Guest column

6 things this Houston entrepreneur wishes he’d known before starting his company

Learn from the mistakes of a successful Houston entrepreneur — from teamwork tips to reasons why you should network with other startups. Emilija Manevska/Getty Images

Recently, I was asked what it took to build a startup in Houston. It has taken me three attempts to create a successful startup, and there were a few things that I wish I'd known right out of the gate.

Whether your goal is to exit through a sale, an IPO, or turn your team of pirates into something that looks like a company, your business model will determine how you earn revenue and profits, and you want it to be repeatable and scalable to survive. With that in mind, here are the things I've learned along the way and what I wish I had known before I started my career as an entrepreneur.

Location does matter 

Houston is great for food, sports, and massive rainfall, but it's difficult to find a large pool of talented full-stack software engineers who speak cloud. I recruited some of the best, but it was incredibly difficult to find them compared to markets like Austin, Denver, and San Francisco.

I've seen successful companies build two separate offices, one for a headquarters, and another for development, but for us, we didn't need to build a massive team, so we remained close to customers in Houston and hired a remote team in California. If you need to build a large engineering team, consider a different city or go remote.

Startups have well-defined phases 

Your startup is not a snowflake. There have been thousands upon thousands of entrepreneurs that have succeeded and failed, and a few people have studied them to understand their histories and roadmaps. I wish I learned from them before I began, instead of spending every waking hour building a product, and competing with development time for research.

Looking back, we followed the same trail taken by many other B2B startups, like: Product-market fit, sales optimization, customer success, marketing focus, and eventually scale. It's important to know which phase you are in, who you need to hire in each phase, and most importantly, how your role changes in each one.

Partner roles need to be well understood 

One of largest factors on your probability of success is your team. When choosing your partners, I would suggest using an odd number of people to break stalemates, and to always have a CEO. One person needs to be in charge of execution, I can tell you first hand that committees do not scale well when you need a high velocity of decision making.

When choosing your team, make note of Cal Newport's research on career capital, which is the rare and valuable skills that one can leverage help your startup succeed. If your friend knows how to code or understands databases, ask yourself if he/she is the best in their class, because these are skills that you can hire for or contract out. The traits that accelerated our success were a unique blend of domain expertise, petroleum-specific software knowledge, deep business development expertise, and strong sense of diligence and commitment, which is what became our culture.

Finally, you and your partners need to know what needs to be done, and how you can individually contribute. Your contributions will change in each phase, and each of you need to understand how your roles will change, and be prepared to adapt quickly. If one of your partners writes the first line of code, doesn't mean they'll be the CTO when you have 150 people, the person that makes the first sale may not be the CRO when you have a 30 person salesforce. For those with a large ego, it's one of the hardest things to accept, but must be acknowledged in order for a team to succeed.

Your idea is probably wrong, but that is okay 

We used agile and lean philosophies to build our organization, and our approach was centered around what Steve Blank calls "customer discovery," the understanding of how to find a product-market fit. These methods subscribe to the hypothesis that successful startups are defined by their team's execution, and not the idea alone. We ditched our first idea after two weeks and pivoted to a new one, and we learned from our customers very quickly and created over 115 prototypes in 10 months before making the first sale. Each group of customers saw a different prototype, and each beta-tester used a different design, a different stack, a different user experience. We had to learn quickly. Agile and lean processes helped us iterate quickly and discover what our customers needed, but a highly skilled team was needed to figure out how to use the processes correctly.

Connect with others who have made it

Success is a multi-variate formula that compounds every good and bad decision unequally. If you don't know the answer to a key decision, your team can help, if they don't know, then find another team that has navigated your trail to provide advice.

In Houston, there are not many teams who have been through this, we leaned on help from the Austin network. I'm a big believer in helping the community of entrepreneurs, and I am more than happy to throw down the rope to help others in their ascent.

Money is your oxygen

Lastly, learning to hold your breath isn't a long-term strategy for deep sea dives. You'll need to know how many months of oxygen you have in your bank account at all times. There is no magic number of months for runway, but I can tell you from experience that three months is too little for oil and gas tech startups, especially when OilCo's take three to six months to sign and pay your invoices.

