Tag: decision-making

Categories
Business Decision-making Entrepreneurship Social Impact Sustainability

Software Company in Germany: What Worked, What Didn’t, and What I’d Do Differently

Reading Time: 5 minutes.

More than 5 years ago, I started a bootstrapped limited liability company (LLC) in Germany for my software-as-a-service (SaaS) project “1st things 1st” and non-profit donation platform “Make Impact dot org”. From an egoistic perspective, it was supposed to be the key to financial freedom for me and allow me to help my closest relatives. From a vocational perspective, it should have brought more self- and global awareness to people using the platforms. From a rational perspective, it should have built the legal grounding for the donation platform that I had been building. Unfortunately, internal motivation didn’t match the external circumstances, and this article is my short overview of the lessons learned.

I founded the company as a UG, which by law should have transitioned to a GmbH as soon as it became profitable enough. As someone who didn’t speak German professionally, I got help from firma.de, who provided me with all the necessary information to get started, helped me with a company bank account, and organized an English-speaking notary appointment. A UG officially requires only 1 EUR as initial capital, whereas a GmbH requires 25,000 EUR. Practically, you need a few thousand euros to start with to cover the costs of the initial months.

Over time, I’ve read several business books and always preferred the motivational ones, such as Rework, over the frightening ones, such as The Hard Thing About Hard Things. One thing that I learned from Rework was to reuse and sell by-products of the main project. For example, while building subscription-based software projects, I was also selling reusable modules used in those software projects. The same could be done with writing books or creating an online course based on the expertise you gain from doing your main stuff. Financially, it turned out that the by-products brought me more money than the SaaS subscriptions, but in theory, monthly SaaS subscriptions should have been more predictable, while module sales were almost random.

From a software development perspective, SaaS development is very attractive because you always iterate on the existing code and make it better and better while adding tests, creating automations, improving search engine optimization (SEO), adapting to AI innovations, etc. From a marketing perspective, you can also always test and improve landing pages and copy, do A/B testing, build a blog for content marketing, etc. However, from a political and legal perspective, there are constantly new laws being published that require you to adapt to new limitations, such as cookie consent banners, GDPR and SOC 2 compliance, the No-Spam Act, the AI Act, and whatever comes in the future. These adaptations always require time to react instead of focusing on building or marketing.

An LLC in Germany has some costs and legal limitations that don’t apply to freelancing or operating as an individual. There are some taxes to pay even if you don’t make any profit, which accumulate to over 1,500 EUR per year, mandatory accounting fees of around 2,500 EUR or more per year, and 1,800 EUR for a virtual office for a legal company address, unless you are OK with registering your company at your home address. Also, don’t forget the usual expenses, like notary fees, IT-related stuff, and office supplies. Even closing a company requires around 3,500 EUR at best for different legal purposes and 1 year of shutting down time, which was a bummer to me. And if you don’t have a rich family or another stable source of income, the journey is harsh.

Over the course of those years, I have built several subscription-based projects, several modules to sell, and other digital goods to use as lead magnets. I have tried launches on product directory websites like Product Hunt, paid ads, blog content marketing, search engine optimization, advanced copywriting techniques, textual and visual social media posts, cold emailing, cold direct messages, funnels with special landing pages, guerrilla marketing, flyers, mentioning my product in books, mentioning my products in entrepreneurial meetings, guest blogging, adapting the websites for LLMs, press releases, and a few more marketing channels. I even did some woo-woo magic, like removing my money-related limiting beliefs or listening to sound frequencies that should have attracted financial abundance. The paradox was that the more effort I put in and the more I perfected what I built, the fewer new users I gained. The other important part was that no matter how much value I believed I brought, that didn’t mean that people were ready to pay for it.

I always tried to keep it ethical: no paid followers, no fake reviews, no fake testimonials, no lies in the copy, no fake employees. Interestingly, there are lots of service providers who contacted me offering Product Hunt upvotes, positive Trustpilot reviews, fabricated Reddit engagement about my brands, leads (contact info of people) from any industry, paid articles in questionable business magazines, and business award nominations to boost my ego and status. Extra money to spend and turning a blind eye to ethics would have helped the business for business’s sake — but that’s not my style.

I was also contacted by probably 50 companies offering outsourced IT services from countries with lower wages than Germany, as well as by many individual IT specialists looking for jobs. So having a company creates some kind of illusory reputation even if it’s a one-man show.

Lastly, having a company means that you have to be very careful and discerning about cold emails, as there are lots of fraudsters sending fake invoices to your accountant, webcam blackmail scams, and fake domain renewal notices. If you share your phone number online, you often also get fake calls from random countries.

