Building an Ecosystem to Conquer a Continent

 

Startup News: Building an Ecosystem to Conquer a Continent

Welcome to this edition of "TikVah Startup News," where we dive into real founder stories that offer practical lessons for early-stage ventures. Today, we spotlight a powerhouse that originated right here in Argentina and grew to dominate e-commerce across Latin America. Its journey is a masterclass in adapting to regional complexities, solving fundamental infrastructure problems, and building an entire ecosystem around its core offering. Founder Spotlight: Marcos Galperin, Founder & CEO of MercadoLibre The Beginning The idea for MercadoLibre ("Free Market") sparked while Marcos Galperin was studying at Stanford University in the late 1990s, amidst the dot-com fervor. Seeing the success of eBay in the US, he envisioned a similar online marketplace tailored specifically for the unique characteristics of Latin America. Founded in Argentina in August 1999, MercadoLibre launched into a region full of potential but also significant challenges. With initial funding from investors like JP Morgan Partners and Goldman Sachs (and even an early investment from eBay), the company quickly expanded its operations beyond Argentina to countries like Brazil, Mexico, and Uruguay, aiming to become the leading e-commerce platform for Spanish and Portuguese speakers. Early Challenges Building a unified online marketplace across Latin America in the early 2000s was incredibly ambitious due to numerous obstacles: A Fragmented Continent: LATAM wasn't one market, but many, each with different currencies, regulations, consumer habits, tax laws, and levels of technological adoption. Low E-commerce Trust & Penetration: Internet access was limited, and many consumers were hesitant to buy goods online from strangers. The Payment Roadblock: This was a massive barrier. Credit card usage was low, online payment systems were underdeveloped, and concerns about fraud were high. Cash was king, but inefficient for e-commerce. The Logistics Labyrinth: Reliable shipping was a nightmare. National postal services were often slow and inefficient, private couriers were expensive, and cross-border shipping faced customs hurdles. Getting goods delivered reliably was a constant struggle. Building Trust: Creating a safe environment where buyers and sellers felt comfortable transacting was paramount. Turning the Corner MercadoLibre's success didn't come from just building a website; it came from systematically tackling the fundamental barriers to e-commerce in the region: Solving Payments with Mercado Pago: Recognizing that payments were crippling growth, MercadoLibre made a bold move: they built their own integrated payment system, Mercado Pago (launched around 2003). It acted as an escrow service, holding payments until goods were received, building trust and enabling millions to transact online safely. Mercado Pago has since grown into a massive fintech platform itself. Taming Logistics with Mercado Envios: Similarly, confronting the shipping nightmare head-on, they launched Mercado Envios. This involved building out their own logistics infrastructure, partnering strategically with local carriers, standardizing shipping practices, and integrating tracking directly into the platform, dramatically improving delivery reliability and user experience. Building an Ecosystem: MercadoLibre evolved beyond a simple marketplace. They added solutions for advertising (Mercado Clics), financing for sellers and buyers (Mercado Credito), and more, creating a comprehensive ecosystem that locks in users and creates significant competitive advantages. Adapting Locally: While maintaining a core platform, they tailored operations, marketing, and features to the specific needs and conditions of each country. Mobile-First Approach: They successfully transitioned to meet the needs of a region where mobile phones quickly became the primary way to access the internet. Resilience and Long-Term Vision: The company navigated numerous economic crises across different LATAM countries, demonstrating a long-term commitment that culminated in a successful NASDAQ IPO in 2007. Advice for New Founders from MercadoLibre's Experience Master Regional Nuances: If operating across different countries or regions, understand that localization goes beyond language translation; adapt to local regulations, payment methods, and cultural behaviors. Solve the Toughest Bottlenecks: Don't just build your core