Tacit knowledge, easy-to-update process automation and a broader view of what to outsource, from SupportNinja's founder
Cody McLain · SupportNinja
Published September 1, 2022Cody McLain, Founder of SupportNinja, shares his insights from serving 100+ startups:
- The power of tacit knowledge
- Easy to update process automation tools
- Smart founders outsource more than just customer support
Explore the lesson. Sign in to access the slide download.
Cody McLain connects his founder story with SupportNinja’s growth model: apply hard-won support experience to a validated market, preserve tacit knowledge through employee retention, design repeatable onboarding workflows, and expand the definition of what can be outsourced.
Read the source passagesFind the ideas you need and go straight to the source.
“with him called support Monk and so I helped him find other hosting come in and actually build out the the team in India and we were able to build that together and so I sold both my stake in Pacific coast and support muck at around the same time here's here's a small team the relatively small team that I had when I was maybe 22 23 especially small compared to the team that support ninja is today”
“in a way that you might not have thought about before so the power of tacit knowledge so back in 2019 I was able to actually open up what was effectively my dream from the from the get-go was to create this really hit neat office that was going to not only appeal to our customers but also set us apart from our competitors because we had to have this type of environment in order to attract”
“you'll see if hopefully the audio works that you'll see what I mean by this piece of bread spread it around with the butter knife no dad with the peanut butter I'm just doing what it says it says take one piece of bread spread it around with the butt with the butter knife hold on get some jelly rub it on the other half of the bread”
“actually build this so one of the most important processes with any outsources the client onboarding procedure and so very early on I we realized that we need to actually build out this workflow and so that's effectively what we did because there's so many moving parts and you have to know how is the sales team going to hand off the client to the to the client team how are we going to then have the client team give the appropriate instructions to the recruiting team in the Philippines so that they know exactly what agents and specifically what they need to hire so”
“in any kind of documentation type of mentality and so going on to Outsourcing creatively there are a wide array of ways that you can actually Outsource your company or out use an Outsourcing company to to service your company as well so one of them is Corporate BPO which is what support ninja was these are typically companies that you approach and you have kpis metrics and you're handing off the training and the management to these companies and they take on the burden of managing that for”
“They validated the market but had no competitors… …I used their offering as my baseline and founded SupportNinja. Have a Philippines Call-Center Have a cool, upbeat, clean site that appeals to other millennial entrepreneurs. Utilize my knowledge in Online Marketing to target specific audiences on Google”
“Tacit Knowledge How much pressure do you apply to the brakes to not stop too soon or late at a given speed? Processes are easy to create & hard to keep relevant Prioritize staff retention over price when considering an outsourcing company. Explicit Codified knowledge found in documents, databases, etc. IT systems essential for transfer and storage Tacit Intuitive knowledge & know-how, which is: Rooted in context, experience, practice & values. Hard to communicate - resides in the mind of the practitioner. The best source of long term competitive advantage and innovation. Transferred through socialization, mentoring, etc.”
“The road to process flow automation… TYPE WHO WHAT The Client U.S. Operations PH Operations Sales Training Recruitment Email/Document Manual step A process within the sequence Required Input/Output Part/Phase in a sequence New Sequence Client Portal Boxes”
“Example Process Built a Business Process Management System (BPMS) in Pipefy As my team runs the process over and over, it becomes obvious how to improve process Update components overnight”
“Specialized Services SERVICES Wholesale (white label) Trending to Direct Retail Accounting - financial services. $17 per hour IT & all its derivatives Marketing & all its derivatives. $15 per hour Engineering/building services Call-Centers Can be virtual Fundamentally a “crowdsourcing” solution”
Video
How I bootstrapped to $20m in 5 years - Slide Deck
Cody McLain founded his first company at the young age of 15, starting in his parents' basement. Over the next decade, Cody successfully built and sold four companies, accumulating millions in gross revenue. His ventures spanned Hosting, Software, and Support-based industries, establishing offices globally. Collectively, Cody's companies have catered to over 30,000 customers and businesses across 100+ countries. Currently, Cody maintains an active blog on his website, codymclain.com, and manages a Creative Digital Agency along with a Business Process Outsourcing (BPO) firm.
Ari Salafia · Taxtaker
Becca Kay · Dingus and Zazzy
Ben Carpel · Galleon
Brad Miller · AwarenessTech
Bridget Harris · YouCanBookMe
Chris Vandersluis · Timecontrol
Find a passage in the slides and open the original deck.
34 passages
Cody McLain Founder of SupportNinja Bootstrapped to $20m in 5 years … 3 growth channels we used to hit our first 100 customers Founder500, Sept 2022
Over the next 20 minutes: The power of tacit knowledge I’m going to show you BOOTSTRAPPING ALL MY LIFE Easy to update process automation tools Smart founders outsource more than just customer support Personal story and childhood struggles Finding joy in building something that was my own Realizing my potential far exceeded my limitations Repeated success in the hosting industry Pivoting from hosting but feeling imposter syndrome Finding the right fit in a validated market INSIGHTS FROM SERVING 100+ STARTUPS WHY I BECAME AN ENTREPRENEUR
SupportNinja Revenue Growth
When You Have Nothing… You Bet Everything. Parents died before I turned 18, partly ran my hosting business out of foster care for a while. I was bullied, weird and had no friends (Aspergers) Poor performance in school with Dyscalculia All of this added up made me think I was a misfit with no purpose for a long-time in my late teens and early 20’s.
