This is part two of a two-part post about what happened in 2008 and my plans for 2009.
So 2008 was great, no, it was beyond great. I quit my job, moved to Italy and started Balsamiq Studios LLC, my first company. It went very well.
Perhaps I should be more cautious, but I have a feeling 2009 will be even better. Here’s why.
I am looking at my TODO list and I have 12, yes twelve projects listed which should keep me busy for the year, and then some!
Most of my big projects for 2009 have to do with integrating Mockups in your preferred way to work.
I wish I could tell you what products I am integrating Mockups with but I’ll keep them as surprises, I don’t want to jynx myself!
I am thrilled about each of these projects, as making great pieces of software talk to each other is something I love doing (there’s something magical about it, that’s why I make Web Office Plugins after all). I will likely contract out part of the development work for some of these, and some platform providers have even offered to help me with development in order to make the project happen. Very exciting.
Everyone knows that linking mockups together is the last big missing feature of Mockups. I have started a GetSatisfaction thread about it just the other day, but I am itching to start implementing it (I think I’ll do a phased approach, a little bit at the time), so stay tuned here or on Twitter for updates. It’s coming, soon.
Other big client-side enhancements I have planned for 2009 are, in no particular order:
On top of that, there will always be bug fixes and little enhancements here and there…I am releasing every Sunday morning these days so keep updating!
I just love the little (ok, not so little) community that has formed around the Balsamiq GetSatisfaction forums in the last 6 months. Your feedback keeps me going every day and makes the product as good as it can be. I haven’t worked on a feature that didn’t come from a customer request since the day before I launched in June. It’s wonderful to know that people will put what I’m working on to use immediately, and that it will make them more productive and ultimately happier.
The collaboration with InspireUX (look in the Help menu for the “I need inspiration” link) is also one of my favorite features. I always read one of Catriona’s quotes at the beginning of a long Mockups session, it gets me fired up and pushes me to do my best.
In 2009, I want to help nurture the Mockups users community with the following:
You may think that I want to do all of the above as a marketing scheme, but you’d be wrong. Community “features” are just as important as features built with code. Knowing that there’s a community of support behind a product is a wonderful feeling, and I want my customers to feel that from day one. Plus it’s pretty lonely over here, so really I want to do it just for my own benefit.
My goals for the company are simple: keep existing customers happy. Make new customers, make them happy. Make all customers more productive. Provide top-notch experiences, both in the product and in any interaction with Balsamiq Studios. Stay transparent, stay human, stay green and socially conscious.
Financially, my goal for Balsamiq is to reach $400,000 in revenue, with a stretch goal of $500,000. It will be tough, but I think I can pull it off.
Personally, this will be another year of intense learning. I will have to go from “mr. Do-it-all” to be Balsamiq’s CEO, which will mean having employees, delegating, setting up relationships with resellers and partners, perhaps incorporate in Italy as well (yay for micro-multinationals!), and hopefully make some non-critical-but-very-formative mistakes. With all that I have planned for 2009, there’ll be plenty of opportunities for it.
Onward!
This is part one of a two-part post about what happened in 2008 and my plans for 2009.
First, a few numbers about 2008:
Overall, I couldn’t be happier with Balsamiq’s first 6 months of operations (and that’s a huge understatement).
This little startup has been successful beyond my wildest dreams, an incredible learning experience and the ultimate thrill-ride. For one guy with an idea and a laptop, I think I made quite a splash!
Next, let’s talk about 2009, for I am SUPER EXCITED about it!
I am starting to batch updates and releasing once a week (Sunday morning, Italian time). I used to “fix it an release it” but now that the product is more mature I feel that “slowing down” to a weekly release cycle is the right thing to do.
This week, the new build brings us:

