DigitalCollars
About the Company
DigitalCollars, founded by David Arroyo in March 2020, is a digital consultancy based in Santa Cruz de Tenerife, Spain. The company specializes in offering software solutions tailored to the needs of small and medium-sized manufacturing companies. With a focus on optimizing and automating processes, DigitalCollars aims to fill the technological gaps that many factories face. David, the sole founder and employee, runs the business remotely, allowing for minimal operational costs while maintaining profitability.
DigitalCollars primarily generates revenue through two main streams: implementing commercial software and customizing it for factory use, and providing consultancy services that involve coding personalized solutions for specific areas like planning and procurement. The business operates as a side hustle for David, who continues to work full-time in his day job while managing DigitalCollars in his spare time.
Idea Behind Company
David's inspiration for DigitalCollars began in 2013 when he worked as a quality engineer in a factory. He noticed a significant disconnect between the advanced digital tools available in the tech industry and the outdated processes still in use in many manufacturing plants. While factories like Tesla and Boeing were at the forefront of technological innovation, the majority of factories were still relying on manual processes, such as using spreadsheets for production management.
David’s first step towards bridging this gap was automating the tedious task of manually entering production quality data into spreadsheets. He developed a digital form for factory workers and secured budget approval to implement tablets for production use. This early success validated the potential for digital tools in manufacturing and laid the groundwork for what would eventually become DigitalCollars.
Creating the Company
The creation of DigitalCollars was a gradual process. Initially, David used his expertise to develop productivity tools to make his own job easier. However, it wasn't until 2019, after attending a tech workshop in London, that he realized the broader potential for these tools in the manufacturing industry. A key moment came when a seasoned warehouse worker enthusiastically embraced one of the apps David had implemented, demonstrating the practical value of his solutions.
To validate his business idea, David began offering his services to companies for free. As he saw the significant returns these companies were achieving from his solutions, he quickly transitioned to charging for his services. His firsthand experience as both a factory worker and quality engineer allowed him to understand the specific pain points in the industry and offer targeted solutions that delivered substantial improvements.
Launching the Business
David officially launched DigitalCollars in March 2020, just before the COVID-19 pandemic hit. The timing posed challenges, as the lockdowns disrupted business operations, including David's ability to seek out new customers. Despite this, the period served as an opportunity to stress-test digital tools and refine his offerings. The low overhead costs of running a remote business allowed DigitalCollars to survive the pandemic.
Following the initial launch, David re-committed to growing DigitalCollars in the summer of 2020. The timing was advantageous as many manufacturing companies were struggling to adapt to remote working conditions, making them more receptive to the digital solutions David was offering. His approach of targeting manufacturing companies via LinkedIn and direct outreach proved successful in attracting clients.
Earnings
DigitalCollars generates an average monthly revenue of $1,700, amounting to approximately $21,000 annually. The business has minimal operating costs, as David is the sole employee and all the tools he uses are free. The profitability of DigitalCollars is evident, and while the business model is not yet scalable, David is exploring ways to grow his business further. Potential growth avenues include offering online courses or developing a dedicated platform, though David is cautious about maintaining the human connection with his clients.
David's ultimate goal is to make DigitalCollars his primary source of income. To achieve this, he plans to consolidate his customer base and increase his rates. The consistent demand for his services and the significant room for improvement in the manufacturing sector suggest a promising future for DigitalCollars.
