bit unscalable, right?
CHRIS: That was a huge dream or, like, that was high on our wish list. And we didn't think we'd get to it. And it's been pretty amazing that we have, yeah.
JORDYN: Yeah, so that was one thing that is an update to the site. So, then we had to do a little bit of, like, micro iterating, on, like, the messaging around that. Like, how do you communicate to people? This is, like, a little bit of an abstract challenge, right? Like, here's this object. It's going to point to a digital thing. How do you tell the physical object which digital thing it's pointing to [laughs]?
So, a lot of our recent interviewing has been to sort of get inside the mind of the consumer about how they're thinking about that and how we can best communicate that to them. So that's been a lot of the, like, recent iteration is getting that mechanism stood up and then the messaging around it.
CHRIS: It's also really cool because it adds to the utility of the object itself in the sense that now our Goodz, when a user gets one, they can add a URL to their Good themselves, but they can also change that URL. So, it's much more malleable.
JORDYN: Which is something that in one of our early user interviews was, like, a hot request [laughs], and we were like, "Someday, someday." And it's, you know, I should actually go back to her and be like, "Someday is today."
[laughter]
MIKE: Well, yeah, and just as Chris was saying, it just makes it so much easier to ship these out without having to manually load them, and you could sell them, and yeah, retail outlets, like, it just opens up a lot of opportunities for us for them.
LINDSEY: And Mike mentioned that some of the, like, kind of future looking aspirations for the solution are, you know, how might you figure out the B2B, like, SaaS aspect of it? Jordyn, is that something that's been explored at all at this point, or is it early?
JORDYN: That experiment I just described is actually sort of the link between the two projects. It sort of proves the concept and proves the value in some ways, and it has given us a little bit more visibility into sort of how we're going to execute some of this technical stuff. Like, how easy, how difficult is it going to be? These little experiments all build your confidence around your ability to do those things and what it's going to look like. And so, this experiment absolutely feeds into that question.
But I would say it was really this week where we got to have a really fun brainstorming sort of blue sky conversation about that that I don't think would have been nearly as both creative and blue sky or rooted in reality as it was if we hadn't done these experiments and hadn't talked to so many...we had so much work...we could participate in a conversation like that so much more confidently and creatively because all of us had a lot more shared context.
So, we really got to dream big, like, what is a SaaS platform built around these physical objects? And I don't want to, you know, I'm not going to give it away at this moment because we had a lot of, like, really cool ideas. It's one part talking to the B2B customer, which, you know, you mentioned earlier, getting what their pain points are, and what they're looking for, what they need, but then also dreaming big about now we understand the technology a little bit more and how it feels to use it. What does that unlock in our brains?
The analogy I used in that conversation and that I use all the time is like, the users of Twitter invented hashtags, right? Twitter did not invent hashtags. And so, hey, everybody out there, newsflash: users invented hashtags, not Twitter or something else, if you didn't realize that Twitter was where those things kind of emerged. But there was just a user behavior that was happening in the wild, and Twitter was just very good at making that easier for them, looking at that and being like, "Oh, hey, is this a thing you all want to do? Here, we'll make that even more useful for you." And it was part of Twitter's early success that they were able to do that.
And so, that was the kind of thinking we were trying to employ here is, like, now that we have these objects and we understand a little bit more how it feels to use them, you get these second order effects. What does that then make us think of? What is then possible to us that we wouldn't have been able to dream of previously because we didn't quite get it? So, that was really happening this week.
LINDSEY: So, as the incubator time wraps up, what are the kind of final activities or deliverables, one, that Goodz wants and you know that they're going to get? What are the parting gifts as we send you out into the next phase?
MIKE: Yeah, well, loads of stuff. I mean, we're getting all that code that [SP] Guillermo and the guys worked on to let people set their own playlist settings. And we've got that up in a GitHub repository now. And we've got a bunch of great design work that's all being handed over, like Chris was saying, product shots that a bunch of the team members were taking, synthesizing all the user interviews. We're actually sort of making some kind of final reports on those, so it's kind of more usable, actionable data for us. The whole website, you know, that didn't exist before. And that will sort of continue to grow as the entire website for Goodz moving forward. I don't know. That's a lot. What else was there, Chris?
CHRIS: As a result of all that, I mean, one of the things I'm most excited about is now we have a small user base who actually has the physical products that, hopefully, we can get them to answer questions. That's huge for what's coming next. Starting the path towards the SaaS platform, too, it's really helped narrow our scope and think about, you know, how to make that successful or if it will be successful.
