MBA2503 Why You Should Never Start a Tech Startup

Summary

The $100 MBA Show - Episode MBA2503: Why You Should Never Start a Tech Startup

Release Date: August 5, 2024

---

In Episode MBA2503 of The $100 MBA Show, host Omar Zenhom delves into the formidable challenges of launching and sustaining a tech startup. Drawing from his decade-long experience with Webinar Ninja—a tech startup he founded, grew, and eventually sold—Omar offers a candid exploration of why aspiring entrepreneurs might reconsider venturing into the tech startup arena. This comprehensive summary captures the episode's key discussions, insights, and practical advice, enriched with notable quotes and timestamps for deeper context.

Introduction

Omar Zenhom opens the episode by setting the stage for a critical discussion on the difficulties of starting a tech startup. Emphasizing his firsthand experience, he frames the episode as a "warning of what to expect" for those considering this challenging path.

“In today's lesson, you could see this as a warning of what to expect.” – Omar Zenhom [01:10]

The Six Major Challenges of Starting a Tech Startup

Omar and his co-host systematically outline six primary challenges faced by tech startups, drawing from their experiences to illustrate each point.

1. High Initial Investment

Starting a tech startup requires substantial upfront capital. From product development to marketing, hiring skilled professionals, and maintaining necessary infrastructure, costs can escalate quickly—especially for non-technical founders.

“Development alone cost us tens of thousands of dollars from hiring skilled developers, designers, marketers.” – Omar Zenhom [03:30]

Key Points:

• High costs of developing and maintaining technology.
• Significant financial commitments even before acquiring customers.
• Necessity of pre-selling or securing funding to cover initial expenses.

2. Constantly Evolving Technology

Technology is in perpetual flux. What’s cutting-edge today may become obsolete tomorrow, necessitating continuous learning and adaptation to stay competitive.

“What's cutting edge today can be obsolete tomorrow.” – Co-host [04:41]

Key Points:

• Regular updates and overhauls of technology stacks.
• High costs and potential downtime associated with technological shifts.
• The need for ongoing investment in new technologies and platform improvements.

3. Intense Competition

The tech industry is notoriously competitive, with new startups and established companies continually vying for market share. Differentiation is crucial to stand out in a saturated market.

“We had over 80 competitors. The tech industry is fiercely competitive.” – Co-host [06:36]

Key Points:

• Rapid increase in the number of competitors over time.
• Strategies to differentiate, such as targeting niche markets or enhancing customer support.
• Constant innovation required to maintain a competitive edge.

4. Technical Challenges

Maintaining a reliable and bug-free software product is an ongoing struggle. Startups must balance fixing critical issues with developing new features to meet user demands.

“There's no such thing as a software that's bug-free.” – Co-host [08:55]

Key Points:

• Daily technical issues and the necessity of bug triage.
• Importance of prioritizing fixes based on customer impact.
• Balancing technical maintenance with product development.

5. Burnout Risk

The demanding nature of running a tech startup can lead to significant stress and burnout. Long hours and high pressure can adversely affect mental health and overall well-being.

“There are long hours, there's high stress, there's a lot of pressure to perform.” – Omar Zenhom [13:21]

Key Points:

• The toll of constant responsibilities across various departments.
• Strategies to mitigate burnout, such as taking breaks and delegating tasks.
• Importance of maintaining mental health amidst relentless workload.

6. Scaling Difficulties

Scaling a tech startup involves more than just increasing the customer base. It requires expanding infrastructure, growing the team, and refining processes to handle increased demand efficiently.

“Scaling your team, your processes, each stage is challenging.” – Omar Zenhom [15:54]

Key Points:

• Building robust infrastructure to support a growing user base.
• Hiring and managing a larger team with effective processes.
• Strategic planning to ensure smooth transitions at each growth stage.

Advice for Aspiring Tech Entrepreneurs

Despite outlining these challenges, Omar and his co-host provide actionable advice for those still determined to embark on a tech startup journey.

1. Be Financially Prepared

   • Secure sufficient funding or bootstrap effectively.
   • Aim to generate revenue early through strategies like pre-selling or securing annual contracts.

   “You don't want to start out on the back foot.” – Omar Zenhom [17:13]

2. Stay Adaptable

   • Embrace the evolving nature of technology.
   • Be ready to overhaul or refactor code as necessary to keep up with advancements.