What I surely learned from this was resilience and stronger self-confidence, focusing on the bright side no matter what, taking action on my ideas more proactively, and optimizing my time and energy.

What I would suggest to anyone starting a SaaS entrepreneurship journey today is to develop oral communication skills even if your business is totally online and text-based, and get a business background that goes a little beyond supply and demand and assets vs. liabilities. For the product you build, don’t reinvent the wheel — use the tech stack that you already know from the past, where you can iterate quickly on demand. The latest technological hype is not worth it. And even if you are the best IT specialist of your kind and have a very smart or useful product, that doesn’t automatically mean that you will be able to distribute it enough to sustain your company.

Even though it seems that the Internet is an open ocean with unlimited possibilities, I would still suggest starting with a local or online community in which you participate, noticing a problem they have that can be solved with IT, asking if they would be willing to pay, creating a tool without monetization for them. Only when there are real people who would buy the service the tool provides should you start a company. Don’t start an LLC in Germany, but rather stick with operating as an individual or even freelancing. You can’t build a sustainable business and pay the required taxes based only on ambition and motivation.

They say that only 10% of businesses succeed, and the others go bankrupt. Somehow, all those who start believe that they belong to the 10%. I thought about SaaS as a source of passive income. It turned out to be a lottery ticket that cost me notary fees, a bank account, virtual office, domains, servers, email, company taxes, bookkeeping, and lots of time. Was it worth it? I gained lots of experience. Otherwise, I see too many bureaucratic restrictions. So I am closing my company and will continue to implement my ideas as an individual under different legal forms.

Cover picture by Lloyd James

Categories
Decision-making Life Self-awareness

Dilemmas of the Human Path

A person choosing whether to go towards rationality to a city, or towards emotionality to nature with the less travelled path in the middle.
Reading Time: 3 minutes.

Once in a while we come to a crossroad with two or more choices. The decision might be tough to make, and we don’t want to make any mistakes about it. We turn left — it’s a path of progress and prosperity; we turn right — it’s a beautiful garden with chirping birds, buzzing bees, and butterflies. Which path is right for us, we contemplate. Is studying and building a career while thinking about the long-term future the right way to go? Or is travelling around the world as a social media influencer and building lifetime memories the path we should take? Should we believe in science and the newest futuristic discoveries? Or should we focus on ancient wisdom, religions, and rituals? Should we master typing prompts on a computer keyboard or learn to weave piano melodies beneath our fingertips? Should we think long-term with 10-year plans, or should we take a leap of faith and go with the flow and synchronicities?

Two weeks ago, a couple of masked urban climbers dressed in black got onto the tower of the Empire State Building in New York and put up a black flag with white uppercase letters reading, “WHEN THE POWER OF LOVE OVERCOMES THE LOVE OF POWER, THE WORLD WILL KNOW PEACE.” Then the man knelt down on the tower’s landing and proposed. The whole act was filmed from a helicopter by national news in real time, with the reporter commenting that the couple had no climbing harnesses for safety, and questioning how they could have gotten past security in broad daylight. Afterwards, the couple climbed down, and when arrested, they walked with their heads held high.

People on Instagram were amazed by the bravery and the hope it inspired — that ordinary people aren’t so caged by rules and regulations, and that the spark of freedom to express what you feel outside the norms is still alive. Others made funny videos mocking the unrealistically high standards now set for expressions of love. Yet others revealed that the couple was already married, and that the stunt was a guerrilla marketing campaign for their new Netflix documentary, “Skywalkers: A Love Story” — and likely a chance at six-figure brand deals with companies like Red Bull.

For me, the act was elegant, no matter the intentions. And I’d like to believe in what the flag said, though at this point it feels like humanity still has decades to go before reaching that kind of peace.

So at our crossroads, we have two seemingly opposing options to choose from. After making a decision, we go there. And for sure, it will be a journey of learning and discovery, ups and downs, and we’ll get into the details of the path we chose, deeper and deeper. As a rule, we’ll also meet people criticizing the other path we didn’t choose. Maybe we’ll be glad about the meaning of our path. Maybe we’ll find something adverse and wish we’d chosen differently. We all get our lessons. However, there might be a less-travelled path in the middle, one slightly visible, that combines the best parts of both directions. It could be a harder path, since it needs to bridge the opposites. But I believe it’s the more peaceful path in the end, because it lets us understand both sides — their pros and cons — and create something new.

