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.

Key Timestamps

[00:00-03:00] The Setup: Blog post drafted, sunset email scheduled for noon, then an 8am text from a major customer praising the product

[03:00-08:00] The Three Problems: Why SimpleDirect seemed destined to fail

• Customers didn't use the software (preferred phone support)
• Unit economics broken ($1,500/year revenue vs $2,000+ cost to serve)
• Over-reliance on lending partners who cut commissions 50% overnight

[08:00-12:00] The Emotional Breaking Point: Taking customer support calls during European vacation, feeling trapped in a service business disguised as SaaS

[12:00-17:00] The Claude Conversation: Using AI to identify blind spots - "Your business model isn't broken. Your distribution channel is broken."

[17:00-22:00] The Decision Framework: Four questions every founder should ask before shutting down

[22:00-25:00] The Pivot: B2B to B2C, targeting tech-savvy millennials/Gen Z, 90-day validation window

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: george@founderreality.com (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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