   “Embrace the constantly evolving nature of technology.” – Co-host [17:33]

3. Differentiate Yourself

   • Develop unique features or a distinctive business angle.
   • Focus on what makes your product stand out in the market.

   “Make sure that you have a unique angle or feature set.” – Omar Zenhom [17:48]

4. Build a Strong Team

   • Assemble a team of talented individuals from day one.
   • Invest in hiring A-players who can drive the company's success.

   “The team that has the best team wins.” – Omar Zenhom [17:57]

5. Manage Stress and Prevent Burnout

   • Prioritize personal health and well-being.
   • Implement strategies to manage stress, such as delegating tasks and taking regular breaks.

   “Manage it, prioritize your health, your well-being.” – Omar Zenhom [18:20]

6. Plan for Scaling

   • Develop a clear roadmap for scaling infrastructure, team size, and processes.
   • Anticipate challenges at each growth stage and prepare accordingly.

   “Have a plan for each stage of your growth.” – Co-host [18:35]

Conclusion

Omar Zenhom concludes the episode by reiterating the significant challenges of starting a tech startup, emphasizing that it's not a venture for the faint-hearted. However, he acknowledges the potential rewards for those who navigate these hurdles successfully.

“Starting a tech startup is not for the faint-hearted. It's challenging, it's high stakes.” – Omar Zenhom [18:39]

Reflecting on his personal journey, Omar shares that selling Webinar Ninja has led to a less stressful life, though he remains passionate about the entrepreneurial experience.

“The stress is the toughest part.” – Omar Zenhom [19:33]

He encourages listeners to approach tech startups with a clear understanding of the challenges, ensuring they are well-prepared to tackle them should they choose to proceed.

---

Key Takeaways:

• High Investment & Financial Risks: Tech startups demand significant initial capital, making financial preparedness crucial.
• Rapid Technological Changes: Continuous adaptation is necessary to keep up with evolving technology landscapes.
• Highly Competitive Market: Differentiation and relentless innovation are essential to survive amidst intense competition.
• Ongoing Technical Issues: Balancing bug fixes with feature development is a persistent challenge.
• Risk of Burnout: Managing stress and maintaining mental health are vital for long-term sustainability.
• Complex Scaling Processes: Strategic planning for scaling infrastructure and team operations is critical for growth.

Practical Advice:

• Secure funding or generate early revenue.
• Stay flexible and adapt to technological advancements.
• Focus on unique value propositions.
• Invest in building a talented team.
• Prioritize personal well-being to prevent burnout.
• Prepare meticulously for each stage of scaling.

For aspiring tech entrepreneurs, this episode serves as a sobering yet invaluable guide, highlighting the demanding nature of tech startups while providing strategies to overcome these obstacles.

---

Notable Quotes with Timestamps:

• “In today's lesson, you could see this as a warning of what to expect.” – Omar Zenhom [01:10]
• “Development alone cost us tens of thousands of dollars from hiring skilled developers, designers, marketers.” – Omar Zenhom [03:30]
• “What's cutting edge today can be obsolete tomorrow.” – Co-host [04:41]
• “We had over 80 competitors. The tech industry is fiercely competitive.” – Co-host [06:36]
• “There's no such thing as a software that's bug-free.” – Co-host [08:55]
• “There are long hours, there's high stress, there's a lot of pressure to perform.” – Omar Zenhom [13:21]
• “Scaling your team, your processes, each stage is challenging.” – Omar Zenhom [15:54]
• “You don't want to start out on the back foot.” – Omar Zenhom [17:13]
• “Make sure that you have a unique angle or feature set.” – Omar Zenhom [17:48]
• “The team that has the best team wins.” – Omar Zenhom [17:57]
• “Manage it, prioritize your health, your well-being.” – Omar Zenhom [18:20]
• “Starting a tech startup is not for the faint-hearted. It's challenging, it's high stakes.” – Omar Zenhom [18:39]
• “The stress is the toughest part.” – Omar Zenhom [19:33]

---

Final Thoughts:

Omar Zenhom's episode underscores the immense challenges inherent in launching a tech startup, from financial strains and technological volatility to intense competition and personal burnout. However, by sharing his own experiences and offering practical advice, he equips prospective entrepreneurs with the knowledge needed to make informed decisions. For those determined to pursue this path, the insights provided serve as both a cautionary tale and a roadmap to navigating the complex landscape of tech entrepreneurship.

