A successful entrepreneur shares her thoughts on business success and failure.

[M,MH&I] Milk…not so good


(For those of you who don’t follow Sam or FK’s journals, “M,MH&I” stands for “Me, My Health & I.”)

I’ve been having a fair amount of stomach problems over the past 2-3 years, and I’m still messing with my diet to try to figure out what exactly is causing the issues. I know that red meat causes a lot of problems, for instance. However, I’ve finally narrowed one thing down that causes significant issues, and that’s milk.

That sucks. You see, I always thought I had escaped that falling knife because my ancestors lived in Europe. (Hey, don’t say I never learned anything in college… that theory was one of the few things that stuck with me from college, from a really adamant-about-evolution biology professor.) Since I’m adopted, I don’t know my real ancestry; I suppose my ability to tan well should have made me realize that I probably wasn’t descended from the northern European population that can actually digest lactose.

Last week I started noticing that I was having severe cramps, bloating, diarrhea, etc. a few hours after drinking milk. Since I had recently started drinking a different kind of milk, I decided to pick up my regular kind and see if that did the same thing. Unfortunately, last night, it did (and showed itself this morning, which is why I’m writing this blog at 8AM PST.) Well… shoot. I had a bunch of cheese last night, too, but it was Manchego (a variety that is made of sheep’s milk), so I’m not sure if the cheese affected me the wrong way or not. I have some more cheese in the fridge, so I’ll try that experiment tonight and see where it gets me.

Regardless, it’s clear that I will need to cut down on my milk intake significantly, if not cut it out completely. This is disappointing, because I really like cereal with milk, and cereal is a cheap meal that can be made quickly. ๐Ÿ™

My next mission is to figure out exactly what types of red meat are causing the issue. I’ve already been avoiding red meat for quite a while now — I rarely eat it. Steaks seem to trigger the symptoms the most; hamburgers the least. Symptoms include a lot of gas and bloating and sometimes, if the meat isn’t perfect, diarrhea. If anyone has any ideas on that, feel free to post a comment.

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Erica's three simple rules for starting a business


To be fair, this blog post is long overdue. I’ve been asked to write it many times. Obviously, being an entrepreneur and working with hundreds of startup companies and sole proprietorships (who are my primary customers), I’ve watched a lot of businesses start and fail, and some succeed. Most really struggle. And Simpli has its struggles too. I have really long days (I think 32 hours was my maximum working-and-not-sleeping-at-all period, and I hit that last month, with a 30-hour stretch about a year ago at this time as well.) It’s somewhere in the midst of all that exhaustion that I always wonder if it’s worth it to run my own business. And the answer, at least so far, and for me, has always been “Absolutely.”

As Simpli celebrates its fifth anniversary, and I celebrate having built this thing from practically nothing and marvel at how large it’s gotten (I can’t believe we’re about to book our millionth dollar of revenue!), I feel it’s time to start properly documenting the journey I’ve had and my rules for starting a successful business.

I’ll take a step back now and expand on a little bit about why I started Simpli and why the heck I went into web hosting instead of [insert other business here].

Interestingly enough, the signs usually tell you when it’s time to start your own business. I officially claim the “start date” of Simpli as July 27, 2001 — the day that I signed a colocation contract in San Francisco for a company I then called ShakaDesign.com. At that point I had a few friends hosted on a box at my house; I had colocated servers before and even charged for web hosting before, but that was the day when I decided to make it official and say “Hey, I’m actually going to run this as a business and have colocation expenses and whatnot.” The colo expenses were a little over $100 a month, and I figured that if I had enough profit to pay my cable modem bill every month, I’d be doing well.

I worked at Sun Microsystems at the time, having worked for Cobalt Networks (little blue boxes YAY!), which then got bought out by Sun. I loved Cobalt; in fact, Simpli’s first 4 servers were all RaQ4s. I hated working at the Sun monster. (I think I’ve blogged about that plenty… suffice it to say that a corporate culture built on negativity and a complete disdain for the simple-but-elegant Cobalt user interface forced me out of Sun pretty quickly.) I figured that my ticket out of Sun Micro would be web dev and consulting, which was my biggest passion back then. I was an expert PHP developer by that point, so in my free time I hung out in #php on openprojects.net (now freenode) and solicited web hosting clients there.

In May 2002 I finally found my way out of Sun for good, spurred on by one of Sun’s weird programs where they paid employees to leave (I took an option to leave and got paid severance, as I guess they figured giving people the option to leave was cheaper than forced layoffs. And I’m happy to say I QUIT!!!) I also took a web dev contract with a company that would pay me enough to survive the summer. And that’s how it went — Sun Micro was my last “working for the man” position, and I’ve been on my own ever since.

