STARTUPS DURING THE WAR
Dare to launch a startup in a time of war? Don't hesitate!
Here is my experience with electronic bikes wartime startup.
Before the war, I invested in an electro-bike manufacturing startup as a partner. The war didn't put an end to our plans; on the contrary - in April, we started promoting the brand full steam ahead, and in July, we introduced our bikes at the Eurobike trade fair in Frankfurt.
I have no idea where it will lead us next. We are now living and doing business in a time unlike any we have ever experienced, in a time of significant turbulence, so to speak. Let me share my vision as for a wartime startup as opposed to a peacetime startup.
I was invited to be a speaker at a big event for young entrepreneurs in my native town Chernihiv. I remember that was the seventh day of my fasting session. ( I've been practicing 10-day fasting sessions for more than seven years twice a year ). When fasting, you feel people better; it sharpens your abilities and enhances your intuition.
After my speech, I was approached by a young guy who turned out to be a Ph.D. at Polytechnic University, Oleksandr Lytvyn. He offered to meet to present his project and invited me to become his business partner in his startup.
At that time, he had a team of guys with who they assembled electro bikes in a garage of the university. Frankly, I frequently get offers of business partnerships or investments in some businesses. But few of them end up being pitched to me. This time there was something about the guy. We hit it off; he looked trustworthy. I truly liked his idea. We agreed on a partnership and registered the company called Bikebox.
And then… then the war started. The garage where they worked was shelled, and as a result, it was completely destroyed. I offered them to move to my Pet Technologies plant, which is in Chernihiv, and to use the plant to manufacture bikes. I went for it since, besides a good idea and ready-made samples, Oleksandr had a closely-knit team, which is crucial since, when starting a business, one is always pressed for time. When war is everywhere, you feel time differently; you appreciate time particularly. No time to lose. No time for building a team, educating them, and getting them know the ropes, so to speak. No time to fail.
Do you have a chance to find an investor in a time of war? Yes, you do!
But a good idea, a well-developed business plan, and your ability to pitch are not enough. It takes quick and successful execution. And it's possible only if you already have a team. Having samples also doubles your chances of attracting an investor as never before. Experienced entrepreneurs (I.e., Potential investors) are always on the lookout for new opportunities. We are all aware that this is the time when diversification matters. If your assets are located in a hot war spot, you are continuously exposed to risks, and you can easily lose everything in a split second. When the war started, we were talking long and hard with my business friends, thinking about what other directions of business to do to diversify. But you should always be aware that some of your ideas might fail. Doing business in a time of war means making decisions in fear, chaos, and even hysteria. It can lead to significant financial losses.
My strategy for wartime business is to survive until the right moment. Do not panic, do not make a fuss, but be calm and think clearly. War can cloud our minds, but we should not miss the right moment. As soon as it comes – do what you can do full steam ahead. What I mean is if you are given an opportunity – jump at it.
In April, I gave a task to do research and make up a list of all significant trade fairs and exhibitions all over Europe. July Frankfurt trade fair was on the top list. "We must be there to participate with a new brand, samples, and logo," – I announced confidently. The team was surprised. No wonder – too many challenges to tackle. One of them was how to participate in the event, knowing it had been planned and fully booked well in advance. "Email them! Tell them we are from Ukraine and we are desperate to participate. Ask for a discount."- I told my team. The next day we got the response. They called us and invited us to participate. Moreover they offered a 50% discount. We could not backtrack. "Let's do it!". We had only two months. We were working days and nights on end. For the team, it was a new and extreme experience; for my plant workers, it was an ordinary practice, something we are used to and are good at. We know how to meet deadlines. And we shared these skills with our new business partners eagerly.
Ukrainian entrepreneurs get extraordinary support from European countries. This is the highlight of the present time. We were the only Ukrainian company at the trade fair in Frankfurt, and we felt the support to the full. Moreover, not only our potential clients supported us, but even our competitors.
Some offered to introduce us to batteries manufacturers, others to arrange a meeting with bike forks producers. We even met the guy who made an offer to order frames from them instead of ordering from China. A few people volunteered to represent our brand in Germany. "What can we do to help?" – such an unusual for German people question, which we were frequently asked at the event.
There was a guy married to a Ukrainian girl; he would bring our ladies coffee and sandwiches, which was so nice of him. Another guy from America was asking tons of questions and was deeply surprised by our wiliness and readiness to do business in the midst of war.
The peacetime narrative of potential investors is – "Email us, and we will consider your offer." The wartime narrative is "How can we help you?" and "Let's work." Undoubtedly, it is a great chance t]for startups to fly high. But it takes skills to take your chance. For European businessmen, the stage "Let's get down to business" means you have everything ready - certificates, samples, and well-developed processes. If they make a step forward and you respond with uncertainty, without a clear vision and plan – it means you have lost your chance.
No matter how challenging the time is and how loyal the people's attitude is, bear in mind: if you are given a chance - do what you are supposed to do. On returning from the trade fair, we were determined to roll up our sleeves and get work done.