Insights from running Wavect

We always get feedback that our transparency articles are helpful to others.

And we love sharing our philosophy (e.g. our processes at Wavect).

Today we wanted to share some of our key insights, we hope you can learn from them!

As of January 2024:

~ 150% revenue increase to appr. €400k
~ 125% profit increase (should grow in the upcoming months)
~ Doubled our headcount, although we are still very small

(1) Net margins get lower, mainly due to non-technical hires

Being on the tech side of web3 has its perks. As a business owner, I know exactly where to direct our input to get the desired output.

Not long ago we chose to bring on a non-technical hire to improve our customer service. That was the first time that our efforts did not directly contribute to our bottom line.

But it’s fine - we’re playing the long game of building a brand that delivers excellent Services.

The lesson: A drop in profits can be healthy

(2) Hiring Juniors in a small company can be expensive

Personally, this mistake cost us €15-20k within 3 months. We started with hiring Junior technical hires but later realized that it was not efficient.

The lesson: focus on A-players only. They free up time and need less training

(3) Staying focused is a must

Last year we launched a Web3 card game. It was great for branding and building affinity. However, focusing on our agency business would’ve been more impactful.

The lesson: focus on your core business model

(4) Introducing a management layer

To run a company you need a broad skill set. As you grow, you need to fire yourself from every job you can and let someone with a more specialized skill set take over.

The lesson: find the right people and invest in them heavily

We hope this is helpful in your entrepreneurial journey!

If you have any questions, please email us at [email protected]

Alternatively, let’s have a call

Wavect is a software agency specializing in Blockchain tech (Smart Contracts, Web3, NFTs and DeFi, Infrastructure).

Kevin Riedl, CEO, LinkedIn