product; identify the biggest friction points in the entire user journey, even if they seem outside your direct control (like payments or logistics). Think Ecosystem, Not Just Product: Consider how adjacent services (payments, financing, logistics, advertising) can enhance your core offering, create new revenue streams, and build defensibility. Invest for the Long Haul: Building a successful business in diverse or emerging markets often requires patience, resilience, and a long-term perspective to overcome infrastructure gaps and economic volatility. Build Infrastructure if You Must: Don't assume existing infrastructure will be adequate. If a critical component is missing or broken, have the courage to build it yourself. Mistake to Avoid: Ignoring or Outsourcing Critical Infrastructure Gaps MercadoLibre could have tried to simply rely on existing banks for payments and existing couriers for shipping. However, these systems were inadequate for the scale and user experience they envisioned. A common startup mistake is to focus solely on the core software or service while ignoring fundamental weaknesses in the surrounding infrastructure, hoping someone else will fix them. Why It Happens Narrow Product Focus: Teams are laser-focused on perfecting their app/website/service and view external dependencies like payments or logistics as "someone else's problem." Underestimating the Barrier: Failing to grasp how severely poor infrastructure can throttle growth and frustrate users until it becomes a major crisis. Complexity and Cost: Building payment systems or logistics networks is incredibly complex, capital-intensive, and requires different skill sets, making it a daunting prospect. False Hope in Existing Solutions: Believing existing third-party providers will improve quickly enough or can be easily stitched together, without realizing their limitations at scale. Potential Consequences Growth Ceiling: The business hits a wall because users fundamentally cannot pay easily or receive products reliably. Terrible User Experience: Friction, delays, unreliability, and lack of trust drive users away, regardless of how good the core product is. Competitive Disadvantage: A competitor who invests in solving the infrastructure problem gains a massive edge in user experience and operational efficiency. Missed Ecosystem Opportunities: Failing to build solutions for payments or logistics means missing out on potentially huge adjacent markets and revenue streams. How to Avoid This Mistake Map Critical Dependencies: Identify every external system or infrastructure crucial for your end-to-end user journey. Assess Infrastructure Maturity: Objectively evaluate if existing solutions in your market can truly support your desired scale, reliability, and user experience. Be brutally honest. Strategic Build vs. Buy: If a critical piece of infrastructure is inadequate and strategically vital, seriously consider the long-term benefits of building it yourself, despite the cost and complexity. Own the Problem: Don't just complain about poor infrastructure; take ownership of the user's end-to-end experience and find ways to mitigate or solve the bottlenecks. Iterate Infrastructure: You might not need to build everything at once. Start by solving the biggest pain point (like MercadoLibre did with payments) and expand infrastructure investments over time. Quick Tips Product Development Tip: Always consider the "offline" parts of the user experience. How does payment happen? How does delivery occur? How can you influence or improve these steps? Marketing Tip: If you successfully build better infrastructure (e.g., faster, more reliable delivery), leverage this operational strength as a key selling point in your marketing. Finance Tip: Recognize that overcoming infrastructure gaps might require significant, long-term capital investment. Plan your fundraising and financial strategy accordingly, especially if operating in developing markets. Conclusion MercadoLibre's rise is a powerful example of Argentinian ingenuity scaling across a complex continent. Their success wasn't just about replicating an existing model; it was about deeply understanding the unique challenges of Latin America and having the audacity to build the fundamental infrastructure – payments and logistics – that was missing. They prove that sometimes, the biggest opportunities lie in solving the hardest, most foundational problems yourself, creating not just a company, but an entire ecosystem in the process.

