Founder's Story - at Most Founders Get Wrong About Scaling—Railsware’s Founders Get Right | Ep. 205 with Yaroslav Lazar and Sergei Korolev

Episode Date: April 24, 2025

In this insightful episode of Founder's Story, Yaroslav Lazar and Sergei Korolev take us on their fascinating journey from passionate software engineers to innovative entrepreneurs at Railsware. They share how their love for building software evolved from personal passion into a thriving business that influences multiple industries and countless lives. Railsware’s approach of treating every internal process as a product is central to their ability to innovate, scale, and continuously improve.Key Discussion Points:Origins & Inspiration:How their genuine passion for software as a transformative force inspired the founding of Railsware.Viewing software development as an exciting sport—endlessly challenging and infinitely rewarding.Product Mindset & Business Evolution:The philosophy of approaching every company function (legal, finance, recruitment) as a "product" to enhance efficiency and user experience.Balancing in-house product development with collaborative ventures to constantly engage with fresh ideas and challenges.Building & Scaling Successful Companies:Why early-stage entrepreneurs must juggle multiple roles, from visionary to executor.The critical importance of team-building, sharp decision-making, and scaling thoughtfully as the business grows.Traits of Successful Entrepreneurs:Embracing a "founder mode craziness," coupled with conscious decision-making, intuition, and deep domain knowledge.How luck, timing, persistence ("don't quit"), and managing your own psychology are underestimated yet critical factors in entrepreneurial success.The Impact of AI:AI’s role as a productivity booster rather than a complete replacement for creative roles such as writing, design, and software development.How AI fosters clearer articulation of ideas, better prototyping, and expanded creative possibilities.Key Takeaways:Passion and continuous learning fuel entrepreneurial longevity.Treating business processes as products helps create clarity and efficiency.Understanding timing, persistence, and adaptability is critical for sustained success.Leveraging AI effectively enhances human potential rather than replacing it.Closing Thoughts:Tune in to hear Yaroslav Lazar and Sergei Korolev share their inspiring insights on software engineering, entrepreneurship, and how Railsware continues to innovate by balancing passion, adaptability, and cutting-edge technology. Our Sponsors:* Check out Avocado Green Mattress: https://www.avocadogreenmattress.com* Check out Indeed: https://indeed.com/FOUNDERSSTORY* Check out Northwest Registered Agent and use my code FOUNDERS for a great deal: https://northwestregisteredagent.com* Check out Notion: https://notion.com/founders* Check out Plus500: https://plus500.com* Check out Rosetta Stone and use my code TODAY for a great deal: https://www.rosettastone.comAdvertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

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for non-FCA employees and retirees. $200 admin fee applies. Not all buyers and lessees will qualify. Restrictions apply, not combinable with other offers. Ends 43025. RAM is a registered trademark of FCA US LLC. Hey everyone, welcome back to to Founders Story. We have another amazing episode of Two Guests. I have to say my favorite opportunities to

discuss and interview people is when it's more than one person because it's so great having two different perspectives. Today we have Yaroslav Lazor the CEO of Railsware and Sergey Korlov theor, the CEO of Railsware, and Sergi Korlov, the co-CEO of Railsware. Engineers turn entrepreneurs, active promoters of engineering and a product mindset. We're gonna get, since you're engineers, we're gonna get like real detailed in the weeds of things.

And I can't wait for that, but first, what was the spark that made you even say, I want to start Railsware and this is the industry I want to be in? Hi everyone. So the spark really is the love for software, ability to see

and feel that software is something that can change the world drastically and passion for building software. and feel that software is something that can change the world drastically and passion for building software, it's an amazing ride always. You learn like crazy, you grow and it's just, you know, it's like there are those people who are certain sports junkies, right? They really enjoy doing a particular sport, whether it's snowboarding or rowing or anything like that, right, this is this is a sport for me personally, I'm pretty much sure for Sergey, it is the same. And this is a sport where you can get like, infinitely better, because there's so many dimensions. So you can like expand into this multi dimensional world. into this multi-dimensional world, the multiverse, and learn and understand and you see those miraculous stories. Sport itself is something that lifts your spirit and gives you the ability to see, wow, I made those incredible results. Software businesses are even more multi-dimensional from that perspective, right?

