Juraj Masár: “Certain business models are easier to start than others”
This 24-year-old developer from Bratislava, Slovakia, knows a lot about commitment. Despite his young age, Juraj has already started several projects and has been part of three acquisitions. What does it take to get acquired? What business models does he think can succeed on today’s market? And why does he say people should risk?
When exactly did you say to yourself for the first time: “Let’s establish a company!”
I must admit it was quite a long time ago! I remember that when CDs were still big, my friend and I put together a simple disc burner. Then, we’d go out to the streets of Bratislava and try to sell them to the kids. I’m not sure you can call this a “company,” but I think I’ve always had this entrepreneurial spirit in me.
For instance, I used to print out forms when I was little. I liked the process of choosing the name for my imaginary business, creating the logo, and so on. Once I even put up a sign saying “Groceries” on the door of my room and told my parents that if they needed to buy anything, they could come to my place! It was all make-believe, of course, but I enjoyed it.
You published your first project, Vocablr, in 2011. You didn’t succeed with it, however. What did you underestimate?
It’s such a tragically beautiful story! I met with a friend, and we agreed to do some business together. Neither of us had money nor experience with building a company, and we didn’t know what we wanted to do. So we developed this platform for memorizing vocabularies in foreign languages. It was an online variation of flashcards.
The first problem of Vocablr was that it was a product without users. Not even my colleague or I used it! Secondly, we focused our attention on the wrong things. For instance, if you open vocablr.com, there is a sign-up form and a huge button under it. When you click on it, there is an animation that wasn’t trivial to code six years ago. I remember I spent two days on that button. What a waste of time! I mean, it was the last thing an educational tool needed to succeed.
So yes, it was a failure, but it was the first thing we developed.
This reminds me of what you said during a FuckUp Night talk in Prague, that there are loads of fuckups behind every company. Such attitude is admirable, but still — didn’t the experience demotivate you?
On the contrary, it motivates me because when you think about it, there are fuckups behind every product and every service you use every day. In my opinion, being ready to “fuck up” is the only way how to achieve something.
That said, you’ve already accomplished to be part of three acquisitions — at Prizeo, Appivia, and Represent. How does that happen?
People shouldn’t imagine that you wake up one day and there’s an email saying, “I like what you’re doing, I’m interested in your business, we want to buy you, so let’s meet!” It’s more like you’re building a company, you have some hard value, and people you know know other people, and some of them may happen to be investors who eventually decide to approach you.
The process itself is quite straightforward. You start the talks and write a fact sheet about the company. Usually, you also sign a so-called letter of intent that you’re willing to do the transaction. Then you let lawyers, auditors, and accountants do their work and check if everything looks right.
What kind of startups do you think can succeed today?
I don’t dare to say I have the exact answer, but if you’re thinking about starting a company in Central Europe, there are particular business models that give you a bigger chance of succeeding. If you look at the Czech and Slovak scene, security and technology companies have been thriving here. Let’s say you want to create another social network; well, then you have a greater chance in California. If you have a proprietary technology, which is much more complicated to copy, you can blossom anywhere.
But I think people can succeed with any idea if they have the domain knowledge and are committed to what they want to do.
From my personal experience, I would rather not start a B2C company, the type that creates a product for the end user. It is tough to establish yourself this way unless you really know what you’re doing. I’d also discourage building marketplaces where you have to simulate both the supply and the demand. B2B company is easier to get going, mainly when it directly helps your customers grow their revenue.
Where do you look for inspiration for new projects?
I play with new technology. Let’s say there is a great new thing, an app that lets you call and send text messages online. It costs a few cents, and you play with it for several days, and then it hits you: Wouldn’t it be great if we connected this new technology with a segment filled with old processes and technology? In the end, it doesn’t have to be a complex solution, but it needs to be the one people actually need.
Would you encourage people who are scared to start their projects to do it?
If you really wanna do something and you think you’re good, if it tempts you, but you’re scared, it helps to think about the best and worst case scenarios. Is the worst that can happen still quite OK for you? Then you should risk it — reasonably, of course. But from my point of view, most young people with no family and attachments have nothing to lose. I want to eliminate regret from my life, so I’d rather start a project and lose some time with it and learn a lot rather than do nothing and learn nothing.
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