Jason Schwartzberg of MD Energy Advisors On Five Things You Need To Create A Highly Successful Startup

I’m a big believer in teaching a person “to fish.” If people are in a position to learn a skill, they can provide for themselves and their families. It is important that we all have something that we can identify with and where we thrive, regardless of the skill.

Startups have such a glamorous reputation. Companies like Facebook, Instagram, YouTube, Uber, and Airbnb once started as scrappy startups with huge dreams and huge obstacles. Yet we of course know that most startups don’t end up as success stories. What does a founder or a founding team need to know to create a highly successful startup? In this series, called “Five Things You Need To Create A Highly Successful Startup” we are talking to experienced and successful founders and business leaders who can share stories from their experiences about what it takes to create a highly successful startup. As a part of this series, we had the pleasure of interviewing Jason Schwartzberg.

Jason is a leading energy entrepreneur and a pioneer in energy cost reduction for commercial property owners. He co-founded MD Energy Advisors after identifying the need for an energy company that could help the real estate community reduce energy spend to maximize profitability.

In 2010, Jason also co-founded PointClickSwitch, a proprietary online platform powered by MD Energy Advisors that helps residential customers in deregulated energy markets save on utility costs though comparison shopping.

Prior to starting MD Energy Advisors and PointClickSwitch, Jason served as development manager for A&R Development and an economic development officer for Baltimore Development Corporation, where one of his key projects was Baltimore’s first casino.

He is the president of the alumni association for McDonogh School and serves on the real estate committee for The Associated: Jewish Federation of Baltimore. Jason earned a Master of Business Administration (MBA) from Loyola University Maryland and a bachelor’s degree in government from Franklin & Marshall College. In 2018, Jason graduated from the Goldman Sachs 10,000 Small Businesses program.

Thank you so much for joining us in this interview series! Before we dive in, our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?

I come from a family of entrepreneurs and always wanted to own my own business. I just didn’t know in what industry. Candidly I thought it would be in real estate as I was building a career in real estate development while we were building our energy company on the side. It was April 17, 2013, and I reported to my job as Development Manager at a prominent locally owned real estate development company. I worked hard and was told I was on the path to be a partner in the company and receive equity. I arrived to work on that Wednesday and was immediately called into a meeting. Naturally, I was a little confused. I was on the partnership path and out of nowhere during that meeting I was told that the company was downsizing, and I was out of a job. Mind you, it did not have anything to do with my performance, but I was SOL any way. It was at that moment that I decided that I was not going to let someone else control my own destiny. Starting April 18, the very next day, I was focused full time on the energy company.

What was the “Aha Moment” that led to the idea for your current company? Can you share that story with us?

I was searching for ideas high and low — considering everything from T-shirt companies to food trucks to franchises — when I stumbled on an article in the local paper that spoke to me. I was. The article recognized that only 5% of the market had taken advantage of energy choice in our market. I was looking for a business that was scalable, had limited inventory/startup capital requirements and would allow me the flexibility to work from anywhere. We launched an energy choice aggregation platform, similar to what Expedia is to travel, that allows consumers to compare and contrast their options. We built the initial website and tested. I am a big believer in minimal viable products. We could have dropped $50k on a website or we could build the website ourselves on Wix for $500 and see if we got traction. Build it and test it and see how the market responds before making a huge investment to find out that the market isn’t buying what you are selling.

Was there somebody in your life who inspired or helped you to start your journey with your business? Can you share a story with us?

My father is a great leader by example. He worked hard and was able to provide for his family. He also had control, and no one limited his earning potential. He was always at our sports games, and he had dinner with us, as a family, every night. This was very important to me and likely the main reason I gravitated to entrepreneurship.

What do you think makes your company stand out? Can you share a story?

The diversity of our team is undoubtedly our secret sauce. 40% of our employees are women. 71% of our employees are minorities and 26% of employees are minority women!

Our can-do, first class, customer service is also our differentiator.

How have you used your success to bring goodness to the world?

We recently provided a $7,500 gift to Bon Secours Community Works, and organization with the vision to be a ministry where associates want to work, clinicians want to practice, people seek wellness and communities thrive, to support the development of their Community Resource Center, a nearly 20,000 square foot facility designed to serve the social, recreational, educational, and health and wellness needs of youth, families and seniors in the rising neighborhood of Booth-Boyd in West Baltimore City. Currently under construction in the former Payson Street Library on 31. S. Payson Street, the multi-functional two-story building is expected to open the fall. Giving back is a pillar of our organization and supporting the people and the communities where we live, work and play will always be a priority to us at MD Energy Advisors.

You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?

Active Listener — Growing up, my dad always used to say to me, “you have two ears, one mouth — think about it.” To this day, I still remind myself of the importance of it. If you ask good questions and truly listen to the responses from your client/colleague/strategic partner, you will get everything you need to hear…just listen.

Ambitious — As a bootstrapped company we need to embrace the grind. Constantly stretching has allowed us to reach our goals.

Integrity — Do the right thing…ALWAYS. There are no shortcuts. I am trying to win the war, not the battle.

Often leaders are asked to share the best advice they received. But let’s reverse the question. Can you share a story about advice you’ve received that you now wish you never followed?