Because you can change people's lives, you can cure cancer or whatever it is. You can change anything in the world with the proper amount of software. We see what those big tech companies are doing with the world. And you can do some amazing things. At the beginning, it was more a sport of writing code and being in code. And now it's more of a sport of like this multidimensional change and influence, helping people grow, helping amazing individuals grow into professionals, growing to influential people and into influential leaders. Changing things is just great.

It's great, right? Svayag mentioned the metaphor of sport and I think we started as swimmers or runners, but then we went to three at long and I don't know, exit loan, whatever it is. So at some point you understand that you love to swim, but then you want to do something else as well. And with software companies, like in our case, I believe it works the same way. You start with writing code, but then you want to influence decision, what exactly you

want to deliver, then you want to influence the design, and then you want to influence the business model and so on and so on. And in the end, you start to build company which handles all those aspects. But then of course, maybe you don't want to do something like finances or legal or something like that, operations. But when you change the perspective and you treat those disciplines as a product as well, then it helps a lot. It's by the way, a very good concept we've delivered, we've coined in the company is like doing everything as a product, as a software product, kind of whatever you take. Like if it's legal, if it's a finances, if it's a recruitment,

whatever you treat it as a product, because there are users on both sides and they have some needs and you want to cover those needs with the software or processes or any other things. So do you think it takes a different skill set or mindset for an entrepreneur that builds let's say a single product or a single service versus somebody like yourselves where you're building services for other people and which I love doing companies like this because I get very bored of doing just one thing and being able to help many different people do different things I feel like is it's like a refresh every time but

do you think it's different when you are a service provider helping other people be successful in building stuff for them versus you're an entrepreneur who's just hyper focused on building one thing? So in our case, we're both, right? So we run three of our own products, and we run now joint venture products.

So we run a lot of products. We run about six to seven products, depending on how you look at it, of our own products. So we run a lot of products, we run about six to seven products, depending on how you look at it, of our own products. And then we also help other companies, and do still help other companies build their own products. And it's, it's definitely more growing and engaging, right? Because when you do your thing and you have five people in the team you're like well you know maybe there's this in the world or that in the world maybe if I would raise money you would get this maybe if I

would hire in San Francisco you would get that and from our side we burn candle not from both sides we burn candle from all sides we have clients San Francisco, we have clients who have hundreds of millions of revenue, we have clients who have hundreds of thousands or zero revenue. So we have all those experiences, we're living them in the same time. It's kind of a multiverse. And we know everything that's happening in those companies because we help them. And we know the founders, we know their stories. And a story for one founder is a lot because they basically talk to them and they tell you their whole life

and how they made decisions and how they didn't make decisions. It's a huge amount of knowledge packed in this simple medium of just working with a person And you learn just much better than those what-if scenarios. You just see them from all perspectives. So that definitely helps us to grow and to understand everything, you know, all the aspects. And I just want to say here quickly why many products appeared or popped up in Rails 4. All the products that we have. They originally started from not products but just a piece of software that resolves our own problem. So, Meldtrap, TitanOps and Coupler, we've built it for ourselves first. Then we kind of start to use it. We find out that

it's interesting and it solves actually the problem. Then we shared it to the community. The community loved it and started to use it. So we started to get more users and then of course it kind of pushes you to think maybe it makes sense to invest into that product. Firstly, it's time and then it's money and then kind of, you know, it has own pace. So all three products have started this way. Well, it's time and then it's money and then kind of, you know, it has own pace. So all three products have started this way. Well, joint venture, Yaroslav mentioned, that's already a conscious decision because if we talk about own products, then we cover both sides. It's a biz dev and marketing, right? But also engineering and product development ourselves. And with JoinVenture, we find experts