Transcript

[American Express]

When you're with Amex Business Platinum, you have the card that works just as hard as you do. You give 150% to your business and so does your card with 1.5 times Membership Rewards points. On select purchases, you earn rewards that can take your business further. And with complimentary access to more than 1400 lounges globally, including the Centurion Lounge, you can stay up to speed no matter where your business takes you. That's the powerful backing of American Express Terms and Points Cap Applied.

[Whole Foods Market]

Learn [e-mail] AmExBusiness now find Island Inspired Limited Time Flavors at Whole Foods Market for the Explore the Tropics Sales event. Enjoy pre marinated mains like Mango Coconut Salmon and Pineapple Teriyaki Chicken and pair them with Seasoned Ready to Heat beans from a dozen cousins Knead Dinner and a Snap Grab Zesty Lime Shrimp Salad, Mango Turkey burgers and more from prepared Foods. And of course, there's the Mango Yuzu Chantilly Cake, Explore the Tropics and save at Whole Foods Market in store and online.

[Omar Zenhom]

Hey Yo. Welcome to the Hundred Dollar MBA show where you get practical business lessons for the real world. I'm your host, your coach, your teacher Omar Zenholm, and in today's lesson, you will learn why you should never start a tech startup. As someone who's started, grown and sold a tech startup Webinar Ninja, I've experienced firsthand the unique challenges that come with it. In today's lesson, you could see this as a warning of what to expect.

[Co-host]

If you decide to venture down this path.

[Omar Zenhom]

If you decide to build a tech startup.

[Co-host]

Don't get me wrong, there are a.

[Omar Zenhom]

Lot of positives and I love my 10 years of experience building and growing Webinar Ninja.

[Co-host]

But it is not the easiest business to start.

[Omar Zenhom]

In fact, it's one of the hardest businesses I've ever had to be a part of. And I've run e commerce businesses, events, businesses, coaching, digital products, memberships, you name it.

[Co-host]

If after today's episode, after you've learned.

[Omar Zenhom]

About all the things you need to look out for, you're still motivated, you're still eager to start a tech startup, then at least you know what you're in for. So let's get into it. Let's get down to business.

[Co-host]

As we get started, I just want.

[Omar Zenhom]

To be super clear, super transparent. I have zero regrets about starting Webinar Ninja. It was an incredible experience and because it was so hard and so challenging.

[Co-host]

It forced me to become better as a person, as an entrepreneur, as a thinker, As a creator, and despite the.

[Omar Zenhom]

Fact that it was super challenging, I.

[Co-host]

Am glad that I went through that experience.

[Omar Zenhom]

But let me tell you, it's not the easiest way to make a buck with a business.

[Co-host]

Let's start with challenge number one. Despite what people say and despite how.

[Omar Zenhom]

Amazing technology is these days, there is.

[Co-host]

A higher initial investment that you need.

[Omar Zenhom]

To make to start a really good tech startup.

[Co-host]

From developing the product to marketing, to.

[Omar Zenhom]

Hiring a team, to the infrastructure the tech demands, the costs quickly add up and you can triple these costs if.

[Co-host]

You are not a tech founder. Meaning that if you don't know how.

[Omar Zenhom]

To code your own app, not that.

[Co-host]

You'Ll do all the coding, you're going.

[Omar Zenhom]

To need other developers as you start to scale. But if you don't have the tech background where you can correct somebody's work, you know how the ins and outs of your app work, then you're going to need to hire some serious experts.

[Co-host]

They're going to cost you money. When we started Webinar Ninja, the initial.

[Omar Zenhom]

Development alone cost us tens of thousands of dollars from hiring skilled developers, designers, marketers.

[Co-host]

It was a major financial commitment and.

[Omar Zenhom]

That'S why we actually pre sold Webinar Ninja so that we can make this money to hire for these people. So despite what people might think, oh, you know, it's cheap to run a technology company or a startup. You can just, you know, spend as.

[Co-host]

Much as you use.

[Omar Zenhom]

But here's the thing, creating the app, hosting it on servers, this needs to happen regardless if you have zero customers or 10,000 customers.

[Co-host]

So you're going to be spending money before you even have your first customer.

[Omar Zenhom]

This is not to mention all the.

[Co-host]

Other pieces of software you will need to just run a technology company, whether.

[Omar Zenhom]

It'S project management software or ticketing software like Jira, or monitoring services like New.

