From operator to owner · issue of 17 April 2025

The four-part playbook I use to build lean, profitable businesses without funding

Originally sent as "the playbook I'm using to build 2 profitable businesses" to the From operator to owner newsletter.

I'm writing this from a tiny hotel in one of the most remote parts of Mexico. My kids are asleep after a long day at the beach. No alarms. No meetings.

I keep thinking about a conversation I had last week. A woman who'd been following me on LinkedIn reached out. She'd been a founder before, and it didn't work out. Now she's in a fast-growing tech startup. Good salary. Impressive title. Burned out.

I asked her one question: "Where do you spend most of your time during the week?" She paused. "At work." And it hit her. It wasn't about the money. It was about what she was giving away in exchange for it. Her energy. Her autonomy. Her creativity. Her time.

I'm not anti-job. I've had jobs I loved. But I am anti-trap. If you feel like something's off, it probably is.

What I told her: you don't need capital. You don't need to quit tomorrow. You don't need a big idea. You need to start small, smart, and lean. A side thing. A service. A product. A paid insight. Use what you already know. Solve a problem you've already solved.

The playbook

It's the same approach I'm using to build two profitable businesses without outside funding, a big team, or endless hours.

1. Start with a niche you understand

Favorite People: unique, vintage-inspired overalls for women and kids. Madgrowth: tech leaders turning expertise into income. I am one of them; I understand them. The tighter the niche, the faster the traction.

2. Use low-code tools to stay lean

Favorite People runs on Shopify and Klaviyo. Madgrowth on a static site, Kit and Notion. Tools that make your life easier, not a tech stack to manage.

3. Capture intent, not just attention

Favorite People: add-to-basket signals, returning buyers, loyalists. Madgrowth: newsletter subscribers, post engagers, profile followers. Build for people who are already interested.

4. Build a brand, not just a product

Favorite People: Netflix asked to feature our overalls in one of their series. Madgrowth: my personal brand drives 90% of inbound. When people remember you, they trust you. When they trust you, they buy.

You don't need a Series A. You need systems that work. Start with one problem. Solve it well. Keep it lean. Repeat.

What's one skill, insight, or experience you already have that could become a product? The guide on selling digital products is the next step.

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