I can't emphasize how difficult starting a company can be. By reflecting on the points I mentioned here, I believe that I would have avoided some pitfalls, and maybe even made it a little farther in the journey.

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James Ruiz is the founder of Houston-based Q Engineering, a data driven solutions company for E&P professionals.

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Building Houston

 
 

The ISS houses hundreds of research projects — and the astronauts aboard just got a handful more. Image via NASA.gov

For the 26th time, SpaceX has sent up supplies to the International Space Station, facilitating several new research projects that will bring valuable information to the future of space.

On Saturday at 1:20 pm, the SpaceX Dragon spacecraft launched on the Falcon 9 rocket from NASA’s Kennedy Space Center in Florida — bringing with it more than 7,700 pounds of science experiments, crew supplies, and other cargo. The anticipated docking time is Sunday morning, and the cargo spacecraft will remain aboard the ISS for 45 days, according to a news release from NASA.

Among the supplies delivered to the seven international astronauts residing on the ISS are six research experiments — from health tech to vegetation. Here's a glimpse of the new projects sent up to the scientists in orbit:

Moon Microscope

Image via NASA.gov

Seeing as astronauts are 254 miles away from a hospital on Earth — and astronauts on the moon would be almost 1,000 times further — the need for health technology in space is top of mind for researchers. One new device, the Moon Microscope, has just been sent up to provide in-flight medical diagnosis. The device includes a portable hand-held microscope and a small self-contained blood sample staining tool, which can communicate information to Earth for diagnosis.

"The kit could provide diagnostic capabilities for crew members in space or on the surface of the Moon or Mars," reads a news release. "The hardware also may provide a variety of other capabilities, such as testing water, food, and surfaces for contamination and imaging lunar surface samples."

Fresh produce production

Salads simply aren't on the ISS menu, but fresh technology might be changing that. Researchers have been testing a plant growth unit on station known as Veggie, which has successfully grown a variety of leafy greens, and the latest addition is Veg-05 — focused on growing dwarf tomatoes.

Expanded solar panels

Thanks to SpaceX's 22nd commercial resupply mission in 2021, the ISS installed Roll-Out Solar Arrays. Headed to the ISS is the second of three packages to complete the panels that will increase power for the station by 20 to 30 percent. This technology was first tested in space in 2017 and is a key ingredient in future ISS and lunar development.

Construction innovation

Image via NASA.gov

Due to the difference of gravity — and lack thereof — astronauts have had to rethink constructing structures in space. Through a process called extrusion, liquid resin is used to create shapes and forms that cannot be created on Earth. Photocurable resin, which uses light to harden the material into its final form, is injected into pre-made flexible forms and a camera captures footage of the process, per the news release.

"The capability for using these forms could enable in-space construction of structures such as space stations, solar arrays, and equipment," reads the release. "The experiment is packed inside a Nanoracks Black Box with several other experiments from the Massachusetts Institute of Technology Media Lab and is sponsored by the ISS National Lab."

Transition goggles

It's a bizarre transition to go from one gravity field to another — and one that can affect spatial orientation, head-eye and hand-eye coordination, balance, and locomotion, and cause some crew members to experience space motion sickness, according to the release.

"The Falcon Goggles hardware captures high-speed video of a subject’s eyes, providing precise data on ocular alignment and balance," reads the release.

On-demand nutrients

Image via NASA.gov

NASA is already thinking about long-term space missions, and vitamins, nutrients, and pharmaceuticals have limited shelf-life. The latest installment in the five-year BioNutrients program is BioNutrients-2 , which tests a system for producing key nutrients from yogurt, a fermented milk product known as kefir, and a yeast-based beverage, per the release.

"The researchers also are working to find efficient ways to use local resources to make bulk products such as plastics, construction binders, and feedstock chemicals. Such technologies are designed to reduce launch costs and increase self-sufficiency, extending the horizons of human exploration," reads the release.

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