As a founder, getting back up when my legs were swept from under me became second nature during my startup journey. Prospects ghost, customers delay payments, investors pass on your round (without saying it) – and somehow it’s only 3 pm on a Tuesday. These constant challenges bred a protective coping mechanism that emerged during negotiations with customers. I found myself using pricing discussions as a proxy for validation, pushing potential clients to affirm our worth upfront rather than appreciating their willingness to engage in paid pilots.
Relative peace to think
In the years leading up to 2024, my startup reality had been pretty stark with 30 day runways being the rule, not exception. This tide started to turn in the first half of 2024 when Ara Pay got initial traction, we got picked up by an accelerator and swiftly got funded by regional VC’s. As we transitioned from barely 1 HP (health points) to a full health bar, the scar tissue from the past years was still very much there.
Despite our improved financial position, old survival habits proved difficult to shake off.
This scarring issue reared its head clearly with a customer who wanted to scale faster, but I pushed back. Even though there was little financial risk for our company and our target was to scale AI negotiations with debtors, I was reluctant to move forward without their payment having landed in our bank account.
The following day – during our daily stand-ups – this pattern of reluctance came up. A team member asked: ‘So at this stage, don’t we care more about our AI agents interacting with debtors than a small subscription fee?’ My answer was simple: ‘Yes, we do! But, what if they are just taking us for a ride… But, at least we are learning something.’ There it was, clear as day that in this context I was prioritizing a form of self-preservation (due to scar tissue) over growth.
Instead of getting our customers to use the platform, we were losing momentum by being overtly abrasive about pricing and payment terms at the expense of sales momentum.
No more mixing!
Since this realization, we have simplified our pricing model by charging a subscription fee (for growing companies with small or no collection teams) OR a success fee (for companies with bad debts). No more mixing! In addition, we constantly remind ourselves – despite the muscle memory that still exists – that paid pilots are a blessing that most young companies do not get to begin with.
I realize that some of the very traits that helped me survive my startup journey—vigilance, financial caution, and a protective stance—can become liabilities when not recalibrated for new circumstances. The battle I should have been fighting wasn’t about upfront pricing validation but about maximizing learning opportunities while customers were willing to pay.
Moving forward I will be asking myself: “Am I holding onto protective patterns that once served me but now limit growth?” Sometimes our greatest obstacle isn’t the market, competition, or funding environment—it’s the survival mindset that lingers after the immediate danger has passed.
Tip: Read “Never Split The Difference” an all-time classic when it comes to negotiations.
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