[Co-host]

Relic to make sure that your app.

[Omar Zenhom]

Doesn'T go down or you have a warning system, whether it's cybersecurity software. I mean, if I look at my.

[Co-host]

P and L sheet, my profit and.

[Omar Zenhom]

Loss sheet from Webinar Ninja, and look at all the tools I had to.

[Co-host]

Have to keep my business running, it was eye watering. Challenge number two, consistently evolving technology.

[Omar Zenhom]

When you're in the tech space, you're, you need to know something.

[Co-host]

Technology is always changing. The technology that was best for my company, Webinar Ninja when I started out.

[Omar Zenhom]

Back in 2014 is not the best.

[Co-host]

Two years later is not the best. Five years later. What's cutting edge today can be obsolete tomorrow. And you need to keep up with these changes, this requires continuous learning, continuous adaptation, which can be both time consuming and very expensive. For example, you might be building your app on one technology, then all of a sudden, two years later, that technology.

[Omar Zenhom]

Is not as robust.

[Co-host]

It's not being updated. Updated.

[Omar Zenhom]

It's not the best technology to use.

[Co-host]

For your application or for what you're using it for. So you need to switch to a different technology.

[Omar Zenhom]

So you're future proofing yourself that switching is very costly.

[Co-host]

Your developers have to redevelop the code. It's called refactoring the code. There might be some downtime, there might be some bugs in the process.

[Omar Zenhom]

Your customers are going to get upset.

[Co-host]

But there's nothing you can do. You need to move with technology so that you're not working on obsolete software, obsolete tools. We had to consistently update and improve.

[Omar Zenhom]

Opener Ninja to stay competitive.

[Co-host]

This meant investing in new technologies, constantly redesigning our features, and sometimes even overhauling our entire platform.

[Omar Zenhom]

We had to redo our platform probably a total of three solid times. And there's some micro times, there are micro instances there.

[Co-host]

But three times we had to redo.

[Omar Zenhom]

Our whole app in a new technology.

[Co-host]

Over the course of 10 years. But you don't have a choice.

[Omar Zenhom]

You have to stay ahead of the curve. It's very exhausting because. And you have all this sunk cost fallacy, meaning that you have this feeling of man, I invested all these years.

[Co-host]

And time in creating this app using this technology.

[Omar Zenhom]

We fixed all these bugs over the time in the last three years, but.

[Co-host]

Now we have to overhaul it and change it completely.

[Omar Zenhom]

Yep, you do. Challenge number three, intense competition.

[Co-host]

When we started webinar Ninja back in 2014, we had about two, maybe three competitors. And the third competitor was not really a competitor. It was more like a meeting app. It wasn't a webinar software. And in just five years after we launched, we had over 80 competitors. 80 competitors. The tech industry is fiercely competitive.

[Omar Zenhom]

There's always a new startup emerging and there's always new companies being established trying to innovate on what you built. They're trying to stand out from the market and take your market share, whether offering your product for less money or.

[Co-host]

Offering better features than you or just.

[Omar Zenhom]

Being better at marketing. And even if they have a inferior.

[Northwest Registered Agent]

Product, they're just out market you.

[Co-host]

So you actually have to act like you're just starting out every day. Every day you wake up and you.

[Omar Zenhom]

Build and work on your startup, you.

[Co-host]

Have to act like you're a new player. And how am I going to innovate.

[Omar Zenhom]

And how am I going to stand out from the crowd? And how am I going to make a splash in the market and take somebody else's lunch? You also have to learn how to.

[Co-host]

Differentiate yourself from the competition.

[Omar Zenhom]

We had to do this at Webinar Ninja. We thrived ourselves on making sure our software is for small businesses or small teams. People that had a team of less than 10 people. This means that the software was easy.

[Co-host]

Enough to use by yourself. You don't need a whole, you know, production team. You can run the whole webinar and handle all the features and all the.

[Omar Zenhom]

Interactivity just by yourself, without needing somebody backstage, so to speak. We also really focused on customer support.

[Co-host]

Because we noticed that the other company's customer support was horrible.

[Omar Zenhom]

We were competing against well funded startups. We were bootstrapped. We're competing against established giants who had millions and billions in revenue every year. And it's a relentless battle.

[Co-host]

So you better have some strong coffee in the morning and a good breakfast.

[Omar Zenhom]

Because it's going to be a long day.

