Published At: February 20, 2023
The economic situation seems to be taking a turn for the worse, with more tough times ahead. As a result, companies can expect a more restricted access to Venture Capital investment and less generous terms and valuations. Instead of relying on easy funding, companies must now prioritize profitability and positive cashflow.
This is particularly true for companies in the mobility industry, where heavy capital investments are often required to get off the ground. Achieving returns depends on high volumes of small transactions, which usually offer small margins.
With these challenges in mind, many companies are turning to bootstrapping as a solution. But it's not all smooth sailing. Bootstrapping comes with its own set of difficulties that can seem insurmountable at times
In a recent webinar, we talked with veteran entrepreneurs in mobility sectors and here are some of the biggest takeaways from the discussion.
While there is less money available in the market than there used to be, and business valuations nowadays have decreased. The speakers discussed how it is essential to have a clear sense of purpose and commitment while planning investments in prototypes and demonstration vehicles, to get the maximum impact and profitability.
In terms of scalability, we discuss the combination of hardware and software and the importance of developing a software platform that customers can use to run their businesses in the future.
The focus should be on developing scalable software platforms, that can provide quick application and value. It was emphasized that, to monetize the ideas, one has to put in hard work and have a clear vision.
We discussed the challenges in lengthening the lifecycle of buses and other vehicles in the mobility industry due to technological advancements and battery life. Dan Porter suggested building buses with materials that are lighter and engineered for a 10-year lifecycle that is fully recyclable. He also proposed using the batteries for energy storage systems and other types of vehicles, and Daniel Kirby talked about how to extend the lifecycle of automotive by adding more links to the value chain through subscription and long-term leases. The speakers also mentioned the importance of owning the fleet and not just being an asset provider to generate more revenue and emphasized the need to design hardware for a specific lifecycle and reuse them as much as possible.
There are several tips to scale up your mobility company. The first thing is the need for hyper-focus and dedication and ensuring that the mission is clear. The speakers point out the importance of racing to the market with an MVP that fits the market and generating good revenue.
We also discuss the challenges of making a business politically valid, holding down costs, and being willing to cut out things that aren't working. The speakers suggest finding the right people for each phase of the business and ensuring that you have the best technology in place. Automating operations and providing customers with a seamless, digitized experience can help streamline operations and keep the business lean and profitable.
Overall, the speakers suggest that to scale up a successful business, you need to be willing to adapt, stay flexible, and invest in the right technology.
If you’re looking to watch the whole session for a more in-depth discussion on this topic, consider watching the webinar below:
