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  1. Startups For the Rest of Us
  2. Episode 808 | A $500k "Step 1" Business, When to Consider SOC2, and More Listener Questions
Episode 808 | A $500k "Step 1" Business, When to Consider SOC2, and More Listener Questions

Episode 808 | A $500k "Step 1" Business, When to Consider SOC2, and More Listener Questions

Startups For the Rest of Us · Nov 25, 2025

Navigating founder dilemmas: when to push, sell, or diversify a plateaued biz. Plus, timing compliance, balancing life, & why IP isn't the key.

'Autopiloting' a SaaS Business Is a Myth That Leads to Slow Decline

Founders believe they can set a stable business on "autopilot" to focus elsewhere. In reality, this doesn't exist. Without active maintenance to keep the business flat, it will inevitably shrink over 6-18 months. True autopilot is a hands-on effort to prevent decline, not a source of passive income.

Episode 808 | A $500k "Step 1" Business, When to Consider SOC2, and More Listener Questions thumbnail

Episode 808 | A $500k "Step 1" Business, When to Consider SOC2, and More Listener Questions

Startups For the Rest of Us·3 months ago

Founders of Plateaued Businesses Must First Assess Their Energy, Not Just Growth Tactics

When a business flatlines, the critical question isn't which new marketing channel to try. It's whether the founder has the motivation and long-term desire to reignite growth. This "founder activation energy" is a finite resource with a high opportunity cost that must be assessed before choosing a path.

Episode 808 | A $500k "Step 1" Business, When to Consider SOC2, and More Listener Questions thumbnail

Episode 808 | A $500k "Step 1" Business, When to Consider SOC2, and More Listener Questions

Startups For the Rest of Us·3 months ago

Most SaaS Businesses Differentiate Through Marketing and Positioning, Not Defensible IP

Aspiring founders often obsess over creating unique intellectual property (IP) as a moat. In reality, for most bootstrapped SaaS companies, competitive advantage comes from superior marketing, sales, and positioning—not patents or secret algorithms. Customers choose the best tool that solves their problem, not the one with the most patents.

Episode 808 | A $500k "Step 1" Business, When to Consider SOC2, and More Listener Questions thumbnail

Episode 808 | A $500k "Step 1" Business, When to Consider SOC2, and More Listener Questions

Startups For the Rest of Us·3 months ago

An Agency-for-Equity Model Fails Without Venture Capital-Level Deal Vetting

Building MVPs for startups in exchange for equity is extremely risky because 95% of them will fail. This model requires the agency to rigorously validate each startup's idea, market, and founder, similar to a VC firm. Without this de-risking, the agency is effectively working on a portfolio of doomed projects for free.

Episode 808 | A $500k "Step 1" Business, When to Consider SOC2, and More Listener Questions thumbnail

Episode 808 | A $500k "Step 1" Business, When to Consider SOC2, and More Listener Questions

Startups For the Rest of Us·3 months ago

Treat SOC 2 Compliance as a Sales Obstacle to Overcome, Not a Foundational Task

Founders often over-prioritize non-revenue tasks like getting compliance certifications. Unless you are actively losing deals because you lack SOC 2 or ISO, you should delay it. View compliance as a task to be completed only when it becomes a direct blocker to sales, not as a box to check early on.

Episode 808 | A $500k "Step 1" Business, When to Consider SOC2, and More Listener Questions thumbnail

Episode 808 | A $500k "Step 1" Business, When to Consider SOC2, and More Listener Questions

Startups For the Rest of Us·3 months ago

Ambitious Founders Strategically Downshift to Smaller Projects During Intense Life Events

When facing major life changes like a new child or a demanding job, the solution isn't to "hustle harder." Instead, successful founders intentionally pause large, demanding projects (like a new SaaS) and switch to smaller, "step one" businesses or maintenance mode. This preserves momentum without causing burnout.

Episode 808 | A $500k "Step 1" Business, When to Consider SOC2, and More Listener Questions thumbnail

Episode 808 | A $500k "Step 1" Business, When to Consider SOC2, and More Listener Questions

Startups For the Rest of Us·3 months ago