Business Tools

 

Whether you’re just beginning your business or planning to scale your company, you will need a little bit of help.

It’s important to do your research, hire the right people, and use the right business tools to get you and your business to where you want to be.

With many small business tools available, it can be difficult to know where to start.

We’ve compiled a list of the top essential business tools for entrepreneurs to help you and your business succeed!

Table of contents

• ProofHub
• Online Business Loans
• Trello Project Management
• Slack Communication Platform
• Entrepreneur Scan App
• Time Management Tools

ProofHub

ProofHub is a project management and team collaboration software.

Entrepreneurs often face a plethora of challenges when managing projects and teams. Unorganized tasks, scattered files, poor communication, unclear job responsibilities, and missed deadlines are some common challenges that plague projects and can deviate projects from track. 

To put an end to chaos and stay on top of your schedule, using an easy-to-use, powerful project management and team collaboration software like ProofHub will benefit you a great deal as you are able to plan, organize, execute, and collaborate on all tasks and projects from a single shared platform. 

ProofHub will help you and your team to manage various aspects of work without having to switch between various tools. Your team members can effortlessly navigate through its neat, intuitive interface and organize their tasks as per their priority. You can allocate tasks, set deadlines, and track their progress while smoothly communicating vital information to your team members.

Online Business Loans

Believe it or not, you don’t have to have all the funds yourself to expand and grow your business. Once you’ve been up and running for at least six months and you see success, you might need to invest money back into it to take it to the next level.

You can use a loan to buy a storefront, hire crucial employees, or even purchase the new equipment that your company needs. Business Loans don’t have to just be from a national bank with the traditional wait time.

Consider the option of a business loan with an online lender to start the process right from your home. Online business lenders offer a quicker approval process, which means you’ll be able to grow your business as soon as possible!

Alternatively

As a Cash Flow Financial Specialist, I work with business owners who don’t have a revenue problem—they have a cash flow problem.

We’ve developed a system (yes, it’s patented) that helps you uncover where money leaks happen, fix them fast, and set your business on a sustainable growth path.

If cash is tight—or inconsistent—it’s not just a financial issue. It’s a systems issue.

Let’s solve it.

🔍 Visit us at to see how we can help your business thrive.

Trello Project Management

As your business grows, keeping your projects managed can become increasingly difficult. Things can get a bit chaotic when multiple tasks need to be done in a certain time frame, and there is no way to properly track and manage what needs to be accomplished.

You’ll want to use a project management tool to stay on top of everything. Trello is a great free business tool for entrepreneurs to utilize to stay organized and on task with projects and their due dates.

Trello will be a fantastic asset to your team once you learn how to navigate the useful tool. Take the time to learn the software as it allows you to input tasks and projects and their coinciding due dates, as well as assign each task to the right person. You can also tag your coworkers directly in Trello whenever you’re working on something or reviewing a project someone else completed.

Slack Communication Platform

Communication is key, and that goes for running a successful business as well. Not only can you utilize emailing and phone calls, but you should also use a communication platform to communicate with your employees, as well as your clients. Consider making Slack the main source of communication for your workforce.

Slack is easy to use, and you can not only chat but also video chat when necessary. Slack also allows you to share your screen and collaborate with your coworkers if needed when on a video call. You can designate specific slack channels for each department or client to make it easy to keep track of every important conversation or even direct message to one individual.

Entrepreneur Scan Self-Development App

For many small business owners, their business’s success will depend on their own knowledge and craft. Therefore, the person behind the business impacts a company’s success and development. Entrepreneurs should think about this before diving headfirst into a new business.

E-Scan is a great resource that helps entrepreneurs gain access to more information on entrepreneurship and utilize software to help their business be the best it can be. In addition, there is even a marketing tool for coaches of entrepreneurs to attract and support potential customers. Take a test drive of the entrepreneurship test

Time Management Tools

Entrepreneurs need a system for delivering their promises to their valued customers. Many small business owners are focused on selling their products and services. They should, of course. However, once the sale is sealed, the real challenge begins. How to ensure their customers get what they ordered, on time, in the manner they expect.

Moreover, how to surprise their customers by giving them something they didn’t expect yet highly appreciate. It means business owners should deploy a managerial thinking style. If not, and most firm owners are more likely to have a pioneer and salesperson thinking style, they need to create a system. A process of producing, distributing, and servicing their products and services. Check out this blog: The 7 Best Time Management Tools For Your Small Business.

Hopefully, these tools help you and your business, and don’t forget to check out more posts on the side menu for essential knowledge for the entrepreneur and startup founder!

Let's Go Fishing

 

Fishbone (Ishikawa) diagrams: 

5 steps to find causes of complex business problems

Use these simple yet powerful tools to identify and analyze the root causes of challenges

Can a fishbone help you solve complex problems in your business? Kaoru Ishikawa thought so. Ishikawa was a legendary Japanese management guru who revolutionized quality management.

One of his inventions was the fishbone diagram, also known as an Ishikawa diagram. Operational efficiency experts worldwide use this simple yet powerful tool to find, visualize and analyze underlying causes of business challenges and develop solutions.

It’s called a fishbone diagram because possible causes of the problem are written on an image that looks like the bones of a fish. The head represents the problem, while each bone of the fish is a function or department of the business.

A fishbone diagram is a highly visual tool that can spark great conversations, helps you zero in on the root cause of problems across multiple functions and leads to many ‘aha’ moments for your team.

Manuel Gogolin

Co-Lead Impact, Growth and Productivity, BDC

What is a fishbone diagram?