[Co-host]

Before I move to challenge number four, I want to take a timeout. I, I'm not trying to discourage you here. I'm trying to give you the reality. I wasn't given this reality when I.

[Omar Zenhom]

Started Webinar Ninja and I thought I was, you know, not cut out for it.

[Co-host]

I thought that maybe there's something wrong with me. But then I realized, oh, this is how hard it is.

[Omar Zenhom]

This is what it's supposed to be like. I talked to other startup founders and they're like, no, no, this, this is.

[Co-host]

Par for the course.

[Omar Zenhom]

This is exactly my experience as well. So I want to give you the raw truth so you know what you're gonna be facing. So challenge number four, technical challenges. Okay.

[Co-host]

Running a tech startup means dealing with technical issues on a daily basis. There is no such thing as a.

[Omar Zenhom]

Software that's bug free.

[Co-host]

As soon as you start developing a piece of software, adding features, making it.

[Omar Zenhom]

Better, and these are all a part of the game. Your job is to make your startup, your software as reliable as possible without.

[Co-host]

Sacrificing innovation, without sacrificing, updating and improving the software constantly, there will be problems.

[Omar Zenhom]

And what happens is that as a tech startup, you have to start triaging.

[Co-host]

Your bugs, meaning which bugs really need fixing and which bugs don't really need to be fixed.

[Omar Zenhom]

I can, you know, fix them later.

[Co-host]

On when I have more time, or.

[Omar Zenhom]

They'Re not even worth working on at all.

[Co-host]

Some bugs don't really affect the experience that much.

[Omar Zenhom]

They're not even front facing bugs, but they're spitting out errors on the backend.

[Co-host]

Some bugs are a little worse, but there's workarounds for the user and then there's some bugs that are non negotiable.

[Omar Zenhom]

You got to fix these because they actually hurt the experience in a major way.

[Co-host]

We were not immune to this at.

[Omar Zenhom]

Webinar Ninja, but one of the things that we did as a practice is.

[Co-host]

We asked our customer support team what are the reoccurring things you're hearing from.

[Omar Zenhom]

The customers, the issues that they're facing? And let's just fix those first because those are the ones that are really.

[Co-host]

Causing you problems as agents, but also our customers.

[Omar Zenhom]

And we were rigorous about this, meaning.

[Co-host]

That we wanted to make sure bugs.

[Omar Zenhom]

Were fixed in an efficient fashion and.

[Co-host]

We'Re pushing out updates constantly. But here is the thing. You can't focus all your time on bugs. You need to focus some time on new features, on updates, on improvements, on.

[Omar Zenhom]

Making the product more efficient, more cost effective for you as a company. You need to build things out for the future to be able to scale to more users. There's other things you need to focus.

[Co-host]

On in, in terms of your business growth. So again, you gotta triage your bugs.

[Omar Zenhom]

Which ones are the ones you must fix and which ones you can just forget about and which ones you could do later.

[Northwest Registered Agent]

If you wanna start a business, that's great.

[Co-host]

That's amazing.

[Omar Zenhom]

It's ambitious and of course a huge step.

[Northwest Registered Agent]

But you also wanna keep your personal information secure. That's where Northwest comes in. They're the partner. You need to have the privacy you deserve. In just 10 clicks and 10 minutes, you'll form your business, create a custom website and set up your local presence wherever you need it in, all in one easy to use account. You can even protect your identity and keep your home address private by using Northwest's address on your formation documents. And I love this about Northwest. They have this premium mail forwarding service. It gives you a physical business address separate from your private information. Northwest Registered Agent has been helping businesses launch and grow for nearly 30 years. Don't wait. Protect your privacy, build your brand and set up your business in just 10.

[Omar Zenhom]

Clicks in 10 minutes.

[Northwest Registered Agent]

Visit www.northwestregisteredagent.com mba and start building something amazing. Get more with Northwest registered [e-mail] MBA it's that time again. Tax season. And when it's tax season, it comes down to three things really. Preparation, preparation and preparation. It could be a real struggle trying to keep all your financial logins and documents secure and accessible. But One Password could help with that all in one place. Along with creating and securing passwords, One Password deters fake tax prep sites by only auto filling logins on sites you've saved.

[Co-host]

This helps you not give information to.

[Northwest Registered Agent]

Scammers by mistake, plus easily auto fill form fields like emails, addresses and more.

[Omar Zenhom]

In a single click.