As self-awareness rises, more and more people are talking about ascension and escaping the matrix — often meaning leaving the cities and living in the countryside or near water. Others prefer stability, predictability, rules, and regulations. Traditional industrial or corporate thinking is often referred to as “3D,” whereas the original thought of creation based on love and higher vibrations is referred to as “5D” consciousness — and spiritual people predict a split between those two states of consciousness, rather than everyone rising together.

In my opinion, if you live consciously in a city, you can’t really escape what you rely on from the matrix: all its facilities, services, and infrastructure. But you can contribute to a more conscious world by embodying the values you wish to see, influencing those closest to you — your kids, friends, neighbours, and communities. Mini retreats, yoga classes, recreational parks, and dance and movement practices could be ways to cultivate human connection, spirituality, and healing. Book clubs and meetups can raise intellect and consciousness. In this way, the whole collective can be uplifted together.

On the other hand, if you want to live in a remote community based on love, empathy, and support, and be independent from the grid — without simply going back to the basics of hundreds of years ago — you’ll probably still draw on the knowledge and resources of existing systems to build your own infrastructure in your village. Leadership, project planning, architecture, engineering, and fundraising will all be necessary to build a village with fresh drinking water and solar panels or wind turbines for renewable energy.

In the end, there will always be a need to bridge the gap between these opposites and explain each side to the other in a vocabulary both can understand. Just as we don’t have to choose logic over heart, or heart over logic, we can also choose to balance both.

Categories
Life Self-awareness

Short-term vs. Long-term Decisions

Short-term vs. Long-term Decisions
Reading Time: 4 minutes.

This post first appeared on the 1st things 1st blog.

“Most people spend more time planning a vacation than they do planning a life.”

― Chet Holmes

When choosing your future, some of your decisions will have long-lasting effects and can lead to lots of success or disappointments, whereas some others will be valid only for a day or two, so why bother about them too much. You could follow the Pareto principle saying that for 80% of the effect, you will need 20% of effort, so you should identify the 20% of what’s long-term and act on it. Let’s explore which decisions are short-term and which are long-term.

Short term

Short-term decisions are usually triggered by life events and news and are often made based on emotions. Short-term considerations could be caused by fear of missing out or worry about what other people will think about you. On the other hand, they can be spontaneous, playful, opportunistic, open-minded as well.

  • Things to do during the day. Unless it’s some life event like a birthday party, wedding, job interview, conference talk, or a show, you usually won’t need lengthy preparation.
  • What to wear. Why spend too much time thinking about what to wear on a regular day? Instead, just choose something that matches together, fits the weather, suits the occasion, and is comfortable.
  • What to eat. Choose whatever you like or are used to unless you are on a special diet.
  • What music to listen to. Listen to what follows your mood or supports the mood you would like to get into.
  • What presents to give to your friends, family, lovers. Most of the celebrations in life are recurring and relatively frequent. So surprise your people with something spontaneous.
  • What TV programs or movies to watch. Choose whatever seems essential or entertaining to you.
  • What galleries or museums to visit. Take opportunities to see whatever interesting exhibitions are open in your city or the city you visit.

As a proverb says, “When life gives you lemons, make lemonade.”

Long term

Long-term decisions are usually based on personal philosophy of life. You use logic and strategies to direct your energy towards growth. Otherwise, your life will likely stagnate or destroy you, and you will have lots of regrets about living conditions.

  • Where to live. Your living location and conditions will have an effect on your solitude or social life, career, love life, speed and rhythm of daily routine, etc. You can choose to live with your relatives, in a shared apartment with flatmates, in a dormitory, in a rented or owned apartment, house, or villa. And all that will have different outcomes on your future life.
  • What to study. Your job opportunities, quality of life, and overall happiness in your life will depend on what you learn at University, College, Academy, or Professional School. Will you study something that you are interested in or something that your parents were impressed about? Will you learn something that you are passionate about, something that the market demands, or something in between?
  • Where to work. Will you work for survival, self-expression, self-fulfillment, or a local or global mission? It all depends on what job you will choose and how it matches your personality. Will, each of your employment, be the basis for your following ones, or will they be just a waste of career experience while searching for your field?
  • What name to give to your baby. In my life, I’ve met people who hated their first or last names because those names made them difficult to reach the expectations they had from life. Not in all countries, it is possible to change your name. So when choosing a name for your newborn, choose wisely.
  • What name to give to your company, product, or service. Just as for the baby name, the name of your business can also have a long-lasting effect. Especially if you care not only about the sales but also about your company’s branding and distant future.
  • What goals to aim for. You can have many passions in life and lots of possible directions to go with your life. But which of those directions is the most optimal for your character, skills, and needs?
  • What’s your main reason for living. Why were you born on this planet? What’s the purpose of your life? These existential questions are definitely long-term and require deep self-analysis.

