Making of MYO: Part 1 "Do I dare to invest?"

08/03/2022

International Women's Day. 

Even today we woke up to news that shakes us and makes us question where the world is headed. The last two years have really affected us in so many different ways, and since everyone knows what I mean (and has their own experience of this time) I don't need to go into how much I personally wish to read more positive news. 

"But that time will come - that I still want to believe. And today I will focus on something positive: namely writing about my own experience of having started and for two years run a limited company. As a woman. First alone, then with other women (even though we still really want to call ourselves girls - can we do that? 34 is not an age!)." 

"Soon I will have been an entrepreneur for two years. This time I have spent running a start-up has given me more than I could have ever wished for, after I dared to leave everything that felt safe and trust that 'everything will work out.' This text could be long, but I really hope it provides hope and encouragement to those who dare to believe in their dreams. Welcome to the first part of 'Making of MYO' which will share my personal experience of starting my dream company."

"Do I dare take the risk?"

In January 2020, I found myself in a strange situation with my then job. I had been employed for 2.5 years at a fast-growing startup company in Stockholm and was very happy. Before that, I had worked at other similar companies and had lived in Stockholm for a total of 7 years. One day, the news came that our entire sales strategy had changed and a major restructuring was underway. This was not what I had expected - on the other hand, I was not surprised; every startup needs to refine its strategy from time to time. Then I decided it was time for me to move on. I went up to Åre to change my environment for a couple of weeks, but at that time I had no idea that this trip would actually lead me to move up completely.

During this period of total uncertainty, I began to sort through different thoughts about how much I really wanted to be employed and what I actually wanted to do with my life. In hindsight, I am actually grateful that this situation forced me to dare to take the step towards my own dream. The idea of MYO had come to me during the autumn before all this happened, when I used crocheting as a form of stress management in the evenings (my brain was total chaos, but I could still sleep better after crocheting and listening to music for an hour before going to bed). 

"I pep talked myself. Every day. Now I was without a job and had time. To create a new perception of myself, I had to go through my entire career, all the roles I had worked in, all the good and bad bosses I had had, all the contacts I had made. Surely I still knew quite a lot?" 

"In my head, I drew maps; I can do this now, I can learn this when needed. But success rarely comes for free; in the end, it mostly comes down to one's motivation, ability to find solutions, and above all, the willingness to learn. To dare to believe in oneself, enough to carry one through the bad times. So I came to some important insights:" 

1. "I don't have to know EVERYTHING to start a business. People have done it before." 
2. ... but I still have to be prepared to invest the time required to understand the things I feel uncertain about (for example, everything related to money / the company's finances). 
3. "I can always go back. If my attempt completely goes awry, I still have solid work experience as a backup and can look for a new job."
4. "I will be kind to myself and accept that I am a beginner at this. This way, each day can give me new lessons and experiences. Like studying, but with a real purpose."

So how big was the risk really? I received a few months of severance pay from my old job, and I had some savings. Half a year is not a long time in the context of "starting a business," but I decided to spend this time creating some products and testing how they were received by friends and acquaintances who got to try them first, and see how it would feel later. I also decided to stay in Åre, mostly because I wanted to, but also for financial reasons. Even though I have been living on a student budget for two years, life here has still felt incredibly rich; being out in nature doesn't cost anything in itself. 

"How do you plan to finance this?" 

After 6 months, there were no more salary payments from my old job, and thus the end of the only income I had had. I refused to go to the Employment Agency and apply for "start your own business grant" because I had heard that the process is long and requires you to apply for other jobs at the same time. At this point, I had managed to create four products for MYO and was testing the concept with instructional videos I had made for Instagram (filmed with my phone since I couldn't afford anything else). I realized how much time product development took, and how little I knew about, for example, marketing on different platforms. And I was still alone in the company. 

The risks one takes when starting a business can (in my world) broadly be divided into emotional and financial. Emotional: To dare to believe in one's own idea so much that, for a period, one essentially sacrifices everything else. The risk one takes is that everything does not go as planned, and in the worst case, no one wants to buy what you are selling. Or that everything just takes an incredibly long time compared to what you had anticipated, and you have to keep going, believe in yourself and your own idea, without any confirmation that you are on the right track. Financial: Yes, everything that is required for the products to become a reality. All the programs that cost to use every month, all the consultants needed because you simply cannot do everything yourself. Purchasing goods. Transportation costs. How does one even create the first budget for their business? I had no idea. I, who have studied economics in Uppsala for three years, didn't even know how to make a reasonable budget. 

October 2020. The money ran out but four products were ready. One day I broke down and mom sent enough so I could pay some bills (thank you <3). With extra work at the restaurant, I could support myself, but what about the company? Thoughts that came up then, and that pushed me forward: 

1. "Dare to ask for help. I myself contacted the Åre municipality's advisor and got contacts moving forward, e.g. to a local incubator (Peak Innovation, which we are now part of) and ALMI, a venture capital company owned by the state. Dare to consider venture capital as an option that helps you finance the start. It sounds big and scary, but those loans are actually made for companies that need capital to get started and have good terms." 
2. "Be 100% transparent and honest about where you want to take your business - with yourself and with others. Remember that people are cheering for you and want to help you! Dare to be open and talk about what you need. It might be just around the corner."
3. "Constantly evaluate where you best invest your own time. Are you unsure about managing the finances yourself? Then it might be worth bringing in someone who can. Early on, I sought help from a person who handled all our accounting, as I knew that particular part only gave me anxiety." 
4. "Don't underestimate yourself and your ability to solve things. To learn to swim, you must first jump into the pool." 

One thing that is a fact is that we women take out loans and venture capital to a significantly lesser extent to grow our businesses. SIGNIFICANTLY less. I have been asked at times why and could really only answer in one word: the risk. We do not want to take risks, to throw ourselves into the unknown for a variety of reasons. So why do guys want to? What makes us hesitate and let the "what if" thoughts take over? Or do we not believe in ourselves enough - and if so, why? 

In the end, it became a loan from ALMI for 200,000. The amortization would not start until a year later, so I had a year to get the business up and running enough to manage the repayments. It felt reasonable anyway, and to this day I am grateful for all the help and financing we received this way.

A few words about being a woman and an entrepreneur 

This text is getting long, and I realize that it is better to continue in the next part and on another day. But to refer back to the beginning of the text and also today's theme: The fact that only 18% of Swedish limited companies with over 500,000 SEK in annual turnover are owned/run by women - it really makes one wonder why we women do not take up more space in the business world. Not everyone wants to have a business, many are happy with secure employment - I agree with that. But it still feels like many out there would like to. 

 To be completely honest, I can admit one thing: a big reason why I started MYO was not just to eventually support myself. There is something more to this. In all the companies I have worked at during my career, the guys have been at the center. They have owned and controlled, dared to take space, dared to invest. Taken in (huge amounts of) venture capital, run their race. It has been fun and educational to follow; and even though it hasn't always gone completely "according to plan," I have always admired everyone who tries. And we women can do that too. My situation has, in that sense, been simple in that I do not have a family or children. I understand that the situation looks different for those who do; one has to consider the economic conditions in a completely different way as well as one's own timeline. 

In the next part, I will tell you about MYO's participation in Draknästet and how Salli joined the company. Please leave a comment if you would like us to write about something specific in the future! Follow MYO at @makeyourown.se or subscribe to our newsletter to get notified when the story continues.

Dream big! <3 

// Oona, grundaren av MYO Make Your Own