in their domains and we join our efforts. So the best of the knowledge subject matter expert and the best of our qualities in building software. So do you find a correlation between if I, if I, I have a problem, I solve it for myself and then it's successful. So then I open it up to others versus somebody that comes to you and says, here's a problem I think we need to solve. Let's build it for other people before it's being tested internally. So it's technically never not. You know, this you open up this Pandora box to a very deep, like very huge world,

right? Because so I have a friend he's he's been doing festivals, and, and he was hosting hundreds of 1000s of people on those festivals. So if he talks to me about tickets, ticketing system, ticketing problems and how to work with with ticketing information and information of demographics, who buy those tickets to to be able to market better rather than when someone out of college just thinks you know what I just bought a ticket on Ticketmaster and it was a bad experience, I want to

make it great. Very different worlds. Both of them come up with an idea. And at the same time, the funny thing is that it's very hard to say who will be more successful than not. We had those cases. We had a client who was like a San Francisco blueprint, series A, series B, very serious, tens of millions of money raised, and someone else who has like $170,000 budget, you know, and then wants to build an app.

And then you would, you could guess that, you know, the San Francisco guy, we will build a billion dollar company, right? But it was the opposite. So it's, it is a it is a it's a big area, which has it has some logic and it has this organized chaos around it. How and who and why will be more successful. We don't have a crazy, you know, great playbook for that. Our own products are not billion dollar companies. Yet, we definitely work in that direction. And then when we'll crack it, we'll crack it on a scientific level with knowledge and understanding, rather than on a random level where, you know, you have ideas.

But there's some principles that do work. If you have domain knowledge about the product, and it's good domain knowledge, and you understand the customer base, and you understand how big is your target restable market, what's your go-to-market strategies to them? How do you approach this target restable market? Can you tell them something that they're going to go to you rather than someone else? How are you going to test that? You won't overbuild the software for what you're trying to test. Maybe we maybe do some painted doors. And then people will go there and be like, oh, great, the interest is there. You'll find some people from the industry, you'll talk to them about it. Those things help. But it doesn, there's no like a particular use case.

And the problem is that those people who are successful, when they tell their stories, they change it in their head because it was not like they're telling it was, right? And then some of them are more modest and they some of them say like you know I'm a genius and I'm a straight-up genius. I came up with this idea and I had it in my head and I built it. Some of those people are crazy because they were building products for three or four years and they made $200. And then eventually somehow they build it into a billion-dollar business. Which doesn't like it. People like hockey sticks, but it's not a hockey stick, it's perpendicular.

It's just some of that needs this founder mode craziness in it. I would say founder mode craziness is very important spices that you put on top of everything. Understanding and going deep. But at the same time, I saw people who are very successful, they work out of their intuition. Their organization methods are not great. Their organization within their company are not great, the way they hired people and they created the structure they didn't even know how it works, it just works and I don't even tell them anything because I don't want to break it. It's a very huge area that you know you can you can cover but but there are some principles

for sure. So I'm curious then because you've been able to work with and thank you for sharing that by the way. I really like the ticketing example because those are two very extremes and it is very fascinating to see in the end who does become the most successful. But I guess at the same time if you already have a successful business and you can add in a component and make it even better. That success is its own right even if it doesn't make itself a billion dollars. I'm curious on the traits of successful entrepreneurs. So when you think of yourselves or if you think you've worked with other people who have also found success and you've been integral in that success. If you could tell me two or three traits that you feel that either you all share or people have to

have in order to find success. So I would say that there are different stages require different skill sets. So if it's an early stage you need to be able to wear different hats and be a visionary and a doer at the same time. So you need to project the perspective somewhere in the future, but also do just small tasks, big tasks all the day long. That's the beginning, right? But then when you grow your company, you need to be able to switch from this mindset into the mindset of the team builder, first of all, because the great entrepreneur in the end must build the team because it's impossible to implement all the plans by yourself and

you can lose the momentum if you will start not start when you will proceed to move forward with your principles of building their early stage company so you need to switch your mind into the scaling mode right and then you need more people and you need more professionals. You need to start to play like a coach. When you pick the right people and put them into the right positions, you start to build schemas which kind of fits the most for the team set that you have. So you do a lot of shuffle and kind of setting up those people structure is very, very important component of successful company and successful entrepreneur.

