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How I Cut My Monthly Overhead Cost from $142,777 to $8,134
I'm Changing My Business Philosophy
Yong-Soo Chung
November 14, 2024
“My name is Yong-Soo, and I’m a growthoholic.”
During college, I recall spending my Thanksgiving break tucked away in the corner of a room reading “How to Start a Hedge Fund” while everyone else was stuffing their faces with turkey, mashed potato, and gravy.
I wanted to be a CEO.
I wanted to be successful.
I wanted to be an entrepreneur.
Fast forward to 2023.
I had 21 employees paying $89,452 in monthly payroll.
Our team was growing. We had just moved into a 39,000 sq ft warehouse (paying $53,325 / month in rent). And, we had just signed Katy Perry’s new beverage company as our client.
I was on top of the world.
I was reinvesting all our profits from my e-commerce brand Urban EDC into GrowthJet, my climate-neutral third-party logistics company.
I felt proud of myself for becoming the person I had always wanted to be growing up.
But, somewhere along the way, I lost my purpose…
I spent less time with friends.
I pulled my poor wife into fulfilling orders when we were short-staffed.
I even spent my Christmas Eve getting berated by a hysterical celebrity baker who believed that shipping 10,000 panettones in 1 day on short notice was not only possible, but the only option.
I’ll never eat another panettone. Ever again.
Work followed me everywhere. I couldn’t even spend my holidays without working.
Growth, growth, growth.
What’s this all for, anyways?
I sold my third-party logistics business in February 2024. Then, my son was born in March.
Ever since, I imagined what it’d be like to have no employees.
Just me, my wife, our two frenchies, and our newborn baby.
And by no employees, I mean no W2 employees. Only contractors, offshore talent, and third-party service providers.
It’d be a much smaller, simpler operation:
100% remote
No HR department
No complex compliance requirements
So, how’s the experiment going?
So far, so good.
With the explosion of AI, no-code tools, and talent abroad catching up to US standards, it is now possible to build a “one-person” business into a multi-million dollar empire.
Plus, with the rise of social media platforms, it’s never been easier or cheaper to tell your story and build an audience of loyal followers. Your 1,000 true fans, as Kevin Kelly says.
This is leverage. More output for less cost.
My payroll expenses are now $8,134 per month. That's 10x less than in 2023.
1 contractor, 4 remote talents, and a few thousand dollars in software and service provider bills each month.
No W2 employees.
I work from home now. No scary lease.
Me, my wife, our two frenchies, and Baby Logan…
Bootstrapping our business, together.
“My name is Yong-Soo, and I’m a recovering growthoholic.”
Last Week’s Gems…
I enjoyed last week's replies to my newsletter so much that I've decided to make space to highlight some amazing responses.
Several of them were incredibly thought-provoking.
Here are excerpts from my 3 favorite responses…
I was planning on making a quick reply to your email, but got carried away journaling. Either way, I think what you stated is a great life philosophy.
We do so many things wrong because;
1. We set a goal
2. We work backwards and map the path
3. We hack and cut and watch the numbers grow
Whenever we consciously set a goal, is it because we genuinely should be aiming for that - or is it because we THINK we should be aiming for that. If it is just because we THINK we should be aiming, inevitably we will wake up one misty tired morning and think... What am I even doing here?
Business owner and college student here. I'm not gonna lie I don't really read newsletters frequently but I'm very (maybe even extremely) happy to have read this one. The problem of signing up for too much, or thinking of a new idea and wanting to start on it right away is something that I myself have been learning to be more mindful of in the past two years; thus, I love your radical and in-the-moment reform of your life's values. It very much anti crying over spilled milk.
It's amazing how a major change in our lives - like having a baby - puts things back into perspective.
We reassess our priorities and choices.
We question what's important and what's not.
In the end, it all comes down to what's right for us.
Not what anyone else says we should do.
Ready for this week’s prompt?
If you’re a business owner, what’s one parenting advice you wish you had received earlier?
Hit reply! I’ll share the best responses in the next newsletter. 🖤
'Til next time,
Yong-Soo
P.S. I broke down my entire September P&L two days ago on Instagram if you’re curious!
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