6 Things I Learned From Launching a Startup During COVID-19

Around 10 month ago I shared a post about quitting my job and jumping into the adventure of being self-employed. I was super excited, full of energy, expectations and big dreams. End of February I had my last day of work as an employee and in March we founded Horyzn which we aimed to develop into a service company for digital transformation.

March 2020. What a great time to start a service business, right?

Back then I spent some time in Spain and when I came back, Germany was on lockdown and this health crisis had gotten pretty real in the western world. We put our plans to start a service business on hold quickly. The effort to build a new brand, a customer base and trust in these times was just out of proportion.

So here we are, my partner and I. We’d quit our secure, well-paying jobs. Our plan was obsolete. We had no idea what to do. And we were right in the middle of the biggest crisis of the century. Let’s get this started!

In this post, I want to share a few of my learnings from my first 10 months as an entrepreneur during these crazy times. This is not meant to be one of those “how I made it” stories, but just an interim report of my experiences so far.

#1 You can gain a lot form sacrificing

Give up luxuries. I already learned this when I handed over the car keys and credit card to the fleet manager of my old employer right before taking the S-Bahn home. It's quite remarkable how much possessions can prevent you from pursuing your dreams. And how much we are conditioned to constantly upgrade our lifestyles. To quote Fight Club: “We buy things we don't need with money we don't have to impress people we don't like.” I was amazed at how quickly I got used to no longer having certain luxuries. And how relieving that feeling was. Doing so, you free up your mind for new thoughts, new ideas and unconventional ways!

#2 The team is more important than the idea

As stated above. We quickly abandoned the idea of building a service company. Not just because of the crisis. We soon reached a point where we decided to not take the easiest, but the most fulfilling way. That was our first pivot: From a service to a product startup. We looked at different opportunities. Of course, some of them in our home industry, mobility. But some also were of an entirely different nature. With coronaVZ we launched a platform for solutions to acute problems in the corona crisis. With Traado, we aimed to build a portal for warranty and insurance products in automotive. With Yoshis we’ve developed and tested a Japanese franchise restaurant concept. There were some more projects, but I think you got the point. Sometime during summer, we came across the bicycle industry and it was super exciting. The result is bikematch, the venture we are fully focused on right now. What I'm trying to say is, it most likely won't be the first idea you become successful with. It's much more important to have a great team as constant in a process of continuous change.

#3 Turn weakness into strength

Being a startup is cool, sure! But the downside is, nobody is interested in you. Well, except those who want to make money from you (which you don’t have). As a startup founding into the crisis, however, we had some unfair advantages: No focus, no direction and no customers. Sounds funny, I know. But this gave us the freedom to reinvent fast and often. We could tackle opportunities as they came up. And we were able to move from a severely weakened market to one of the winners of this crisis.

My takeaway is: Use the flexibility you have as a non-established company and constantly adapt to the circumstances. Don't give up too soon, but also know when you need to quit or adjust and take a new route.

#4 Networking is key

Ok, that’s a no brainer, but anyway. Business ideas usually don't come up in brainstorming workshops or design thinking sessions; the best ideas emerge quite organically through interaction of people. Before we started Horyzn, I traveled around Japan and came back with a list of about 30 business ideas, none of which I have pursued to this day. They were simply too theoretical. Good ideas are born in practice. And every promising idea since then has evolved through a chain of events, people and different perspectives. We spent a lot of time networking and gaining exciting insights into other industries. That's exactly how bikematch was started.

#5 When the water level rises, skim it off

Let's be honest. The limiting factor when founding a startup is how long can you survive without steady income?

As a startup founded in crisis, we were not qualified for any of the government support programs. We don’t have previous year's revenues that could have been refunded. And the offers for small self-employed only compensate for fixed costs, which we deliberately did not have. Considering that the average time to profitability for a startup in normal times is about 2 to 3 years, that's a pretty long timeframe to hold your breath. So, we had to be creative and buy ourselves some time. For instance, I started an Airbnb business and founded a shared house. This helped to reduce costs while I got some great housemates at the same time. My partner works part-time as a lecturer at various universities. So, whenever you're up to your neck in water, find creative or even unconventional ways to buy yourself some time.

I'd like to share another little side story because it matches really good. Last summer I was in Bregenz for a few days when I got a call from the bank. I was a little confused because actually I'm not a customer of them. Well, that’s what I thought. It turned out there was an account in my name. I shared the money with my sister but it still helped to stay on track. Signs and wonders still do happen.

#6 The path to success starts with survival

But here comes my key learning. As trite as it may sounds, it’s not about how many times you fail, but how many times you get back up and keep going. You most probably won’t be successful from day 1. Don’t be blinded by survivorship bias. Most startups fail without anyone noticing, and many successful companies have found their business model only through frequent failure and reiteration. That means failure is an integral part of founding. And in my opinion, it’s also an important factor in shaping the founder's personality. 

I also find myself questioning everything from time to time. What helps me is to have a good alternative. My all-time plan B is to emigrate and open a hotel somewhere along the beautiful coastline of Vietnam. Even if this case will probably never happen, it helps to have a nice alternative. When shit hits the fan, I can still do something amazing and fulfilling. So, I’m always looking forward to failure!

“The path to success starts with survival” Joe Procopio

If you made it to this point, wow (!) and thanks for your attention.

This year was literally an adventure for us. But we would choose to do so again and again. Sure, the future is still uncertain. But every day is different and new. We learn a lot. And most of all, it's fun. So I'm looking forward to the next 10 months. Stay tuned and #tothehoryzn