Insights from building a company

Some say you only learn from your mistakes, some say you need a success to learn from...

For the last 4 years I have been on a journey to building a company and as much as I resented (and still sometimes do) the word "entrepreneur" and the often toxic environment it creates, this has definitely been an interesting path, with a lot of turns on it that I had to learn to navigate. And I've come to the realization that the truth, as elusive as it seems, probably lies somewhere in between learning from both successes and failures. Each misstep has been a hard-earned lesson, while every triumph has reinforced my resolve and strategy.

Those familiar with me know my penchant for seeking out books, courses, and degrees to master a new skill before applying it in practice. Yet, I've come to understand that building a company is more akin to an art form than a straightforward science.

This realization was sparked by a brief talk by short talk by Chase Hughes that compares behavioral analysis to Art. That gave me the thought that the same can be applied to building a company.

His perspective resonated with me, and rephrasing his statements I could say that if entrepreneurship could be distilled into a formulaic set of steps, skill would be irrelevant. But the reality of entrepreneurship, as opposed to the controlled environment of a lab or MBA program, is far more nuanced. Entrepreneurship merges art with science, navigating probabilities rather than certainties.

I aim to extract, not the "science" per se, but the key insights I believe I will use myself when and if I embark on this journey again.

Everything will always go wrong

One of my favorite applications of the Murphy's laws has always been security as another quote from a very good book (Applied Network Security by Arthur Salmon, Warun Levesque, Michael McLafferty) goes

Network security is the same as Murphy's law in the sense that, if something can go wrong it will go wrong. To be successful at understanding and applying network security, a person must master the three Ps: persistence, patience, and passion.

A cyber security professional must be persistent in their pursuit of a solution to a problem. Giving up is not an option. The answer will be there; it just may take more time than expected to find it. Having patience is also an important trait to master. When dealing with network anomalies, it is very easy to get frustrated. Taking a deep breath and keeping a cool head goes a long way towards finding the correct solution to your network security problems.

I think absolutely the same can be applied to building a company. The moment you think you have created some stability, your star employee would call you and tell you she's leaving. The moment you think you have the best team gathered, your customers will decide to go a different route because of internal politics. The moment you think you are in a good growth, economy will go to shits and you'll need to make some tough decisions.

As a lot of smarter people before me have said - persistence is the most important skill you can have, if you decide to go down the road of a "startup'

The Importance of automation, CI/CD and Infrastructure as Code

I'll make a jump here into technical for a moment. I admit I'm bias in this topic. Coming from the world of "devops", I find it absolutely critical to have automation of your resources from the get go. The more rigorous you are on the side of infrastructure automation, the more speed it will give you later on. The least thing you want is for the IT to slow you down the moment you start increasing your product or service presence.

Do it the right way for as long as you can, tolerate imperfections afterwards

This one has been one of the hardest for me, not just because of the natural perfectionism that I carry along in my life, but also because I do understand the tech side. When you are a "leader", who doesn't understand the nitty gritty details, it is easier for you to "let go", "delegate" and steer for a good result. If you yourself know how it can be done, and someone does a half-ass job, you sometimes need to control your instincts and jump into fixing things yourself. When wearing a Software Engineer hat, you want everything to be "done right". Architecture to be thought through, abstractions to be in place, unit tests to be written, linters to be configured, ...... And you should do that. Win as much time as you can from the project/sales side of things, to do things right. But when it's time to deliver, golive and learn from real life experience - tolerate the imperfections, make the bold move to go to production and learn from your mistakes there.

Doing and delegating are two different skills

This echoes the point above - the distinction between doing and delegating is profound. Mastering both is essential for leadership but requires a delicate balance between involvement and trust in your team's capabilities.

In my own journey as an entrepreneur, I've grappled with the challenge of when to dive in and when to step back—finding that sweet spot between doing and delegating has been a tough balancing act. It felt necessary, in the beginning to have your hands in everything, given the lack of respirces, expertise and the high stakes of getting every detail right. Yet, as we grew, I realized this approach wasn't sustainable. The harder part wasn't just deciding to delegate, but figuring out which tasks to let go of and which ones required my direct touch. It still is.

Observing the 80/20 Rule

An interesting observation I've made is the seeming validation of the 80/20 rule: it fely like the 80% of the work was done in the first 20% of the road. The code was written, the architectures done, the plans were made. And then it became hard. And that's exactly the "art" part of building the company. So I guess it's 80% science, 20% art.

The Right Blend of People

Creating the perfect team for a startup is akin to mastering the art of seasoning a gourmet dish. Just as you can't rely solely on salt nor overpower the dish with too much spicy pepper, assembling a team requires a harmonious balance of personalities and skills. In my experience, three key roles have emerged as crucial: the risk-taker, the organizer, and the take-it-easy person.

The risk-taker pushes the boundaries, always looking for new opportunities and not afraid to venture into the unknown. They bring energy and ambition, essential for startups that need to break new ground. The organizer brings structure to this ambition, turning chaotic ideas into actionable plans. They ensure that deadlines are met, resources are allocated efficiently, and the team remains focused. The take-it-easy person, on the other hand, is the team's equilibrium. They maintain calm, provide perspective during stressful times, and remind everyone that while the journey is important, so is our well-being and the joy we find in our work. Together, these roles create a dynamic team capable of navigating the complexities of building a business, much like the perfect blend of spices makes a dish unforgettable.

Network of People

Beyond the core team, the network of acquaintances, mentors, and friends met along the entrepreneurial journey holds immeasurable value. The founding team's vision and hard work are undeniably important, but it's the external insights, the shared experiences, and the support from those we meet along the way that truly enrich our journey. Every conversation with someone who has walked a similar path, every challenge dissected with knowledgeable and caring individuals, adds layers of depth and understanding to our venture.

Such connections are rare and invaluable, especially when they stem from genuine care for you as individuals beyond the business. These relationships provide not just insights and advice but also emotional support, which is crucial in the rollercoaster ride of entrepreneurship. Keeping these people close and nurturing these relationships is essential. They are not just contacts in a network; they are part of the extended family of your business, contributing to its foundation through their support and wisdom. In a landscape where the right advice at the right time can pivot a business towards success, these connections are treasures to be safeguarded and cherished.

But as the saying goes "einmal ist keinmal"...one experience is not enough for definitive conclusions. So I'll need to this a couple of more times to be able to judge about the conclusions above.

In the journey of building a business, countless factors intertwine to shape the path to success. It's not just about having a good idea or being in the right market at the right time. It's not only about having the right people around you and joining forces. It's not only about the team you assemble—their skills, their dedication, their ability to innovate. It's not only about understanding your customers deeply, predicting trends before they become obvious, navigating legal landscapes, and leveraging technology in ways that give you an edge. And let's not forget the importance of timing, adaptability, and the resilience to withstand the inevitable ups and downs of the economy.

Among all these variables, persistence stands out as a critical component. Yes, persistence is undeniably important. It's the fuel that keeps you going when everything seems to be pushing back, telling you to give up. But for me, the decision to keep going is about more than just being persistent. Each day, I face a choice: Is this effort worth my time? Is the potential success of my venture worth the sacrifices I'm making?

So far, my answer has been a yes. But it's not just about the possibility of success in traditional terms. For me, the allure lies in the complexity of the challenge itself. Building a business is a multifaceted puzzle, far more intricate than coding, architecting software, or developing machine learning algorithms. It's about weaving together different strands of strategy, human psychology, market dynamics, and innovation into a cohesive whole. And I thrive on solving complex problems. The sheer complexity of entrepreneurship, the daily grind of figuring out how to make something work despite the odds, is what keeps me hooked so far.