May 15, 2009
Posted by Ryan Graves
Nate Ritter TDIA Case Study #2: Working From Abroad
via Lisa Brewster
For THE DREAM IN ACTION Case Study #2 I wanted to learn more about how someone can use the mobility of web work to live/work abroad. I reached out to a good friend, Nate Ritter, about how he has done the travel while working thing multiple times. With travel stints of 3 months Nate, and his wife, have been able to see some incredible things while keeping clients happy.
Meet Nate:
Nate has been a web developer for over 15 years for the likes of Worktank Seattle,Microsoft, Land Rover. He is also a consultant and public speaker and has appeared in publications such as Wall Street Journal, Wired Magazine, Fast Company, The Epoch Times, Lifehacker, and Mashable…”yea, he’s sick.”
Who are you and what are you currently working on?
I’m just another engineer / entrepreneur in my mind. Nobody that special. But, one thing I’m still learning is how everyone is really the best in someone else’s world at something. Therefore, to some, I’m the best web developer, entrepreneur, knowledge broker, public speaker, community evangelist, or revenue-strategy consultant in the world. Which one of those (if any) I am to you depends on who you are and how well we know each other.
I’ve most recently been working on a non-profit called Giving Anonymously (http://givinganon.org) which recently was written up in the NY Times, a project called Crisis Wire (http://crisiswire.com), a couple of businesses including ConSource, Inc. (http://consource.us) and a myriad of other smaller projects that either are too small to really mention or haven’t been coded yet.
Give a quick synopsis of the businesses you’ve launched?
When I was 12 I created a lemonade stand and franchised it to my friends, taking 50% of their profit after helping 3 or 4 get started around the neighborhood one summer…. if that counts.
In 1997 I launched my first computer retail store which also allowed orders online. It was extremely successful revenue-wise, but unfortunately I didn’t understand a thing about tax structures and deductions and still ended up running it out of my father’s extra room upstairs. At that time (I was 20 years old), my only goal was to start and run a profitable company longer than the average of 2 years. A year after passing that goal, I gave it up because of increased competition with Dell who had gained market and mind share and had lower costs.
Since then I’ve launched a myriad of other companies. Some were mildly successful, others were not. My version of success has changed after every startup. I refine more and more what it means to me to be successful.
Which was the most successful and what made it most successful?
There are two that I would classify as “most successful” so far. The first was a hosting company I created in 2001 and sold in 2007. It was the first time I had created a business that was worth more than the time and money I put into it. It was the first time I created a business someone else was willing to pay for.
The second is ConSource. Even though it is a baby of a company it is the latest version of a business which I believe could be extremely valuable to not only it’s customers but other potential acquiring companies. It is early in the game we are playing, solves a difficult problem, and has already seen traction and profitability without needing outside money. The initial valuation calculations based on a few angel investors and venture capitalists I know have put the early valuation of it at $10M right now. I consider that a success already, even if we haven’t yet capitalized on or proven that valuation through earnings. Scaling this company up will be fun to do.
What business did you launch with the least resources and how did lack of resources affects its success?
The hosting company was launched with the least resources. It was a one-man show completely. I rarely look for outside money, but in this case, it would have been smarter. The timing was right to get big fast and then sell. The lack of resources (money) simply meant I had to grow by word of mouth and make sure my servers ran perfectly (required less support time). I also had to choose my clients carefully. Those that spent too much time on support, I eventually referred to other hosting companies to spend time on the 20% of my clients that brought in 80% of my money. So, the lack of resources did make me efficient, but it also hindered my growth.
How has the web affected your entrepreneurial ventures & could you have launched those ideas without the web?
Since 1998, none of the businesses I’ve created would have existed. I certainly would be involved in others, but the ones I spent the time to create would never have existed had the web not been around in its consumer-driven form.
What is the most valuable lesson you’ve learned in your entrepreneurial ventures? (Don’t be cliche, be original :) )
In the last few years the biggest lesson I’ve been learning over and over again is that the best model is to create a business that another business already wants. Figure out what companies could do but aren’t, create the company that helps their customers, let them be your sales force, and then when they realize they’re leaving money on the table and doing all your dirty work, sell the company to them. It’s genius.
This isn’t easy to figure out for me because I make most of my money freelancing and consulting, which doesn’t usually lend itself to understanding medium-sized business service gaps. But, I know people who do spend their times inside these companies. They know one thing, I know another. We partner, and away we go.
Give 2 alternative names for web based entrepreneurs?
Well, I call myself a “Web Chef”, but I don’t suggest anyone else using that term ;) . Otherwise, I just like “entrepreneur”… I know it’s not a new buzzword, and it’s overused and under appreciated, but honestly, entrepreneurs simply find the gaps and fill them using any tool they know about. The web is just another tool that both creates and fills those gaps in new ways.
