Flagsmith

How Flagsmith Grew 150% YoY as a Bootstrapped Open Source Startup

Monthly Revenue

$125K

Founders

Profitable

Yes

Year Started

2016

Customer

B2B & B2C

Founders

Profitable

Yes

Year Started

2016

Customer

B2B & B2C

Who is Ben Rometsch?

Ben Rometsch, the founder of Flagsmith, started his career as a software engineer in London before embarking on entrepreneurship. With extensive experience running a software agency, he decided to bootstrap an open-source feature flagging tool when he found a lack of suitable alternatives on GitHub. Ben is deeply committed to open-source principles and has developed Flagsmith into a successful bootstrapped company by focusing on sustainable growth and customer needs.

What problem does Flagsmith solve?

Flagsmith helps developers manage feature flags, making it easier to control which features are activated in their applications. By enabling teams to test new features or configurations without redeploying code, Flagsmith allows quicker iterations and safer rollouts, saving time and reducing stress for engineering teams that need to ensure stability while innovating.

How did Ben come up with the idea for Flagsmith?

The founders of Flagsmith came up with their business idea through firsthand experiences faced while running a software agency. While working on various projects, they identified a recurrent problem: the need for a reliable feature flagging tool that was either unavailable or commercially unfeasible, prompting them to explore this space. They were developers seeking a feature flagging solution on GitHub, couldn't find anything suitable, and thus realized an opportunity to create an open-source alternative.

Before settling on the idea, they developed a scorecard system to evaluate its potential against other project ideas. They considered factors like development ease, market need, and potential competitive edge. This evaluation process helped them decide that building an open-source feature flagging tool was their best bet. The founders initially validated their idea through this process and noticed a significant interest in the concept when their request for a certain feature improvement in a similar tool on a public forum received overwhelming support.

They faced challenges, particularly in gaining initial traction and determining the right customer segment. Through persistent efforts and by maintaining a focus on building a sustainable open-source solution, they gradually refined their offering. One important lesson they learned was the significance of aligning their product with the customers' actual needs—discovering that enterprise data-sensitive organizations were key customers—as opposed to their initial assumptions.

How did Ben build the initial version of Flagsmith?

Flagsmith was constructed as an open-source feature flagging tool beginning as a side project while managing an agency, reflecting both a practical and strategic decision-making process focused on creating a robust tool for internal use. The initial development phase was economically conservative, emphasizing a lean approach with cost-effective, scalable software tools that exploited open-source technologies and available resources. The platform's core components such as the API and SDKs were developed effectively without significant initial financial investment, leveraging open-source licenses and tools available on GitHub. Building from an agency environment allowed the team to iterate and test their product without high-pressure timelines, although scaling proved challenging due to resource constraints and the intricacies of self-hosting components for users.

Challenges such as traffic management for hosted APIs and ensuring robust, reliable service during large data volumes were addressed progressively with a dedicated focus on building a self-hosted, Kubernetes-deployable platform that was flexible and efficient to run on multiple infrastructures. The prototype phase took several years of part-time development, with significant iterations informed by hands-on experience and the incremental collection of user feedback. The development was initially slower-paced given its status as a side project, but meticulous focus on engineering excellence and user needs helped overcome early hurdles and shaped a sustainable growth trajectory for Flagsmith.

What was the growth strategy for Flagsmith and how did they scale?

Content Marketing

Flagsmith has effectively leveraged content marketing to engage with its audience. They focus on creating technical content that resonates with developers and engineers, who are the primary users of their product. The team frequently speaks with customers to understand their needs and create content in the customers' own words, which enhances relatability and engagement.

Why it worked: By focusing on valuable, technical content, Flagsmith connects directly with their target audience. This strategy positions them as an authority in the feature flagging space, increases organic traffic, and builds trust with potential users. Their collaborative approach, partnering with other tech entities for content, helps broaden their reach and appeal.

Open Source Community Engagement

Flagsmith thrives on being an open-source project, fostering a robust community around this. They emphasize transparency and collaboration, allowing users to contribute to the product and be part of its evolution. This community-driven model not only aids in product improvement but also in market penetration.

Why it worked: The open-source approach builds trust among developers who prefer transparency and flexibility. It also helps in rapidly iterating and improving the product by incorporating feedback from a diverse global user base. Contribution from the community reduces development costs and enhances the product's credibility and adoption.

Direct Customer Feedback and Iteration

Flagsmith invests significantly in understanding their customer base by maintaining direct communication and listening to feedback. This approach allows them to tailor their offerings closely to user requirements and continuously refine their platform based on real-world usage.

Why it worked: This focus on user feedback ensures customer satisfaction and retention. By aligning the product development closely with customer needs, Flagsmith boosts user loyalty and enjoys organic advocacy, which is crucial for growth in competitive markets.

What's the pricing strategy for Flagsmith?

Flagsmith offers flexible pricing starting at $29/month for basic services, with customized enterprise options for on-premise deployments, targeting data-sensitive organizations seeking open-source feature flagging solutions.

What were the biggest lessons learned from building Flagsmith?

Customer-Centric Focus: By bootstrapping, Flagsmith emphasized prioritizing customer needs over external revenue goals, allowing them to build products that truly resonate with their users. This customer-centric approach helps in creating sustainable and loyal relationships.
Scaling Patiently: Flagsmith faced challenges in scaling due to limited financial backing but viewed this as an opportunity to grow thoughtfully and efficiently. Perseverance in a slow-growth approach can eventually lead to significant long-term success.
Remote and Flexible Team Culture: Hiring globally and flexibly, Flagsmith adapted to remote work challenges by being open to work arrangements that suit different global environments. This flexibility helped them access diverse talent pools and manage costs effectively.
Leveraging Open Source: The decision to keep the platform open source allowed Flagsmith to build trust with its technical users and benefit from community contributions. This approach not only enriched the product with new features but also bolstered the brand's reliability in the market.
Resilience in Bootstrapping: Despite the slower start without venture capital, Flagsmith benefited from maintaining control over business decisions. The focus on a sustainable growth path without external funding pressures reinforced resilience and independence in their business strategy.

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