I also fixed a few bugs during the week and pushed them right away (the most important had to do with PNG images failing to export in some cases) .
You can download the new version in the usual places:
Two Reminders:
I also updated the website a bit with some FAQs and more up-to-date company info.
Onward!
I am extremely pleased to announce the immediate availability of Balsamiq Mockups version 1.5.
This is a FREE upgrade for all Mockups versions.
Download links: Mockups for Desktop, for Confluence, for JIRA and for XWiki. You can also try the web demo version here.
This release introduces the #1 most requested feature and a host of other productivity enhancements which should make Mockups more flexible, powerful and hopefully even more fun to use.
Revamped intro video:
This has been the #1 most requested feature from day one, and it’s the first one that was designed with the help of the wonderful Mockups community using Mockups coupled with the GetSatisfaction forums: you can read everyone’s excellent feedback here: “Help me design the import image feature“.
Here’s a quick overview video of how to use the feature and what it enables:
I like this feature because it’s simple to use and yet very powerful, enabling a number of use-cases which were previously impossible with Mockups. For instance:


I realize it’s a bit tricky, but I think this is an advanced use-case so I think it’s OK, at least for now.
Aside from the Image control, you can also embed images in the Cover Flow component (as seen in the video at the top).
I can’t wait to see how you use this feature!

Version 1.5 includes new control types like Arrows, Multiline Button, and Fieldset / Group.
A few existing controls were ehanced with multi-line support, like checkboxes, radio buttons, callouts and tooltips.
Also, the ComboBox has a multiline feature: if you only type one line of text in a ComboBox, you’ll just see the regular, closed combo. If instead you type more than one line of text, the ComboBox’s pulldown will appear with your content in it. Magic!
Other enhancements are the ability to not have anything selected in the Button Bar control and to type and resize the Date Chooser control.
The Data Grid / Table became even more powerful in this release:
You can now toggle the header row, specify two colors for the rows, the row height, whether the grid should have horizontal and/or vertical lines, and use text shortcuts such as [] and [x] to display checkboxes and () and (o) to display radio buttons in the grid.
I think these enhancements alone will allow you to use Mockups for a lot more types of interfaces than before.

Mockups 1.5 introduces a number of features designed to make Mockups integrate better in your daily work without disrupting your flow.
For instance:


The following features have two things in common: they are nearly invisible (barely any new UI was added for them) while at the same time giving you more power and speed when creating your mockups.
They include:



As always, you can see the full list of supported keyboard shortcuts here.
I may say that I am a one-person development team, but it sure doesn’t feel that way. This release was truly a collaborative effort. Most of the new features and bug fixes came directly from you, and were designed and discussed together on GetSatisfaction coupled with Mockups. I’ll write another post just on how well those two work together, but for now you should at least take a look at the Help me Design the Import Image Feature thread if you haven’t.
There are a few people whom I’d like to thank in particular:
I am truly blessed to be surrounded by such wonderful, brilliant and generous people. This is truly something I did not expect when I started Balsamiq, and something that really warms my heart. For instance, look at the 115 Mockups Fans on Facebook, this is such an awesome global community!
You are the people I write software for, thanks for pushing me and helping me make it as good as it can be.
Oh, where to start. I have cleared the next few days to deal with whatever unexpected fire might flare up, then it’s Christmas, also known as “the best time for coding”, so I might start attacking the tough features of 2.0 like “double-click to edit groups”, “add control packs support” (for iPhone, Facebook and other UI control types) and of course “linking mockups together”, the main feature of 2.0. I am also working with Michael Bourque on a “Mockups Community Server” wiki where people can share and critique each other’s mockups.
Additionally, I have 6 (yes, SIX) more integrations in the pipeline for Mockups (other enterprise wikis, bug tracking and content management systems), which should keep me busy through the spring.
Today is the six-month anniversary of launching Balsamiq…so far it’s been an incredible journey. I can’t wait to see what the future will bring, I hope you’ll want to stick around for it!
Happy holidays!
Peldi
Hi there, just a quick update. I have been heads down coding and bug-fixing in order to get Mockups 1.5 out the door. I feel extremely close, hopefully I’ll be able to launch by the end of the week.
What I am doing now is recording some new screencasts for the web site, updating the documentation and preparing a few blog posts for the launch (one won’t be enough, there’s just too much stuff in 1.5!)
I thought it would be useful to share my screencasting techniques. I know there are lots of good tutorials out there, but I figured the more the better right?
Here’s my setup:
Things to notice:
Here’s how I assemble a screencast:
It looks like my fist Mockups 1.5 video has just finished transcoding over at Vimeo (feedback welcome!!), so I’d better get back to it and make some more!
Hi there. Atlassian once again manages to impress me and make me proud to be affiliated with them. This is one of the best recruiting tools I have ever seen.
This totally fired me up, I truly hope to make a similar video for Balsamiq Studios one day.
Mike and Scott, cheers to you mates, FANTASTIC job!
I constantly get asked if I know any good Flex developers, and I am tired of answering “I wish!”
So if you do Flex development, please fill in the form below so that I can send some work your way in the future.
Lone freelance developers only please, no agencies.
Form powered by Wufoo
I feel a bit sheepish posting this since I don’t want to come across as bragging, but a promise is a promise, so here it goes…
I just recently surpassed $100,000 of revenue. Balsamiq has been in business for less than 5 months, so as you can imagine this level of success goes beyond my wildest dreams.

