The 8AM Text That Saved My Company: When to Pivot vs. Sunset"

Episode Summary

George shares the raw, unfiltered story of almost shutting down SimpleDirect Financing last week - and how an 8am customer text changed everything.

This is a deep dive into the emotional rollercoaster of deciding whether to sunset or pivot a product, the difference between burnout and bad business, and the framework that helped him make the right call.

Bottom Line: Burnout and bad business aren't the same thing. Before you kill your product, you need to separate emotions from data and understand what's actually broken.

Major Insights

The Reality of Near-Shutdown

• SimpleDirect had paying customers, working product, major lending partners (SoFi, Upstart, Wells Fargo)
• Problem wasn't product failure - it was founder-customer mismatch
• George was spending time on phone support for customers who refused to use software
• "I wasn't burned out by building infrastructure. I was burned out by serving 60-year-old customers who expected me to be their personal assistant"

The Turning Point Moment

• 8am text from major Florida franchise customer (million+ monthly revenue)
• Customer had switched from competitor Dish to SimpleDirect, heavily reliant on the platform
• Partner call revealed best-in-class conversion rates, just needed more volume
• Realization: "I wasn't evaluating shutdown based on data. I was making the decision because I was mentally exhausted"

The Framework: Sunset vs Pivot Decision Questions

Question 1: Is the business model broken or is the distribution channel broken?

• Broken model = nobody wants product, economics don't work, value proposition flawed
• Broken distribution = model works, but reaching wrong customers wrong way
• SimpleDirect: Model worked (lenders loved it, customers wanted it), distribution was broken
• Test: If you remove the broken channel, does revenue still exist?

Question 2: Are you burned out by the work itself or by the customers you're serving?

• Critical distinction: burnout from building vs burnout from serving wrong audience
• George's revelation: Loved building product, hated serving non-tech-savvy customers requiring high-touch support
• The founder-solution fit question: "Who are you glad to serve?"
• Test: If you could only serve one customer segment, which would make you excited to work every day?

Question 3: What would you have to change to make it work?

• Be specific - not just "fix economics" but exactly what's broken and how to fix it
• For SimpleDirect: Target younger tech-savvy customers, go B2C instead of B2B, kill phone support
• Can it be fixed by changing who you serve? If yes, who and how? If no, shutdown may be right call

Question 4: Can you give it 90 days with clear success metrics?

• Can't pivot forever - need defined test period and honest evaluation criteria
• Write success metrics ahead of time (revenue targets, conversion rates, internal costs)
• SimpleDirect: 90 days to validate B2C model, concrete metrics, no moving goalposts
• "If we hit it, we keep going. If not, we shut down with no regrets"

The New Direction

SimpleDirect is pivoting to:

• Target: Tech-savvy millennials and Gen Z homeowners (not older contractors)
• Model: Direct-to-consumer (B2B customers converted to free tier, paid for referrals)
• Support: Email only with 48-hour response time (no more phone support)
• Timeline: 90-day validation window starting immediately
• Key Change: Building for customers George actually wants to serve

Quotable Moments

"I almost shut down my company because I was burned out, not because the data said I should."

"Your business model isn't broken. Your distribution channel is broken."

"I'm a 27-year-old technical founder who enjoys building products. I was spending my time on the phone helping customers who don't want software and refuse to learn. No wonder I burned out."

"Burnout and bad business are not the same thing."

"I wasn't burned out by building infrastructure. I was burned out by serving the wrong customers."

"Who are you glad to serve? That question changed everything."

Action Items for Founders

If you're considering shutting down a product:

1. Run through the 4-question framework before making any decisions
2. Separate emotions from data - talk to someone unbiased (person or AI)
3. Do a blind spot audit - ask "What am I not seeing that I should see?"
4. Test for customer mismatch vs. business model failure
5. Give yourself a defined test period (90 days) with concrete success metrics

If you're feeling burned out:

1. Identify specifically what's draining you - the work itself or who you're serving?
2. Describe your ideal customer - are you currently serving them?
3. Ask: Would changing the customer segment fix the burnout?

Resources Mentioned

• Claude AI: Used for blind spot analysis and strategic thinking
• SimpleDirect Financing: financing.getsimpledirect.com
• Sunset Blog Post: Still live on blog.getsimpledirect.com showing original shutdown announcement

Connect with George

• Email: [email protected] (Open to helping founders navigate similar decisions)
• Twitter/X: @TheGeorgePu
• Website: founderreality.com
• Free Resources: Frameworks, ebooks, and templates at founderreality.com

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