How has your work with the web allowed you to have a flexible workplace?
It’s been incredible. I’ve moved from place to place without much of a drop in work at all. And even if there was some lag between contracts, it now takes less than 2 weeks to be back to 100% capacity. No typical job can give me that kind of security. That security and geographic flexibility has allowed me to work in all 3 west coast states as well as France and Italy for 3 months. I plan on exploiting this benefit as much as possible in the future too.
What’s been the best way to experience longer term travel?
The longest we’ve traveled was for 3 months, so I’m certainly no expert here. But, from our experiences, we’ve learned that having friends in the areas you’re going to (especially if you don’t know the language or culture) is key. If you don’t make friends quickly, it might be less enjoyable to spend a long time traveling and working at the same time. So, friends first.
Secondarily, I’d tell everyone to take it as slow as possible in one place. Get to know the people, the culture, the food, etc. Seeing the sights is fun, but when you have a lot of time to spare, choose just a few places and spend as much time as possible there. Have good deep conversations with the locals. We were fortunate enough to spend a lot of time in a small village on the French Riviera and got to know a few people so well that we all cried when we left. I’ve never been on a “vacation” like that before.
What advice can you give those who would like to work from outside the US using the web?
Don’t expect it to be easy to do and give yourself time to adjust. Each country has their own way of doing things that you’ll never hear about until you get there. If you get caught thinking it will be easy, you’ll spend all your transition money trying to figure it out and run out of cash before you get work again. Make sure you have figured out best and worst case scenarios for getting internet access (with your laptop and applications).
For instance, we heard all about the internet cafes, but we didn’t realize they wouldn’t let us use our own laptop and that everything was hard-wired. Wifi is prevalent, but it’s all locked down signals. So, the 8 euro per half hour at an internet cafe idea was shot. Most coffee houses where we were at didn’t have free wifi either. So, know where you can work with your own tools and where you can get the right amount of bandwidth for a good amount of time.
Lastly, I highly suggest figuring out what is essential for you to do. Create a prioritized list and get that done. Forget the rest or do it only once a week until you’re set up with your own internet access. For most internet workers, prioritization is a key requirement to sanity anyway, so this shouldn’t be too tough to do for most.
How did you get customers and drive business opportunities from abroad?
I did a few things. First, I tried to keep a few good contracts from the states. The biggest issue in doing that was trying to calm the fears of those who thought I was going to disappear. I changed my working hours so that I was awake during the end of their day and the beginning of their day. That helped quench those fears pretty easily with contracts I had still in the States.
The other thing I did was do what I do anywhere – talk to people. I’m not a sales person or power networker, but when I find people I enjoy being around, what we do as jobs is a natural conversation topic every so often. When someone likes you, they will naturally think of referring you when someone needs your services. So, I talk to a lot of people and befriend a lot of people. The other thing I did is ask questions to businesses. I did my research on what they did and where it looked like they were going. If I could help, I initiated the conversation and left a card (my card only has my name, profession, email and web address… no physical address or phone number).
Otherwise, it’s simply the same things you would do in the States to get business. Be available. Listen. Help.
How does your personal life (marriage, family, etc.) affect your business life?
Oh, that’s a great question! Freelancing has so many benefits to it, but if your significant other doesn’t understand what it takes (the discipline mostly), it can be a rough road. Luckily, my wife is gracious. After traveling in Europe for those 3 months, I helped her build her business. It morphed along the way and now she’s been commissioned to write a book, which means she’s living the freelance lifestyle with me. Since this is her first time doing something like this, she’s learning first-hand how discipline is the name of the game. When you sit in your comfy chair on your laptop, it looks like you might not be doing anything. Now she understands that’s not the case.
For the rest of my family, they understand to a certain extent that I can be flexible with my time. But, they also have been conditioned over the years to expect me to be watching my emails and other communication. They know now that at any moment I may need to find a coffeehouse and sit for a few hours. But, prioritization again, is key. I let them know how much time it will take and try very hard to stick to that. I also try not to let it interrupt important parts of the day. Luckily I’m allowed to do that with the nature of my work because I also condition my clients to expect certain things while I’m traveling, like delayed communication. But, I do always get the work done. It’s all just a balancing game.
Do you have any questions for me that you’d like to ask?
What are your plans for SocialDreamium? I’m excited about that project/company and I can’t wait to see where you take it.
Where do you plan on traveling next?
Update: Answers to Nate’s questions in the comments.
Thanks for taking the time to do this interview!
It’s been my pleasure, Ryan. Thanks for the opportunity to share.
Check out Nate’s stuff:
-Blog