LINDSEY: Yeah, that sounded like a big discussion this week that I know has been on your minds from the beginning. Wait, the last time, also, you said you were starting to get emails, too. Have you emailed anyone yet, or are you still holding on to them?
MIKE: Oh. No, I still haven't sent a newsletter out [laughs], actually, but we have Mailchimp set up. Yeah, no, we've got a good kind of core of our, yeah, early folks on there. We'll start getting a newsletter out with some sort of regularity. We're building up the socials very slowly just focusing on Instagram mostly right now and trying to get back into that game.
It's been a long time since I've had to do kind of social marketing stuff. And so, it's a lot of work, as it turns out, but we'll get all that cooking. I think this was just such a sprint, working with the thoughtbot folks and trying to get all this stuff done. Before the end of the year, now we can sort of take a breath and start engaging folks in the new year.
LINDSEY: Yeah. Well, so, do you know what you want to do next or what the next phase looks like? Are you going to do fundraising?
MIKE: We're certainly going to continue to have some fundraising conversations. We've had some conversations emerge over the last, you know, since we've been in thoughtbot, again, not the greatest time of year to try to be raising a round. But we're also not, like, desperately, urgently needing to do that right this second. I think, you know, part of it is the fundraising landscape, you know, doesn't look amazing. And we're still sort of building out a lot of traction, and sort of every week, there's some new, exciting thing, or we've got some new, big artists who wants to do something.
So, I think, in some ways, to the extent that we can bootstrap for a little while, I think we will, yeah. So, we will focus on...I'd like to get back to focusing on, like, B2B sales. I'd like to hit the ground in January and just start talking to a bunch of music industry folks.
And thinking ahead a little bit, sort of Q1 and Q2, like, what are the big tentpole events? You know, you got South by Southwest coming up in March. You got Record Store Day in April, or whenever it is. But, you know, there's, like, a bunch of those sorts of things that it's like, oh, let's not let those things suddenly be tomorrow. Like, right now, they're all still two or three/four months out. Like, let's make sure we're queued up for those things and see what happens.
And Jordyn has been giving really good advice on the fundraising side where it's just like, just keep getting cool stuff like that and just do almost like little drip campaigns with funders who aren't maybe giving you the time of day or think it's too early, and just kind of keep going back to them. Like, the best excuse to go back to funders is like, "Hey, we just closed this new thing. We just launched this new thing. We just got this thing working. Hey, we're launching with this major band," Like, enough of those happen, and I think the fundraising will happen more organically. It's a strategy.
CHRIS: I think we're really lucky in the fact that, you know, now, at this point, we're not talking about vapourware, you know, like, these are actual things that actually exist that, like, anybody could go onto our site right now and buy, which is awesome. And because of that, the product's going to continue to evolve, and, hopefully, our sales record will continue to evolve, too.
LINDSEY: Amazing. Well, that feels like a good place to wrap up, maybe. Are you going to hang around in our incubator Slack, the thoughtbot incubator Slack for all our past founders?
MIKE: Yes. Emphatically, yes.
LINDSEY: Okay. We're holding you to it then [laughs].
CHRIS: I'm excited about that. We met with the other founders yesterday for the first time, and it was a really great and interesting conversation. It was cool seeing how diverse all these projects are and how folks are working on things that we had no idea about and how we're working on stuff that they have no idea about, and it was really great. It felt like a good cross-pollination.
MIKE: Agreed.
LINDSEY: That's awesome to hear. Jordyn, any final thoughts?
JORDYN: [inaudible 26:58] out there listening and watching and want to join this community of founders [laughs], don't you want to have office hours with Chris and Mike?
LINDSEY: All right, thoughtbot.com/incubator. You can apply for session 1 of the 2024 incubator program. And yeah, you two, if you have more recommendations, referrals, definitely send them our way. Chris, Mike, Jordyn, thank you so much once again for joining and catching us up on all the exciting developments for Goodz.
MIKE: Thank you.
LINDSEY: A lot of really cool milestones.
JORDYN: I got to say, so much good stuff. And like, you know, just wrapping it all up almost diminishes the impact of any single one of those things that we just talked about, but it's, like, pretty amazing. People out there, apply to the incubator but also go buy yourself a Goodz mixtape. It's cool with playlists on it.
MIKE: It's a good point.
JORDYN: Give it to your BFF. Come on.
LINDSEY: Getthegoodz.com.
MIKE: Getthegoodz.com. Awesome.
LINDSEY: All right. Thanks, Chris and Mike.
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