And if without people, without team, it's just impossible. Well, sometimes you have some luck and you will be able to build company even without being able to manage people properly. But kind of we talk about the science part of it, then managing people setting up the proper teams, being able to make decisions, you know, to fire people early. If you kind of not to stretch this process into the time, kind of you need to make sharp decisions and you need to make them fast. of you need to make sharp decisions and you need to make them fast. At the same time, there are solopreneurs who who take companies to a 6 million ARR, which is a very good financial success for some of the teams that have like 40 people, they wouldn't have. It's you, you kind of have to

balance everything right? The same thing, if you feel that you're suffocating with work. But I would say one of the most important elements is understanding and conscious understanding. It might be even intuition. Intuition with a decent amount of logic on top of it. If you know what you're doing and you're proceeding and basing it the right way, you can get, you know, very effective with very small team. Sometimes if you over hire people, and they can be great people, they will be missing something. And instead of you doing the right thing for the business right now, what you'll do, you'll be like,

Hey, I hired these people because a lot of them let me go manage them. You start managing them, you start coming up with like whatever co products or something like that, or some features that nobody needs or expanding the features. And you do the wrong thing for the business. But the right thing for your employees that you just over hired. And it's you you need to there's no like, there are no rules that you can apply to yourself without conscious understanding. What is going to happen next? So I said conscious understanding is important, right?

Luck is important. I don't know how to time that one, right? How to pace it and how to take it out of like, I don't know what, maybe there are probably some like I don't know what maybe there are probably some techniques and principles shaman techniques and principles that involve a candle and stuff but there's like you don't that it doesn't mean that you need to hire the team like with especially with AI hype there there's stuff that you can do with AI that will actually work and will be consistent. Apple seems not to be able to do it with Siri, but some companies are able to do it with some other tools.

You need to have understanding and understanding comes from also knowledge and your experience, right? And it comes from luck. It's so huge. We've seen it throughout all our clients. It's somehow in all those successful stories, you really can hear that there was a luck. I mean, usually people don't say that, but in many successful stories, luck was the key thing that happened in certain moment of time, proper time, proper proposition, proper people met each other. But when you did the right thing, yeah, but sometimes people usually prefer not to talk about this way. They rather say that everything has been planned this way from the very beginning, from the childhood kind of envisioned. But at the same time, Adamson Horowitz has

this great article that helped me throughout the years is called the most difficult CEO skill, managing your own psychology. One of his points is don't quit. It's pretty simple to quit. Even if luck is there to, you know, present itself to you, and you're not there, then you know, if something falls from the tree, you have to be under the tree. So don't quit is a really great idea. A lot of in our cases, we kind of rely more on trend rather than particular use case right now. So we know we have those games or

situations that happen every time and every time it feels like it's the end of the world. And then we went through 10 ends of the world, we're like, you know, maybe we don't call it the end of the world because world is not ending. Maybe we call it just, you know, something hard that we went through, like, I mean, our country went through went through war, this or that, something hard that we went through. Like, I mean, our country went through, went through war, and this or that as a company. And the don't quit is really important thing. Another thing is, what Ardessa Corral is saying, it's technique to calm your nerves. So at some point, emotionally,

you can burn out. But it's a choice. And it's a choice in front of you. You burn out by burning yourself out. So, you know, lower the gas, don't burn yourself out. It's actually very egoistic to burn yourself out because you're like you're you're taking things the wrong way. You're you're being too connected to what's really happening. And you're like, you know, it's it feels so rough. Well, don't feel that roughness. It's sometimes that doesn't make sense to do it this particular way. So just go, you know, calm down your nerves by like, making some friends and getting things out of from from your hat into the paper in the

