How to Launch Your Dream Business This Weekend, According to a $36 Million Tech CEO

Noah Kagan, a tech CEO with a net worth of $36 million, started his now 14-year-old company, AppSumo, in a single weekend with just $60. The company earned $300,000 in its first year and $3 million in its second.

In a recent podcast episode, Kagan shared how he founded AppSumo, a "Groupon for software," over one weekend. AppSumo, which cost $60 to launch, made $80 million last year, and Kagan remains its CEO.

Back in 2010, at 28 years old, Kagan had already been the 30th employee at Facebook and the fourth at personal finance app Mint. Despite these impressive roles, he felt insecure and was eventually fired from both companies. This led him to realize the risks of relying on a day job where someone else could decide his fate.

Kagan wanted to prove his intelligence and success, especially after being fired from Facebook and Mint. He conceived AppSumo, a marketplace for software deals aimed at small business owners and solopreneurs. Inspired by MacHeist, which offered Apple users software discounts, Kagan wanted to bring similar deals to a wider audience.

"I was interested in letting the geniuses create software, while my skill and excitement were in promotion," Kagan said.

The business came together in about 60 hours. Kagan identified Imgur as the software he wanted to sell, cold-emailed its founder on Reddit, and got approval to sell a discounted version in exchange for a cut of the sales. He then met with Reddit's founding engineer to ask for free advertising, which he also secured. Finally, he hired a developer to create a website with a PayPal button and purchased the AppSumo.com domain name. The total cost? $60 and one weekend.

AppSumo's initial success was staggering, making $300,000 in its first year and $3 million in its second. Last year, it brought in $80 million in revenue, and Kagan now has a net worth of $36 million.

Kagan emphasized the importance of being passionate about the problem you're solving in business. "I think that's the thing people are missing in business," he said. "They're chasing AI or trying to become influencers. Find areas where you think, 'I don't know if I'll ever get tired of this.'"

He also highlighted the benefits of starting a side hustle or finding an additional income source. According to Kagan, having control over your future is invaluable.

"If you can just give up 30 minutes a week, if you can give up one Netflix show a week, if you can give up one thing a week, and you keep doing it weekly, eventually you can have that business," he said.