“A fishbone diagram is a highly visual tool that can spark great conversations, helps you zero in on the root cause of problems across multiple functions and leads to many ‘aha’ moments for your team,” “A lot of organizations have their heads down focusing on day-to-day operations and just dealing with the symptoms of problems. A fishbone diagram provides an opportunity to step back, brainstorm around key challenges and drill down to the root causes so problems don’t keep resurfacing.”

5 steps to using the fishbone diagram for problem solving

Here we break down the problem-solving process using the fishbone diagram into five steps.

1) Involve your team

Engage your team in the exercise from the beginning.

• Employee involvement helps build consensus around the nature of problem being addressed, underlying causes and solutions.
• You get input from each function that may be responsible for causing the problem.
• It’s consistent with the lean methodology. One of the three key tenets of lean is to involve the people closest to a problem who deal with it every day.

Five to 10 people are typically involved in a fishbone exercise. This should include members of the leadership team and people from other functional areas of the business. While a facilitator with experience in operational efficiency can lead the process, this exercise can also be done whenever a problem surfaces. Contact us should you need assistance: nevillesol@icloud.com

Teams can meet in person and work with a fishbone diagram put up on a wall, using sticky notes. The exercise can also be effective in a virtual environment.

2) Describe the problem statement

Next, the team should get consensus on the issue to be discussed and articulate it in a clear, concise problem statement. This should be no more than a short sentence and is typically written on a sticky note that is put at the head of the fish.

Problems most commonly have to do with one of three areas:

• costs
• timeliness (e.g. lead time)
• quality

Example problem statements might read:

• our invoicing process is too slow
• lead time is too long
• we’re running out of room in our facility
• customer satisfaction has declined
• warranty claims are too high
• our cash flow management is poor

3) Decide on the major factors

Now it’s time to define the “bones” of the fish. These are called the “major factors.” Each bone represents a function or department of the business. There’s no set list or number of major factors, though some common definitions do exist. With your team, pick a set of categories that are the most relevant for your problem or company. Some common examples:

• 5 M’s: manpower (people), machines, material, method and measurement (process)
• 8 M’s: same as 5 M’s plus mission (purpose), management (leadership) and maintenance
• 7 P’s: properties, people, place, product, physical evidence, promotion and price
• 4 S’s: surroundings, suppliers, systems and skills

Label each bone of the fish with a major factor.

Example of a 5M fishbone (Ishikawa) diagram

4) Identify possible causes

Going one major factor at a time, each participant uses a real or virtual sticky note to write down possible causes of the problem in that function. If invoicing is slow, causes in the manpower (people) bucket could include insufficient personnel, inadequate training and poor support from other departments.

Add a sticky note on the manpower bone for each cause, then work your way through the rest of the major factors. The facilitator should clarify any stick notes that are unclear and make sure they’re put on the right bone. Some bones may end up with more possible causes than other bones.

The facilitator can encourage further discussion by using the “five whys” method—asking “why” at least five times to find the root cause of a problem. For example, if a possible cause of slow invoicing is that you’re short-staffed, the process could look like this:

Q1: Why is invoicing slow?

A: We’re short-staffed.

Q2: Why are we short-staffed?

A: Sales have increased, and we don’t have enough people in billing to keep up.

Q3: Why don’t we have enough people?

A: Turnover is high.

And so on at least five times altogether. For simpler problems, the five-whys technique can also be used in place of a complete fishbone analysis. The latter is better suited to more complex problems or those involving multiple functions in the business.

5) Choose the top causes

Now go through the bones one by one and discuss the causes. Consolidate causes that are similar and talk about relationships between causes to trace them back to underlying issues.

Then make a short list of the top five underlying causes. To do this, you can develop a consensus, or you can give every participant one or more votes and tally up the results. You can also use Pareto analysis to identify issues that have the biggest impact on your business. It’s helpful to summarize the results in a findings report.

With the top causes chosen, you can develop solutions to address the causes and an action plan for implementing initiatives.

“Avoid getting to solutions too quickly,”  “People sometimes have an automatic tendency to start thinking about solutions right away. It’s important to finish the root cause analysis first to identify and prioritize the causes of the issue so the solutions are effective.”

Want to get more information and advice to help solve your operational problems? Sign up for our free guide to learn more about the basics of operational efficiency or fill out a form to start talking with one of our experts.

For more information or to book a free coaching session, see the links on the side menu.

