Running a Business In a War Zone
Vladimir Potapenko
Vladimir Potapenko is an EO UK-London member since 2020. Over the past 7 years, he has run 8allocate, a Kyiv-based, custom software development and staffing company with a focus on FinTech and Mobility solutions. He and his team are also focused now on expanding GoIT, a Ukrainian EdTech company, into Latin America. Born in the Luhansk region of Ukraine, now controlled by separatists, Vladimir has spent the first several months of the war continuing to run his business, while also organizing aid across the country and rallying support for Ukrainian entrepreneurs. He sat down with us to share his experience.
Tell us more about your background and what went through your mind on February 24
“The war has begun.” This is the most powerful and memorable phrase I’ve heard in my life. My mom said that the morning of February 24, just one day after my son’s 3rd birthday celebration.
Before that day, I would have described myself as an overachiever, a young man who was trying to compensate for 18 years of life spent in a depressing region of eastern Ukraine. Growing up, my small town in Luhansk was cut off from the main roads leading to the rest of the world. In the winter, I remember having to walk to the well for water each day. There was no entertainment, no opportunities in general for those who stayed - only drugs, alcohol and crime.
But things changed for me in 2007 when I was accepted for a full scholarship to Kyiv Polytechnic University, the best school in the country. I became a “massive-action” person, and hungry for new knowledge. I earned 2 more degrees (management and transportation) on top of the main one. Eager for new experiences and emotions, I got involved in all possible dopamine-inducing activities: I traveled to over 40 countries, completed a marathon in Athens, swam across Bosphorus, and took part in a 180km off-road motorcycle championship. Following my desire to bring social value, I organized the national eco-day to collect 250 000 liters of trash in 14 regions of Ukraine, as well as helped in various volunteering initiatives. Finally, following my leadership ambitions, I grew my entrepreneurial mindset. Starting with an engine-driving MBA25 project within an educational organization, I ultimately arrived at launching my own projects: an international recruitment agency, a custom software development firm, a 3D studio, and the LatAm branch of an EduTech company.
Can you explain what a 'normal day' has been like for you over the past several months?
The 24th of February became a day that changed my life again. The work-life balance has become a work-war balance. Morning is to make sure my family abroad has everything they need, that the 3D studio and software house are in full capacity, and that our more than 70 employees are safe and healthy. Midday is a chance to help my country by leveraging my global network, including our 15000-member Entrepreneurs’ Organization. We’ve seen $35K+ raised in the last couple of weeks alone with EO members’ support, with donations given on many items from medication, to vests and uniforms, to baby food.
My evening is the morning in Mexico and Colombia, and the time to develop my new business and lead our team across the ocean. Aside from that, the holes in my agenda are usually filled by the proverbial sand of trying to answer two questions: what is important to me? and what does my future look like (if it exists)?
How has the war affected your business?
Well, COVID was harder as it forced us to prepare a business contingency plan in our software house before the war. Because of this, we managed to sponsor and evacuate the majority of staff within the first few, critical days. We are in full capacity now and have grown monthly revenue by 10%. It is still a big risk for customers to have developers in Ukraine. As a result, we’ve had to reorganize recruitment, from hiring 80% of people in Ukraine to hiring 80% of people outside of Ukraine. Regarding our current customers, we are lucky. They support us; but there is always huge risk, especially if the war continues to last months/years to come.
Our 3d spin-off, PixReady, is stable, with no growth or crush. But for the EdTech opportunity I mentioned before, that was a harder one. I've joined 2 guys as a business partner in their EdTech company (they re-educate people in Ukraine and Poland to help them switch to IT) to launch their LatAm presence. They were bootstrapping, financing LatAm by the profit of the local business. So 1M in sales became ±0 with refunds in March. There are 200+ employees on the bench with payroll. It’s been hard times indeed.
You've been very active directly supporting your community and country - can you elaborate on some of the things you have been doing?
Well, a lot of things are about connecting dots. It sounds easy but takes a lot of time. Someone has uniforms but doesn't have money to supply them. Another one wants to donate, but needs a car to bring stuff to the frontline. And along the way, we always need to develop trust with other people.
On a personal level, I’ve fundraised to buy baby food and other essential goods and delivered these items to groups in need across the country. I’ve also delivered 300+ uniforms and 70+ protective vests.
The #1 thing I’m working on now is setting up a supply donation process for humanitarian aid sourced directly from Ukrainian businesses. We are anticipating this to be launched soon and intend to share it with the EO community.
How can EO members support Ukrainian entrepreneurs?
A lot of effort is going to Poland/Romania, which is great to see. I do believe we need to also find ways to help Ukrainians still living in Ukraine. Life is very hard for many people here, including entrepreneurs who have seen the war severely impair or destroy their business. We’ve had issues with some of the aid coming from abroad getting stuck at the border. Delivery is always complicated and requires a lot of coordination. By focusing on raising funds and supplying humanitarian aid sourced from within Ukraine, we can help solve several problems.
● We shorten the supply chain and speed up delivery
● Provide more cost-effective aid, as a result of not having to import
● Generate tax revenue to support our economy
We’re working hard to finalize this initiative and share it with you as soon as we can. The foundation of EO was built to support entrepreneurs and I think this can be a tremendous opportunity to do so… and who knows, maybe someday through the connections we make, we’ll even see Ukrainian entrepreneurs have their own chapter in EO!