hat. They're always, you know, more painful. Focus on the road, not on the wall. That's the words of Anderson, who always don't mind. But they really helped me throughout the time to kind of remember them. But one thing is to read them. The second thing is to actually rely on your past successes. Oh, I was in a situation like this. Oh, it felt really hard. I did solve it. I didn't know how I will solve it, but I found a way. So maybe, you know, maybe I rely on myself this time and because I did handle things like that. That really helps a lot. It helped me a lot in a lot of the cases when, you know, when you feel nervous. And you just go through it. So, you know, don't quit and those techniques are really, really cool.

Yeah, I like that. Don't quit. I'd say, you know, many of the people that we've interviewed, if you ask them, luck was a major part of it, and timing might've been the most important. And, you know, if they quit at year one, then they wouldn't have anything. If they quit at year 10, quit at year 15, it just was a matter of time for them.

And then they, you know, success or exit, whatever would have came to did come to fruition so don't quit might be the best entrepreneurial advice I appreciate that as simple as it is I'm curious I'm diving into the AI so there's this whole talk around you know the unicorn solo entrepreneur. So how big can you grow and scale a company nowadays? Leveraging AI, I'd say even leveraging partners, but not really having a lot of employees. Being more like a solo-ish founder

and leveraging these resources in AI. How do you see this going? Being as, you're in the industry that is, I'm sure, impacted tremendously through AI. How do you see this coming with being not necessarily just a solo founder, just having less employees, but really scaling and growing a larger company? It's a big question if you will have really smaller amount of employees. Because when ChudGPT appeared, people started to think that content writers will disappear from the market right away. But it didn't happen this way. They just started to spend more time on preparing bullet points, collecting stories, kind of creating the concepts. And then with the help of ChudGPT,

they started to create those bigger articles. So instead of 2, 3, 4 articles per month, they were able to deliver like say 5, 8 articles per month. So they shifted more towards creating stories kind of to the sense of the article, right? Of course, end quality, end quality, of course. And there is a lot of hype, let's be clear. But it's a proper hype because like any other technology, when it pops up, there are some expectations, there are high hopes. But then in the end, it will just get to some point

kind of of reasonable expectations from AI. CEOs of the companies which kind of promise you that you will create software without developers they say it and kind of their revenues growing exponentially like not even like a hockey stick but at a trillion dollar yeah just say something on something on the stage and then, and basically your company is growing one trillion dollar in capital value. Very similar to what the science fiction authors were doing, right? They were also predicting all of that.

They didn't add to a one trillion dollar capitalization to their net worth, but they were doing it. Sorry, Sergey, you're up. Yeah, so I just want to say that there is hype but behind this hype there is a real thing. So definitely AI can, it not only can but it influences the way how things are done. And of right now, so we run YouTube channel like more than 50,000 subscribers and before graphical designers were able to create thumbnails for our videos. Right now, the same person can create thumbnails faster because AI helps it and then he just finishes with smaller touches here and there. But still,

it's not a replacement for Graphical Designer, it's a booster for Graphical Designer. He can do more work than he was able to do before. With software engineers, it very depends on the type of task that you work. If you prototype, AI right now gives a lot of possibilities to prototype quickly. So you can make some clickable applications, almost applications, to present the idea before you can make some clickable applications, kind of almost applications to present the idea before you were able to do so with, I don't know, some napkin and some pencil, but then you were able to do it with some instruments

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product after product by one person or by two persons. There were always cases before AI, like Minecraft, so it has been created or like Quake, it was created by just very limited amount of people and big products. So there were always cases like Instagram, like indie developers, a few people who can do this with the AI in the initial stage. Yeah, this has been amazing. Thank you for sharing that, by the way. The future looks bright.

