How to Build a Business from Scratch: 7 Principles
read
read
How to Build a Business from Scratch:
7 Principles
It’s 2012. I’m sitting in a business training session trying to understand what venture capital is. The trainer is not very good at explaining investments but he is excellent at teaching idea generation. I attended this business training three times a week, for four and a half hours, over the course of two and a half months. In the end, I have a sheet of paper with seventy ideas. One of them turns into an agency that later becomes WakeApp.

Back then, I had no investors, no team and no guarantees. I only had the feeling that I couldn’t afford to wait. Looking back today, I can describe this journey through several principles that guided how I built the agency, navigated pivots and entered new markets.

How to Build a Business from Scratch: 7 Principles

In 2011, I launched a mobile development studio when the market was only beginning to emerge. It was not an established industry like construction where holding companies can operate for decades. It was a new space. The winners were those who moved earlier than others. We were among the first to work with large companies like banks, retailers and sports clubs.

A couple of years later, I realized that the development model was not the right fit for me; there were too many long cycles, few control points and too much uncertainty at the finish line. I wanted to change and grow. In 2012, my business partner and I had different visions for where to take the company, and the best decision we could make was to part ways. I left with nothing, but with a clear mind.

That’s how I decided to attend the training sessions and came up with the idea for a service that would help apps grow faster in app stores. In 2012, the entire market was focused on acquiring installs, and my logic was simple: if I could help a client quickly build a critical mass of users and increase app visibility, the app would eventually start growing on its own through rankings and recommendations. There was only one step between the idea and the first customers. I found a strong developer, we built the product in a month, and our first major client was MTS.

Seize the Moment, Don’t Wait for Guarantees

I invested all my earnings during the first ten years in people. Not in offices or advertising, but in people. My logic was and still is simple: if you have a strong team, a good product can be created, pivoted and discovered.

I rebuilt departments many times: the sales department about twenty times, the technical team three or four times, the CTO role roughly the same number of times. Every time it was painful but every time it moved us forward.

Over time, I developed my own rules:

  • Don’t look for talent in a vacuum but for people with a proven track record: markets are different, products are different, but if someone knows how to create growth, they will do it for you as well

  • Ambition without the willingness to work hard is worth nothing; most often, I found the right people among those who had responsibilities and understood that it would not be easy

  • Beware of “one-market stars”: if someone made a lot of money once by riding a successful wave, they may come with inflated expectations and no willingness to put in the work to meet them

  • Elitism, a sense of entitlement, and overconfidence are red flags; ambition is a green flag

  • I always tried to find a role for a capable individual even if there was no formal opening. Talent is scarce

  • Dishonesty is an absolute deal-breaker. It doesn’t matter how much money a person brings in. If they act unfairly, we part ways. Always.

People Matter More Than Technology

Throughout WakeApp’s history, there were several moments when the agency could have simply ceased to exist. Each time, we were saved by our willingness to admit that the old model no longer worked and to rebuild quickly.

When it became clear that the service of pushing apps “to the top” was too complex and unpredictable in terms of results, we started looking toward media buying — advertising on Facebook, Google, and other channels. Instead of endlessly trying to squeeze more out of the old product, we started searching for a head of the buying team and building new expertise.

This happened several more times. App stores changed their algorithms, and the logic of purchasing traffic changed. Facebook rewrote its rules, and the entire mechanics of traffic acquisition changed too. Every time it looked like a crisis, and every time it turned out to be a growth opportunity.

At some point, the Russian market stopped matching our goals. We began building a keyword-based promotion model and expanding into other countries. Later, major changes in Facebook’s algorithms significantly affected the traditional approaches to mobile traffic: what had worked for years stopped delivering the same level of efficiency. It was not our mistake, but it was our problem — and we had to solve it.

My principle is not to wait until things get really bad, but to look at the market through the eyes of the people around you — entrepreneurs, partners, and clients. By talking to dozens of people, I understand what is happening through their words. It is a habit of staying in context and letting go of the old at the right time.

Don’t Hold On to a Model That Has Become Outdated

When we focused on media buying, we needed an anchor client — someone who would provide a large budget and enough time for us to learn. We found one in the publishing industry and worked with them exclusively for almost two years.

The margin was low. The workload and responsibility were high. We made little money. But the budgets were significant, which meant we could hire strong media buyers with an honest promise: “Here, you will learn how to work with real numbers.” We grew this project by a factor of 30-50 from the starting point. After that, we could approach future clients and demonstrate our progress through our stats.

Rather than making money immediately, it is sometimes more important to build your expertise and case studies. For almost two years, we invested in a project with margins that were below the market average. In return, we could present our impressive work on the basis of actual statistics and not on promises. One proven result is worth more than a hundred beautiful presentations.

An Anchor Client as the Foundation for Growth

After our launch, dozens of similar services appeared. We were constantly copied. Sometimes literally: we would make a mistake, fix it, and competitors would continue using our old approach for a while, not realizing that we had already moved ahead.

I have always viewed the market as a race: if someone overtakes you on a turn, you need to find the right moment and break away again. We bought advertising from major tech bloggers when it was not yet an established industry. We were among the first to build our own app and get featured in the App Store. While competitors were copying us, we were already testing the next hypotheses. It is not luck; it is the habit of keeping at what already works.

What cannot be copied is a culture of continuous experimentation. The formula is simple: endless experiments combined with intuition built on deep market knowledge. Don’t hold on to models that have become outdated. Don’t be afraid to admit that everything has changed. Don’t wait until things get really bad before you start adapting. If you constantly test and analyze, you find the next move before others do.

Experiments as a Habit, Not Just Campaigns

We did not build an “international sales department” or send a team to open offices in London and New York. Our path was different: we solved specific client problems, and international expansion happened along the way.

When algorithms in Russia stopped delivering the results we needed, we started asking users to take actions in other app stores. First in the US, then around the world. It was not an expansion strategy — it was a solution to a specific product and marketing challenge.

We tried hiring “international salespeople” from different countries. It worked poorly. The real breakthroughs happened when we found Russian-speaking developers building strong products for global markets and became their marketing partners. In international markets, the winner is the one who performs better: a client can allocate budgets to several agencies and keep the one that delivers the best results.

As a result, WakeApp operated across dozens of markets. But at the core was not the obsession with being “international” — it was the ability to maximize every specific opportunity and compete through numbers.

How Solving Local Challenges Can Lead to Global Markets

Alongside the agency, we launched several product ventures: a network of subscription-based mobile apps and a gaming studio. This was my first experience in a different role — no longer operational management, but strategic involvement. You find a strong technical team, strengthen it with marketing expertise, and together build a market leader. This was a different game; rather than running advertising we were creating businesses.

Over time, I began to see WakeApp as an accelerator for product teams. The classic agency model — “find a client, take a commission, deliver value” — stopped motivating me the way it used to. I became more interested in finding partnerships with teams that have a strong product and clear value for users, and building something significantly bigger together.

Today, there are plenty more apps. The barrier to entry in development has dropped to a minimum and everyone is competing for the same advertising channels. The winner isn’t the one who spends the most but the one with the best product and clear unit economics. Traffic is a tool, not a strategy. What interests me most now are teams building products at the intersection of technology and common sense - where mobile traffic is not just an expense but the main growth engine.

Money plus purpose - that is how i want to work going forward.

From an Agency to an Accelerator for Product Teams