I really thought web dev would be my primary job for years to come and web hosting would continue to be a side job. I figured I’d just host my clients, make a few hundred extra bucks a month, and be happy with that. Except that my web hosting clients were growing… and they wanted to pay less for consulting, but more for web hosting. The beginning of 2004 came around and I did my financial wrap-up for 2003, and here’s what I found:

Income from Simpli: $22,744.00
Income from consulting: $21,447.58

I was taken aback. Here I was spending 70-80% of my time on consulting and only a tiny fraction of my time on hosting, and hosting was making more money. Of course, hosting had more expenses. But I quickly realized that even with more expenses, hosting was the right way to go. Within two months, I had informed all of my consulting clients that my consulting business was shutting its doors and I was going to make Simpli into a pure hosting play. By the end of 2004, I was 100% web hosting, and the company has grown significantly from there, with our first 7-figure year expected in 2007, and 4 full-time employees as of this writing. We have never taken a dime of outside investment — i.e. we have to be profitable every month to stay in business. You’d be surprised how good you get at financial discipline when that’s the case. ๐Ÿ˜‰

So what are my three rules for starting a business? They’re pretty simple, actually, but you’d be surprised how many business owners ignore them. They are:

1) Do something you love. I’ve seen so many start businesses that they didn’t know anything about because they felt like it could make a lot of money, or because they felt like it was the “closest thing” to what they loved, or even because it was just better than the job they had. But the thing to remember is that this is not just a business. This will be your life for a minimum of 2-3 years. Are you absolutely 100% sure that you can wake up in the morning and love what you do? Are you ready and willing to put your heart, soul, passion, love, and work work work work work into this business? If you can commit to this business idea like you’ve never committed to anything in your life, you’ll be fine.

I’ve often heard starting a business being compared to having a child. I commented on this to one friend who is a business owner. He said “Yes, it is similar. But children sleep.

Businesses don’t sleep. Your clients can (and will, especially in the web hosting industry) call at 4AM. Your sleep will be really fragmented. Things will go wrong 24 hours a day. Sometimes you’ll feel like there is a never-ending shitstorm bearing down on you. And you gotta love that. Embrace it. And realize that it will work out, and someday you’ll be rewarded with multi-millions for all this crap you put up with. You must believe that the payoff is worth it.

Which brings me to point #2…

2) Make sure you have an exit strategy. What is your exit strategy? That was the problem I had with my PHP coding career, for instance. It had no exit strategy. It just had me, doing ever-more work for ever-less pay, as Indian outsourcing came into the picture. Yuck. That’s not the kind of life anyone wants to lead!

Build something that you can disentangle yourself from when the time is right. Don’t build something that you will be stuck with for the rest of your life. My father is 62 years old and still a practicing attorney. He says he’s going to work until the day he dies. He can’t retire because he and my mother require their large incomes (Mom runs a title company) to support their lifestyle. Do not put yourself in this position. Build something that you can eventually sell, or IPO with, or hire and train someone else to run. Build something that will be worth it. Remove yourself from the hours=wages shackles.

3) Love your clients. This is actually a bigger point than I can summarize quickly, but the main gist of it is “Don’t be afraid to shower your clients with love.” This is really, more than anything else, the secret to Simpli’s success. I go out there and I support my clients as much as I can. When things go wrong, I take responsibility and explain what we’re doing to correct the problem. When things go right, I get thank-you notes. I enforce with my staff (sometimes to the point where they say “I get it, I get it!”) communicate, communicate, communicate with clients. I am not afraid to say I love my clients. I am not afraid to show my passion for running my business and to let my clients know, over and over again, that I am fighting for them and their success with every hour of every day, and that my staff is there to back them up. Clients understand that things go wrong, and they’re willing to put up with an amazing amount of crap if they realize that you’re out there doing the absolute best you can, and they see that you’re putting everything you have into this, and it won’t happen again! Don’t be afraid to show the love. People notice, and they appreciate it much more than that stiff, formal crap you see from big companies. You are not a big company. You are you, and maybe a couple other people who work with you. Use that to its largest advantage.

I am a firm believer in people starting businesses. Most people don’t start because they are afraid. They see themselves failing and think they wouldn’t be able to handle that. But I’m different. I looked at it from the perspective of “What do I have to lose?” I was young, virtually debt-free, and I figured the absolute worst that would happen was that I’d move back to Indiana and live with my parents for a while. You should be different, too. Tell those people who bombard you with what-ifs to shove it; that you are doing what you love…so what if it fails? You’re going to do the absolute best you can. And if it fails, the great thing about living in America is that you can just go out and start another company. And maybe this one will stick. Look, no one comes out of the womb knowing what they want to do in life. Things change. People change. Do what you love, show the love, and have an exit strategy and you’ll do fine.