[Northwest Registered Agent]

And what about wrangling all Those financial documents? 1Password has encrypted sharing and storage space to secure Things like receipts, W2s and IRS forms year round. Look, taxes will always be a drag, but failure to prepare is preparing to fail. So let 1Password protect your sensitive information and bring order to the tax prep chaos. Right now you get 25% off your first year of 1Password individual or 50% off your first year of 1 password [e-mail] MBA that's 25% or 50% off your first year at 1p a s s W-O-R d.com MBA all lowercase 1Password com MBA all right, challenge number five burnout risk.

[Omar Zenhom]

I've seen this so many times. I've seen it in myself more than once in my 10 years of webinar ninja.

[Co-host]

Running a tech company is demanding. It's very intense.

[Omar Zenhom]

There's long hours, there's high stress, there's a lot of pressure to perform and.

[Co-host]

It could take a toll on your.

[Omar Zenhom]

Health and your wellbeing.

[Co-host]

Now I know that there are subtext.

[Omar Zenhom]

Startups out there, some independent creators that kind of have a quasi lifestyle business and that's okay. But there's going to be limits to that business, meaning there's only so much money you can make and the value.

[Co-host]

Of company can only be valued at.

[Omar Zenhom]

Some level of value.

[Co-host]

But if you're looking to be a.

[Omar Zenhom]

Market leader or one of the market leaders, a company that helps tens of thousands of people, makes millions of dollars year in, year out, is worth multiples.

[Co-host]

Where if you sold the company, you would never have to work again.

[Omar Zenhom]

That is a high pressure kind of startup environment. And that's the environment I was in because I wanted to beat my competition.

[Co-host]

I wanted to create a great product for our audience.

[Omar Zenhom]

I wanted to make sure that when.

[Co-host]

It'S all done and dusted, I had.

[Omar Zenhom]

No regrets, which I'm glad to say is true. And that's what happened. There's going to be times in this journey where you're going to feel completely burnt out.

[Co-host]

You're balancing all these departments as the leader of your company. You're balancing products development, customer support, marketing.

[Omar Zenhom]

Business growth, it all could be very overwhelming.

[Co-host]

So it's important for you to be.

[Omar Zenhom]

Mindful of this and take the time off. You need to rest and to be.

[Co-host]

Mindful of your mental health on a daily basis. Whether it's waking up a little bit.

[Omar Zenhom]

Early to, you know, get some fresh.

[Co-host]

Air, go for a walk, read a.

[Omar Zenhom]

Book, get some perspective. Lastly, challenge number six, scaling difficulties.

[Co-host]

Scaling a tech startup is not just.

[Omar Zenhom]

About increasing your customer base, getting more customers. It involves scaling your infrastructure, your team, your processes.

[Co-host]

When you are starting out, let's say.

[Omar Zenhom]

You'Re a team of five people. Let's say like a CEO, a CEO, a cto, a developer and a designer. Let's say that's the five people that start your tech startup. The things you need to keep your business running, the processes, the tools, the infrastructure. It's quite simple.

[Co-host]

And you need to keep it simple.

[Omar Zenhom]

Because you need to keep it low cost.

[Co-host]

A lot of people think, oh, tech can just scale on its own. No, you got to build an infrastructure.

[Omar Zenhom]

That'S costly, that scales on its own, that scales with no downtime. In the beginning, when you have no.

[Co-host]

Customers, you really don't need all that. So you don't need to spend all that.

[Omar Zenhom]

But eventually you will.

[Co-host]

You will need to build out that infrastructure, that server infrastructure, that tooling infrastructure. You need to build out your team. You need to find great talent.

[Omar Zenhom]

And I'm going to talk about this in a moment, but in software, in tech, it's all about the team. The best team wins because the best.

[Co-host]

Team creates the best product.

[Omar Zenhom]

We'll talk about that in a second. But you got to scale your team, your processes. When you have five people and somebody needs to take leave, that process is pretty simple, right? But when you have a team of.

[Co-host]

30 now, you need to have a system where people apply for leave, they have a certain number of leave days. It's a whole different thing.

[Omar Zenhom]

It's a whole HR department, right? So you need to think about how you're going to scale your business and scale your team, scale your processes each.

[Co-host]

Step of the way.

[Omar Zenhom]

For example, as Webinar Ninja grew, we.

[Co-host]

Had to scale our infrastructure to handle more users.

