Embracing Failure: My Journey from Startup Founder to Intrapreneur
Founding a startup is a rollercoaster. It's a journey filled with exhilarating highs, crushing lows, and countless lessons learned along the way. My experience building ProcMarket, a platform designed to revolutionise the way businesses engage professional services, was no exception. While ProcMarket ultimately wasn't successful in the way I envisioned, the journey taught me invaluable lessons about entrepreneurship, market dynamics, and the challenges of building a two-sided marketplace.
My vision for ProcMarket was ambitious: to create a global platform where businesses could easily access high-quality management consulting, engineering, and procurement services with budget certainty and complete transparency. The traditional consulting model, often characterised by unpredictable costs and a lack of clarity, was ripe for disruption. I believed ProcMarket could provide a better way – a way to empower both businesses and professionals.
The core of ProcMarket was its two-sided marketplace, connecting businesses in need of specialised services with a global network of vetted professionals. The platform offered a unique value proposition: fixed-price projects, ensuring budget predictability and clear deliverables. However, as I would soon discover, building a thriving two-sided marketplace is a formidable challenge.
The Two-Sided Marketplace Hurdle
Building a two-sided marketplace is like solving a chicken-and-egg problem. To attract clients, you need a robust network of professionals. But to attract professionals, you need to demonstrate that clients will use the platform. This inherent interdependence presents a significant challenge, especially in the early stages when building momentum is crucial.
In ProcMarket's case, while I was able to build a substantial network of over 800 qualified professionals from around the globe, attracting clients proved to be the real stumbling block. Many businesses, accustomed to traditional consulting engagements, were hesitant to embrace the fixed-price model. Some expressed concerns about the perceived lack of flexibility, while others were simply unsure how to evaluate and compare fixed-price offerings.
Adding to this challenge was the fact that clients were often reluctant to sign up to a platform until they had a specific requirement. By the time they needed a consultant, engineer, or procurement specialist, they were already under pressure to find a solution quickly. This meant that ProcMarket needed to be top-of-mind before the need arose.
This realisation highlighted the critical need for proactive marketing and awareness building. ProcMarket needed to be positioned as a trusted and reliable option, so that when clients did have a requirement, they would instinctively turn to the platform. However, effective marketing requires significant investment – something that's difficult to achieve when bootstrapping a startup.
Despite our best efforts to educate potential clients about the benefits – budget certainty, transparent deliverables, and streamlined project management – overcoming this inertia was an uphill battle. We experimented with various strategies, including content marketing, targeted outreach, and even free trials, but client acquisition remained a persistent challenge.
In hindsight, the revenue model, which relied on a percentage of the project value generated through client engagements, further compounded the difficulty. This meant that generating revenue was entirely dependent on successfully attracting and retaining clients, creating a significant pressure point in the early stages of the business.
Lessons Learned and Pivot Insights
While ProcMarket's journey ultimately led to liquidation, it wasn't a failure in the true sense of the word. Instead, it was a powerful learning experience that provided invaluable insights I can carry forward.
One of the most significant takeaways was the realisation that a two-sided marketplace, while ambitious, might not have been the most viable model for this particular market. The challenges of attracting both clients and professionals simultaneously, coupled with the "latent need" problem, created significant hurdles that proved difficult to overcome, especially with limited resources.
In retrospect, a one-sided platform focused on professionals might have been a more sustainable approach. By offering professionals a subscription-based model to advertise their services and connect with clients, ProcMarket could have generated revenue from the outset, providing a more stable foundation for growth. This model would have addressed the chicken-and-egg problem by focusing on building a strong supply side first, making the platform more attractive to clients in the process.
Beyond the platform model itself, I also gained a deeper understanding of the importance of:
- Early-stage marketing: Creating awareness and building trust are crucial, even before clients have an immediate need. This requires a strategic marketing plan and potentially, external investment.
- Customer segmentation: Focusing on a specific niche or industry within the broader professional services market might have allowed for more targeted marketing and faster traction.
- Agile development: Continuously iterating and adapting the platform based on user feedback and market demands is essential for long-term success.
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The ProcMarket experience reinforced the importance of flexibility and a willingness to pivot when necessary. While the initial vision didn't materialise as planned, the lessons learned have shaped my understanding of entrepreneurship and will undoubtedly inform my future endeavours.
Achievements and Milestones
Despite the challenges, ProcMarket achieved some significant milestones that I'm incredibly proud of. One of the most notable was the speed with which we brought the platform to life. From the initial idea to commercial implementation, the entire process took just six weeks – a testament to the dedication and agility of our small team.
During this rapid development phase, we designed and built an innovative platform with unique features, including a visualisation tool that mapped out a complex hierarchy of 157,000 categories. This allowed professionals to easily navigate and showcase their expertise, while clients could quickly identify the specific skills they needed.
On the professional side, ProcMarket gained traction quickly. Within a short period, over 800 professionals from around the globe signed up to the platform, meticulously outlining their skills and experience within the platform's framework. This enthusiastic response demonstrated the platform's appeal to professionals seeking new opportunities and a more efficient way to connect with clients.
However, translating this professional engagement into client acquisition proved to be a more significant hurdle. Despite our efforts, we struggled to secure the necessary investment to fuel our marketing efforts and reach a wider audience of potential clients. This, coupled with the challenges inherent in building a two-sided marketplace, ultimately led to the difficult decision to cease operations.
The Value of Failure and Moving Forward
The entrepreneurial journey is rarely a straight line. It's filled with twists, turns, and unexpected obstacles. While ProcMarket may not have achieved the long-term success I initially envisioned, I view the experience as an invaluable chapter in my own growth as an entrepreneur.
The challenges I faced – building a two-sided marketplace, securing funding, and navigating the complexities of client acquisition – have provided me with a deeper understanding of market dynamics, the importance of adaptability, and the resilience required to overcome setbacks.
I've learned that "failure" is not an end point, but rather a steppingstone to greater knowledge and future success. The insights gained from ProcMarket, both in terms of what worked and what didn't, will undoubtedly shape my approach to future ventures.
And for me, those future ventures lie within a new context. I'm excited to embark on the next chapter of my journey as an intrapreneur, bringing my entrepreneurial spirit and experience to a company where I can contribute to innovation and growth from within. This isn't about giving up on my dreams, but rather about evolving and finding new avenues to make a meaningful impact.
I believe that sharing these experiences openly and honestly can be incredibly valuable for other entrepreneurs. By acknowledging both the achievements and the setbacks, we can foster a culture of learning and growth within the startup community.
If you're an entrepreneur facing your own challenges, I encourage you to embrace the learning process, remain adaptable, and never give up on your dreams. The journey may be unpredictable, but the rewards of perseverance and innovation are immeasurable.
(Call to Action)
I'm always eager to connect with fellow entrepreneurs and share experiences. Feel free to reach out to me on LinkedIn. I'm particularly interested in connecting with companies that foster a culture of intrapreneurship and value individuals with a proven track record of innovation.
Vendor Manager, Investment Operations at Rest
3moHi Amy, I love seeing the lessons learned and the acknowledgement that even though ProcMarket didn’t grow in the way you’d anticipated, it did show you insights for a new roadmap. The courage to dive into what was to see what could be is inspiring. Thank you for sharing
Executive Leader | Chief Procurement Officer | GM Supply Chain | Partner Consulting | Transformation & Change | ESG & Sustainability | Leadership & Teams Coach | Wellness & Inclusion Advocate
3moThank you for sharing your story AmyRenee, it not only takes vulnerability and courage to embrace failure, the benefits will be it will lead to amazing growth and new opportunities. 🙏