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He Quit His Job at 25 to Start a SaaS With Only 6 Months of Runway
Matt Anderson
September 09, 2024
He Quit His Job at 25 to Start a SaaS With Only 6 Months of Runway
Name | Business | $$$/Month |
|---|---|---|
Alex Liu | $400 |
Table of Contents
🚀 How Alex Liu Went Full-Time with AutoAE After Quitting His Job
At just 25, Alex Liu took a leap of faith, leaving his full-time job to focus entirely on his latest project, AutoAE, a tool that helps content creators craft viral hooks for their videos. With six months of savings and $400 in MRR, he’s got his eye on growth. Let's explore how he's making it work.
đź’µ Earning His First Dollar with Freelance Market Research
Alex's entrepreneurial spark was ignited while in college. To fund his travels, he started offering market research services on a local Fiverr-like platform. He earned over $2,000 in his first month.
This early success gave him the confidence to believe there were alternative paths to financial freedom beyond traditional employment. If you're considering a similar journey, platforms like Fiverr or Upwork can help you kick-start your freelancing career.
đź’Ľ Going Full-Time with AutoAE
After trying and failing with side projects, Alex decided to commit 100% to his latest venture. Juggling a job and building a business just wasn’t working for him. Now, he’s betting everything on AutoAE, which serves as a bridge between popular video editing tools like CapCut and Adobe After Effects.
Why the urgency? Alex believes timing in marketing is critical, and waiting would risk missing out on key opportunities. His lean business model allows him to focus all his efforts on growth.
"Timing is crucial in the world of marketing."
đź‘« Why Equity Matters in a Startup Partnership
Interestingly, Alex’s cofounder isn’t full-time yet, but they still share a 50-50 equity split. While this could be an issue in many startups, Alex views it differently. It’s all about shared incentives and ensuring both founders are equally invested in the long-term success of AutoAE.
"With shared belief, money issues become less significant."
If you're exploring how to split equity with a cofounder, make sure to have honest discussions early on to avoid conflicts later.
💰 Financial Snapshot: AutoAE’s Revenue & Growth Strategy
In July, AutoAE officially launched, offering both one-time purchases ($2.90 per video) and subscription tiers ($8.30/month). By focusing on content creators who need quick and efficient tools for editing, Alex has already reached $400 in MRR.
Here’s a snapshot of where Alex stands financially:
Revenue: $400 MRR
Founder pay: $0 (Alex plans to take 20% once they hit $1k MRR)
Business bank account: $1,480.27
Personal bank account: Six months of runway
Alex’s cold outreach strategy has been key in landing early customers. He’s also leveraging YouTube marketing to reach a wider audience. If you’re bootstrapping your startup, consider focusing on content marketing and cold outreach as affordable and effective growth channels.
đź’¸ Keeping Business Expenses Low with Free Tools for Startups
A core principle Alex follows is keeping business expenses as low as possible. He’s managed to almost eliminate monthly expenses by using free tools like Vercel for hosting, Supabase for database and auth, and CloudFlare R2 for storage.
By taking advantage of free SaaS tools, Alex maximizes his budget for marketing. If you’re running a lean startup, make sure to evaluate free startup tools that can cover the basics without adding to your overhead.
🍽️ Lean Living: Alex’s Frugal Personal Budget
Alex's frugality extends to his personal life, allowing him to stretch his runway. Here’s how his personal expenses break down:
Rent: $200
Food: $250
SaaS subscriptions: $50
Car payment: $300
Living frugally allows Alex to focus on growing AutoAE without worrying too much about personal financial strain. Many founders recommend adopting a minimalist lifestyle to maximize your runway in the early days of your startup.
💡 Alex’s Approach to Budgeting for Founders
Alex is meticulous when it comes to budgeting. He divides his finances into three categories:
Spending: Allocated to safe savings accounts.
Risk-taking: Focused on marketing spend, where he tracks the ROI closely.
Emergencies: His car is his emergency fund, ready to be sold if needed.
For Alex, budgeting isn’t just about cutting costs — it’s about allocating resources to maximize return. This approach to both money and time management helps him stay agile and seize new opportunities when they arise.
⏳ Delaying Traditional Investments
While Alex does plan to start investing in traditional financial instruments like stocks eventually, right now, all his focus is on AutoAE. He believes the opportunity cost of diverting money away from his startup is too high at this stage.
For now, his only "investment" outside of AutoAE is treating his girlfriend to nice things, which he calls an investment in their happiness.
đź’Ľ When to Seek Startup Funding
Though Alex hopes to be an angel investor someday, he believes raising money too soon is a mistake. For him, hitting $1,000 MRR is a milestone that indicates product-market fit. Only after reaching that point would he consider external funding.
If you're considering raising money, make sure you have evidence of traction before approaching investors — it makes a world of difference.
✨ Alex’s Final Advice for Early Stage Founders
Alex’s advice for fellow founders is simple: Don’t just build in public. Take your marketing efforts beyond platforms like X. Instead, repurpose content for channels like Reddit, Medium, Pinterest, and Instagram. Diversifying your outreach can help you reach a broader audience and build brand recognition faster.
"You are both the maker and the seller. Try innovative ways to market your product — it will work!"
đź’¬ My Thoughts
Alex's journey is a masterclass in balancing risk, frugality, and hustle. His decision to quit his job and bet everything on AutoAE might seem risky, but his careful budgeting and lean approach show that even a bootstrapped startup can thrive with the right focus.
Could you see yourself adopting Alex’s approach to personal finance while scaling your startup? Share your thoughts with me — I’d love to hear your take!
Are you a B2B founder or seller looking to generate more leads through LinkedIn? See how friendli can help automate lead generation using your LinkedIn network!
Cheers,
Matt