My interpretation: not a lot of data here, but Mockups for Desktop sales are clearly growing (I guess it really does save people time and $$!), Mockups for Confluence had a bad October (not a big surprise given the financial markets meltdown), Mockups for JIRA is just getting started and Mockups for XWiki proves that it’s really hard to charge for a plugin built on top of a free platform - not a huge surprise there, but I’m still bullish!

This is the same data, but stacked. October was lower than September, but still really good given the financial crisis. November is looking on track to be the best month yet. Also, these numbers are INSANE.
It hasn’t really hit me yet.

This chart tells me that it’s all still very spikey and that I shouldn’t try to make revenue predictions. It also tells me that I need to try to make it more predictable (more on this later).

Same data as above, but stacked. Notice how much less spikey this is (8 straight weeks of >$5,500 in sales). This tells me that having a portfolio of products is a very good thing. I’ll be working on expanding that portfolio in the future.

the chart above is more interesting when you compare it to the one below:

Now # of sales doesn’t necessarily map to “# of users”, since a Confluence sale can be for 25/50/500 people and a JIRA sale can mean a whole company. Still, there’s clearly a lot of demand for desktop apps out there (in this SaaS age, who’da’thunk’it!), but the margins there are way smaller than enterprise sales (duh!).
I am still confident that the plugin versions will grow over time relative to the desktop version, as more and more people “see the light” and start working in the cloud. In the meantime, thanks desktop lovers for keeping me in business!
The next two charts are kind-of useless because the costs don’t include my salary nor my rent, and some other small November expenses I haven’t gotten around to recording yet. Still, I think they are useful enough to show how little out-of-pocket costs I really have:


