Together with

Table of Contents

• Introduction

• Biz Breakdown

  • Obsidian's Business Model

  • Lumi's Business Model

• Team Spotlight

• Trending

• Key Insight

• Tools

• Actionable Tip

Introduction

Recently, In the world of micropreneurship, the journey of Stephan Ango (@kepano) from a community advocate to the CEO of Obsidian — an innovative note-taking and personal knowledge management app, and growing rival to Notion — serves as a modern-day odyssey. His story not only inspires but also educates on how to innovate on already-existing industries (much like Google did in the search engine space decades ago) to carve out a thriving niche of their own.

📊 Biz Breakdown

Starting as a passionate user of Obsidian, Ango's transition to CEO exemplifies the growth potential rooted in genuine product love and community engagement. Obsidian, known for its user-centric design and sustainable business model, operates without the crutch of venture capital.

Ango's previous venture, Lumi, successfully acquired in 2021, showcases his adeptness in guiding startups from inception to acquisition, hinting at a strategic approach towards growth and scalability. The business models of Stephan Ango's ventures, Obsidian and Lumi, reflect his innovative approach to entrepreneurship, blending technology, design, and strategic market positioning.

Now' let’s dive deeper into the two businesses:

Obsidian's Business Model

Obsidian was founded by Shida Li and Erica Xu during the pandemic in 202. By 2023, it already has around 1 million users. The app is distinguished by its unique approach to note-taking, emphasizing a non-linear, interconnected method that mirrors the human brain's operation. This "second brain" concept is central to Obsidian's value proposition, offering users a private, flexible, and enduring tool for thought and knowledge management.

The application supports extensive customization through plugins, themes, and custom CSS, catering to the highly personal nature of note-taking. Importantly, Obsidian prioritizes data sovereignty, storing information locally to avoid the pitfalls of cloud services, which can change terms or shut down unexpectedly.

The business model of Obsidian can be understood through the lens of the Business Model Canvas (BMC), a strategic management tool that outlines the key components of a business model. While specific details of Obsidian's BMC are not provided, the general principles of BMC—such as value propositions, customer segments, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure—offer a structured way to analyze how Obsidian delivers value to its users and captures value for its sustainability.

Lumi's Business Model

Lumi, co-founded by Stephan Ango, is a Los Angeles-based company that provides an end-to-end platform for packaging and supply chain management services. The company focuses on helping e-commerce brands manage their packaging needs efficiently and sustainably. Lumi's business model revolves around simplifying the procurement and management of custom packaging for online retailers, offering a digital network of factories and a dashboard that centralizes the packaging supply chain process.

Alongside co-founder Jesse Genet, Ango built a profitable business that caters to the packaging needs of some of the top e-commerce companies. Lumi's success is partly due to its ability to bring simplicity to the complex world of packaging production, ensuring that the right products are made at the right machine in the most suitable factory.

🫂 Team Spotlight

The team size of Obsidian consists of five full-time members. This includes the founders Licat (Shida, developer) and Silver (Erica, product), Liam (developer of the Calendar plugin), and Joethei (responsible for plugin reviews and the development ecosystem). Stephan Ango emphasizes the importance of keeping the team small to maintain agility and focus, reflecting a strategic choice to avoid venture capital investment and remain lean.

However, if you look on their website, it seems like there may now be 8 (minus the cat).

What’s even more fascinating is Stephan’s strategy for running his small, lean team — Ocean’s 11 style:

📈 Trending

Under the leadership of Stephan, Obsidian’s growth is tapping into several larger industry trends:

1. Personal Knowledge Management (PKM): Obsidian's core functionality as a note-taking and knowledge management tool aligns with the growing interest in PKM systems. These systems help individuals organize and manage their personal information, ideas, and insights, often referred to as building a "second brain." This trend is driven by the increasing need for tools that can handle the vast amounts of information individuals encounter daily.

2. Data Privacy & Sovereignty: With rising concerns about data privacy and the control over one's own data, Obsidian's model of local storage resonates with users who are wary of cloud-based services that may be prone to changes in terms or service discontinuations. This trend is part of a broader movement towards digital tools that empower users with greater control over their data.

3. Customization and Extensibility: The trend towards customizable and extensible software is evident in the popularity of platforms that allow users to tailor their experience through plugins, themes, and other modifications. Obsidian's open plugin system and the ability for users to create and share their own customizations cater to this demand for personalized software solutions.

4. Sustainable Business Models: There is a growing trend towards sustainable business models that do not rely on venture capital investment. Obsidian's approach to staying lean and focusing on long-term viability without external funding aligns with this trend, reflecting a shift in how tech companies are considering growth and sustainability.

5. Remote Work & Digital Nomadism: As remote work and digital nomadism become more popular, tools that support these lifestyles gain importance. Obsidian's flexibility and adaptability make it a suitable tool for individuals who need to manage their work and knowledge on the go, without relying on internet connectivity.

6. Open Source & Community-Driven Development: Obsidian taps into the trend of open-source and community-driven software development, where users are not just consumers but also contributors to the product's evolution. This model fosters a strong community around the product and can lead to rapid innovation and improvement.

These trends reflect the changing landscape of how individuals interact with technology for personal and professional purposes, and Obsidian's features and business model are well-positioned to meet these changes.

🔑 Key Insight

One key insight is Stephan’s strategic focus on building a lean and agile company. By maintaining a small team size of 5-8 members, Ango exemplifies the micro ethos, which is crucial for micropreneurs who must often pivot quickly in response to market changes.

This approach allows for a more intimate understanding of the product and customer needs, fostering innovation and ensuring that the company can sustainably scale without the pressures of venture capital investment.

This insight underscores the value of strategic resource management and the benefits of fostering a close-knit, highly efficient team dynamic, which can be a significant advantage for micropreneurs looking to thrive in a rapidly evolving business landscape.

🧰 Tools

Here are some of the tools Stephan uses for his business:

Stephan also has good philosophical points on tools:

🫵 Actionable Tip

One immediate, practical, and actionable tip you can take away from Stephan’s approach, especially when looking to build your own "micro empire," is to focus on community engagement and contribution. As demonstrated by Ango's involvement with Obsidian, becoming an active member and contributor within a community early on can lead to significant opportunities, including leadership roles like his transition to CEO.

For micropreneurs, this means actively participating in the communities relevant to their niche, providing value through contributions, and building relationships. This strategy not only helps in understanding the market and customer needs but also establishes credibility and can open doors to partnerships, collaborations, and growth opportunities.

Stay up-to-date with AI.

AI won’t replace you, but a person using AI might. That’s why 500,000+ professionals read The Rundown– the free newsletter that keeps you updated on the latest AI news, tools, and tutorials in 5 minutes a day.

Sign up today.