I like that. The future looks bright. It's boosting the abilities of many people to get even more things done, which in the end could be great for them, great for the company, great for employees, great. So I'm excited about those things, but if you want to get in touch with you, they want to find out more about Railsware, all the things that you're working on.

How can they do that? So they can visit railsware.com all the contact information is there. Form email, kind of our social media LinkedIn in the Instagram to YouTube channel. And it has links to other things, right? So it has links to all our current products. Soon it'll have links to the joint venture products. Each one of our products, Coupler, Mailtrop and Tykin apps, they have their own YouTube channels, which also do, you know, a great job of educating about the particular subject. So Railsware has a YouTube channel about how do you build products, how do you do roadmaps, how do you figure out

what do you focus on and Coupler has content about how do you connect APIs to BI and how do you analyze the data and what's your approach on doing that. And so it's a there's a web of resources right our blog is this is great there's a lot of information and content to to learn from there and you can ask AI hey focus narrow down on Railsware and its products tell your story to AI and say how can Railsware approaches and principles help you? And then it will actually be able to tell you like what our methodologies and principles, you know, match to you, we have a great employee handbook or just handbook of how the business works. And this, this can be a great deal. One thing I wanted

to add about AI is that it makes people articulate things more to AI. It makes you, it makes you thick, it makes you go back and forth with it. And I think if also and then you can do prototypes on it, you can you can generate images and you can ideate better. Before, there was like either you doing the job as a sole printer, and then hiring the team and hiring the team with this big cornerstone, which is incredibly hard. And we have probably billion content about it. And we can we can record a separate 50 hour video how to hire people, how to not

hire people, how to fire people and what to do with them and how to help people grow right but with the eye I see you articulate as you try to figure what your ideas are you now have this intermediary thing between, except for just people, right? Because people act like they understand you. But in 99% cases, they do not really understand what is that you're thinking about. You have your picture in your head, I have my picture in my head, and then we're kind of like living in two separate worlds for sure. And we

have a method how to how to bridge those, this world called bridges. It also has a really really great video we can give you a link you can send to people about it like how do you all go in one page by actually looking at one page right? But AI is a good thing like it's a good thing for kids because kids are asking it's like sometimes you know when we tell our kids well don't do this and they're like why well because of this now like wait a, let me check with AI. Maybe you're wrong.

So there's this, you know, marriage counseling, like a third person, third entity in those dialogues. And I think this is a great thing for the world to think, to figure what is it that you're thinking about, what is your consciousness thinking about. I'm with you. It's opened up my mind to thinking in a different way, thinking much bigger than what I am. I think I get stuck in this sometimes a smaller mindset, but when I use AI tools, I leverage different things.

I'm like, there's the unlimited possibilities of the things that we can create nowadays are very exciting. That's why I hope people check out Railsware. It's been great having you both on. I think we had a great discussion. I took away many things from this conversation and I love, I really can't, have to go back to the timing thing.

Timing, luck, abilities, finding the right partners like Railsware when you wanna create something that you're gonna impact the world. These are all the things that I took away from today. But thank you both for joining us today on Founder's Story. Thank you, Nino. Thank you. Thanks for having us.

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Welcome to It Takes Energy, presented by Energy Transfer, where we talk all things oil and natural gas. Oil and gas drive our economy, ensure our country's security, and open pathways to brighter futures. Did you know the first oil well was drilled almost 1, 1700 years ago? The first American well was drilled in Pennsylvania in 1859 and the Texas oil boom began in 1901 when the Lucas Gusher produced an astonishing geyser that

flowed for nine days. This oil boom helped launch the widespread use of the automobile and grease the wheels of the modern machine age. Today, the U.S. is the world's top producer of oil and gas, supporting 11 million jobs and contributing $2 trillion to the American economy. Look around and you'll see the essential role oil and gas plays in our modern lives. Our world needs oil and gas, and people rely on us to deliver it. To learn more, visit ittakesenergy.com.