Interviews at The Entrepreneur Center @NVTC

Bisnow: What is Aptela?
Aptela provides a better alternative to traditional business phone systems. We enable Voice over Internet, and also complement existing wired and wireless phones. The combination of flexibility, ease of use, and new capabilities for a mobile, ‘always on’ world are tremendous benefits to business customers that usually saves them money. The value proposition is very compelling, and people get excited about using our service, which is a stark contrast to what we’ve heard from our customers who’ve often viewed telecom as a necessary evil.

How was the idea conceived?
One aspect of my prior business was a hotline service. I was amazed at both how arcane and archaic the nuts and bolts of phone technology were, and also how critical it was to every business. We saw an opportunity to do better, using the web as the basis for the technology, and the means to sell and deliver it. When Mahesh, our Chief Technical Officer became available, he brought the ability to create great new technology and turn that concept into product.

How many employees do you have currently, and how many did Aptela start with?
We started our predecessor company with 3 and we have about 25 today including our offshore team. I expect to double that over the next quarter or so.

How has the growth of Aptela affected your job?
I spend much more time focusing inward and planning further out, due to the fact that we have more customers and operational issues. With rapid growth, new challenges move quickly from blips on the horizon, to obstacles right in front of you.

What are you working on currently?
Recently I’ve been focused on fund-raising, but I hope to wrap that up very soon, it’s consuming and distracting. I also have been spending a lot of time on our marketing, and constantly improving our delivery, and customer service. We have a lot of moving parts so there’s no shortage of things to work on.

Is money the most important aspect in a successful startup?
It sure can be. Money is the one ingredient, in the recipe of business, for which there’s not really an acceptable substitute. How much of that key ingredient is needed depends. I’ve heard that the number one cause of a business failing is undercapitalization, and I believe it.

At what point did you realize you were an entrepreneur?
I can’t really say, but I did have an experience in my one non-entrepreneurial gig where our team worked for a year and a half to get a key customer to fund $30+ million in R&D. Our CEO nixed the deal for reasons nobody understood. It was heart wrenching, and it personally cost me a ton of commission money. I decided that I didn’t want to put myself in that position if I could possibly help it.

Is there anything from your childhood that may be a key to your entrepreneurship?
I didn’t open lemonade stands or anything, but my family had a retail business which exposed me very early on to most aspects of running a business. I enjoyed wearing lots of hats, which I think translates well to being an entrepreneur.

Do you need a high tolerance for risk, or can you proceed as an entrepreneur prudently?
Risk tolerance is relative, and being prudent doesn’t preclude taking risks. I think the key is understanding what you’re getting into. If you can’t afford to miss a paycheck then being an entrepreneur is probably not a prudent risk. But then again, there are few corporate jobs that don’t carry the same risk. Ultimately I think the more control you have over your destiny the less risk you’re really exposed to. In that respect being an entrepreneur is actually a relatively low risk choice.

What have you read that was useful as a guide to being an entrepreneur?
I don’t have nearly the time I’d like to read these days. I often find myself drawing on Herb Cohen’s You Can Negotiate Anything and since selling is the key to success for any entrepreneur, I’d also recommend Bosworth’s Solution Selling, oldies but relevant.

What have your biggest mistakes and lessons been?
I think that’s a book in the making, but one key lesson I keep coming back to is learning to listen and trust your gut.

How have you determined whether to use your own money as opposed to outside investors?
They both have costs, I think you need to weigh. Having outside investors broadens your responsibility. You should only do it when you’re prepared to accept it, and depending on the investors, spending a lot of time and energy managing them. If you don’t have the money, the decision is pretty straightforward.

Have you ever borrowed from friends, family, or taken on debt?
Sure! Thankfully I haven’t lost money for anyone though, and I’d like to keep that track record intact.

Which is more important, execution or the idea itself?
You can do well executing a mundane idea, so I’d say execution is the key. But a good idea taken to others for the right execution can be lucrative.

How do you determine how much money you will need? Do you aim to get as much as possible?
Ask every smart businessperson you know and trust to sanity, run the numbers, check them, and then double it. How much you raise will depend, you can end up raising less or more than you think depending on availability and cost. Early stage capital is frightfully expensive so raising as much as possible, assuming you can, starts wringing the entrepreneurs’ potential payoff pretty quickly.

What do you think the signs are, that a founder should let go from running the company?
The short answer in my mind is when you find someone who can do a better job and help you significantly accelerate your progress without compromising the vision and values you think are important. I haven’t addressed it yet but I’m sure I will at some point.

Talk about the desire or need to be in this region and how D.C. is a benefit to your company.
We have people here, in Chicago and in Argentina and I think we could operate from anywhere. I suppose it’s not the popular answer but I don’t see any real compelling value-add to this area at this time for Aptela versus other technology centers like Boston, Austin, the Valley, etc. That said, for many businesses, the flow of federal spending in this region could be a huge help. The first four businesses I worked for (or helped found) were funded at its start by federal dollars.

At what point do you consider your exit strategy?
We believe that building our business, by providing outstanding value to our customers, will take care of our exit. We’d certainly entertain a buyout offer, we have to because our investors expect a return on their investment, which implies a certain level of value. And liquidity aside, the right buyout can provide you the means to accelerate achieving your goals within the envelope of a larger firm with more resources at your disposal.

Which annoy you more lawyers or accountants?
Accountants! I actually find lawyers to be a great source of advice.