I just like the slope of that one.
Some people have asked me for this in the past, so here’s the chart with the # of visits since launch day:
I don’t look at these too often to be honest. All the big spikes were blog posts that got picked up by Hacker News: they rarely correspond to big spikes in sales…still, knowing that thousands of people read this blog is pretty darn exciting.
When I started Balsamiq I thought that if everything went well, it would take about two years to get here. I was excited about the struggles ahead, the successes and the failures that were going to help me grow in those two years. So this kind of instant success, 18 months ahead of schedule, is a bit of a shock. I feel totally unprepared for it, so I want to be extremely careful about my next moves. I plan on doing a full round of one-on-one Skype sessions with my advisers soon, plus I have to finish 1.5 (I have a few bugs to fix and I’m waiting for a commercial Flickr API key…grrr) so I’ll still be head-down coding for a little while longer.
Still, with over 800 customers to support, it’s time to start looking up from the daily developer-work and ask myself some bigger questions:
Is Balsamiq no longer a startup, migrating towards “profitable and somewhat boring small business” status? I’d very much like that! Unfortunately, someone yesterday made me realize how far I am from it.
Just yesterday, as I was preparing this post, someone emailed me the following (I paraphrase):
“We’d like to buy a big license. I was wondering how long you plan to stay a one-man company for. If you are in an accident, who will support us?“
And my world came crushing down. Though perhaps not the most tactful, the question is totally legitimate! I had a moment of panic imagining myself disappearing from the picture…what would happen to Balsamiq and its customers? Ouch, I don’t know what sound implosions make but I’m pretty sure I heard it. Maybe it was my stomach.
Here I am, trying to be the “champion of one-man businesses”, blogging about it all, trying to convince people to join me in “the future of software companies”, and there I was: stumped by a simple, OBVIOUS question that hadn’t even crossed my mind until then (and in retrospect, I’m glad it hadn’t).
So…I think the days of Balsamiq Studios as a one-man-company are numbered. I don’t really feel like I have reached my limits in terms of how much I can do by myself (I’m still not working crazy hours), but I’d be doing my customers a disservice if I didn’t seriously start thinking about growing the company. And the numbers above tell me that I can afford to at least start considering it.
Like I said, I want to be extra careful in the next steps, so I’ll take some time to do what’s right for the company, my customers, and my sanity.
As a first step, I have asked Mariah to help me with the philantropic efforts. It’s a baby step, but it lets me change the web site text from “I” to “We” everywhere, which is a GREAT feeling (check out the updated company page for instance).
I have also had a very good experience with my first contractor, and I have hired a second contractor for a surprise little project starting on Saturday (stay tuned). I’ll take it as practice in having people work for me.
Now, if you’re reading this and are thinking “this guy is ripe for the picking”, please abstain from making acquisition or “partnership” offers. This kind of challenge is EXACTLY what I was looking for when I started the company, and I am still LOVING EVERY MINUTE of this Balsamiq adventure. I want to stay independent, at least for a while longer, and grow the company organically, as needed. I am lucky to have great advisers and I’ll be looking to add a few more to my board (more about that in another post). That said, if you have some “immediately useful” advice for me, feel free to email me or leave it in the comments (I’m thinking books or blogs to read, people to talk to, that sort of thing).
So that’s the status update. I don’t think I’ll share more revenue numbers for a while, if everything goes well things should get “boring” on this front (i.e. predictable with a steady and manageable growth).
As for everything else, I will keep sharing at every step of the way, there clearly isn’t enough info about the organic growth of bootstrapped companies out there.
Onward!
Peldi
[Update: you can follow some comments on the Hacker News thread about this post]
[Update #2: OMG my favorite blogger Marshall Kirkpatrick covered this on ReadWriteWeb, and Jason Fried posted a comment! My head is seriously spinning right now]
[Update #3: I forgot that RWW was getting syndicated by the NYTimes. THIS is wild]
Hi there. I am very pleased to introduce to you my wife and best friend Mariah.

She has been the hand behind all of the UI controls in Balsamiq Mockups, not to mention an incredible “support group of one” for me in this startup adventure.

some of Mariah’s handiwork
Starting today Mariah is going to take a more active role in Balsamiq Studios: the first task she’s taking on is to hand out free license keys to do-gooders, bloggers etc., so be nice to her!
We were brainstorming what her job title should be…Community Manager…VP or Philanthropy…then we settled on what she already is: my “Better Half”.
So please join me in welcoming Mariah to her new role; if you’d like to email her she is mariah@balsamiq.com.
Hi there. It was a long day yesterday, with Lufthansa reminding me about how bad airplane food can be.
It’s good to be back in the Bay Area, even for just a few days. It’s a strange feeling, I’ve only been gone 6 months so it still feels like home a bit.
Anyways, AtlasCamp kicked off last night with a big dinner and introductions…the who’s who of Atlassian plugin development is here, I have so much to learn!
I wanted to point out two links:
Ok, time to get ready for a big day of learning!
Onward!
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