Why do startups flame out? And what separates the ones that make it from the ones that never quite get off the ground?
The road is tough, the odds aren’t great, and there are no shortcuts. But with the right foundation, values, and execution strategy, you can tilt the odds in your favor.
In a recent episode of SaaS That App: Building B2B Web Applications, Don Fotsch, Co-Founder and COO of Battery Detection Solutions AI, dropped a treasure trove of hard-earned startup wisdom from decades of experience at Apple, PayPal, and now as a founder, investor, and community builder.
The Myth of the Overnight Founder
Everyone loves a good founder story. But here’s the thing: most of the successful founders you admire cut their teeth somewhere first.
Steve Jobs worked at Atari. Bill Gates worked at TRW.
Don’s advice? If you want to win the Super Bowl (i.e., build a startup that succeeds), don’t expect to get there straight out of high school.
Go work at a company before you start a company.
Why? Because experience matters. You learn what great teams look like, how decisions get made, how products are shipped, and how customers are supported. These lessons are priceless when you strike out on your own.
Don’s “Rule of One”
Forget chasing 100 customers out of the gate. Nail one.
Deliver real, transformative value. Iterate fast. Obsess over their experience. Make sure your first customer is crawling on top of their house screaming about how great your solution is.
That’s how you find your second customer.
Why Values Matter More Than Hype
Flashy marketing, fancy pitch decks, and buzzwords won’t save you if your company lacks values. Culture is your operating system, and it’s either working for you or quietly sabotaging everything.
In Don’s world, values aren’t just soft talk. They show up in how founders treat people, handle setbacks, and build relationships. If you’re starting a company, ask yourself:
- Are we building something we believe in?
- Are we treating people the way we want to be treated?
- Would we work for ourselves?
These aren’t abstract questions. They’re the compass that keeps you from drifting when things get hard (and they will).
Start with Skills, Not Just Ideas
Here’s a trap many fall into: “I’ve got a great idea. Now I just need an engineer and some funding.”
Don’s response? Instead of searching for an engineer, maybe it’s worth becoming one.
He shared the story of his daughter, a Cal Berkeley grad who pivoted into data science through a certificate program. Three years later, she’s thriving in a new career.
The lesson? It’s never too late to upskill. And the best founders often understand the tech they’re building.
Whether you want to code, sell, or design, start by investing in yourself. You’ll be more credible to investors, clearer with your team, and more agile as a builder.
Early-Stage Funding is Personal, Not Professional
One of the most misunderstood aspects of startup life is early-stage fundraising. Don makes it clear: in the beginning, people aren’t betting on your product. They’re betting on you.
Instead of cold-pitching VCs, focus on the people who already trust you. They’re more likely to back your vision because they’re really backing you.
And remember: confidence is good. Arrogance is not. As Don said, the startup world has little patience for people who are “too full of themselves.” Humility wins long-term.
Surround Yourself With Builders Who’ve Been There
One of the most valuable things a founder can do is find mentors who’ve played the game. That’s what Don is doing through initiatives like the Arizona Nerd Network and the Arizona Venture Alliance, connecting founders with experienced operators who know what success really looks like.
Well-meaning advice is everywhere. What you need is qualified guidance from people who’ve lived it.
Solving Real Problems with Real Tech
Beyond general advice, Don also spotlighted the kind of high-impact startups he believes in, like Axio.ai, building personalized AI-driven learning systems, and PAC Energy, working on smart platforms for energy production and distribution.
These startups have a few things in common:
- Deep technical expertise
- Focus on real, systemic problems
- Founders who obsess over execution, not hype
It’s not just about being in the right market. It’s about being the right person to solve the right problem with the right strategy.
Final Thoughts from Don
So, how do you actually beat the odds and build a company that lasts? Let’s recap Don’s no-nonsense playbook:
- Get experience before you go solo. Learn the game.
- Focus on one customer and blow their socks off. That’s your growth engine.
- Lead with values, not hype. Culture is your foundation.
- Invest in your skills, not just your idea.
- Raise early money from people who know you.
- Get mentorship from people who’ve built real companies.
- Build something real, for someone real, with relentless execution.
Startups fail for all kinds of reasons: poor timing, weak teams, lack of capital. But most of these are symptoms. The real root causes are often about mindset, preparation, and execution. With the right foundation, you can build something that not only succeeds but actually matters.
Don’s Background
Don Fotsch is the Co-Founder and COO of Battery Detection Solutions AI (BDS AI). With a vast background in mechanical engineering and tech leadership, including pivotal roles at Apple, PayPal, and US Robotics, Don has helped shape some of Silicon Valley’s most influential companies. As a founding member of the Arizona Venture Alliance and creator of the Arizona Nerd Network, he is spearheading efforts to establish Arizona as a major tech hub.
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