Chapter 1: The Journey of My First Startup

Embarking on an entrepreneurial journey is more than just discussing ideas; it involves taking action. Through this action, challenges arise, providing opportunities for growth and learning.

In 2015, a friend and I initiated our first startup as a side project. At that time, the sharing economy was gaining traction, and with young children at home, we decided to offer baby clothing and gear for rent. Given that babies outgrow their needs quickly, renting seemed to be a sensible choice both financially and environmentally.

Living in Switzerland, we often looked to Germany for innovative business concepts. If an idea flourishes in a market ten times larger than ours, it might also succeed in Switzerland. We discovered a German company that had a similar model but was confined to its domestic market. While Switzerland had a few comparable initiatives, they were all operating on a small scale.

Motivated by this, we committed to action rather than just dialogue. With well-paying corporate jobs, we established a limited liability company with the minimum capital required and began bootstrapping our venture. We created a webshop, sourced baby clothing and gear, and handled marketing, all while juggling our corporate responsibilities and family life.

As we received our first orders, the thrill of seeing our hard work pay off was exhilarating, even if the amounts were modest. However, we quickly identified that baby clothing was less popular than baby gear, which saw better demand, such as kids' carriers and hammocks. Consequently, we sold off the clothing inventory and reinvested into more gear, operating in a bootstrapped manner.

Despite steady revenues from baby gear, we eventually decided to wind down the business. We liquidated our inventory with minimal financial loss, but gained invaluable entrepreneurial experience.

Key Insights from Our Experience

1. Understanding Market Size

   Market size is a critical factor, even within niche markets. For sales to flow effectively, the initial audience must be substantial.

We faced two significant challenges here. First, the Swiss market for baby gear is relatively small. With a population of 8.5 million and a birth rate of fewer than two children per woman, the potential customer base is limited. Additionally, since children grow quickly, the average customer relationship lasts only about three years, necessitating a continuous influx of new parents. Expanding internationally was complicated due to Switzerland's non-EU status, which posed challenges for cross-border shipping and returns.

Secondly, even if the baby gear market was promising, the rental aspect was underwhelming. A limited number of parents considered renting baby gear instead of purchasing it outright, leading to stagnant revenues.

2. Logistics Challenges

   Managing the logistics of renting baby gear entails significant manual labor. It requires packaging materials, inspecting and cleaning returned items, and ensuring prompt shipping. Customers often expect immediate fulfillment, similar to major online retailers.

For a bootstrapped startup, meeting these expectations is daunting. We often found ourselves lacking sufficient stock during peak demand, which likely cost us numerous orders.

Furthermore, the labor involved in cleaning and preparing returned items was more demanding than anticipated, especially when repairs were needed.

3. Side Business Limitations

   While the trend towards solopreneurship and side hustles is popular, not all startups are suitable for this model. Digital products can be automated and delivered easily, but physical product rentals present significant logistical challenges.

4. The Importance of Industry Knowledge

   While it's possible to generate some revenue without extensive industry expertise, a lack of familiarity with current trends can hinder growth. My co-founder and I, despite being parents, weren't deeply engaged with the baby gear market, which likely contributed to our stagnant revenues.

Would We Repeat the Experience?

Absolutely. Entrepreneurship is about action and learning from mistakes. Engaging in this journey allowed us to connect with diverse individuals, including our future lead investor for a subsequent venture.

Today, we operate in a global market, focusing on sectors like aviation, selling a B2B SaaS product. We’ve committed fully to our venture, leveraging our decade-long experience from corporate roles.

This journey has been remarkable. Building a company through challenging times is akin to running a marathon. As a tech entrepreneur, reserve officer, and father of three, I offer practical advice on entrepreneurship and resilience. My approach is direct and to the point, respecting the busy lives of entrepreneurs.

When I find time to relax, I draw inspiration from the stunning mountains surrounding Zermatt, Switzerland.

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Chapter 2: Insights from My Startup Journey

In this video, I share the story of my first startup's failure and how it ultimately led to a successful new venture. Learn from my experiences and the lessons that shaped my entrepreneurial path.

This video delves into the emotional and practical aspects of startup failure. Understand what it feels like to fail and how to navigate the aftermath to emerge stronger.