I usually share inspiring founder stories about other entrepreneurs, but today I'm opening up about lessons I learned from my rock-bottom moment five years ago.

Five years ago, I was at the peak of my entrepreneurial journey, leading a thriving seven-figure nanotech startup with clients ranging from luxury automotive giants like Mercedes-Benz, Porsche, and Audi to major hospitality brands across North and South America. Life looked promising, and I thought I had cracked the code to success until it all came crashing down overnight.

In today’s newsletter, I’m opening up about the three pivotal lessons learned from scaling my business past $10 million and the critical mistakes that ultimately led to its bankruptcy.

These insights can make the difference between sustainable success and catastrophic failure in your own entrepreneurial journey.

One common mistake among entrepreneurs, and one I painfully learned firsthand, is falling in love with a product before clearly understanding the market’s needs.

When my father introduced me to an emerging revolutionary nanotechnology from Germany, I was instantly captivated by its potential. Enthusiasm took over, and before long, I found myself leasing an office and warehouse in Cancun, Mexico, diving headfirst into entrepreneurship with no idea what I was actually getting myself into.

However, my enthusiasm masked a critical oversight: I had not defined the specific problem we were solving, nor did I have a clear idea of who exactly needed our technology. This fundamental error led to constant struggles in sales, marketing, and operations.

Begin with a clear "why," identify the specific problem you're solving, and clearly define your ideal customer profile.

Your product should align perfectly with the market’s needs, not the other way around.

On August 9, 2020, my birthday was supposed to be a celebration.

I had just closed what appeared to be the largest distribution deal in the company's history, a massive $10 million contract that promised financial stability and growth.

Instead, it turned into a nightmare.

A trusted manager within my team orchestrated a devastating fraud by secretly signing agreements with competitors and mismanaging crucial relationships.

This betrayal didn't just cost me financially; it shattered trust, dismantled morale, and ultimately brought the entire business crashing down. I ended up hospitalized with a complete nervous breakdown and I had to face the harsh reality that everything was my fault because I trusted the wrong person.

It may sound obvious but I say it anyways: choosing the wrong people can destroy everything you've built, while selecting the right team can multiply your success exponentially. Be meticulous, diligent, and cautious when building your team.

Most founders hire quickly and fire slowly. Don't be one of them.

I still vividly remember the day I made my first significant sale in a makeshift, sweltering warehouse office in Cancun.

With just a basic Facebook ad funnel, I successfully sold our first distributorship license for a modest amount. But instead of chasing numerous new strategies, I doubled down on optimizing this single funnel. What began as modest sales of $4,000 soon grew into sophisticated, high-ticket deals worth $150,000 each.

By obsessively testing, validating, and refining our single sales funnel, we managed to generate substantial cash flow, enabling further growth and investment in our company.

Unfortunately, while this strategy was sound, it could not overcome the mistakes outlined in the previous lessons.

Avoid spreading yourself too thin by pursuing too many strategies simultaneously. Find One problem you are good at solving and one funnel that generates consistent results, and focus obsessively on optimizing and scaling it.

Done correctly, one powerful funnel can transform your business.

What's the biggest bottleneck in your current growth system?

Talk soon,

Roman