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BlogHer: Men, don't be so scared!


I have a lot in my queue to blog about: HostingCon 2006 in Vegas, setting up a blog for Simpli corporate, etc. But one quick blog just for the record:

I’m here at BlogHer, which is a conference here in San Jose (finally! A conference comes to ME!) for women bloggers. So far it’s been fascinating, with a lot of good sessions on what to blog about, what not to blog about, how to reconcile multiple identities (for instance, my identity as “Erica” vs. my identity as “owner of Simpli Hosting”), and, of course, women-related topics like kids, self-image, etc.

The thing I found the most interesting, however, is the men at BlogHer. Since this conference is dominated by women, the men look a bit intimidated overall. As Scoble pointed out, “It is weird being one of only three men in a sea of people at a party. Now I know what it feels like at a usual tech conference, albeit in reverse.” YES. THANK YOU!

So how do the men react to it? They form little groups of men. It’s like they need to have some bonding experience by being the only men at a women-oriented tech conference. During every break, I watch one guy go up to another guy and start a conversation that then allows them to ignore the throngs of women around them. And it’s weirder yet what happens after that. As if they have some male homing beacon out, the other men at the conference come up and join the little group. I’ve eavesdropped and the conversations typically are about some non-blog-related tech item. One of the male groups was having a hearty debate about community wireless, for example. (I admit I was eavesdropping because I wanted to hear the juicy “OMG women” gossip, but it seems as though the male groups are uncomfortable discussing women…probably because they realize with so many women in close proximity, they could get beaned on the head for any comment that might possibly be taken the wrong way.)

This is most interesting to me because I am very used to being the only woman at tech conferences. For instance, at HostingCon, Simpli was again (as far as I know) the only woman-owned company presenting. In fact, at this point, having said this many times and never having been proved wrong, I am ready to declare Simpli the largest female-owned hosting company out there in terms of revenue. (And again, I will state my standard disclaimer that if you can find a woman-owned web hosting company larger than Simpli, I would love to have a mentor!) At HostingCon, the only other women there were either regular employees of a company or someone’s wife/girlfriend. (Or booth babes. Sigh.) It’s tough. I won’t argue that it’s easy being one of the only women out there. But I don’t think we create little “women groups” that exclude men at tech conferences, either. Techie women are used to being in a room with all men and being mostly OK with that. It comes with the job description. But men aren’t used to that. Techie men are used to dominating the scene they’re in. That’s why I found BlogHer, and the men here, so fascinating.

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That pressure on my skull is the feeling of the world caving in


I woke up this morning with a headache. I wasn’t sure what caused it, so I drank a bunch of water and waited an hour… passing the time by reading a book. After an hour, it still wasn’t gone, so I took some Advil. Now the Advil has worn off and it’s back. It’s most likely a migraine.

I know I get migraines when I’m stressed… and right now I’m very stressed about making sure everything goes smoothly regarding our virtual hosting customer buyout by Empowering Media (reminder to self: post press release online.) I am up to my eyeballs in work, and what makes matters worse is that my friends seem to be constantly calling me and 1) telling me I need a break and then 2) trying to get me to commit to making plans with them that entails a break.

I seriously hate to write this blog, because I probably sound like a grumpy asshole. I mean, really. Who complains about their friends calling and wanting to make plans? Obviously they care about me and are concerned. But the constant phone calls and the pressure for me to make plans isn’t helping. So, in true Grumpy Assholioness form, I refuse to make plans with them, which causes them to really heap it on the form of “You’re really working too much if you can’t even make plans with me” and even the “Don’t you want to see me?” take.

I post this only because I’m really at a loss as to what to do. I need time alone. Alone, as in, no one is around and I get some much-needed time to think about everything. Right now I feel really cornered. I feel pressure from all sides to make decisions about things. Some of my friends want to know if they really matter to me. Some of them want relationships. And all of my friends want more time than I can possibly give.

So I post this to say: I’m sorry I suck and can’t make plans with you. I need time to myself. I can’t make any commitments right now. I probably can’t return your phone call or have dinner with you or spend hours talking about my problems or your problems. I just feel like everything’s going to break, and this halfway-depressed-with-headache state is not helping anything. I can’t get anything done in this state. Just please give me the space that I need, and I promise I will get back in touch with you later when I’m in a state where you will actually want to see me. I do love all of you, but sometimes I need a break, too.

So, this week, if you wonder why I’m not calling you or I can’t make any plans with you, please refer to this blog entry. And in a week or two, when this blows over and I feel better, I will call you (or email you.) I promise. Thank you for caring about me enough to make that phone call or send that email/text message.

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After selling my online business at age 26 for over $1 million, I created this blog to help you grow your own business quickly.

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