“Maturity is achieved when a person postpones immediate pleasures for long-term values.”

– Joshua L. Liebman

It depends

Some decisions can either be quick and spontaneous or thoughtful and logical depending on what kind of person you are:

  • What events, conferences, or festivals to go to. Are you going to different gatherings for entertainment or getting information and resources for your projects?
  • What books to read. Are you reading books to have rest or to get knowledge for your career and self-development?
  • What podcasts to listen to. Do you listen to podcasts to fill your silence with chitchat or to learn something valuable and inspirational for life?
  • What country to visit for vacation. Do you choose your traveling spontaneously, or do you have a bucket list for life?
  • What newspapers or magazines to subscribe to. Do you read whatever is popular or what supports your knowledge for lifestyle or career?
  • What theatre plays to watch. Do you go to theaters to have a good time or to widen your viewpoint?

If you consider that your time is limited, you will probably try to save it by choosing what goes along with your values and goals. You will visit events, read books, and listen to podcasts useful for your primary activities. On the other hand, if you consider that your time is limitless, you will make decisions based on what feels right at the moment: you will go to events that will seem attractive, shocking, or inspiring. You will read books that entertain you much. You will listen to podcasts where the people seem most charismatic or grounded according to your preferences or where the topics seem interesting to you.

How to solve short or long-term decisions?

You can make short-term decisions using intuition, common sense, or randomness. For example, it doesn’t really matter so much what exactly you gonna wear today at work. What matters more is what clothes you buy to wear for work. It doesn’t really matter what dish you are going to try today. What matters more is what diet you are going to take in your life. It doesn’t matter too much what song you will listen to today at your lunch break. What matters more is in what mood and mindset your playlists are going to put you into.

When it comes to short-term decisions, choose what inspires you or solves a problem.

When it comes to long-term decisions, it’s better to weigh the options before making a decision. And for this reason, the most valuable tool to do that is probably the strategic prioritizer “1st things 1st”. Half an hour of prioritizing with “1st things 1st” can save you from months or even years of frustration and regrets. “1st things 1st” lets you make the most optimal decisions based on your knowledge and intuition.

This is how it goes. First, you start prioritization by defining your success criteria. Second, you list out things to prioritize. Third, you rate each item by each measure. And lastly, the tool calculates your priorities and groups them into something to choose for sure, things to consider, and things to eliminate or skip. It’s as easy as that.

Interested? Try it out for free.

Cover photo by Brayden Law

Categories
Life Progress Self-awareness

Needs and Priorities: Important Questions to Ask Yourself

Reading Time: 5 minutes.

This post first appeared on the 1st things 1st blog.

Somewhat 80 years ago, an American psychologist Abraham Harold Maslow generalized a hierarchy of needs, where each level of needs builds upon the previous one. At the very base, people require a smartphone with the Internet. Just kidding.

The overview of Maslow’s hierarchy of needs

At the very base, we all have physiological needs. To stay alive, we need to eat when we have hunger, drink when we are thirsty, have something to wear for the right body temperature, get to the WC when we need it, have a place to sleep, and probably someone to sleep with.

Then we have safety needs, such as a stable source of income, having where to live, being secure outside, at home, and at work, having some rules to follow, being treated well in case of illnesses, and getting help in case of fire or other catastrophes. At this level, we want to have structure and order. We want to know our limits and live stable and predictable lives.

These two steps ensure that a person will survive physically in this world.

Then we have a need to love, be loved, and belong. At this level, life without connections feels empty. We require pets, friends, lovers, family, coworkers, communities. We want to be a part of something bigger. We want to share intimacy and tenderness, affection and belonging. 

The next level is the need of esteem. We want to feel strength, self-esteem, and self-love inside of us. At the same time, we want recognition for our achieved mastery and respect for our competence from the outside world. At this level, we demand reputation and prestige.

Then there is the need of self-actualization. At this level, we want to explore, learn more, stimulate our minds. We want to play, grow, bring our best to the world. We need to be in harmony, order, and beauty.

The needs and priorities

At all of those levels we make decisions. 

  • At the bottom of the hierarchy we need to choose what to do to survive physically. 
  • Then we need to make decisions what to do to survive psychologically without becoming robots or zombies. 
  • Then we need to decide what to do to become more than social animals. 
  • Then we need to find a way how to escape the narcissism and arrogance. 
  • Finally we need to make decisions what to do to achieve the full harmony in the world. 