Don’t Follow the Crowd:

 

Don’t Follow the Crowd:
Here’s How to Create Startup Success in 2025

Starting a business in 2025 is an exciting and potentially rewarding journey. Whether you’re a seasoned entrepreneur or new to the game, there’s no denying the potential of a successful startup.

With the right preparation and dedication, you can make your dream of owning a business a reality. Today, we’ll explore the many steps needed to start a business in 2025. 

We show you a simple step-by-step guide on writing a business plan, advice on creating a brand book and website, and tips on finding the perfect business name.

By the end of this article, you’ll have a comprehensive understanding of the key elements needed to have startup success in 2025.

Here’s the Best Way to Create Startup Success in 2025

1 Validate your Buisness Idea
Finding the right business idea is the first step to starting a business in 2025. Popular startup ideas include e-commerce, software development, and services. However, it’s important to find a business idea that aligns with your strengths and passions.

Testing out startup ideas can help you find the perfect business for you. Try out different business ideas and brainstorm potential problems that customers may face. This will help you find the business idea that best fits your unique skills and interests. To take advantage of our free coaching session to brainstorm your idea, feel free to book a session here.

For example, if you’re passionate about photography, you could start a business offering photography services and products.

You may consider creating an e-commerce store, offering photography editing services, or creating an online course to teach others photography.

Think through the potential problems that customers may have with these services and how your business can offer solutions.

2 Make Sure You Complete Research on Your Competition
Before you start a business in 2025, it’s important to perform a competitive analysis. This will help you understand your competitors’ strengths and weaknesses and identify potential opportunities in the market.

Make sure you research your competitors’ brands, products, services, pricing, and distribution channels. For example, if you’re starting a photography business, you may research popular photography services and products already in the market.

You may also research what their customers are saying about them and their competitive advantages. Identifying your competitors’ weaknesses can help you determine where you can differentiate your business.

To take advantage of our free coaching session to brainstorm your idea, feel free to book a session here.

3 Visit Competitors

Visit at a minimum two businesses that sell products or services like the ones you desire to sell. Pick businesses that are not near your town so that they will have the freedom to share information with you. Be honest and tell them that you are visiting them to get advice because you are planning to open a similar business as they have, but not near them. Be specific where your business will be located. Don’t be surprised if some people may not want to share all this information. Obviously take whatever information they will give you. 

4 Plan Your Production Process Planning your production process is essential for efficiency and quality control. Here’s a structured approach:
a. Labour 
b.Materials and Supplies
c. Equipment
d. Work Area
e. Production Process
Theses points can be further analysed, for a more detailed description and analysis, take advantage of our free coaching session to brainstorm your idea, feel free to book a session here. 

5 Plan Your Costs
Understanding the Importance of cost planning is a crucial aspect when it comes to managing finances and ensuring the success of any project or business. Cost planning involves analyzing and estimating the expenses associated with a starting a business,, allowing for effective budgeting and resource allocation. From a business perspective, cost planning helps in determining the feasibility and profitability of a project. By carefully assessing the costs involved, byusiness startuppreneurs can make informed decisions regarding pricing, investment, and resource allocation. It enables businesses to identify potential cost-saving opportunities and optimize their financial resources.


6 The LEAN Business Canvas

A Lean Business Canvas is a streamlined tool for entrepreneurs to map out their business model efficiently. Here’s why it’s beneficial:
- Simplifies Planning – It condenses complex business strategies into a single-page framework.
- Focuses on Key Elements – Prioritizes customer problems, solutions, and revenue streams.
- Encourages Agility – Helps businesses adapt quickly to market changes.
- Reduces Risk – Identifies potential pitfalls early in the process.
- Enhances Communication – Makes it easier to share ideas with stakeholders.
It’s particularly useful for startups looking to refine their business model without getting bogged down in lengthy documentation.

To learn more on the above process, take advantage of our free coaching session to brainstorm your idea, feel free to book a session here.

Conclusion
Startup success requires dedication and preparation. It’s important to find the perfect business idea that aligns with your skills and passions, create a LEAN business canvas, perform competitive analysis, create a brand book, plan your costs, and find the perfect name.
If you follow the simple paths outlined in this article, you’ll be on the right path to launching a successful business in 2025.

Write to us on nevillesol@icloud for our free branding booklet and the LEAN canvas model description.