The idea that we have to be overly formal in a business environment, in my opinion, could not be farther from reality. You need to be professional, but you need to be authentic. Once I realized that I could be myself in every situation with everyone and not have to put up a front, I was much more comfortable and fluid, got more traction and had more fun.

Can you tell us a story about the hard times that you faced when you first started your journey?

I started MD Energy Advisors with two business partners and $10,000. We did not have subject matter expertise in energy, we did not have clients, and we were broke! We kept our full-time jobs and built our company on night and weekends. My 2 partners were the first to spring. While we were all focused on the same thing, we all had very different situations. One of our partners started full-time with a modest salary being mindful of our other team member who already had a family and was also working full-time to start the company. I was still working full-time for another employer and so, being mindful of everyone’s situations and the state of growing our business, my salary the first year was a MacBook Pro. We just kept grinding and putting one foot in front of the other.

Where did you get the drive to continue even though things were so hard? What strategies or techniques did you use to help overcome those challenges?

I was a college athlete, so I was definitely programmed to keep grinding. So much of what I learned on the baseball field I was able to apply to my career — I thrive on a bases loaded situation, tie game, 2 outs and a full count so bring it. So many people miss opportunities because they look like work. Putting in the work was always something I was willing to do and something I had become accustomed to doing. If putting in the work meant controlling my own destiny, I was up for it. Keeping my full-time job until the company was sustainable was also crucial. I didn’t sleep much, but I also did not have the stress of making bills, credit card debt or the pressure from investors. Bootstrapping is definitely not for the faint of heart, but if you can get to traction, you will unequivocally control your own destiny.

The journey of an entrepreneur is never easy and is filled with challenges, failures, setbacks, as well as joys, thrills and celebrations. Can you share a few ideas or stories from your experience about how to successfully ride the emotional highs & lows of being a founder”?

It’s a great question! Our motto as a company is never too high and never too low. You’re never as good as you think you are, but you also don’t suck as much as you think! At the beginning it is really easy to get super hyped or super down. It’s almost like riding a bike. If you don’t go fast enough, you will fall. If you go too fast, you will crash. But if you maintain your balance and your speed you will cruise to greatness. It truly is a marathon and not a sprint!

Let’s imagine that a young founder comes to you and asks for your advice about whether venture capital or bootstrapping is best for them? What would you advise them? Can you kindly share a few things a founder should look at to determine if fundraising or bootstrapping is the right choice?

The choice of venture capital/bootstrapping can probably be distilled to powder. How much will it cost you to launch your product or service? What is your burn rate? How long will it take to reach profitably? If it is going to be expensive to launch your product or service, you have a high burn rate, and it is going to take a long time to reach profitability you probably need to take venture capital. If you can launch an MVP and can keep overhead manageable, all the while reaching profitability, then bootstrapping is the way to go. It definitely takes longer, and the growth may be frustrating at times, but if you can reach sustainability with a boot strapped model you will have less masters and maintain autonomy.

Ok super. Here is the main question of our interview. Many startups are not successful, and some are very successful. From your experience or perspective, what are the main factors that distinguish successful startups from unsuccessful ones? What are your “Five Things You Need To Create A Highly Successful Startup”?

1. Find A Need
2. Establish Target Market
3. Provide First Class Customer Service
4. Do the Right think Always
5. Exhibit Empathy

What are the most common mistakes you have seen CEOs & founders make when they start a business? What can be done to avoid those errors?

Striving to achieve perfection before launch. There’s an opportunity to launch a viable product that may not be absolutely perfect. Refusing to launch costs time, money, energy and effort and all of that without confirming the market even has any interest. The reality is, you are going to have to revisit either way.

Startup founders often work extremely long hours and it’s easy to burn the candle at both ends. What would you recommend to founders about how to best take care of their physical and mental wellness when starting a company?

I go back to my dad. He worked extremely long hours and was always taking calls, but he was at every game and was always present for family dinner. Find something that matters to you and never waver in your commitment to that activity or those people. For me, just like my dad, it’s family and taking the time for selfcare and exercise. I like moving meditations in the form of hikes and oftentimes grab my AirPods to take internal calls while also taking a few steps in nature on the trail. My colleagues bear with my occasional shortness of breath!

We’re all the best version of ourselves when we’re able to step away and breathe. The work will always be there, but the chance to make memories won’t.

You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)

I’m a big believer in teaching a person “to fish.” If people are in a position to learn a skill, they can provide for themselves and their families. It is important that we all have something that we can identify with and where we thrive, regardless of the skill.

We are blessed that some very prominent names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or in the US with whom you would love to have a private breakfast or lunch, and why? He or she might just see this if we tag them.

Richard Branson. Now he thinks big! He’s experienced much success and many failures, and it appears that he has learned from all of them…not to mention he looks like he’s having a blast throughout the entire journey.

How can our readers further follow your work online?

Our website www.MDEnergyAdvisors.com has a wealth of information and features our talented team members. Feel free to also follow us on LinkedIn at @MD Energy Advisors or me at @Jason Schwartzberg.

This was very inspiring. Thank you so much for the time you spent with this. We wish you continued success and good health!