Your Potential Can Far Exceed Your Expectations. Dropped out of High School, with no backup plan, my only option was to make money with my business. Discovered myself along the way, and picked up flying, scuba diving and photography.
‹#› My Startup Timeline 2004 2015-2021 2006 2009 2012 I was 14 years old Merged into AptHost
‹#› My Startup Timeline 2004 2015-2021 2006 2009 2012 I was 14 years old Merged into AptHost Grew to $800k ARR Scammed by penny stock investor guy
‹#› My Startup Timeline 2004 2015-2021 2006 2009 2012 I was 14 years old Merged into AptHost Grew to $800k ARR Scammed by penny stock investor guy Started with less than $100k in bank (19 years old) Grew to have massive need for support
‹#› My Startup Timeline 2004 2015-2021 2006 2009 2012 I was 14 years old Merged into AptHost Started because I needed it Sold stake for $1m (22 years old) Grew to $800k ARR Scammed by penny stock investor guy Started with less than $100k in bank (19 years old) Grew to have massive need for support
‹#› My Startup Timeline 2003 2006 2009 Support Monk India Team Support Monk India Team 2012 SupportMonk India Team
Looking Forward After selling Pacific Host, I had imposter Syndrome Tried to build a cloud hosting company but the numbers didn’t make sense.
I always wanted to be a Startup but I didn’t want the risk of creating a totally new business. 🤔
Realized my customer support experience was an asset to the right market. Outsourcing was an antiquated industry primarily targeting Enterprise-level Companies. One company was dominating the market for tech startups:
They validated the market but had no competitors… …I used their offering as my baseline and founded SupportNinja. Have a Philippines Call-Center Have a cool, upbeat, clean site that appeals to other millennial entrepreneurs. Utilize my knowledge in Online Marketing to target specific audiences on Google
Key to my success (and yours): A strong culture retains employees, which develops a deep bank of tacit knowledge Automation: the key to a lean and mean workflow Think outside the box with what can be outsourced What I learned running an outsourcing company for hundreds of start-ups just like yours.
The Power of Tacit Knowledge
Opened 20,000+ sq ft office space In Clark, Philippines in 2019
‹#› Clients Include
‹#› Clients Include
Tacit Knowledge How much pressure do you apply to the brakes to not stop too soon or late at a given speed? Processes are easy to create & hard to keep relevant Prioritize staff retention over price when considering an outsourcing company. Explicit Codified knowledge found in documents, databases, etc. IT systems essential for transfer and storage Tacit Intuitive knowledge & know-how, which is: Rooted in context, experience, practice & values. Hard to communicate - resides in the mind of the practitioner. The best source of long term competitive advantage and innovation. Transferred through socialization, mentoring, etc.
Lean Mean Workflows
‹#›
The road to process flow automation… TYPE WHO WHAT The Client U.S. Operations PH Operations Sales Training Recruitment Email/Document Manual step A process within the sequence Required Input/Output Part/Phase in a sequence New Sequence Client Portal Boxes
‹#› … Is paved with good intentions
Process Software Systems I Use: Real-time control of all your processes in one place, from start to finish. The simplest way to manage recurring workflows for your team Document all those repetitive tasks that eat up your precious time, so you can grow your team and grow your business. Document and delegate, onboard and train, test and retain, systemize and scale.
Example Process Built a Business Process Management System (BPMS) in Pipefy As my team runs the process over and over, it becomes obvious how to improve process Update components overnight
Example Process Automates repetitive tasks Track, manage & maintain processes across the company Reduce errors by standardizing communication between departments
Outsourcing Creatively
Corporate BPO Outsourcing Business Process Outsourcing Third party provider - runs set/part processes You provide the “process” and they take care of everything to provide the outcome of that process Minimum 20 seats - $15-$18 an hour Ideal for LARGE corporations concerned with Risk Minimization and Compliance
Staff / Seat Leasing STAFF LEASING Provides office space & equipment Provides legal employment structure Provides recruitment/HR functions Provides behavioral management Usually starts with 1 seat - $7-$9 an hour Cash flow friendly Focused on local management Provides office space & equipment only You are responsible for incorporating and employing Is a way to incorporate without committing to a lease Starts with 1 seat - $500-$600 a month SEAT LEASING
Specialized Services SERVICES Wholesale (white label) Trending to Direct Retail Accounting - financial services. $17 per hour IT & all its derivatives Marketing & all its derivatives. $15 per hour Engineering/building services Call-Centers Can be virtual Fundamentally a “crowdsourcing” solution
Image Moderation * Real Estate Image Processing * Photo Manipulation * Portrait Services * Image Enhancement * Photo Clipping * Photo Restoration * Photo Editing Outsourcing Outside the Box
Client Example: Employee Expense App
September 2022 Cody McLain Founder of SupportNinja Prioritize staff retention to maximize tacit knowledge Incorporate BPMS to maximize scalability The most effective use cases for outsourcing is often not customer support