[Omar Zenhom]

We had to invest in more robust servers, we had to hire staff and team members every single year, and we had to implement new processes and operations.

[Co-host]

To handle that growth.

[Omar Zenhom]

And each stage is challenging. It's not like it gets easier or harder.

[Co-host]

Each stage challenging has its own challenges.

[Omar Zenhom]

And requires you to be careful in.

[Co-host]

The decisions and the execution of Those.

[Omar Zenhom]

Decisions as you grow. Now, given these challenges, these six challenges that I just talked about, let's recap. 1.

[Co-host]

High initial investment 2.

[Omar Zenhom]

Constantly evolving technology 3. Intense competition 4. Technical challenges 5. Burnout risk 6. Scaling difficulties so given these challenges, here.

[Co-host]

Are a few pieces of advice. If you're still considering starting a tech.

[Omar Zenhom]

Startup, be financially prepared. You don't want to start out on the back foot. Okay?

[Co-host]

So if you're bootstrapping, which is what I did, see how you can start.

[Omar Zenhom]

Making money as soon as possible from your product. Whether you're pre selling it or you're taking just annual contracts, not monthly contracts, so that you can give your company a boost of cash.

[Co-host]

Number two, Stay adaptable.

[Omar Zenhom]

Embrace the constantly evolving nature of technology. You have to be comfortable. The fact that you're going to scrap a lot of your code at some point to create new code and make.

[Co-host]

Sure it's better and better. Number three, Differentiate yourself.

[Omar Zenhom]

Make sure that you have a unique angle or feature set or a signature move of your business. What are you known for?

[Co-host]

Number four, Build a strong team.

[Omar Zenhom]

I mentioned this just earlier. The team that has the best team wins. I know that sounds funny, but it's true. In tech, it's all about the team.

[Co-host]

The better your talent, the better the people that are working on the product. The product's gonna be better, the support's.

[Omar Zenhom]

Gonna be better, the marketing is gonna be better.

[Co-host]

So from day one, build the best team possible. A players.

[Omar Zenhom]

Number five, make sure you keep your stress in check.

[Co-host]

Manage it, prioritize your health, your well.

[Omar Zenhom]

Being, take breaks, delegate tasks and seek out some help if you need some help. And number six, plan for scaling. Think ahead about how you're going to scale your infrastructure, your team, your processes and have a plan for each stage of your growth.

[Co-host]

Starting a tech startup is not for the faint hearted.

[Omar Zenhom]

It's challenging, it's high stakes. It requires resilience, it requires adaptability. It's a lot of hard work, but.

[Co-host]

The rewards are significant if you get it right.

[Omar Zenhom]

If you actually build something of value.

[Co-host]

For people, it could be a journey worth taking.

[Omar Zenhom]

Especially now that you have your eyes wide open with all the challenges that you may face. Thanks so much for listening to the $100 NBA show. If you love what you hear, make sure you hit, subscribe or follow on your favorite podcast app. On all the apps, Apple Podcasts, Spotify, you name it. It's the best way to support the show by hitting subscribe or follow. And if you like, while you're at it, give us a star rating or review and let us know what you think of the show. Before I go, I want to leave you with this. Now that I've sold Webinar Ninja, my.

[Co-host]

Life is very different.

[Omar Zenhom]

I wouldn't say I'm not working less or not as much, but I definitely would say I'm less stressed. There's a lot of responsibility and there's a lot of things to think about.

[Co-host]

And to juggle in your head when.

[Omar Zenhom]

You'Re the leader of a tech startup. Mostly, I was thinking about how all my decisions would impact our users. You know, we had lots of users, 3,000 users.

[Co-host]

Ten years of this experience.

[Omar Zenhom]

You know, it takes a toll on your mental health sometimes, but I had a really good group of friends and, and I had a great network. And of course, I had a great partner, Nicole, who helped me throughout the way and was supportive and luckily when I was down, she wasn't down and vice versa. So we really helped each other out and we survived it and we have lived to tell the story and so glad that we went through that experience. But I would say, yeah, the stress is the toughest part. All right, guys, I will check you in the next episode. Until then, take care.

[USAA]

The last thing you want to hear when you need your auto insurance most is a robot with countless irrelevant menu options. Which is why with USAA Auto Insurance, you'll get great service that is easy and reliable, all at the touch of a button. Get a quote today, restrictions apply.