It’s amazing to think that three years ago, Aalap and I started Source86 with a model, some hypotheses, and our life savings. What else could we need?
I remember sitting down on day one and Googling what to do when you start a business.
Now, three years later, we’re a team of 40, growing a profitable company that delivers products worldwide. We work with top brands on complex projects. Our logistics team coordinates shipments from 15 countries to warehouses nationwide.
Should that make me content?
We’ve surpassed our expectations, but I’ve realized my drive comes from never being fully satisfied. This energy motivates me daily, but it’s also something I’m learning to manage. Trying to appreciate the small steps we take and not chase some imaginary finish line that just keeps moving further away.
I’ve had to confront and manage real anxiety. The hardest part is to enjoy the moment without being scared that it will make you complacent and you will lose it all. Much of this game is mental. Showing up every day and pushing forward is 90% of the battle. There’s no home run hitter coming to save you. You need to get used to doing a million small things to reach the top of the mountain.
So, with three years of experience, I decided to write down what I have learned so far. The mantras that I come back to day after day.
Capital Allocator and Culture Champion
As we scaled, I saw two main levers I could pull at Source86. The first is efficient capital allocation to build a strong balance sheet with above-market returns. Many founders focus on income statements but neglect balance sheets. Maximizing long-term growth means understanding your balance sheet deeply.
The second lever is driving culture. For better or worse, as CEO, you will have an oversized influence on the company’s culture. I spend a lot of time repeating our vision, making it clear where we’re going and why. It’s crucial to get people excited about their work and to show them how their roles are paramount to the company’s success. I love the team we have built. I take pride in shaping the culture at Source86 and believe 100% that they are the key to our success. When you see the power in that, you invest in it, and when you do, the dividends are great!
Creating Momentum with Momentum
We started the business thinking our customers would be X and we’d sell them Y. Turns out, our customers and their needs were different from what we expected.
We spent a lot of time trying to find the customer we thought we needed. It’s much easier to follow the momentum. Many founders stick rigidly to their initial path, but sometimes, you must listen to the market and pivot. Momentum compounds, so don’t swim against the stream.
You Can’t Skip Steps
Don’t you wish you could wake up one day with a $100M business that runs perfectly? Every time I thought we were on track, we tried to get to the next stage even quicker, but we got knocked down. The media loves to showcase fast-growing companies like Facebook, but for 99% of us, that’s not realistic.
Most organizations go through a much longer growth curve. Each step is critical to getting to the next. Don’t try to leapfrog a step. While there is a small chance it works, there is a bigger chance it falls flat. Investors may push for that leap as they have 100 portfolio companies doing that at the same time and only need 1-2 to succeed. As a founder, you should understand what you can drive next and execute against that. I am not saying you should not stretch yourself, but rather do it in a way that maximizes the resources you have now.
Protect Your Downside
For a bootstrapped business, I never optimize for low-probability home runs. Staying open another day naturally builds momentum. It may sound all doom and gloom, but lack of focus is one big killer in startups. Protecting our downside has given us the freedom to accelerate growth.
We can’t focus on everything. I trust our leadership team to build out the organization we need to scale. As founders. we focus on preventing the things that could put us out of business, like running out of money. We set focused revenue targets and manage inventory, margin, and costs.
This approach reduces my anxiety and gives me the space and confidence to plan aggressively for the future.
What You Learned Last Year Doesn’t Guarantee Success This Year
We came into our third year confident, thinking we now have the recipe for success. Only, there is always something, and it’s always unexpected. Build that muscle to be comfortable that you know a lot more than yesterday. It will help you deal with tomorrow but don’t lower your guard. You and your team need to stay disciplined. There is no sure way of F&&^ing things up when you come off a good year and walk into the next, thinking you can take more risk. Hold yourself accountable and always edit yourself.
You Always Need More Money
Capital is crucial. The more you prove yourself, the more access you have to it. There is capital out there, so always be fundraising. That doesn’t mean giving away equity. There are many tools to maximize your balance sheet without diluting ownership. Don’t wait until it’s too late. Get out there and sell your vision. Fundraising, like sales, can have a long cycle. We have nurtured relationships over the last three years that are only paying off now.
Entrepreneurs Aren’t Good at Watching Paint Dry
We like new projects. However, focus is essential to avoid distracting your team from what drives your business. Just because your first idea worked doesn’t mean the odds are better for the second. Double down on what’s working or find a side project as an outlet. It allows me to try new things and use my fidgety, can’t sit still behavior without distracting the rest of the company.
There’s no rule book for building a business. Plenty of successful companies out there have completely different cultures and focuses. What works for us might not work for them. And what we’re doing today might not be what we need to do tomorrow. That’s the tough part—there’s no single answer on how to build a business.
You just have to pick a path, believe in it, and execute on it every day.
