What Does it Mean to Startup?
Throughout my career, I’ve had the privilege of being a part of several startups, each venturing into distinct domains, from kitchen equipment sales to Bitcoin mining solutions, cosmetics manufacturing, and software development in the security and privacy realm. While these experiences may seem disparate, they all shared a common goal: to bring a product or service to market and successfully sell it.
My decision to dedicate significant time to each of these startups stems from a deep-seated desire to acquire diverse skill sets and broaden my understanding of various industries.
In the kitchen equipment venture, I gained insights into a unique business model that trades current cash flow for future rebates from manufacturers, a strategy that places the onus of sales on the wholesaler and demands rigorous capital management. Growth in this model is contingent upon increased sales and profit, leading to higher rebate tiers. However, this approach also presents the challenge of waiting for accumulated funds to be returned by manufacturers. Additionally, this startup provided me with an opportunity to witness the power of decomposing monolithic systems and migrating to Kubernetes, a practice that was then considered cutting-edge.
My involvement in the Bitcoin mining startup introduced me to the world of HVAC, thermodynamics, and power rate sheets, concepts that were previously unfamiliar to me. This experience reinforced the notion that startups can serve as fertile grounds for learning and connecting seemingly unrelated topics. While many aspire to write sophisticated programs for managing vast arrays of machines in this field, the reality is often more grounded in securing favorable power contracts. Negotiating a five-cent per kilowatt-hour contract with a guaranteed five-megawatt installation down to four cents can make the difference between substantial profits and mere survival. The challenge of efficiently dissipating heat from hundreds of machines housed in a shipping container, while ensuring adequate temperature during winter, pushed my understanding of physics and highlighted how a seemingly technology-driven endeavor is often a quest for the cheapest power source.
My foray into the e-commerce realm, fueled by Shopify’s ubiquitous platform, revealed the importance of customer relationship management and streamlined logistics in driving growth for small businesses. Given a compelling product and brand, I discovered the ability to create a pathway for customers to acquire that product. This startup also exposed me to the intricacies of physical goods manufacturing, a domain that many of my colleagues found challenging, while I excelled in the software aspects. Navigating an expo showcasing thousands of bottle designs and deciphering the most effective delivery method for a specific liquid was an unexpected but exhilarating learning experience. Additionally, I delved into the nitty-gritty of marketing, realizing that even with a strong product and brand, reaching the target audience is one of the most formidable tasks in launching a startup. In contrast, technology often emerges as the least complex aspect.
As a business approaches the inflection point of the S-curve, the decisions made by the first 50 employees shape the organization’s culture. Defining privacy, not just for oneself but also for Mary in marketing or Bob in accounting, requires embedding a security and privacy ethos throughout the company. In this startup, I had the privilege of laying the groundwork for security, IT, and compliance, witnessing how the constraints of compliance can be a blessing in disguise, trading boundless flexibility for operational overhead. I’ve often pondered how a business’s culture is formed, and it’s evident that the startup phase plays a pivotal role. The founders' aspirations, if properly nurtured, become a tapestry of threads that bind the entire organization. The freedom and fear that come with passionately expressing one’s philosophy are two sides of the same coin.