To make conscious decisions we have to prioritize some things over others. Let’s explore some of the crucial decisions we make at each level of our needs.

Physiological needs

What are you going to eat and drink to survive another month, week, or even this day?

When choosing food and drinks, you would typically ask yourself: Is your food cheap? Does it fill you? Is it tasty?

To get to the upper levels, you should also ask: Is your food healthy? Is your food nutritious? Does it give enough energy to you? Will your friends or family like it? Will you get a compliment for making this dish? Will your cooking skills be honored? Is it made from the best ingredients? Won’t you need to throw half your ingredients away? Is your food supply chain practical, ethical, fairtrade?

What are you going to wear?

When choosing clothes and shoes, you would typically ask yourself: Do they fit the season? Are they clean? Do they look appropriate?

To get to higher levels, you should also ask: Are they comfortable? Do they look good? Will your friends and loved ones like it? Do you feel like yourself in those clothes? Do you look respectful with this outfit? Do you need another piece of jacket this year? Are you living your authentic self with these clothes?

Safety needs

What job should you have?

When choosing a career, you would typically ask yourself: Is it paid enough? Do you understand, and can you do what they ask you there? Is it not too hard? Is it not too boring?

To get to the upper levels, you should also ask: Do you feel accepted by coworkers? Are coworkers friendly? Are you recognized for your work? Does your salary match your skills? Does the work fulfill you? Do you grow enough there? Do you do something meaningful there? Are you living your full potential at your work?

What should you buy today?

When choosing a purchase, you would typically ask yourself: Is it affordable? Do you want it? Do you need it?

To get to the higher levels, you should also ask: Is it long-lasting? Will that improve your comfort? Will that improve your relationships? Is that a brand you like? Will that look prestigious? Will that represent the status you are at? Is it useful? Does it look authentic and original? Is it ethically and ecologically made and brought to your shops?

Love & belonging needs

Which event should you attend?

When choosing events to go to, you would typically ask yourself: Would you go to this event for solidarity? Do you like the content of the event? Do you like the people who will gather there? Is it a chance to make new friends?

To get to the upper levels, you should also ask: do you feel like yourself in these kinds of events? Is it a chance to express yourself and gain recognition there? Is it not too long? Is there a chance to meet people of the same interests and social status? Can you make an impact at such events? Can you feel authentic at such events?

What present to get to your friend?

When choosing a present, you would typically ask yourself: Can you afford it? Will your friend like it? Is it something they don’t have yet?

To get to the higher levels, you should also ask: Will that present match your friend’s social status? Will that gift show your admiration and respect for your friend? Will that present lift your friend? Will that present add up to the authenticity of your friend?

Esteem needs

What should be your goals for the upcoming years?

When choosing long-term goals, you would typically ask yourself: Is that goal specific? Can it be measured? Is it attainable for you? Is it realistic to achieve it? Is the timing correct for this goal?

To get to the upper level, you should also ask: Is the goal positively stated? Is it ethical? Is it challenging you? Is it environmentally sound?

What books should you read?

When choosing your next book to read, you would typically ask yourself: Does it bring you knowledge and understanding? Does it improve your skills? Is it widespread or reputable literature? Is it interesting? Is it entertaining?

To get to the higher level, you should also ask: Does it make you a better human being? Does it lift you up spiritually? Does it help to find yourself or going towards your personal mission?

Need for self-actualization

What are the activities that you could call your Ikigai?

When choosing your reason for being, you would typically ask yourself: Do you love doing it? Are you good at it? Can you be paid for it? Does the world need it?

To go even further, you should ask yourself: Is it healthy? Is it ethical? Is it sustainable? Is it ecological? Is it progressive?

What should you do today?

When choosing the next optimal action to do today, you would typically ask yourself: Does that bring you closer to your goals? Does it remove bottlenecks? Does it make money or reduce costs?

To go even further, you should ask yourself: Is it impactful? Is it ethically, socially, and ecologically responsible? Does it bring more health and clarity to your life?

Invitation

So you have to make decisions and prioritize your choices at all levels of needs. The strategic prioritizer “1st things 1st” was designed to help you not lose yourself among all those choices and dimensions and help you grow as an individual, personality, and spirit. You are invited to use it and make your life more progressive.

If you are still struggling at the survival phase, but you would still like to make better decisions in your life, drop me a message and your reasons at the contact form. Every month I will select several people to use the tool for free.

Cover picture by Chester Wade